Final answer:
When a group of firms collaborates effectively for the good of the larger group, they establish an extended enterprise characterized by virtual integration.
Step-by-step explanation:
The statement is true. When a group of firms collaborates effectively for the good of the larger group, they establish an extended enterprise characterized by virtual integration.
Virtual integration refers to the coordination and cooperation among various firms in a supply chain or industry to achieve mutually beneficial outcomes. It involves leveraging technology and strategic partnerships to create a seamless flow of information, goods, and services, resulting in improved efficiencies and competitive advantages.
For example, in the automotive industry, different firms may collaborate to develop and produce components for a vehicle. This collaboration allows them to share expertise, reduce costs, and deliver high-quality products to consumers.