12. Which statement best captures the idea of the "inverted firm"?
- 1Firms create more value by moving activities back inside the organization and expanding managerial control.

- 2Digitalization makes markets less efficient, so firms increasingly replace external networks with hierarchy.

- 3Value-creating activities move outside firm boundaries, while the firm increasingly orchestrates external networks.

- 4Firms become inverted when managers are removed and no coordination function is needed.
