External coordination occurs when organizations

• A. Focus only on internal processes.
• B. Look outside their boundaries to find and develop new ideas.
• C. Ignore external knowledge.
• D. Develop projects in a hermetically sealed environment.

Answer: (B)

External coordination means engaging beyond the organization’s own walls to access ideas, knowledge, and resources from outside. When organizations coordinate externally, they look outside their boundaries to find and develop new ideas, often by partnering with suppliers, customers, other firms, consultants, or industry groups. This openness brings in diverse perspectives, accelerates learning, and helps adopt best practices that the organization couldn’t develop in isolation.

Focusing only on internal processes stays within the organization and misses the benefits of outside input. Ignoring external knowledge defeats the purpose of coordinating with outsiders. Creating projects in a hermetically sealed environment literally blocks any external input, which is the opposite of what external coordination is about.

So the best fit is looking outside boundaries to find and develop new ideas.