National Factor Endowment, Sector-specific Intensity, Technological Dependency and Organizational Structure:A Property-right Approach

This document using property-right approach analyzes the effect of national factor endowment, sector-specific intensity of head-quarter services and the degree of technological dependency on the decision of organizational structures of final-good producers.We highlight that the technological dependency of the final-good producer on the supplier is a significant factor resulting to the heterogeneity of firms within sectors so as their organizational structures. The conclusion is that cost advantage resulting from national factor endowment has significant effect on the decision of organizational structure of the final-good producer with high degree of technological dependency. The sector-specific intensity of head-quarter service has significant effect on the decision of organizational structure of the final-good producer with low degree of technological dependency.