Vertical Integration and Firm Boundaries: The Evidence
نویسندگان
چکیده
منابع مشابه
Global Sourcing and Firm Selection
Which firms find it optimal to integrate their input suppliers into the firm boundaries of control (vertical integration)? Which firms choose to expand their sourcing activities across the national border (offshoring)? This letter provides novel evidence on these questions based on a Spanish firm-level data set. We find that firms selecting into strategies of vertical integration and of offshor...
متن کاملThe Process of Vertical Dis-integration: an Evolutionary Perspective on Outsourcing
It is argued that an evolutionary perspective on firm boundaries with its strong focus on knowledge, as well as processes of search, learning and capability development is instrumental in developing a theory of firm boundaries that is close to managerial concerns. Building on insights in evolutionary economics, propositions are developed regarding scope, speed, and switching costs in the proces...
متن کاملDesigning the Boundaries of the Firm: From “Make, Buy, or Ally” to the Dynamic Benefits of Vertical Architecture
The concept of “vertical architecture” defines the scope of a firm and the extent to which it is open to final and intermediate markets; it describes the configurations of transactional choices along a firm’s value chain. A firm can make or buy inputs, and transfer outputs downstream or sell them. Permeable vertical architectures are partly integrated and partly open to the markets along a firm...
متن کاملThe Theory of the Firm Revisited: Changing Firm Boundaries in a New Information and Communication Environment*
The nature of the firm has changed since COASE (1937). Value-chains break up and firm boundaries are shrinking in recent years. What we observe can be interpreted as a break-up of the old vertically integrated ‘modern business enterprise (MBE)’ a la CHANDLER. I explore in how far the international dissemination of information and communication technology (ICT) acted as a catalyst in changing or...
متن کاملFirm Boundaries : Impact on Risk - Return Profile WISE 2006
In this empirical study, we investigate the effects of IT investments on firm risk-return profile, emphasizing the complementarities between IT investments and firm boundary strategies; i.e., diversification and vertical integration. Our results are consistent with a strong moderating role of IT in leveraging firm boundary strategies on both the return and risk dimensions of firm financial perf...
متن کامل