Technological change and the vertical organization of industries View Full Text


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Article Info

DATE

2008-08

AUTHORS

Tommaso Ciarli, Riccardo Leoncini, Sandro Montresor, Marco Valente

ABSTRACT

The vertical scope of a firm, that is, which components or segments of the production processes are kept in–house and which are outsourced, is variously considered as depending on cost and/or technological conditions. Most of the literature focuses on the incentives for an individual firm facing exogenous competition and technological opportunities. In this paper we consider the problem from the perspective of the whole industry: in what respect does firm organizational behavior depend on the industry technological evolution and aggregate structure, and how does innovation and organizational behavior affect the industry structure. We build an evolutionary simulation model of an industry where competitors decide the number of internally produced components. We relate the industry average value of market outsourcing to the technological conditions prevalent in the industry. The results from the model shed light on a number of (apparently) contradictory suggestions in the economic and management literature. More... »

PAGES

367-387

References to SciGraph publications

  • 2001-09. The Process of Vertical Dis-Integration: An Evolutionary Perspective on Outsourcing in JOURNAL OF MANAGEMENT AND GOVERNANCE
  • 1993-06. Theories of the firm: contractual and competence perspectives in JOURNAL OF EVOLUTIONARY ECONOMICS
  • Identifiers

    URI

    http://scigraph.springernature.com/pub.10.1007/s00191-008-0092-x

    DOI

    http://dx.doi.org/10.1007/s00191-008-0092-x

    DIMENSIONS

    https://app.dimensions.ai/details/publication/pub.1032171434


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