Testing Organizational Economics Theories of Vertical Integration

Kaouthar Lajili, Marko Madunic, Joseph T. Mahoney

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This article classifies empirical research on vertical integration under four approaches - value-added-to-sales, qualitative-quantitative, input-output, and microanalytic. The emphasis here is on the microanalytic approach which has accumulated the most systematic evidence to support its theoretical propositions. In particular, this article emphasizes theoretical and empirical contributions from organizational economics (especially transaction costs and agency theories) for both vertical integration and (vertical) contracting. Limitations and methodological challenges concerning the empirical testing of theories of vertical integration are addressed and suggestions for further research are provided.

Original languageEnglish (US)
Title of host publicationResearch Methodology in Strategy and Management
EditorsDavid Ketchen, Donald Bergh
Pages343-368
Number of pages26
DOIs
StatePublished - Jul 12 2007

Publication series

NameResearch Methodology in Strategy and Management
Volume4
ISSN (Print)1479-8387

ASJC Scopus subject areas

  • Strategy and Management

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    Lajili, K., Madunic, M., & Mahoney, J. T. (2007). Testing Organizational Economics Theories of Vertical Integration. In D. Ketchen, & D. Bergh (Eds.), Research Methodology in Strategy and Management (pp. 343-368). (Research Methodology in Strategy and Management; Vol. 4). https://doi.org/10.1016/S1479-8387(07)04012-X