TY - JOUR
T1 - The effects of innovation on vertical structure
T2 - perspectives on transaction costs and competences
AU - Wolter, Claudio
AU - Veloso, Francisco M.
PY - 2008/7
Y1 - 2008/7
N2 - We analyze how transaction cost economics and competence arguments determine vertical organization boundaries when firms react to innovation. Existing perspectives and empirical evidence have been ambiguous because of conflicting tensions between the two frameworks and simplistic views of innovation. Using Henderson and Clark's (1990) innovation categories and a careful review of both theories, we show that it is possible to reach a consistent set of predictions on vertical integration and to reconcile apparently conflicting empirical results.
AB - We analyze how transaction cost economics and competence arguments determine vertical organization boundaries when firms react to innovation. Existing perspectives and empirical evidence have been ambiguous because of conflicting tensions between the two frameworks and simplistic views of innovation. Using Henderson and Clark's (1990) innovation categories and a careful review of both theories, we show that it is possible to reach a consistent set of predictions on vertical integration and to reconcile apparently conflicting empirical results.
UR - http://www.scopus.com/inward/record.url?scp=47249161570&partnerID=8YFLogxK
U2 - 10.5465/AMR.2008.32465693
DO - 10.5465/AMR.2008.32465693
M3 - Article
AN - SCOPUS:47249161570
SN - 0363-7425
VL - 33
SP - 586
EP - 605
JO - Academy of Management Review
JF - Academy of Management Review
IS - 3
ER -