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- W2901255346 abstract "This paper examines performance implications of vertical integration and industrial agglomeration in the manufacturing sector during a negative demand shock. The paper contributes to the strategy literature in two ways. First, most of the previous theoretical and empirical work posits that vertical integration is the organizational form that offers more ability to adapt to unforeseen contingencies. This paper presents evidence that when a low demand state is realized, vertical integration confronts short-term performance disadvantages due to its relative rigidity to reduce variable production costs (i.e. material and labor inputs). Second, previous research in strategy has not made an explicit connection between performance implications of vertical integration and those of industrial agglomeration. This work presents evidence that the relative performance disadvantage of vertical integration in this context increases in the level of industrial agglomeration due to its relative inability to benefit from the location-specific externalities." @default.
- W2901255346 created "2018-11-29" @default.
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- W2901255346 date "2012-07-01" @default.
- W2901255346 modified "2023-10-14" @default.
- W2901255346 title "Performance Implications of Vertical Integration and Industrial Agglomeration under Demand Slowdown." @default.
- W2901255346 doi "https://doi.org/10.5465/ambpp.2012.14550abstract" @default.
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