EVIDENCE ON THE ROLE OF FIRM CAPABILITIES IN VERTICAL INTEGRATION DECISIONS

摘要: The capabilities approach to the firm postulates that firms vertically integrate activities for which they possess are superior potential suppliers'. comparative contracting approach, in contrast, emphasizes high asset specificity as leading vertical integration. This paper compares two sets of explanations on make-or-buy decisions made by a large firm. It finds some cases alone is determinant, but others and combinations considerations explanatory. Analysis data also provides insights about mechanisms through operate. In particular, similarity knowledge bases associated with various activities, time required acquire knowledge, appear important indicators importance integration decisions.