Vertical integration
We develop a theoretical real options model and explore the trade-off between vertical integration and external procurement. In contrast to transaction cost theory, we show that higher volatility in the downstream market reduces the likelihood to switch to internal production. We also analyse the de...
| Autores: | , |
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| Formato: | artículo |
| Fecha de publicación: | 2022 |
| País: | España |
| Recursos: | Universitat Autònoma de Barcelona |
| Repositorio: | Dipòsit Digital de Documents de la UAB |
| Idioma: | inglés |
| OAI Identifier: | oai:ddd.uab.cat:288129 |
| Acesso em linha: | https://ddd.uab.cat/record/288129 https://dx.doi.org/urn:doi:10.1080/13504851.2022.2107159 |
| Access Level: | acceso abierto |
| Palavra-chave: | Vertical integration Real options Optimal timing Acquisition Supply Chain |
| Resumo: | We develop a theoretical real options model and explore the trade-off between vertical integration and external procurement. In contrast to transaction cost theory, we show that higher volatility in the downstream market reduces the likelihood to switch to internal production. We also analyse the decision to acquire the supplier and provide novel predictions on the acquisition likelihood and premium contributing to studies relating to vertical M&As. |
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