Viewpoint: Empirical research on firms' boundaries

Thomas N. Hubbard

Canadian Journal of Economics, 2008, vol. 41, issue 2, pages 341-359

Abstract: Empirical research on the determinants of firms' boundaries has flourished over the past 25 years. This article discusses the progress that has been made to date, emphasizing the intellectual advances made by researchers in this literature during this period. I stress empirical researchers' important role in operationalizing theoretical concepts and relate how success on this dimension brings these concepts to bear on real-life, make-or-buy decisions. I also discuss shortcomings in the current literature - in particular the paucity of research on how variation in firms' boundaries can affect economic outcomes - and point to how and where such shortcomings might be overcome.

Date: 2008
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