 Technological change and the vertical organization of industriesTommaso Ciarli, Marco Valente, Riccardo Leoncini and Sandro Montresor () A chapter in Schumpeterian Perspectives on Innovation, Competition and Growth, 2009, pp 115-135 from Springer Abstract: Abstract The vertical scope of a firm, that is, which components or segments of the production processes are kept in–house and which are outsourced, is variously considered as depending on cost and/or technological conditions. Most of the literature focuses on the incentives for an individual firm facing exogenous competition and technological opportunities. In this paper we consider the problem from the perspective of the whole industry: in what respect does firm organizational behavior depend on the industry technological evolution and aggregate structure, and how does innovation and organizational behavior affect the industry structure. We build an evolutionary simulation model of an industry where competitors decide the number of internally produced components. We relate the industry average value of market outsourcing to the technological conditions prevalent in the industry. The results from the model shed light on a number of (apparently) contradictory suggestions in the economic and management literature. Keywords: Firm organization; Industrial structure; Technological dynamics (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-93777-7_8 Ordering information: This item can be ordered from DOI: 10.1007/978-3-540-93777-7_8 Access Statistics for this chapter More chapters in Springer Books from Springer |
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