Vertical Integration from the Perspectives of Industrial Organization Economics and Organization Theory.

Authors:
  • BBBarry D. Baysinger
    Barry D. Baysinger
  • HBHenry D. Butler
    Henry D. Butler
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Abstract
Industrial organization economics and organization theory are both concerned with the way organizations solve various problems associated with interorganizational exchange. This paper synthesizes the contributions of these fields and develops a generic concept of vertical integration. A unified theory concerning the problematic aspects of market interaction is presented. In addition, the decision-making rationale for choosing among the full set of generic vertical integration strategies is elaborated.