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| Author: | Afuah, A. |
| Title: | Dynamic boundaries of the firm: are firms better off being vertically integrated in the face of a technological change? |
| Journal: | Academy of Management Journal
2001 : DEC, VOL. 44:6, p. 1211-1228 |
| Index terms: | Technological change Computer technology Transaction costs Knowledge management |
| Language: | eng |
| Abstract: | Building on transation cost economics and the knowledge-based theory of the firm, the author argues that, following a technological change that is competence- destroying to firms and their suppliers, companies that are integrated vertically into the new technology will perform better than those that are not. The argument suggests that the efficient boundaries of a firm are dynamic. The author uses the adoption of reduced instruction set computer (RISC) technology by makers of computer workstations to explore the hypotheses. |
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