Comments on: The WSJ on Vertical Integration http://organizationsandmarkets.com/2009/12/04/the-wsj-on-vertical-integration/ Economics of organizations, strategy, entrepreneurship, innovation, and more Sun, 12 Feb 2012 08:11:55 +0000 hourly 1 http://wordpress.com/ By: What’s up in innovation management in the online world? | InnovationManagement http://organizationsandmarkets.com/2009/12/04/the-wsj-on-vertical-integration/#comment-79215 Tue, 16 Mar 2010 08:36:45 +0000 http://organizationsandmarkets.com/?p=7634#comment-79215 [...] seems to have started with this piece (requires subscription) in the Wall street journal. Some strategy blogs quickly picked up the theme. I would recommend one blog post in particular to a busy [...]

]]> By: Donald A. Coffin http://organizationsandmarkets.com/2009/12/04/the-wsj-on-vertical-integration/#comment-78411 Mon, 07 Dec 2009 20:03:53 +0000 http://organizationsandmarkets.com/?p=7634#comment-78411 I thought it’d be interesting to google “technological change and vertical integration,” to see what I’d get. Took about 30 seconds, and here’s a sampling…makes you wonder whether WSJ reporters have heard of google.

Vertical Integration and Distance to Frontier
Acemoglu, Daron; Aghion, Philippe ;Zilibotti, Fabrizio
http://ideas.repec.org/p/cpr/ceprdp/3565.html

Production Technology, Information Technology, and Vertical Integration under Asymmetric Information
Gamal Atallah
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=307085

Vertical integration in the computer mainframe industry: A transaction cost interpretation
Guido A. Krickx
http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V8F-3YF4GMP-R&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1126094711&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=1d675c5bb0580c0dbeb45c689a7609ee

Vertical integration and technology: Theory and Evidence
Acemoglu, Daron; Aghion, Philippe; Griffith, Rachael; Zilibotti, Fabrizio
http://www.economics.harvard.edu/faculty/aghion/files/Vertical_Integration_and_Technology.pdf

Technological change and the vertical organization of industries
Ciarli, Tommaso; Leoncinii, Ricardo; Montresor, Sandro; Valente, marco
http://www.springerlink.com/content/mk56044l37k30531/

Maybe you could send those references back to the WSJ reporters…

]]> By: Per Bylund http://organizationsandmarkets.com/2009/12/04/the-wsj-on-vertical-integration/#comment-78353 Sat, 05 Dec 2009 03:14:22 +0000 http://organizationsandmarkets.com/?p=7634#comment-78353 There might not be empirical evidence of a technology-induced shift, but that might very well be a result of what you see and what you don’t rather than a real non-existence. It is perhaps too soon to tell.

What we do know is that technological development should theoretically have an effect on vertical integration as well as on other governance and organizational choices. Coase (1937) says so, even though he explicitly exemplifies with the telephone and telegraph (and not e.g. Babbagean analytical engines), and Durkheim (1933) most definitely discusses developments in communication through technological change as a driver of density and therefore facilitator of increased division of labor.

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