Improving performance through vertical disintegration

evidence from UK manufacturing firms

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Unlike previous work on the vertical integration–performance relationship, we investigate the performance consequences of vertical disintegration. We offer a theoretical justification for the disintegration decision and we condition the disintegration effect on performance on the initial degree of firm integration, the timing and the direction of disintegration. Using a sample of UK manufacturing firms and controlling for disintegration endogeneity, we find that disintegration eventually results in improved operating performance, particularly when disintegration occurs as a reaction to poor performance and in cases of forward between-sector disintegration. However, being highly integrated does not guarantee gains from disintegration. The implications of these findings are discussed.
Original languageEnglish
Pages (from-to)307-324
Number of pages18
JournalManagerial and Decision Economics
Volume30
Issue number5
Early online date24 Nov 2008
DOIs
Publication statusPublished - Jul 2009

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Disintegration
Manufacturing firms
Vertical disintegration

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Improving performance through vertical disintegration : evidence from UK manufacturing firms. / Desyllas, Panos.

In: Managerial and Decision Economics, Vol. 30, No. 5, 07.2009, p. 307-324.

Research output: Contribution to journalArticle

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