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Title: Business performance and vertical integration

Conference ·
OSTI ID:6180829

The focus of this empirical study is the relationship between vertical integration, as an element of market structure, and the price-cost margin, as a component of a firm's performance. The models presented in this paper differ from previous efforts because vertical integration is measured by the Vertical Industry Connections (VIC) index. VIC is defined as a function of the relative net interactions among the industries in which a firm operates. The results indicate that VIC is significant in increasing th price-cost margin, supporting the hypothesis that vertical intergration can be employed as a strategy to enhance business performance.

Research Organization:
Oak Ridge National Lab., TN (USA)
DOE Contract Number:
W-7405-ENG-26
OSTI ID:
6180829
Report Number(s):
CONF-800820-13; ON: DE81028531
Resource Relation:
Conference: American Statistical Society meeting, Houston, TX, USA, 11 Aug 1980
Country of Publication:
United States
Language:
English