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
- Country of Publication:
- United States
- Language:
- English
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