The evolution of vertically integrated organizations: the role of historical context

Abstract

Vertical integration across three different types of economies and selected industries is studied to trace historical, political, and economic influences on the evolution of vertically integrated structures. Specifically, the focus in this article is on the industrial development that took place in Germany, the UK, Japan and the USA. The role of a domestic market, colony markets, and attempts to become a dominant colonizer all play a significant role in the development of various industries, and the efficiency levels that they attained. The role of government, the level of international competition, and other integration drivers salient in the eighteenth and nineteenth centuries are also discussed. A broad view of structural and contextual forces provides a better understanding of why certain industries chose to integrate the way they did.

Citation

Desai, A. and Mukherji, A. (2001), "The evolution of vertically integrated organizations: the role of historical context", Management Decision, Vol. 39 No. 3, pp. 233-243. https://doi.org/10.1108/EUM0000000005454