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We examine the evolution of vertical specialization in three industries: chemicals, computers, and semiconductors. Vertical specialization is the restructuring of industry-wide value chains, such that different stages are controlled by different firms, rather than being vertically integrated within the boundaries of individual firms. In some cases, vertical specialization may span international boundaries and is associated with complex international production networks. After decades of vertical specialization, firms in the chemical industry are re-integrating stages of the value chain. By contrast, the semiconductor and computer industries have experienced significant vertical specialization during the past ten years. We examine how and why these contrasting trends in vertical specialization have co-evolved with industry maturation and decline, and underscore the importance and role of both industry factors and business strategies necessary for industries to become more specialized. We also consider the effects of vertical specialization on the sources of innovation and the geographic redistribution of production and other activities. We conclude that the evolution of vertical specialization in these three industries has both reflected and influenced the strategies of leading firms, while also displays industry-specific characteristics that are rooted in different technological and market characteristics.

The study aims to evaluate the informational value to investors of the Toxics Release Inventory (TRI) as an external outcome measure of corporate environmental performance. Emphasis is placed on the market response differences between three highly polluting industries.

The study uses pooled cross‐sectional, time‐series data and an event study methodology to examine the effects of TRI emissions on abnormal market returns.

There is empirical evidence that market reactions to TRI emissions information vary by industry. Investors reward decreases in emissions in the electric utility industry, but do not penalize increases. In the chemical industry, increases in emissions are penalized, but decreases are not rewarded. Models do not capture any reaction to emissions changes in the pulp and paper industry. These results may be explained by the significant difference between industries in the US percentage of total firm sales.

This research analyzes only data from US firms in three industries and evaluates a single measure of environmental performance, TRI. The value of TRI information is measured for one stakeholder group. Future research should attempt to address these limitations.

The results suggest that research on the effects of environmental performance on market‐based measures should estimate models by industry, whenever possible. From a public policy perspective, the results suggest that regulators may want to consider alternative methods of reducing chemical emissions beyond TRI disclosure in the chemicals and pulp and paper industries.

The study distinguishes between the value of TRI as a “message service” and the content of the “message”. TRI may provide information of value to investors, but performance changes may not be sufficient to merit a price response. The study also specifically addresses industry differences and clearly shows how average coefficients can be misleading relating to this one environmental performance indicator. The use of pooled industry coefficients may lead to inefficient resource allocation decisions within industries and ineffective policies at the regulatory level.

The purpose of this paper is to examine the impact of superior IT capability on financial performance of firms in the chemicals and chemical products industry in India.

Financial performance of 28 firms with superior IT capability has been compared with benchmark over a period of six years.

This research has five important findings for the chemicals and chemical products industry in India: there is positive association between superior IT capability and return on sales (ROS); firms with superior IT capability are able to earn higher margins on their products; asset turn of firms with superior IT capability is less than benchmark; capital markets give higher valuation to firms with superior IT capability; and this superior performance in terms of better ROS and higher capital market valuation is sustainable over a period of time.

This is the first empirical study that has analysed the influence of IT capability on financial performance of firms in a specific industry in the context of India.

This study aims to examine the impact of managerial ability on the total amount of chemical releases reported to the Toxics Release Inventory (TRI) at the US Environmental Protection Agency.

Regression analysis is used to examine the association between managerial ability and chemical releases.

A negative relationship was found between managerial ability and TRI’s chemical releases, suggesting that more-able managers better reduce TRI’s chemical releases, relative to less-able managers.

By providing useful insights into what determines TRI’s chemical releases, this study should interest policy makers and practitioners.

This study contributes to and links two research schools: managerial ability in management literature and corporate social responsibility (i.e. pollution prevention) in the broad business literature. To the best of the author’s knowledge, this is the first empirical study that performs a direct test of the association between managerial ability and TRI’s toxic chemical releases.

The objective of this study was to examine the trends in the specialty chemical industry that have led to the rising number of agile practices and “virtual” organizations. The current state of the industry is also presented. An agile company can be defined as an enterprise that is capable of operating profitably in a competitive environment of continually, and unpredictably, changing customer opportunities. The five most prevalent agile practices in the specialty chemical industry can be summarized as, entering niche markets through custom chemicals manufacturing, improving relationships with suppliers (also, a lean manufacturing practice), formation of strategic partnerships, adaptation of advanced technology/research, and the emergence of “virtual” firms. Examples and case studies from other authors are cited and commented upon with respect to these five agile practices. In addition, actual results from the study of a small specialty chemical firm have been used to ascertain the level of agility that this firm utilizes. A comparison of this manufacturing company's practices with the case studies from the literature reveals how a small‐intermediate size manufacturer can properly implement many agile manufacturing practices and position itself for growth and competitiveness in its category and class.

The purpose of this paper is to investigate the effect of diversification on returns of firms in chemical and oil industries.

In order to control for market effect, industry effect, and effects of endogenous variables of a sample firm that lead the firm to decide to diversify or refocus on stock returns, three‐factor asset‐pricing models introduced by Fama and French are used in each industry.

It is found that diversified firms have significantly higher returns than focused firms in both chemical and oil industries. It is also found that the three‐factor model explains much of the variation in the average stock returns for both focused firms and diversified firms, which is consistent with Fama and French.

Provides new evidence for the effect of diversification on firm returns in oil and chemical industries.

The purpose of this paper is to examine the differences in growth strategies – domestic and international – of manufacturing and service firms. Hardly any literature exists that empirically investigates the differences on account of the distinctive characteristics of goods and services, and such studies rarely draw from the operations management field.

Multiple analysis of variance is used to analyze longitudinal data from multiple secondary sources.

Mixed services, such as banks, focus more on domestic growth and less on international growth. Manufacturers, such as chemical firms, focus more on international activities as compared to domestic activities. Mixed service firms seem to prefer collaborative approaches, whereas goods producers prefer wholly owned ventures.

The data collection methodology applied in this study may be applicable to many other topics of operations management. Future researchers may examine internationalization of services from front and back office perspectives, and compare information‐processing, possession‐processing, and people‐processing services in their choices of mode of entry and resultant performance differences.

The findings are relevant for developing operations strategy, including location alternatives, for both manufacturing and service firms as different nations become a part of the global village. Appropriate modes of entry in an international arena for both service and manufacturing firms are identified.

A cross‐functional study that uses longitudinal data from secondary sources in an innovative way with significant implications for operations managers and researchers.

This paper explores whether there are discernible differences in the environmental innovation and performance of US chemical firms that can be explained by differences in the management practices and characteristics of the firms. Using data from a national survey, firm visits, and phone interviews, this research assesses the pervasiveness of the adoption of environmental management practices. It also assesses whether the adoption of these practices is related to leadership in environmental innovation and performance. This paper shows high levels of adoption of several practices for improving environmental innovation and performance. Firms are using practices such as total quality management, certification of suppliers, R&D, and the involvement of employees in innovation and training to integrate environmental management with their production systems. In addition, firms with the highest adoption levels of environmental practices have substituted cleaner materials and changed their production processes for cleaner production, and they are leaders in reducing their generation of chemical waste.

Economic interest groups such as seed, pesticide, feed, and food companies play an important role in supporting or preventing the production of genetically modified (GM) crops. The purpose of this paper is to examine firm managers’ attitudes toward GM technology, biotechnology R&D investment, and political lobbying activities.

Using data from surveys of 160 managers in the food, feed, chemical, and seed industries in 2013-2014, this paper employed three probit models to examine the determinants of managers’ attitudes, biotechnology R&D investment, and lobbying activities.

The results show that most Chinese agribusiness managers are concerned about GM foods and oppose its adoption. Nevertheless, one-third of the firms invest in biotechnology R&D and less than 15 percent of managers lobbied the government to change biotechnology policies. The econometric estimation results suggest that profit change expectation is the main factor affecting managers’ attitudes and biotechnology R&D investment decisions, whereas lobbying activities are significantly influenced by their attitudes and biotechnology R&D investment. In addition, managers’ attitudes toward GM foods also significantly influence firms’ decisions to invest in biotechnology R&D.

This paper has improved on previous research in two ways. First, it analyses the determinants of agribusiness firm managers’ attitudes toward GM technology, biotechnology R&D investment, and lobbying activities. Second, the methodology involves an analysis of agribusiness firm survey data in the food, feed, chemical, and seed industries, which is the first time to use such data to research on economic interest group in agricultural biotechnology field.

Today’s ever‐expanding global economy demands increased flexibility in all US industries where state‐of‐the‐art manufacturing and production methods are employed. A high‐skilled, well‐trained labor force is the key to a successful implementation of such methods that will allow the USA to compete effectively with those industrialized nations that have already made state‐of‐the‐art production and a high‐skilled labor force their top industrial and economic priorities. The US chemical industry, for example, is one industry that has found it quite difficult to follow through on these priorities. By factor analyses, regressions and cluster analyses, it is shown that many neo‐Taylorian practices persist through the development of lean production in this industry. If the US chemical industry is to compete competitively in the new global economy, it must make a more serious effort in addressing these priorities.