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1 – 10 of over 10000Jukka Pellinen, Henri Teittinen and Marko Järvenpää
The purpose of this paper is to extend the knowledge of the use of performance measurement systems (PMS) in situations where the benefits of both vertical and horizontal…
Abstract
Purpose
The purpose of this paper is to extend the knowledge of the use of performance measurement systems (PMS) in situations where the benefits of both vertical and horizontal integration strategies are sought simultaneously.
Design/methodology/approach
This is a single case study, the purpose of which is to build a contextual theory.
Findings
The main results highlight three competing and partly contradictory tendencies in the development and use of PMS in organizational integration. In addition, the authors have identified features of PMS that may benefit or hinder integration. Grounded on empirical findings the paper presents a more complete theoretical framework of PMS for integration.
Research limitations/implications
The propositions of the framework need to be tested in different contexts with case and field studies or a large sample of data using statistical techniques to improve external validity. The causal relationships explored in this study may be further developed using longitudinal studies.
Practical implications
In acquisition situations there exists the need for vertical integration to control the growing complexity but at the same time for horizontal control to advance customer-centred production. Performance measurement is the key issue to examine the execution and results of such integrations.
Originality/value
Case study findings are used to develop a more comprehensive theory of PMS design and use in situations where both vertical and horizontal integration are sought. Contrary to current understandings, the central statement of this study is that horizontal organization is not an alternative to vertical organizational structure but they can be effectively coupled.
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Manas Chaudhuri and Tarun Kabiraj
The purpose of this paper is to study the question of pre‐emptive merger decisions in a composite good framework where these goods have both competitive and complementary features.
Abstract
Purpose
The purpose of this paper is to study the question of pre‐emptive merger decisions in a composite good framework where these goods have both competitive and complementary features.
Design/methodology/approach
The paper constructs a model of partial mergers when there are three firms and three goods in the production network, but consumers need only two goods to complete their consumption. This means, two of the firms produce two competing brands while the other firm produces any complementary product. Then under vertical merger cooperation takes place between two firms producing mutually compatible or complementary goods, whereas horizontal integration occurs when cooperating firms produce goods substitutes to each other.
Findings
In such a framework, partial mergers inflict strong negative externalities on the outside firms. The paper shows that loss of profits to the non‐integrated firm is higher under horizontal integration than that under vertical integration; hence pre‐emptive incentives for vertical merger are always larger. The paper clearly distinguishes between private incentives and pre‐emptive incentives for merger. If so desired, the vertically merged firm could foreclose the market of the outside firm and emerge as monopoly. Interestingly, foreclosing in our model is never optimal. The paper also provides a welfare analysis. While all‐firm merger maximizes social welfare, under vertical merger consumers are always better off. Industry profit also goes up if the goods are not so close substitutes.
Originality/value
This appears to be the first paper that discusses the question of pre‐emptive mergers in a framework of composite goods. Since, in the structure presented a horizontal merger always reduces welfare, one implication of the result is that the antitrust authority should not remain indifferent to the forms of merger actually taking place in a country.
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Reports on a comparative study of the types and degrees ofhorizontal and vertical integration within the seed potato industries ofThe Netherlands and Northern Ireland. Using an…
Abstract
Reports on a comparative study of the types and degrees of horizontal and vertical integration within the seed potato industries of The Netherlands and Northern Ireland. Using an integration analysis grid, presents descriptive models of the integrative functions in both industries. Given the superior marketing performance of the Dutch industry, and the way in which this is facilitated by its highly integrated organizational structure, makes a case for the utilization of both horizontal and vertical integration in improving marketing performance in seed potato industries.
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Stefania Kollia and Athanasios A. Pallis
Container liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence…
Abstract
Purpose
Container liner shipping companies started expanding their business by investing in container port terminals in the late 1990s. This market entry results in an extensive presence of vertically integrated liners and terminals. This study aims to explore the competition effects of this vertical integration trend based on a regional (European) analysis. In particular, it extracts lessons from the European Commission (EC) cases on the competition effects of vertical integration. The critical analysis of the cases examined at the institutional level intends to reach conclusions on whether liner–terminal vertical integration harmed or advanced competition in the relevant markets and/or the extent that there is a need to revise the current policy practices.
Design/methodology/approach
This study critically assesses the EC’s decisional practices in port container terminal vertical mergers in the last 25 years (1997–2021). Based on a literature review comparing maritime and competition economists' perspectives, it reviews the types of mergers examined, the methodology followed for relevant market definition and calculation of market shares and the estimated competition effects. The Hamburg–Le Havre area is the port range used as a case study for comparing the decisional practice with actual market developments. These container ports serve the greatest consuming market of final and intermediate goods in Europe and are gateways to Central and Eastern Europe.
Findings
The assessment identifies a need for expanding the investigation as a precondition for reaching conclusions on both the anti- and pro-competitive effects. First, only a limited number of transactions have been notified to the EC. Second, the empirical research identified a gap in this process, as there were no decisions (phase I) on vertical mergers between 2008 and 2016. Third, the exante assessment has not applied a phase II in-depth analysis to any case due to the absence of competition concerns. Finally, due to the absence of complaints, there is a lack of any ex post assessment of the effects of vertical integration.
Research limitations/implications
This assessment is important for understanding the current and emerging features of intra-port and inter-port competition and the potential effects that the continuation and expansion of liner companies' vertical integration strategies will have along maritime supply chains. It also contributes to the broader discussion on liner companies' strategies, such as the research and policy-making efforts around the globe to understand the impact of both vertical and horizontal integration.
Practical implications
These discussions are critical for a diversity of businesses that use liner shipping services or provide facilities and services to container shipping lines or ports. They are important for the interests of customers and consumers as they could inform any needed re-visiting of competition policy to protect from the dominance of any market developments that would lead to conditions limiting competition. Expanding analysis on the competition effects of non-notified mergers would help a better understanding of market changes.
Social implications
Enhancing competition and limiting monopolies is valuable from a consumer's perspective. This is more so in the case of maritime trade that serves the needs of societies. The study contributes by generating a better understanding of how decision-makers have worked towards that direction and what realignments are worthy.
Originality/value
There are no previous comprehensive reviews and analyses of the ways that policy-makers at the regional level have addressed the competition effects of vertical integration strategies of liner shipping companies when enhancing competition is valuable from a consumer perspective. Comparing maritime economists and competition, the study, via its literature review, also offers a comparison of maritime and competition perspectives on these competition effects, allowing positioning of how effective decisional-making practices have been.
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Lawton Robert Burns, Jeff C. Goldsmith and Aditi Sen
Researchers recommend a reorganization of the medical profession into larger groups with a multispecialty mix. We analyze whether there is evidence for the superiority of these…
Abstract
Purpose
Researchers recommend a reorganization of the medical profession into larger groups with a multispecialty mix. We analyze whether there is evidence for the superiority of these models and if this organizational transformation is underway.
Design/Methodology Approach
We summarize the evidence on scale and scope economies in physician group practice, and then review the trends in physician group size and specialty mix to conduct survivorship tests of the most efficient models.
Findings
The distribution of physician groups exhibits two interesting tails. In the lower tail, a large percentage of physicians continue to practice in small, physician-owned practices. In the upper tail, there is a small but rapidly growing percentage of large groups that have been organized primarily by non-physician owners.
Research Limitations
While our analysis includes no original data, it does collate all known surveys of physician practice characteristics and group practice formation to provide a consistent picture of physician organization.
Research Implications
Our review suggests that scale and scope economies in physician practice are limited. This may explain why most physicians have retained their small practices.
Practical Implications
Larger, multispecialty groups have been primarily organized by non-physician owners in vertically integrated arrangements. There is little evidence supporting the efficiencies of such models and some concern they may pose anticompetitive threats.
Originality/Value
This is the first comprehensive review of the scale and scope economies of physician practice in nearly two decades. The research results do not appear to have changed much; nor has much changed in physician practice organization.
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Benedict Rumbold and Sara Shaw
Policy makers, practitioners and researchers have increasingly emphasised the need for both vertical and horizontal ‘integration’ and ‘integrated care’. This is not new; since the…
Abstract
Policy makers, practitioners and researchers have increasingly emphasised the need for both vertical and horizontal ‘integration’ and ‘integrated care’. This is not new; since the inception of the NHS wide‐ranging policies and programmes have sought to co‐ordinate services better. Current UK policy, however, tends to overlook this historical record and, in so doing, ignores potential learning from the past. We seek to help rectify this approach by reviewing historical (published and grey) literature over the past one hundred years, considering both the drivers for and the impediments to varied UK policy developments in integrating health and allied services. We aim to shed light on how the policy of integrated care has developed in the UK and draw out lessons for modern‐day policy makers.
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Soroosh Saghiri and Vahid Mirzabeiki
This paper aims to explore how omni-channel data flows should be integrated by specifying what data, omni-channel agents and information and digital technologies (IDTs) should be…
Abstract
Purpose
This paper aims to explore how omni-channel data flows should be integrated by specifying what data, omni-channel agents and information and digital technologies (IDTs) should be considered and connected.
Design/methodology/approach
A multiple case study method is used with 17 British companies. The studies are supported by 68 interviews with the case companies and their consumers, 5 site visits, 4 focus group meetings and the companies’ archival data and documentations.
Findings
This paper provides novel frameworks for omni-channel data flow integration from consumer and business perspectives. The frameworks consist of omni-channel agents, their data transactions and their supporting IDTs. Relatedly, this paper formalizes the omni-channel data flow integration in the forms of horizontal, vertical and total integrations and explores their contributions to the adaptability of omni-channel, as a complex adaptive system (CAS). It also discusses that how inter-organizational governance mechanisms can support data flow integration and their relevant IDT implementations.
Research limitations/implications
The breadth and depth of the required IDTs for omni-channel integration prove the necessity for omni-channel systems to move toward total integration. Therefore, supported by CAS and inter-organizational governance theories, this research indicates how data flow integration and IDT can transform the omni-channel through self-organization and autonomy capability enhancement.
Originality/value
This research’s recommended frameworks provide a robust platform to formalize data flow integration as the omni-channel's core driver. Accordingly, it moves the literature from a basic description of “what omni-channel is” and provides a novel and significant debate on what specific data should be shared at what levels between which agents of the omni-channel, and with what type of relationship governance mechanism, to assure omni-channel horizontal, vertical and total integrations.
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Sara Rankohi, Mario Bourgault and Ivanka Iordanova
Recent construction literature has been focusing more on integrative contracting approaches such as integrated project delivery (IPD). However, conceptual studies on integration…
Abstract
Purpose
Recent construction literature has been focusing more on integrative contracting approaches such as integrated project delivery (IPD). However, conceptual studies on integration in IPD literature are scattered and fragmented, that is, most of the studies only focused on the segmented dimension of integration. A systemic understanding of the concepts of integration in IPD project-based context is still lacking. To fill this gap, this paper analyzes two aspects of integration (dimensions and directions) in IPD literature and explores their extent in construction projects.
Design/methodology/approach
Grounded theory review and focus group discussion approaches were employed to perform a thorough conceptual review of the literature, frame the research into the theory and increase the fundamental understanding of the concept of integration in IPD literature.
Findings
In this study, IPD integrating techniques were identified and their integration dimensions and directions were discussed. Results show that integration in the project-based environment of IPD is a multidimensional construct. Based on organizational, contractual and operational characteristics of IPD projects, twenty-four integration mechanisms were identified and framed into seven clusters. The integration directions over project life-cycle were demonstrated in three contexts: (1) an on-site construction project, delivered traditionally, (2) an on-site construction project, delivered with IPD and (3) an off-site construction project, delivered with IPD.
Originality/value
This paper gathers the segments of integration into a comprehensive overview, which can help researchers and practitioners explore elements of IPD project success more precisely. A theoretical framework of integration clusters is developed, based on IPD literature. The impact of IPD on on-site versus off-site construction is illustrated from an integration direction perspective. Finally, future areas of studies for researchers and practitioners about the concept of integration in an IPD context are discussed. This paper provides a point of departure for future theoretical and empirical explorations.
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Jenna M. Evans, Ross G. Baker, Whitney Berta and Barnsley Jan
To examine the evolution of health care integration strategies and associated conceptualization and practice through a review and synthesis of over 25 years of international…
Abstract
Purpose
To examine the evolution of health care integration strategies and associated conceptualization and practice through a review and synthesis of over 25 years of international academic research and literature.
Methods
A search of the health sciences literature was conducted using PubMed and EMBASE. A total of 114 articles were identified for inclusion and thematically analyzed using a strategy content model for systems-level integration.
Findings
Six major, inter-related shifts in integration strategies were identified: (1) from a focus on horizontal integration to an emphasis on vertical integration; (2) from acute care and institution-centered models of integration to a broader focus on community-based health and social services; (3) from economic arguments for integration to an emphasis on improving quality of care and creating value; (4) from evaluations of integration using an organizational perspective to an emerging interest in patient-centered measures; (5) from a focus on modifying organizational and environmental structures to an emphasis on changing ways of working and influencing underlying cultural attitudes and norms; and (6) from integration for all patients within defined regions to a strategic focus on integrating care for specific populations. We propose that underlying many of these shifts is a growing recognition of the value of understanding health care delivery and integration as processes situated in Complex-Adaptive Systems (CAS).
Originality/value
This review builds a descriptive framework against which to assess, compare, and track integration strategies over time.
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Sven-Vegard Buer, Jo Wessel Strandhagen, Marco Semini and Jan Ola Strandhagen
While manufacturing digitalization is currently considered an important enabler of competitive advantage, its applicability across the industrial spectrum is unclear. This paper…
Abstract
Purpose
While manufacturing digitalization is currently considered an important enabler of competitive advantage, its applicability across the industrial spectrum is unclear. This paper aims to investigate the relationship between the use of digital technologies and different production environments and company sizes. The focus is on three aspects of digitalization: shop floor digitalization, technologies for vertical and horizontal integration and organizational IT competence.
Design/methodology/approach
This study is based on data gathered from a survey questionnaire sent to 212 Norwegian manufacturing companies. To test the formulated hypotheses, the two-way analysis of variance (ANOVA) method was used.
Findings
This study confirmed that large enterprises (LEs) have a significantly higher level of shop floor digitalization and organizational IT competence than small and medium-sized enterprises (SMEs). Regarding the difference between production environments, no statistically significant difference in the implementation level of the investigated digitalization aspects could be found.
Originality/value
To the best of the authors' knowledge, this is one of the first studies to investigate differences in the adoption of digital technologies between different groups of production environments. This study also provides updated findings related to the relationship between digitalization and company size. The findings presented in this paper provide important insights into directing future research efforts to assist environments that are currently lagging behind in their digital transformation.
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