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Article
Publication date: 1 September 2000

Bill Gerrard

This paper analyses the media ownership of professional sports teams. The theory of vertical integration is used to identify internal efficiency gains, lower uncertainty and…

Abstract

This paper analyses the media ownership of professional sports teams. The theory of vertical integration is used to identify internal efficiency gains, lower uncertainty and increased market power as general explanations. The industryspecific reasons are examined, particularly the importance of securing access to broadcasting rights. The potential implications for teams, leagues and fans are discussed. It is suggested that media ownership of teams may undermine the sporting and financial viability of leagues thus necessitating intervention by sports administrators and government regulators.

Details

International Journal of Sports Marketing and Sponsorship, vol. 2 no. 3
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 25 September 2009

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.

Details

Indian Growth and Development Review, vol. 2 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 1 March 2007

Raymond Cheng‐Yi Wu

The main purpose of this paper is to research the e‐government architecture issue as a means of addressing the interoperability gap. It will incorporate the new knowledge acquired…

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Abstract

Purpose

The main purpose of this paper is to research the e‐government architecture issue as a means of addressing the interoperability gap. It will incorporate the new knowledge acquired in the e‐government integration methodology of the interconnectivity of cross‐layers. These layers include the vertical direction of strategy, business, process, service and information.

Design/methodology/approach

The methodology used in this research as it progressed was component‐base driven and involved the exploration of vertical e‐government integration and common service interoperability between business and IT. The realization of this methodology first required a technical foundation setup followed by a business semantics study and a new concept of enterprise integration. The lack of interconnectivity between these layers is the main concerns with the implication that e‐government architecture needs a robust micro‐mechanism of semantic messaging and metadata to coordinate across layers.

Findings

E‐government architecture became pervasive in the twenty‐first century due to its significant growth in terms of huge volume transactions, the citizens' new service concept, and sophisticated businesses. Enterprise architecture mainly mediates between business and IT to minimize the gap by improving governance, agility and business integrity. All of these disciplines and principles should be applied to attain e‐government transformation and vertical interoperability and common services provisioning are the major findings in the research.

Originality/value

This paper contribute new concept of enterprise vertical integration in e‐government. The integrated solution of coherence of approaches forms the basis of this new concept; it serves as the backbone in vertical integration and addresses the e‐government enterprise gap. It is expected to provide further insights into micro process integration across e‐government enterprise layers.

Details

Transforming Government: People, Process and Policy, vol. 1 no. 1
Type: Research Article
ISSN: 1750-6166

Keywords

Book part
Publication date: 11 August 2014

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.

Details

Annual Review of Health Care Management: Revisiting The Evolution of Health Systems Organization
Type: Book
ISBN: 978-1-78350-715-3

Keywords

Article
Publication date: 1 January 2006

Peter W. Stonebraker and Jianwen Liao

This conceptual paper aims to examine the notion that supply chain integration is an extension and application of vertical integration theory.

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Abstract

Purpose

This conceptual paper aims to examine the notion that supply chain integration is an extension and application of vertical integration theory.

Design/methodology/approach

The paper initially defines a foundation in the supply chain and vertical integration literature, with particular attention to the seminal works of Harrigan in vertical integration and Hayes and Wheelwright in product life cycles. The paper then offers an assessment of the state of the supply chain integration literature. Subsequently, the stage of product/process life cycle and environmental variables such as complexity and munificence are examined in detail and are the basis for the theoretical model and propositions.

Findings

This study argues that the stage of life cycle variables is associated with the various dimensions of supply chain integration, and that environmental complexity and munificence have significant moderating effects on the relationships. The paper posits that, for efficiency and success, a strategic fit must exist between environmental, strategic and operations variables, and that specific dimensions of integrative effort are appropriate for given situations. That fit would attenuate bullwhip inefficiencies, either of inventories and other mechanical decisions, or of the less tangible human and structural interaction.

Originality/value

As such, this paper represents a cross‐functional and interdisciplinary approach to operations and strategic management theory by identifying and facilitating appropriate operations decisions pertaining to the contingencies of the supply chain.

Details

Supply Chain Management: An International Journal, vol. 11 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 June 1997

Gary Cook

Looks fundamentally at the reasons for vertical integration. Specifically addresses the question of why vertical integration and close contractual equivalents have arisen in the…

3263

Abstract

Looks fundamentally at the reasons for vertical integration. Specifically addresses the question of why vertical integration and close contractual equivalents have arisen in the petrol and brewing sectors of the UK. Reports the results of a comparative case study. Considers the ability of power and efficiency explanations to account for both the current pattern of vertical integration and its changes over time. Principally concludes the following: the recent history of vertical integration is better accounted for by efficiency rationales in the case of petrol and by market power in the case of brewing. Nevertheless, elements of both are present in each industry. Given the strong similarity in vertical and horizontal industry structure between these sectors, this implies that a case by case approach is preferable to a form‐based approach.

Details

Journal of Economic Studies, vol. 24 no. 3
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 2 February 2010

Chu‐Ping Lo

The purpose of this paper is to present a simple model to demonstrate how a trade‐off between incomplete contract distortions and excessive governance costs determine an…

Abstract

Purpose

The purpose of this paper is to present a simple model to demonstrate how a trade‐off between incomplete contract distortions and excessive governance costs determine an agricultural firm's organizational choices.

Design/methodology/approach

In this paper, it is argued that the perishable nature of products exaggerates the incomplete contract distortion, such that products with a short biological production cycle (e.g. eggs) are likely to be operated under vertical integration, products with a medium cycle (e.g. poultry) are likely to be operated under product contracts, and products with a long cycle (e.g. pork) are likely to be operated under marketing contracts.

Findings

This model helps explain why vertical integration dominates the US egg industry, why product contracts are prevalent in the turkey industry, and why marketing contracts have become common in the pork industry. The implications from this model are also applicable to other sectors and other countries, including China's agricultural sectors.

Originality/value

This paper illustrates that perishable products are more vulnerable to opportunism, because the incomplete contract distortion is exaggerated by the perishable nature of the products. However, a local government can reshape firms' choices of vertical coordination by improving its legal infrastructure to reduce the incomplete contract distortions and then weaken the role of the perishable nature of products, so that contracting (product or marketing) may take place. Note that agricultural producers benefit more in selling their products through product/marketing contracts than spot markets.

Details

China Agricultural Economic Review, vol. 2 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Book part
Publication date: 14 December 2004

Jeffrey T. Macher and David C. Mowery

We examine the evolution of vertical specialization in three industries: chemicals, computers, and semiconductors. Vertical specialization is the restructuring of industry-wide…

Abstract

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.

Details

Business Strategy over the Industry Lifecycle
Type: Book
ISBN: 978-0-76231-135-4

Article
Publication date: 14 June 2021

Rahul Priyadarshi, Srikanta Routroy and Girish Kant

The purpose of this study is to analyze the post-harvest supply chain enablers (PHSCEs) for vertical integration to enhance rural employability, farmer profitability and rural…

386

Abstract

Purpose

The purpose of this study is to analyze the post-harvest supply chain enablers (PHSCEs) for vertical integration to enhance rural employability, farmer profitability and rural produce marketability (i.e. market prospects) in the post-harvest supply chain (PHSC). The impact of vertical integration is also explored for various commercial produces.

Design/methodology/approach

A structural equation modeling (SEM) of PHSCEs for vertical integration was developed to enhance market prospects, rural employability and farmer profitability. The impact of business-to-business (B2B) and business-to-customer market prospects are explored in various dimensions for stakeholders such as farmers, manufacturers (processors), distributors and retailers. The fuzzy technique for order of preference by similarity to ideal solution (F-TOPSIS) was used to prioritize these PHSCEs to improve market prospects and rural employability.

Findings

The PHSCEs are clustered into three groups, namely, initiatives at the strategic frontier, initiatives at the tactical frontier and concerns for rural employability via vertical integration using exploratory factor analysis, confirmatory factor analysis and SEM to prove the null hypothesis. With F-TOPSIS results, the availability of warehousing was found to be the most crucial enabler when observing the PHSCEs from the initiatives’ perspective. The technology adaptability and availability, institute for training and research and information infrastructure and information visibility were found to be the key PHSCEs when observed from PHSC stakeholders’ perspectives.

Research limitations/implications

The implementation of this study will improve the rural produce marketability, rural employability, B2B marketing (i.e. effective distribution) and subsequent value chains with the practice of vertical integration for fresh produce at the rural level.

Practical implications

The outcomes of this study have a key role in developing the rural regions and improving rural livelihoods via value addition. The awareness of commercial cultivation and value addition in rural areas needs to be improved. This will help farmers to earn better revenues with improved market prospects in comparison to the revenues obtained from the cultivation of staple/conventional crops.

Originality/value

In an era of cold chains and food processing, this study aims to disseminate awareness about value addition for commercial and fresh produces at the rural level. The implication of this study will improve rural produce marketability, rural employability and farmer profitability at the rural level with the level of vertical integration.

Article
Publication date: 1 November 1996

Mauro Caputo and Valeria Mininno

Notes that logistics costs in the grocery sector, in Italy, are about 25,000 billion lire and that in order to reduce these costs logistics integration has to be improved between…

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Abstract

Notes that logistics costs in the grocery sector, in Italy, are about 25,000 billion lire and that in order to reduce these costs logistics integration has to be improved between institutions of the distribution channel. Focuses on two of the main institutions of the grocery distribution channel: branded product industry and large‐scale trade. Referring to these institutions and to the logistics functions they carry out, analyses integration areas in order to identify some organizational and managerial solutions for improving interfunctional and interorganizational co‐ordination. In particular, divides these solutions into three main groups according to the level of integration they refer to: internal integration (inside each business), vertical integration (between businesses located at different stages of the channel) and horizontal integration (between different businesses located on the same level of the channel). Internal and horizontal integration are the prerequisites for achieving vertical integration and consequently for achieving synergies between the institutions involved.

Details

International Journal of Physical Distribution & Logistics Management, vol. 26 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

21 – 30 of over 20000