Make, buy, or ally?—A configurational approach to governance choices in vertical expansion

IF 3.6 Q1 BUSINESS, FINANCE Strategic Change-Briefings in Entrepreneurial Finance Pub Date : 2023-08-02 DOI:10.1002/jsc.2550
Jingyi Lai, Yongqiang Chen, Yuting Chen, Yongcheng Fu
{"title":"Make, buy, or ally?—A configurational approach to governance choices in vertical expansion","authors":"Jingyi Lai, Yongqiang Chen, Yuting Chen, Yongcheng Fu","doi":"10.1002/jsc.2550","DOIUrl":null,"url":null,"abstract":"Firms expand vertical boundaries by obtaining ownership of relevant resources. There are three means by which firms can achieve this goal: internal development, mergers and acquisitions (M&As), and equity joint ventures. From transaction cost theory and resource‐based view, this study analyzed how resource characteristics, environmental conditions, and firms' capabilities influence their governance choices by studying 30 cases involving architectural, engineering, and construction firms and employing a fuzzy‐set qualitative comparative analysis method. The findings reveal that all the antecedents jointly influenced firms' governance choices; however, they did so in a way that led to the firms' rejection as opposed to the implementation of one strategy. Firms avoided choosing internal development to circumvent high internal transaction costs or expand into new business rapidly. Firms excluded M&As when the similarity between new and existing resources was high to avoid resource redundancy. When market uncertainty was high, they did so to avoid investment risks. Moreover, when high external transaction costs were evident due to interactions and interdependency between firms and their partners, firms tended to choose a more integrated strategy and excluded equity joint ventures. The research indicates that firms' relational capabilities help them reduce external transaction costs and identify strategies with the lowest efficiency.","PeriodicalId":46986,"journal":{"name":"Strategic Change-Briefings in Entrepreneurial Finance","volume":null,"pages":null},"PeriodicalIF":3.6000,"publicationDate":"2023-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Strategic Change-Briefings in Entrepreneurial Finance","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1002/jsc.2550","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0

Abstract

Firms expand vertical boundaries by obtaining ownership of relevant resources. There are three means by which firms can achieve this goal: internal development, mergers and acquisitions (M&As), and equity joint ventures. From transaction cost theory and resource‐based view, this study analyzed how resource characteristics, environmental conditions, and firms' capabilities influence their governance choices by studying 30 cases involving architectural, engineering, and construction firms and employing a fuzzy‐set qualitative comparative analysis method. The findings reveal that all the antecedents jointly influenced firms' governance choices; however, they did so in a way that led to the firms' rejection as opposed to the implementation of one strategy. Firms avoided choosing internal development to circumvent high internal transaction costs or expand into new business rapidly. Firms excluded M&As when the similarity between new and existing resources was high to avoid resource redundancy. When market uncertainty was high, they did so to avoid investment risks. Moreover, when high external transaction costs were evident due to interactions and interdependency between firms and their partners, firms tended to choose a more integrated strategy and excluded equity joint ventures. The research indicates that firms' relational capabilities help them reduce external transaction costs and identify strategies with the lowest efficiency.
查看原文
分享 分享
微信好友 朋友圈 QQ好友 复制链接
本刊更多论文
制造、购买或结盟--纵向扩张中治理选择的配置方法
企业通过获得相关资源的所有权来扩大垂直边界。企业可以通过三种方式实现这一目标:内部发展、兼并和收购(M&As)以及合资经营。本研究从交易成本理论和资源视角出发,通过研究30个涉及建筑、工程和施工企业的案例,采用模糊集定性比较分析方法,分析了资源特征、环境条件和企业能力对企业治理选择的影响。研究发现,所有前因共同影响企业的治理选择;然而,他们这样做的方式导致了公司的拒绝,而不是实施一个战略。企业避免选择内部发展,以规避高额的内部交易成本或迅速拓展新业务。企业为避免资源冗余,在新资源与现有资源相似度较高时排除并购。当市场不确定性较高时,他们这样做是为了避免投资风险。此外,当由于公司与其合作伙伴之间的相互作用和相互依赖而明显出现高外部交易成本时,公司倾向于选择更综合的战略,并排除股权合资企业。研究表明,企业的关系能力有助于企业降低外部交易成本,识别效率最低的战略。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 去求助
来源期刊
CiteScore
6.70
自引率
10.70%
发文量
70
期刊最新文献
Wine prices in economics: A bibliometric analysis Advancing scientific inquiry through data reuse: Necessary condition analysis with archival data Data sharing decisions: Perceptions and intentions in healthcare Layered structures of robustness and resilience: Evidence from cybersecurity projects for critical infrastructures in Central Europe Data, resilience, and identity in the digital age
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
现在去查看 取消
×
提示
确定
0
微信
客服QQ
Book学术公众号 扫码关注我们
反馈
×
意见反馈
请填写您的意见或建议
请填写您的手机或邮箱
已复制链接
已复制链接
快去分享给好友吧!
我知道了
×
扫码分享
扫码分享
Book学术官方微信
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术
文献互助 智能选刊 最新文献 互助须知 联系我们:info@booksci.cn
Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。
Copyright © 2023 Book学术 All rights reserved.
ghs 京公网安备 11010802042870号 京ICP备2023020795号-1