scholarly journals Business Groups as Hierarchies of Firms: Determinants of Vertical Integration and Performance

Author(s):  
Carlo Altomonte ◽  
Armando Rungi
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pericles Ramón Mejía-Vásquez ◽  
Roberto Sánchez-Gómez ◽  
Sheila Serafim da Silva ◽  
Luis Vázquez-Suárez

PurposeThis research seeks to discover how the organisational form (franchising vs vertical integration) of 384 fashion stores belonging to a Spanish franchise chain influences unit-level performance measured through three key indicators commonly used in the retail literature: sales per square metre, sales per employee and service quality scores.Design/methodology/approachThe authors have analysed this research question using bivariate and multivariate analyses, with a panel dataset that includes quarterly establishment-level data covering the period from January 2018 to December 2019.FindingsThe aggregated data initially reveal weaker outcomes among franchised establishments. However, after controlling for other variables related to the fashion stores and their local markets, the authors have found that franchised establishments record higher sales both per square metre and per employee than vertically integrated stores. The findings also reveal that franchised establishments record lower service quality scores than their company-owned counterparts.Originality/valueNothing has been published on the differences between franchising and company ownership in terms of establishment-level performance in fashion retailing.


2011 ◽  
pp. 2257-2274
Author(s):  
Vojko Potocan ◽  
Zlatko Nedelko ◽  
Matjaž Mulej

In modern working relations, a company can improve its business dramatically, especially with formation and performance of suitable management. An important role in the whole management of a company belongs also to management of e-business. A broad definition defines e-business as a business process that uses Internet (and/or any other electronic medium) as a channel to complete business transactions. One of the main concerns about management of e-business is how much of each e-business should be owned by each e-business participants. This is called the extent of vertical integration. But in the modern business environment, vertical integrations alone are not enough. The alternative to vertical integration is some other form of relationship, not necessarily ownership. Inthe authors’ contribution, they will examine the relationship between the links of the e-business in terms of the flows between the operations involved. The authors use term link for all the different types of flow in exchange. This contribution discusses two issues: 1) How different relationships in e-business impact organization of e-business, and 2) How different organizational forms impact of e-business.


Aerospace ◽  
2020 ◽  
Vol 7 (10) ◽  
pp. 149
Author(s):  
Johney Thomas ◽  
Antonio Davis ◽  
Mathews P. Samuel

Safety is of paramount concern in aerospace and aviation. Safety has evolved over the years, from the technical era to the human-factors era and organizational era, and finally to the present era of systems-thinking. Building upon three foundational concepts of systems-thinking, a new safety concept called “integration-in-totality principle” is propounded in this article as part of a “seven-principles-framework of system safety”, to act as an integrated framework to visualize and model system safety. The integration-in-totality principle concept addresses the need to have a holistic ‘vertical and horizontal integration’, which is a key tenet of systems thinking. The integration-in-totality principle is illustrated and elucidated with the help of a simple “Rubik’s cube model of integration-in-totality principle” with three orthogonal axes, the ‘axis of perspective’ of vertical integration, and the two ‘axes of perception and performance’ of horizontal integration. Safety analysis along the three axes with a ‘bidirectional synthesis’ and ‘continuum approach’ is further elaborated with relevant case studies, one among them related to the Boeing 737 MAX aircraft twin disasters. Safety is directly linked to quality, reliability and risk, through a self-reinforcing reflexive paradigm, and airworthiness assurance is the process through which safety concepts are embedded in a multidisciplinary aviation environment where the system of systems is seamlessly operating. The article explains how the system safety principle of integration-in-totality is related to reliability and airworthiness of an aerospace system with the help of the ‘V-model of systems engineering’. The article also establishes the linkage between integration-in-totality principle and strategic quality management, thus bridging the gap between two parallel fields of knowledge.


2020 ◽  
Vol 12 (17) ◽  
pp. 6888
Author(s):  
Youngshin Woo ◽  
Wooseok Choi ◽  
Insik Min ◽  
Mugoan Jeong

This study examines the impact of Korean business groups, chaebols, on the sporting performance of their affiliated professional sports teams using game data from 1983 to 2013. We investigated whether or not chaebol ownership of professional sports teams is more efficient than non-chaebol ownership in achieving athletic success on the field of play. Our empirical evidence found that the chaebol-affiliated teams are more likely to be the league winners or finalists than non-chaebol teams are. We also tested the relationship between the financial crisis in the wider economy that deflates firm resources and athletic outcomes in the affiliated teams. In the tests, which divide the sample period into three 10-year periods, the results of two sub-samples (1983–1993 and 2004–2013) were in line with previous results. We, however, identified an exception when chaebol teams did not play in more final matches of a league between 1994 and 2003, the time interval that includes the period of drastic restructuring of business groups during the 1997 Asian financial crisis.


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