Technological resources and the direction of corporate diversification: toward an integration of the resource-based view and transaction cost economics
Article Abstract:
Incorporating transaction cost economics into resource-based predictions can lead to better understanding of corporate diversification. Such an approach revealed that the technological resources of a firm significantly affect the firm's diversification decisions such that it enters markets where its existing technological resources and resource base give it an advantage. Risks involved in contracting out work instead of diversifying also influence diversification decisions. The approach also suggest that where there is innovation in an industry, diversifying entry is likely to follow. These insights, which provide a better predictive guide in determining the direction that diversification is likely to take, were also achieved through more rigorous analysis and more detailed operationalization of technological resources.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1999
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The managerial economics of civil litigation
Article Abstract:
Prompted by the increasing number of civil suits heard in the United States, this research attempts to identify conditions under which: corporations acting as plaintiffs should pursue lawsuits, corporate defendants should actively defend against lawsuits, and parties in a lawsuit should seek out of court settlements. The research also addresses the budgeting of expenses in civil cases and relates these budgets to corporate capital budgeting and market expansion expenses. Out of court settlements are most likely when the parties to the lawsuit are both risk averse. Other results of litigation, given various situations and economic conditions, are predicted by the mathematical model developed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1985
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Technological accumulation, diversification and organisation in UK companies, 1945-1983
Article Abstract:
A study of 4,000 innovations and innovating firms in the UK from 1945 through 1983 reveals that the organization and scope of technological activities in innovating companies vary greatly as functions of firms' core businesses and size. Firms in chemicals and engineering have the highest number of technological opportunities and threats, while divisionalization enables large firms to develop the small unit size which allows for the effective development of innovations.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1989
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