Extant research on the theory of the firm has stressed the need to consider interdependencies when analyzing firm boundary choices. We study the existence of interdependencies between boundary decisions using a unique database that includes detailed organizational information on 59% of the...

Based on data from Chilean construction projects, we evaluate how the boundary choice of a focal activity is affected by the number of activities integrated elsewhere in a project and by the level of “between complexity” and “within complexity” of those activities. Our results show that...

This article empirically evaluates the main determinants of business performance, focusing on the emergence and sustainability of profits for an emerging economy such as Chile. Furthermore, the paper compares the results obtained with Chilean data to those for the U.S.A. This comparison is...

We examine the relationship between the organization of a multi-divisional firm and its ability to adapt production decisions to changes in the environment. We show that even if lower-level managers have superior information about local conditions, and incentive conflicts are negligible, a...