This paper analyzes how capital structure and product market competition affect the firms' choice between outsourcing with long term contracts and outsourcing to the spot market. When outsourcing to the spot market firms are exposed to price uncertainty, whereas a long term contract allows them...

Exploration-exploitation research to date has understudied the issue of multiple performance dimensions and their potential trade-offs, which leaves the application of its theory to the context of start-ups exposed to blind spots. The importance of acquisition likelihood as a performance outcome...

Though the burgeoning literature on platform ecosystems has sought to understand different aspects of this emerging phenomenon, the different types of ecosystems are treated in a somewhat homogenous manner. In this paper, we fill this gap and provide an organizing framework to examine the...

Though the burgeoning literature on platform ecosystem has sought to understand different aspects of this emerging phenomenon, the topic of ecosystem emergence has not received enough attention. In this paper, we identify the conditions under which ecosystems emerge and explain why they emerge...

A major consequence of the Internet era is the emergence of complex “platforms” that combine technology and process in new ways that often disrupt existing industry structures and blur industry boundaries. These platforms allow easy participation that often strengthens and extends network...

Production processes are increasingly organized in international value-chain networks. The involved firms can be operating at arm’s length or be vertically integrated. Both the incidence and the direction of integration (backward or forward in the value chain) depend on specific...

We examine the impact of outside purchase contracts on firm risk and firm capital structure. We find that firms with more outside purchase contracts have less risky cash flows. Despite these less risky cash flows, firms with these contracts also have less financial leverage especially when they...

Small-scale business co-operation across borders is considered as major driving force of economic integration between Western and Central Eastern Europe. In this context, it is argued that business co-operation and networks support the creation of competitive advantage. This paper sheds new...

We analyze the outsourcing decision of a firm for a key input of a final good production to an independent input supplier even though the firm has an option of producing that key input in-house at a lower cost with a better technology. We find that for smaller technology gap with the independent...

We study the determinants of vertical integration. We first derive a number of predictions regarding the relationship between technology intensity and vertical integration from a simple incomplete contracts model. Then, we investigate these predictions using plant-level data for the UK...