Vertical Integration and Productivity: Canadian Telecommunications

Babe, Robert E.

doi:10.1080/00213624.1981.11503812

Cited by 6 publications

(3 citation statements)

References 3 publications

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“…Here we get a consistent relation with the great heterogeneity found in the academic literature about the functional form of the relation between vertical integration and business performance (for this variety, see for example Reed and Fronmueller 1990;Contini et al 1992;Babe 1981;Bowman 1978;Maddigan and zaima 1985).…”

Section: Discussionsupporting

confidence: 69%

Exploring quality generating factors in customer-supplier relationships

López

Diz-Comesaña

Mondragón

2017

Gospodarka Surowcami Mineralnymi

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The analysis of interorganizational relationships continues to attract academic research because of the influence that management of supply chain relationships has in business competitiveness. However, there are almost no studies about this decision in the mineral products industry. The purpose of this study is to investigate customer-supplier relationships in the non-metallic mineral products mining and manufacturing industry in order to determine what relational forms enable achieving better business competitiveness and higher quality relationships. To carry out this research, we propose a cohesive model comprising variables to characterize the transactions, the forms of governance and both economic and relational results. The paper is based on a transactional framework; thus, the adoption of one or another form of governance is addressed through the length of the relationship, the transmission of information and the dependencies between the agents. As for the outcome, the quality of the relationship is highlighted because of its importance in business competitiveness. The relational quality is understood as the stability of the relationship or the importance given by the buyer to maintaining the relationship or relational commitment.The hypotheses generated are contrasted by a structural equation model in a sample of 293 Spanish companies. The results confirm the importance of past relationships and integrated forms to get better results. In this sense, managers should encourage trust and dependencies because they positively affect performance. Trust and dependencies determine the choice of a vertical form of governance, and these factors, along with information, intervene in the quality of business relationships. Thus, it is possible to say that forms of governance do have effects on the interrelations between the characteristics of the transactions and the business performance.

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Section: Discussionsupporting

confidence: 69%

Exploring quality generating factors in customer-supplier relationships

López

Diz-Comesaña

Mondragón

2017

Gospodarka Surowcami Mineralnymi

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“…Therefore, improved financial institutions and credit markets may perhaps be associated with not as much of vertical integration [Acemoglu, et al (2005)]. Babe (1981) makes productivity comparisons of integrated and non-integrated Canadian telephone companies, in order to determine the net effect of vertical integration on efficiency of telephone operations. Vertical integration results in lower costs to telephone operations in the form of reduced contracting and selling costs.…”

Section: Literature Reviewmentioning

confidence: 99%

Differing Impact of Liberalisation: The Case of Vertically Integrated Clothing Firms

Liaqat¹

2018

PDR

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This paper compares the productivity and other characteristics of vertically integrated and non-integrated firms to investigate whether efficiency gains associated with a given liberalisation episode vary across firms, depending on their organisation. A theoretical setting of vertical integration in the textile and clothing industry is developed, to reveal that trade expansion triggers a change in the relative factor cost of these two types of firms, and consequently, a change in product range produced by them. The results are further backed by using a sample of clothing firms in Pakistan for the years 1992-2010 to analyse the effect of the phasing out of U.S. textile and clothing quotas on firm-level efficiency. The empirical findings illustrate that an increase in the level of quotas brings about a significant growth in the mean productivity of vertically integrated clothing firms. The diminishing efficiency of non-integrated firms points to the lack of ability of these firms to benefit from tighter quality control, timely revision of production policies and guarantee of supplies. JEL Classification: F13, F14, D24, L23 Keywords: Trade Liberalisation, Productivity, Vertical Integration, Firm Heterogeneity, Multi-Fibre Arrangement

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“…Telecoms has undergone a dramatic transformation since the 1960s, as introduced in section 1.2. An example of a rather far-sighted study is that of Babe (1981) who makes suggestions for reform of the telecoms sector in line with subsequent successful evolution of the industry. Babe looked at telecommunications in Canada.…”

Section: Telecomsmentioning

confidence: 99%

Economies of scale and scope in network industries: Lessons for the UK water and sewerage sectors

Pollitt

Steer

2012

Utilities Policy

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Many studies of the water and sewerage industries place significant importance on the benefits of economies of scale and scope and how these relate to vertically integrated firms. We have re-examined the early literature on scale and scope economies and find that these studies do not implicitly preclude non-integrated firms from fully utilising assets for multi-product activities; they can still reap scope economies through trading in the open market. Further, we demonstrate difficulties in separating these two types of economies when assessing firm performance. Trade-offs between governance and production costs are a key issue in determining the value of vertically integrated firms that may undergo divestiture. We discuss the present policy debate regarding the optimal structure of the water and sewerage markets in England and Wales in the light of this, and recommend avenues of research that will help determine the optimal policy.

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Vertical Integration and Productivity: Canadian Telecommunications

Cited by 6 publications

References 3 publications

Exploring quality generating factors in customer-supplier relationships

Exploring quality generating factors in customer-supplier relationships

Differing Impact of Liberalisation: The Case of Vertically Integrated Clothing Firms

Economies of scale and scope in network industries: Lessons for the UK water and sewerage sectors

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