Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Uncertainty Reduction and the Threat of Supplier Retaliation: Two Views of the Backward Integration Decision

Uncertainty Reduction and the Threat of Supplier Retaliation: Two Views of the Backward... The article examines the decision to vertically integrate backwards from two perspec tives : the extent to which vertical integration relieves the uncertainty of supply for a firm facing a variable demand function; and the threat that existing suppliers will retaliate if such vertical integration is attempted. Data from the PIMS data base are used to show that while the uncertainty reduction theory is strongly supported, there is value in complementing the theory by also taking potential retaliation into account: the results provide evidence that buyers will be discouraged from backward vertical integration if both the likelihood and the severity of retaliation are high. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Organization Studies: An international multidisciplinary journal devoted to the Studies of organizations, organizing, and the organized in and between societies SAGE

Loading next page...
 
/lp/sage/uncertainty-reduction-and-the-threat-of-supplier-retaliation-two-views-Poc9Lm6oWw

References (34)

Publisher
SAGE
Copyright
Copyright © by SAGE Publications
ISSN
0170-8406
eISSN
1741-3044
DOI
10.1177/017084068600700304
Publisher site
See Article on Publisher Site

Abstract

The article examines the decision to vertically integrate backwards from two perspec tives : the extent to which vertical integration relieves the uncertainty of supply for a firm facing a variable demand function; and the threat that existing suppliers will retaliate if such vertical integration is attempted. Data from the PIMS data base are used to show that while the uncertainty reduction theory is strongly supported, there is value in complementing the theory by also taking potential retaliation into account: the results provide evidence that buyers will be discouraged from backward vertical integration if both the likelihood and the severity of retaliation are high.

Journal

Organization Studies: An international multidisciplinary journal devoted to the Studies of organizations, organizing, and the organized in and between societiesSAGE

Published: Jul 1, 1986

There are no references for this article.