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Research Summary
Research Summary
  • Research Summary

Evolution of firm structure in vertical specialized technology supply chains

By: Willy C. Shih
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    Description

    The global market in many everyday products has been transformed by the internationalization of production.  In many industries, semiconductors and electronic products in particular, a sequential mode of production has evolved in which goods are produced in a series of stages taking place in different countries by “vertical specialists” who pass work-in-progress across borders to the next firm in the value chain.  This multi-country production sequence has been facilitated by inexpensive and rapid communications and the low cost to transport goods, as well as declines in tariff and non-tariff barriers.  A distinguishing feature of this kind of vertical specialization is that imported inputs are used to produce export goods.  These might be components or partial subassemblies, but frequently a product might transit through dozens of firms and cross multiple frontiers before it makes it to a storefront for sale to the ultimate consumer.  We are interested in the evolution of firm structure as technological shifts drive changes in the vertical boundaries.

    Keywords

    Globalization Of Supply Chain; Globalization; Technological Innovation; Manufacturing Industry; Biotechnology Industry; Auto Industry; United States; Asia; China

    Willy C. Shih

    Technology and Operations Management
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