Factors Influencing Organizational Structure In The Food Manufacturing, Chemical, Agricultural Wholesaling And Biotechnology Industries
AbstractThe objective of this study is to identify factors determining a business investment strategy (i.e., the choice of investment commitment and form of organizational structure) in the food manufacturing, chemical, agricultural wholesaling and biotechnology industries. Propositions regarding strategic alliance theories are tested on over 400 inter-firm collaborative agreements using secondary data from major US and European companies for the 1994-97 period. Results suggest that transactions with lower technological and resource uncertainty levels are more likely to result in investments with a higher commitment level (i.e., acquisitions or majority equity-based controlling investments). The investment commitment level embedded in a single business transaction seems to be affected not only by a goal of cost minimization, but also by strategic motives and firm and industry factors.
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Bibliographic InfoPaper provided by Purdue University, College of Agriculture, Department of Agricultural Economics in its series Working Papers with number 09-01.
Length: 36 pages
Date of creation: 2009
Date of revision:
Transaction costs; strategic alliances; food manufacturing; chemical; agricultural wholesaling; ag-biotechnology; investment strategy; innovation;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-04-13 (Agricultural Economics)
- NEP-ALL-2009-04-13 (All new papers)
- NEP-COM-2009-04-13 (Industrial Competition)
- NEP-CSE-2009-04-13 (Economics of Strategic Management)
- NEP-PPM-2009-04-13 (Project, Program & Portfolio Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pisano, Gary P, 1989. "Using Equity Participation to Support Exchange: Evidence from the Biotechnology Industry," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 5(1), pages 109-26, Spring.
- Fernandez-Cornejo, Jorge, 2004. "The Seed Industry In U.S. Agriculture: An Exploration Of Data And Information On Crop Seed Markets, Regulation, Industry Structure, And Research And Development," Agricultural Information Bulletins, United States Department of Agriculture, Economic Research Service 33671, United States Department of Agriculture, Economic Research Service.
- Hennart, J.-F.M.A., 1989. "Transaction costs theory of equity joint ventures," Open Access publications from Tilburg University urn:nbn:nl:ui:12-175839, Tilburg University.
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