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Why Do Small Firms Choose Quasi-Integration? The Case Of The Homebuilding Industry

  • James Dewald
  • Jeremy Hall
  • James J. Chrisman


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    This article explores the variables that drive small firms to choose quasi- integration as an alternative to vertical integration in situations of high asset frequency. Our study provides new insights by focusing on (1) the preferences of small, vulnerable firms, and (2) an institutionalized form of quasi- integration. The findings indicate that the preference for quasi- integration is driven by asset specificity, bargaining power, and opportunistic expectations. The implications are that preferences for quasi- integration go beyond simple efficiency considerations.

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    Paper provided by U.S. Small Business Administration, Office of Advocacy in its series The Office of Advocacy Small Business Working Papers with number 04jrd.

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    Length: 8 pages
    Date of creation: 2004
    Date of revision:
    Handle: RePEc:sba:wpaper:04jrd
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