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

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  • James Dewald
  • Jeremy Hall
  • James J. Chrisman

Abstract

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.

Suggested Citation

  • James Dewald & Jeremy Hall & James J. Chrisman, 2004. "Why Do Small Firms Choose Quasi-Integration? The Case Of The Homebuilding Industry," The Office of Advocacy Small Business Working Papers 04jrd, U.S. Small Business Administration, Office of Advocacy.
    • Handle: RePEc:sba:wpaper:04jrd
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