Can Firms Be Both Broad and Deep? Exploring Interdependencies Between Horizontal and Vertical Firm Scope

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dc.contributor.authorBrahm, Francisco
dc.contributor.authorParmigiani, Anne
dc.contributor.authorTarzijan, Jorge
dc.date.accessioned2025-01-20T23:56:25Z
dc.date.available2025-01-20T23:56:25Z
dc.date.issued2021
dc.description.abstractFirms can be horizontally diversified, with considerable breadth, or vertically integrated, with great depth. This study explores how breadth and depth affect each other as influenced by capability requirements and coordination demands. Using construction industry data, we assess the interdependence between contractors' portfolios of building types (horizontal scope) and the extent of integration of the activities needed to complete each project (vertical scope). We find that vertical and horizontal scope have a negative interdependency only when contractors face managerial constraints due to coordination challenges. Further, we show that this effect can be mitigated through organizational structures that centralize key functions. Our findings highlight the importance of coordination in the theory of the firm, as we link firm boundaries to managerial coordination and internal organization.
dc.fuente.origenWOS
dc.identifier.doi10.1177/0149206320912296
dc.identifier.eissn1557-1211
dc.identifier.issn0149-2063
dc.identifier.urihttps://doi.org/10.1177/0149206320912296
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/95153
dc.identifier.wosidWOS:000523917300001
dc.issue.numero5
dc.language.isoen
dc.pagina.final1254
dc.pagina.inicio1219
dc.revistaJournal of management
dc.rightsacceso restringido
dc.subjectdiversification
dc.subjectresource-based view
dc.subjectstructure
dc.subjectdesign and boundaries
dc.subjectvertical integration
dc.subject.ods09 Industry, Innovation and Infrastructure
dc.subject.odspa09 Industria, innovación e infraestructura
dc.titleCan Firms Be Both Broad and Deep? Exploring Interdependencies Between Horizontal and Vertical Firm Scope
dc.typeartículo
dc.volumen47
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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