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The evolution of vertically integrated organizations: The role of historical context

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Abstract

Vertical integration across three different types of economies and selected industries is studied to trace historical, political, and economic influences on the evolution of vertically integrated structures. Specifically, the focus in this article is on the industrial development that took place in Germany, the UK, Japan and the USA. The role of a domestic market, colony markets, and attempts to become a dominant colonizer all play a significant role in the development of various industries, and the efficiency levels that they attained. The role of government, the level of international competition, and other integration drivers salient in the eighteenth and nineteenth centuries are also discussed. A broad view of structural and contextual forces provides a better understanding of why certain industries chose to integrate the way they did.
... Their concern for the environment affects their consumption patterns and influences the environment around them (Lu et al., 2013). Because they feel an accountability towards the environment, Millennials introduce and instigate changes to bring about responsible consumption patterns (Desai & Mukherji, 2001). Research shows that this generation pursues brands that claim to help the environment. ...
... Consumer attitude toward marketing communications have a bearing on the consumer's attitude toward the brand itself (Newell et al., 1998). Green campaigns have been shown to motivate green behavior in consumers (Desai & Mukherji, 2001;Lee, 2014). Green campaigns can act as a type of environmental education and increase awareness of environmental problems (Chory-assad & Tamborini, 2003). ...
... Each construct was measured using metrics from a variety of previous research studies. A person's skepticism toward green brands was measured using four items gleened from studies by Albayrak et al. (2013), Desai and Mukherji (2001), and Wu et al. (2018). A person's environmental consciousness was measured using three items adapted from Mishal et al. (2017) and Kirmani and Khan (2018). ...
Article
Purpose The purpose of this study is to answer the following questions: What factors influence attitude toward green brands among Pakistani millennials? Does attitude toward green brands affect purchase intention? Does gender moderate the effect? Design/methodology/approach Data was collected through an online questionnaire distributed through multiple academic and professional networks. The questionnaire was answered by 242 Pakistani millennials. SmartPLS was used to conduct partial least square-structural equation modeling analysis. The analysis was conducted using a two-stage protocol typically followed in SEM analysis. First, an outer model assessment was done to measure construct reliability and validity. This was followed by hypotheses testing in the inner model assessment. Moderating effects were tested using the multigroup analysis feature of SmartPLS. Findings The antecedent factors tested in this study are green brand skepticism, environmental consciousness and attitude toward green campaigns. Results show that these factors do influence a person’s attitude toward a green brand, which, in turn, influences his/her purchase intention regarding that brand. Marketers of green brands can use the factors outlined in this study to improve consumer attitudes toward their company and products. This study showed that women are more positively affected by green campaigns. Green campaigns in Pakistan may be more successful if directed at female millennials. Practical implications This study conveys helpful implications for marketing managers, as specific antecedents are found to be significant predictors of purchase intention for green brands. Companies should not let the fear of consumer skepticism stop them from advocating their green products and initiatives. Green marketing campaigns can inspire millennials to encourage their social groups to be environmentally conscious. By actively helping the environment, these consumers may feel a sense of pride for their cohort and their country. As a result, Pakistan might undergo a transition to buying green brands, adopting green lifestyles and demanding green products from non-green brands. Originality/value Most of the research on green marketing and branding for millennials pertains to developed countries. However, as roughly 90% of the global millennial population live in developing countries, it is important to conduct research in developing countries. This paper specifically focuses on Pakistan, a developing country in South Asia. A propensity toward environmental issues among millennials makes this study an important one, both for the Pakistani market and for generalizations in populated developing countries having a similar profile.
... On the other hand, vertical integration can also be defined as the range of activities involved in the production and sales of products, which are part of the supplier companies. Desai and Mukherji (2001) refer to vertical integration as the degree of operations internalisation in organisations. It is motivated by the considerations of transaction costs, strategic considerations, input or output cost related interests and uncertainty in costs and expenses. ...
... Different from vertical integration explained above, horizontal integration takes place between organisations that are on the same market or sector. Desai and Mukherji (2001) state that horizontal integration is related to coordination between organisations at the same level within a distribution channel. Thus, this type of integration requires more cooperation between producers and distributors to justify the need for integration. ...
Thesis
The competitiveness of a seaport highly depends on its efficiency, especially in terms of how its logistics operations are integrated with those of other logistics chain partners. Despite the well-articulated importance of ports and terminals in integrated logistics, research on the success factors of port logistics integration remains scattered. This study aims to identify key factors in port logistics integration and how logistics integration can be improved. To identify the key factors in port logistics integration, a review of the literature is conducted to cover studies in Scopus indexed journals on logistics, supply chain and port management for the period 2000-2016. Based on the results of the literature review, a conceptual framework for port logistics integration is developed and applied to a study of logistics integration in the Iranian port sector. The Iranian port sector is chosen due to its critical role in the Iranian economy and seaborne trade, and lack of research on the port sector in this country despite its strategic location in the Middle East region. The study makes use of data collected from a survey and interviews of senior staff and managers from ports, terminal operating companies, freight forwarders, transport providers, port authority, shipping lines, customs and shippers in Iran. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) are applied to the data set of 212 observations to identify and analyse the key factors in port logistics integration and their relationships. The results of EFA and CFA indicate that the logistics practice, information integration, value-added services, logistics practices, organisational activities, resource sharing and institutional support are influential to logistics integration. In addition, it has also been found that logistics integration in the Iranian port sector is subject to a number of issues and challenges relating to infrastructure, operational/ technical, Managerial/ organisational, governance and policy, and sanctions. Using Nvivo Software and data collected from 105 interviews, the results of the qualitative analysis revealed that the lack of integration and coordination between logistics chain partners, management/ organisational issues and infrastructural issues are among the most important challenges in port logistics integration. Moreover, infrastructural development, the participation of logistics partners in the port’s decision-making process, information and technology development, and integration of procedures and systems are highly recommended as measures to overcome the above challenges. Based on the findings of the quantitative and qualitative analysis, several implications, and recommendations for port management and policymakers are discussed. For example, ports need to foster close, collaborative relationships with logistics chain partners in information exchange, communication, logistics operations management, port development, and joint decision-making process. Furthermore, ports need to make effective use of existing information and communication technologies; for example, EDI, online transactions and real-time cargo tracking. Given the deficiencies in infrastructure and investment, institutional support is needed, such as loans/microcredit and lease facilities. To a broader extent, port development needs to be aligned with that of rail and road transport as part of the transport and logistics system. The sector can also benefit from reform measures to make ports more competitive and to attract investment from private and international companies.
... Vertical integration was a reaction of industry to tariff policies and poorly developed intermediary markets (Desai & Mukherji, 2001). As competition increases, firms look for synergies and regard international sourcing as a logical extension of domestic sourcing. ...
... gives rise to the view of firms as a network of contracts. Further, the new commercial environment is forcing manufacturers and retailers to shift from treating each other as customer/supplier to working as commercial partners trying to solve consumer need (Desai & Mukherji, 2001;Harland, Lamming, & Cousins, 1999). ...
... Several approaches have been used to meet the sustainable development goals, including those addressing packaging issues. Such goals consider multiple aspects of sustainability, such as social, economic, and environmental sustainability [67]. The articles that addressed the economic dimension presented themes related to the financial impacts on the packaging recycling chain in the public and private contexts. ...
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The relationship between packaging and sustainability has caused the evolution of literature towards the minimization of environmental damage. The task of packaging professionals is becoming more demanding, as they need to collect information from distinct topics to stay up to date. The aim of this research is to gather information on packaging in the sustainability context to provide a systemic view of the contents, to identify opportunities, and define guidelines for packaging design. A systematic literature review of 472 papers was performed. The first step was a bibliographic search using Pack *, Sustainab *, and eco * as keywords. Secondly, the content analysis revealed the emergence of nine categories grouped in four clusters. These categories and nineteen subthemes were considered research opportunities. Going beyond the coding units of the content analysis, we have used context units to propose (i) the gathering of technical procedures to support the design phases of sustainable packaging; and (ii) the proposition of a framework based on the life cycle stages and design phases. At last, we have provided insights and guidelines that can be useful for packaging professionals.
Chapter
In present situation of globalization, sustainable supply chain management (SSCM) of manufacturing system is very imperative. Numerous of the organizations are in front of a lot of problems in supply chain management. Thus, rationale of manuscript is toward classifying the most barriers in SSCM and to rank them in favor of effective SSCM strategy. To categorize the main barriers in SSCM, fuzzy analytical hierarchy process (FAHP) is used. Used for giving keep score to completely different issue, a team of three consultants was completed. All consultants have quite 10 years of information in space of supply chain management. Requirement of top management support, lack of SSCM project coaching, and learning and lack of tactical designing and implementation have emerged as prime three barriers in implementation of systems in textile industries. Findings imply that for successful SSCM, top management ought to be terribly ancillary for taking completely different initiatives, coaching programs, etc. Organizations ought to try and improve overall performance of textile business productivity. These findings are extremely helpful for professionals from textile producing sector in implementing effective SSCM system.
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Various green constructs have been explored so far from different aspects, but surprisingly no study has been conducted to explain theoretically how green packaging, green campaigns, and green attitudes affect green behavioural intentions. This research aims to investigate how green packaging and green campaigns lead to the formation of a green attitude and subsequently affect the green behavioural intentions of consumers. Further, it investigates how the impact of green skepticism influences green attitudes and green behavioural intentions. The present research has been designed within the positivistic paradigm, and a self-administrated questionnaire was used to collect the data based on a convenience sample of 194. A SEM model was used to analyze the data based on SPSS and Amos 23. This research found that both green packaging and green campaigns positively influence to form a positive green attitude among customers and will consequently impact green behavioural intentions. The other construct studied was the negative influence of green skepticism on green attitude and green behavioural intentions, but the results were not statistically significant. This research contributes to bridging the gap that existed due to the nonexistence of a theoretical model needed to help policymakers and consumers who strive to protect the environment and behave as responsible citizens. This theoretical model explains the influence of green packaging, green campaigns, and green attitudes on green behavioural intentions.
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Healthcare waste management is considered one of the biggest challenges that the world is going to face in the future. This threat is becoming reality owing to the worldwide sharp rise in healthcare waste generation particularly during the current COVID-19 pandemic. Like many other environmental crises, hospital plastic waste management is an area that got very little attention despite being highlighted in the literature, local media, as well as in international electronic and print media. This mini-review was conducted to assess the overall prevailing situation regarding hospital plastic waste management in Pakistan. Several illegal and unethical activities have been observed regarding hospital plastic waste management in Pakistan which includes unhygienic recycling, repacking of used hospital plastic items, open dumping on land, and disposal of hospital plastic waste in the ocean. To improve these conditions, suggestions have been made regarding the better management of hospital plastic waste. Graphical abstract
Article
The rapid population growth and the ongoing globalization of the economies result in increased competitiveness. Customers now prefer organizations’ that do not just meet but also exceed their needs. Vertical Integration (VI) has been used as a vital tool to increase competitiveness by aligning organizational functions and promoting new opportunities through supply chain management. Though, there has been ambiguity in findings on the impact of vertical integration on financial performance worldwide. Hence, the purpose of this study is to provide empirical evidence regarding the impact of vertical integration on financial performance in African emerging economies, a case study of Olam Nigeria Limited. The secondary data was obtained from Olam's cross-sectional financial record between 2010-2018, and the primary data was from 175 respondents out of the 183 questionnaires administered to the employee sample frame. Descriptive statistics and regression analysis were used to analyze the data. The findings indicate a positive impact between the components of vertical integration and financial performance measures in Olam Nigeria Limited. This study is one of the first studies conducted in emerging economies after the International Monetary Fund (IMF) upgraded 9 African countries, including Nigeria. These findings can serve as a strategic, operational guide for business managers who may be considering vertical integration to improve their financial performance. This study also adds to the secondary source on the subject matter in the Nigerian Agribusiness sector, and it reiterates the three theories: transaction cost theory, resource-based theory, and property rights theory. However, the financial performance measurement metrics are limited to Olam's recommended parameters to gauge its progress, and the study did not cover the moderating variables.
Conference Paper
The rapid population growth and the ongoing globalization of the economies result in increased competitiveness. Customers now prefer organizations’ that do not just meet but also exceed their needs. Vertical Integration (VI) has been used as a vital tool to increase competitiveness by aligning organizational functions and promoting new opportunities through supply chain management. Though, there has been ambiguity in findings on the impact of vertical integration on financial performance worldwide. Hence, the purpose of this study is to provide empirical evidence regarding the impact of vertical integration on financial performance in African emerging economies, a case study of Olam Nigeria Limited. The secondary data was obtained from Olam's cross-sectional financial record between 2010-2018, and the primary data was from 175 respondents out of the 183 questionnaires administered to the employee sample frame. Descriptive statistics and regression analysis were used to analyze the data. The findings indicate a positive impact between the components of vertical integration and financial performance measures in Olam Nigeria Limited. This study is one of the first studies conducted in emerging economies after the International Monetary Fund (IMF) upgraded 9 African countries, including Nigeria. These findings can serve as a strategic, operational guide for business managers who may be considering vertical integration to improve their financial performance. This study also adds to the secondary source on the subject matter in the Nigerian Agribusiness sector, and it reiterates the three theories: transaction cost theory, resource-based theory, and property rights theory. However, the financial performance measurement metrics are limited to Olam's recommended parameters to gauge its progress, and the study did not cover the moderating variables.
Chapter
There seem to be a definitional confusion in the management literature about what is meant by the term “outsourcing.” Several years ago, the control of the product development cycle from raw materials through delivery of product to the customer became important, and the typical examples of make or buy (internalize or externalize) and vertical integration appeared. A theoretical clarification of outsourcing, however, must essentially be grounded in an answer to the question of what is within the firm and what is outside? This chapter presents extensive literature review of definitions on logistics, outsourcing, and logistics outsourcing, as well as empirical evidence on outsourcing decisions. Nonetheless, the author believes that outsourcing must be regarded as a management strategy by which a firm hands over non-core business operations and/or services to efficient outside service specialists, in order to support the core strategy of the client organization.
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Location of new products, 191. — The maturing product, 196. — The standardized product, 202.
Article
Proposing a new look at vertical integration and the dimensions that comprise it, this study develops a framework for predicting when firms use make-or-buy decisions. The strategic business units (SBUs) studied made fewer products and services in-house and firms were engaged in fewer stages of processing when demand was highly uncertain than they did when demand was more certain. Internal transfers from upstream or to downstream business units were more numerous when synergies with adjacent SBUs were substantial than when they were not. Some competitive imitation of vertical integration strategies occurred, and firms with high market shares sought higher ownership stakes in stages of processing adjacent to those markets. Vertical integration involves a variety of decisions concerning whether corporations, through their business units, should provide certain goods or services in-house or purchase them from outsiders instead. Corporations considering vertical integration - one of the first diversification strategies firms consider as they progress from being single-business companies - must make decisions regarding the autonomy of these business units. Most research concerning vertical integration has assumed that savings in the costs of transactions that integration accomplishes supersede autonomy needs of strategic business units (SBUs). According to such an assumption, integrated firms will transfer all of their relevant goods and services to adjacent, in-house business units. However, this paper argues for a dynamic concept of vertical integration in which,the key to effective management is understanding when corporate needs for intrafirm cooperation might take precedence over the concerns of autonomous business units, and when the opposite might be true. The theory developed in this study incorporates the forces of competitive settings and corporate (as well as business-level) strategy needs in a suggested framework for appropriate use of vertical integration. Developing this strategy framework introduces several new dimensions that characterize all vertical integration strategies. My intent is to bridge the gap between economic treatments of vertical integration and activities observed in the histories of several industries; the next section briefly sketches the dimensions of this gap.