We explore the technological evolution of three microprocessor firms between 1976 and 2004. We trace how two initially small entrants (Intel and AMD) competed against a larger and more established incumbent (IBM). We show that changes in inter-firm relationships (as reflected by competitive and cooperative events) affect patenting strategies. Periods of increased competition correspond to great...

This paper considers vertical relations between an upstream manufacturer and a downstream retailer that can independently obtain a low-quality, discount substitute. The analysis reveals that under full information the retailer offers both varieties only if it is optimal to do so under vertical integration. However, when the retailer is privately informed about demand, then the retailer will off...

We examine whether cooperative planning and uncertainty affect the magnitude of rework in concurrent engineering projects with upstream and downstream operations, and explore the impact of such rework on project delays. Using survey data from a sample of 120 business process (BP) redesign and related information technology (IT) development projects in healthcare and telecommunications, our resu...

It is well known that vertical integration can change the pricing incentive of an upstream producer. However, it has not been noticed that vertical integration may also change the pricing incentive of a downstream producer and the incentive of a competitor in choosing input suppliers. I develop an equilibrium theory of vertical merger that incorporates these additional strategic considerations....

Inventory management in markets with substituting customers is extremely challenging, not only for a downstream wholesaler, but also for upstream manufacturers. Motivated by the structures in the agrochemical market, we analyze the optimal production and stocking quantities of a manufacturer and a wholesaler, respectively, in a two-stage supply chain with upstream competition and vertical infor...

International subcontracting relationships are often characterized by considerable power asymmetries. The actors in global value chain obtained different profits. Different governance dominant modes reflect different roles of countries and enterprises played in the global value chains and result in different industrial international competitiveness in the end Through a relation model of upstrea...

It is often claimed that large buyers wield buyer power. Existing theories of this effect generally assume upstream monopoly. Yet the evidence is strongest with upstream competition. We show that upstream competition can yield buyer power for large buyers by generating supplier-level volume uncertainty—a feature that emerges from case study evidence of upstream competition—so the negotiated pri...