Post-merger internal organization in multitier decentralized supply chains

Catalão‐Lopes, Margarida; Brito, Duarte

doi:10.1007/s00712-020-00723-7

Cited by 5 publications

(1 citation statement)

References 23 publications

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“…Cho (2014) examined the effects of a merger in a vertical structure and showed that the effects of an upstream merger on prices differ from those in a downstream tier. Catalão‐Lopes and Brito (2021) examined the effects of horizontal mergers in a multitier decentralised supply chain when firms may opt for two different post‐merger internal organisation forms–multidivisional or traditional–and showed that multidivisional mergers are always profitable. However, to the best of our knowledge, no previous works have examined the effects of foreign PPO on technology licensing strategy under a vertical merger and tariff.…”

Section: Introductionmentioning

confidence: 99%

Foreign passive ownership and tariff‐induced free technology transfer under vertical integration

Zhang

Lee

2023

The Manchester School

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This study constructs a vertical structure model in which a foreign firm holds upstream partial passive ownership and examines tariff‐induced free technology transfer from the firm to its downstream rival. We show that a strategic tariff can induce technology transfer when the share of foreign ownership is large, which always yields higher welfare under both vertical separation and integration, while vertical integration can better induce technology transfer. We also consider an extensive analysis with some variations, such as upstream or downstream competition, downstream passive ownership, government commitments to no‐tariff policies, and foreign firm commitments to no‐licensing strategies, and discuss policy implications regarding the pro‐competitive effect of foreign passive ownership when free technology transfer is involved.

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Section: Introductionmentioning

confidence: 99%