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Excerpt from Transaction Cost Approach to Component: Make-or-Buy Decisions
Motors and Ford. These studies provide important background for the present research in the way they apply transaction cost analysis to the vertical integration problem.
The present research relies most heavily, however, on Williamson's (1982) model of efficient boundaries. The efficient boundaries concept implies, in addition to vertical integration, the possibility of shifting the performance of an activity from the firm to a supplier in the market, that is.
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