Abstract
The outcome of firm choices is better understood when viewed through a contingency framework. By treating prior organizational choices of geographic and vertical scope as a bundle, I propose that fit drives whether these seemingly independent choices align with each other. The recent shortage in the chip industry provides a context to evaluate whether expansion of fabrication facilities enhance (or diminish) the overall impact of the bundle of choices. Using examples of leading firms in the industry, I help frame an argument that may provide insight into why some firms’ new fabrication location choices may be more optimal than others.
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