Vertical Integration Research Articles

Exploring the Impacts of Green Supply Chain Integration and Ambidextrous Green Innovation on the Financial Performance of China’s Pharmaceutical Manufacturing Enterprises

This study focuses on the factors affecting the financial performance of pharmaceutical manufacturing enterprises. Based on dynamic capability theory and ambidextrous innovation theory, this study adopts the Resource–Behavior–Performance framework to investigate how green supply chain integration (GSCI) and ambidextrous green innovation affect financial performance. The proposed hypotheses were tested through structural equation modeling using data from 400 China’s pharmaceutical manufacturing enterprises. The results indicate that the various dimensions of GSCI and ambidextrous green innovation yield distinct outcomes. Among the three dimensions of GSCI, only green supplier integration and green customer integration significantly impact financial performance directly, unlike green internal integration. Among the two dimensions of ambidextrous green innovation, only exploitative green innovation significantly influences financial performance, acting as a mediator between the GSCI dimensions and financial performance, while exploratory green innovation does not. The main advantages of this study include considering the connotation and value of GSCI from a green dynamic capability perspective, as well as the effects of exploratory and exploitative green innovation as intermediary behaviors while simultaneously considering the performance effects of GSCI and ambidextrous green innovation. This study offers novel academic insights and practical guidelines for pharmaceutical manufacturing enterprises to integrate GSCI and ambidextrous green innovation, with the aim of achieving better financial performance in their sustainable development efforts.

The mediating roles of financialization and vertical integration in the innovation culture and performance relationship: An examination of SME investment firms

ABSTRACT This study extends innovation culture and performance research by examining vertical integration and a newly conceptualized financialization measure as mediators in the context of small- to medium-sized (SME) investment firms participating in real estate. The work responds to several calls for research that includes more industry-specific strategies that mediate the innovation culture and performance relationship, a financialization measure and examination of its outcomes, and expanding on the limited vertical integration research in real estate. The results show that innovation culture is partially mediated by both vertical integration and financialization, such that innovation culture is directly related to performance but also indirectly via the two strategies. The findings suggest that SME investment firms participating in real estate should create an innovation culture to better execute relevant strategies such as vertical integration and financialization, promoting sustained performance. The paper concludes by offering recommendations for future research and managerial implications.

Drivers of High Concentration and Dispersal of PM10 and PM2.5 in the Eastern Part of Chhota Nagpur Plateau, India, Investigated Through HYSPLIT Model and Improvement of Environmental Health Quality

ABSTRACTThe ambient air quality is continuously declining especially in emerging countries because of rapid rate of urbanization, industrialization, and allied activities. Thus, the principal objective of this research is to inspect the spatiotemporal variation of particulate matters and to identify the drivers of pollutant dispersal. The month‐wise PM10 and PM2.5 data of 2022 and 2023 were obtained from the West Bengal Pollution Control Board. Meteorological datasets such as wind speed (m/s) and wind direction (degree) were collected from the NASA power access website. The HYSPLIT (Hybrid Single‐Particle Lagrangian Integrated Trajectory) model was applied to identify the pollutant's trajectories. Results showed that Purulia station stood highest in case of absolute AQI 715 (23‐1‐2022 at 7 a.m.), PM2.5 483.47 µg/m3 (23‐1‐2022 at 8 a.m.), and PM10 682.28 µg/m3 (23‐1‐2022 at 7 a.m.), respectively. During winter, the vertical expansion of particles was within the 100‐m boundary layer while during summer, it dispersed vertically and crossed 2000 m above the ground surface due to the combined effect of atmospheric conditions such as wind speed, wind direction, air pressure, and temperature. Moreover, the industrial outputs of Jharkhand and West Bengal play a significant role in elevating the pollution level. Plantation of suitable pollution‐resistant plants including Banyan (Ficus bengalensis), Mango (Mangifera indica), Peepul (Ficus religiosa), Guava (Psidium guajava), Kadam (Neolamarkia cadamba), Neem (Azadirachta indica) is a suitable management technique against pollution in this region.

Empowering farmers and enhancing sustainability: Inaru’s impact on the Dominican cocoa industry

Learning outcomes After completion of the case study, the students will be able to understand the challenges faced by cocoa farmers in developing countries and their impact on the cocoa value chain, describe the need for a business to create a business model that offers social impact in small developing economies, explore innovative business models, such as vertical integration, for addressing transparency and fair compensation issues in agricultural supply chains, analyze the role that start-ups can play in disrupting the commodities supply chain and building a national competitive advantage and examine how a values-driven business can gain the trust of stakeholders and create a profitable ecosystem. Case overview/synopsis This case study describes the innovative business model of Inaru Corporation, a pioneering venture founded by two sisters, Janett Liriano and Erika, aimed at revolutionizing the cocoa industry in the Dominican Republic. This case study outlines the challenges faced by cocoa farmers in the country, including low productivity, exploitation by middlemen and lack of value addition. Inaru’s innovative business model aimed to disrupt the traditional supply chains by prioritizing fair compensation for farmers, investing in sustainable practices and vertically integrating cocoa production from farming to manufacturing. Through direct relationships with producers, profit-sharing agreements, and a commitment to ethical business practices, Inaru sought to empower cocoa farmers and cultivate a more equitable and sustainable cocoa industry. Inaru was a model for ethical and caring business practices where it shared the profits with its farmers. By operating a profit-sharing model and sharing its fortune with other women, Inaru was helping create gender equity in the cocoa sector. Inaru planned to scale its business model to other cocoa-producing countries and even transfer its business model strategy to other commodities beginning with the coffee segment in Dominican Republic. By exploring Inaru’s case study, students gain a deep understanding of how businesses can drive positive change, create value for stakeholders and contribute to sustainable development goals. Complexity academic level This case was written for use in teaching graduate and postgraduate management courses in entrepreneurship and economics, politics and business environment. Supplementary materials Teaching notes are available for educators only. Subject code CSS 3: Entrepreneurship.

Thirty years of 3-D urbanization in the Yangtze River Delta, China

Accurately capturing the urbanization process is essential for planning sustainable cities and realizing the United Nations Sustainable Development Goal 11. However, until recently, most of the studies on urban expansion in the world have focused on area growth but have little knowledge of height dynamics. This study mapped the spatial distribution of urban built-up areas (UBA) in the Yangtze River Delta (YRD), one of the most urbanized regions in China, to investigate the spatio-temporal evolution in both the horizontal and vertical directions from 1990 to 2020. We coupled and analyzed the horizontal and vertical urban expansion from the 3-D perspective and identified the dominant types. The results showed that 30 cities (73.17 % of the total number of cities) were increasing in the 3-D combined expansion intensity. The decreasing cities were mainly located in Anhui Province. Despite the increasing number of skyscrapers, horizontal growth has dominated urban expansion over the past three decades. The UBA area of the YRD has grown from 4,855.30 km2 to 44,447.15 km2, while the average building height has slowly decreased by 1.26 m. Significant unevenness and differences existed in horizontal and vertical expansions of varying provinces and cities. Our study can accurately grasp the 3-D urban expansion process in the YRD and could promote the efficient development and sustainable utilization of urban land resources in China and beyond.

Vertical integration and market consolidation in healthcare: Policy drivers and impact on physicians and patient care

As healthcare markets have become increasingly consolidated, the vertical integration of physician practices with hospital networks has drawn additional scrutiny. While vertical integration within healthcare was once predicted to improve efficiency and quality of healthcare delivery, empirical study has uncovered mixed results. In a review of existing literature, vertical integration has yielded inconsistent effects on health quality metrics, with modest improvements at best, but has consistently driven up prices. This article reviews economic theory and the real-world effects of vertical mergers within healthcare and discusses policies driving this trend. Given the impacts of vertical integration on healthcare outcomes, cost, patient choice and physician wellbeing, physicians should advocate for regulations that preserve sufficient competition in healthcare markets and diversity of practice settings.

Double marginalization in the pricing of complements: The case of US freight railroads

AbstractMonopolists selling complementary products charge a higher price in a static equilibrium than a single (multiproduct) monopolist would, reducing both the industry profits and consumer surplus. Firms could instead reach a Pareto improvement by lowering prices to the single‐monopolist level. We analyze pricing data of railroad coal shipping in the United States. We compare a coal producer that needs to ship from A to C, with the route passing through B, in two cases: (1) the same railroad owning AB and BC and (2) different railroads owning AB and BC. We do not find that the price in case (2) is higher than the price in case (1), suggesting that the complementary monopolist pricing inefficiency is absent in this market. Our findings are robust to propensity score blocking, causal machine learning algorithms, and difference‐in‐differences analysis. Our results have implications for vertical mergers, tragedy of the anticommons, mergers of firms selling complements, elimination of double marginalization, and royalty stacking and patent thickets.

Enhancing magnetic source edges using the tilt angle of the analytic‐signal amplitudes of the horizontal gradient

AbstractEnhancing magnetic data is often complicated due to the non‐vertical orientation of the geomagnetic field and the orientation of remanent source magnetization. The complication can be reduced by reducing the data to the pole (mathematically making the geomagnetic field vertical), but this reduction process is problematic. The analytic‐signal amplitude can be used to enhance the edges of two‐dimensional sources without a reduction to the pole. However, the shape of the analytic‐signal amplitude is weakly dependent on the magnetization direction for grid data. This study presents an improved technique, namely the tilt angle of the analytic‐signal amplitudes of the horizontal gradient of the vertical integral. This quantity is also only weakly dependent on the magnetization direction and outlines the edges as well or somewhat better than other methods. It also implicitly involves second derivatives of the magnetic field, and we use synthetic data to demonstrate that noise is not amplified as much as it is when using other edge enhancement techniques that implicitly use second derivatives. A dataset of the Apiaí Terrane, Brazil, shows good lateral continuity of features compared with other edge‐enhancement methods, and subtle features like faults are easier to identify in the images generated by our new method. Upward continuation of the field, which is normally required, was not necessary to reduce the impact of noise on this field example.

External shocks and dynamics of resource use patterns: empirical evidence from the Indian manufacturing sector

While promoting manufacturing growth is imperative to boost economic growth, potential adverse consequences on natural resources and ecology have created sustainability-related concerns and challenges. In India, with the reform processes deepening further and the business environment becoming more market-oriented over the years, the adoption of appropriate measures for sustainable manufacturing growth under such conditions would require a deeper investigation of the underlying dynamics, particularly to address the impacts of external shocks. This is especially true when external shocks alter market dynamics and, hence, input is used significantly in the manufacturing sector. Given this backdrop, the present paper examines how the major external shocks to the Indian economy during in the post-reform era have altered the resource use patterns in selected manufacturing industries. The paper uses secondary data collected from the KLEMS database of the Reserve Bank of India for the period from 1980–81 to 2019–20 and applies descriptive statistics and econometric techniques to address the research objective. It is found that energy intensity, vertical integration, capital intensity, and rate of growth of total factor productivity decreased over the decades, whereas labour productivity experienced an increasing trend in most industries. However, the trends are mixed in the case of material intensity. Further, the regression results indicate significant effects of external shocks on resource use, factor productivity, and structural changes. There are also industry-specific differences in the nature and extent of such changes. Hence, a deeper investigation of the underlying factors and impacts at a disaggregate industry level is necessary to draw more robust insights.

Medical School Regulatory Compliance Burdens for the Physician-Scientist.

Medical school research faculty is increasingly required to complete more comprehensive and time consuming compliance steps for regulatory oversight. These relate to animal studies, information technology, biosafety, and human resources. For physician-scientists, the additional role in clinical care adds to these research areas with regulatory compliance in patient care and ever-growing web trainings. The sum of all these compliance regimes is a considerable time and cost burden, diminished research performance, and disengagement of faculty from colleagues, collaborations, and institutions. Many research and clinical compliance processes were put in place, often using legacy systems, in well-meaning attempts to address straightforward regulations in humane animal care, safe use of biological agents, and medical care delivery. However, their accumulation and negative impact on faculty performance demand time, energy, and resources that impact academic productivity. There are solutions to a relentlessly increasing regulatory load for research faculty, which involve vertical integration, convergence, and performance assessment in medical school and health system compliance regimes. ANN NEUROL 2024;96:417-422.

The moderating role of servant leadership in the relationship between organizational structure and performance in fashion retailing

PurposeThis study aims to reveal how the organizational structure (vertical integration vs. franchising) of 308 stores in a Spanish fashion retail franchise chain affects their performance measured through two key performance indicators commonly used in this industry, namely, labor productivity and service quality ratings. We also appraise the moderating role played by the servant leadership of franchisees and managers of company-owned outlets to explore its influence on the relationship between organizational structure and store performance.Design/methodology/approachWe have used multivariate analyses to study the research questions, with a panel dataset of quarterly store-level data for the period January–December 2022.FindingsVertically-integrated stores record lower labor productivity than franchised ones. This impact is lower in stores run by individuals high in servant leadership than in those run by individuals low in it. Franchised outlets also record lower ratings in service quality than vertically-integrated stores, and this negative impact is weaker in stores run by individuals high in servant leadership.Originality/valueNothing has thus far been published on the moderating effect of servant leadership in the relationship between the organizational structure of different stores and their outcomes in franchise systems.

Financial reporting quality, industrial revolution 4.0 and social well-being among Malaysian public companies

PurposeThis study examines the relationship between financial reporting quality, Industrial Revolution 4.0 and social well-being of stakeholders among public companies in Malaysia.Design/methodology/approachThe sample of the study includes 232 firm-year observations of Malaysian publicly listed companies from 2013 to 2017. Social well-being is measured using social pillar scores from the Environmental, Social and Governance (ESG) data provided by Refinitiv. The study identified companies as an adopter of IR 4.0 based on their disclosure on the use of autonomous robots, simulation, cloud, horizontal and vertical system integration, cybersecurity, additive manufacturing, augmented reality and big data analytics in their financial reports. Financial reporting quality is measured using discretionary accruals.FindingsThis study found that financial reporting quality and IR 4.0 are related to social well-being, particularly the workforce. These results imply that companies with higher adoption of IR 4.0 are more likely to provide more information concerning job satisfaction, a healthy and safe workplace, maintaining diversity, equal and development opportunities for its workforce. Furthermore, the results show that firms with lower discretionary accruals (i.e. higher quality of financial reporting) are more likely to provide more information about social well-being. The results are robust even after addressing endogeneity issues.Research limitations/implicationsThis research contributes new insights into the role of financial reporting quality and IR 4.0 in enhancing social well-being in Malaysia. These findings offer valuable input for regulators striving to advance the United Nations' 2030 Agenda for Sustainable Development.Practical implicationsThis study carries substantial practical implications for policymakers and businesses alike. It underscores the importance of embracing IR 4.0 technologies and integrating them into strategic planning to foster social well-being. These insights can guide policymakers in shaping economic strategies and assist businesses in prioritizing financial reporting quality while engaging stakeholders to promote social well-being.Originality/valueThis is the first study to investigate the combined relationship of financial reporting quality and IR4.0 on social well-being, which provides valuable evidence in this novel domain. While previous studies have primarily explored the relationship of IR4.0 on sustainability from an environmental and human resource perspective, this study sheds light on the specific dimension of social well-being, hence promoting sustainable development goals by the United Nations in 2030.

Volume and value of technological innovation: the role of corporate social responsibility and business architectural factors

The understanding of firm‐level drivers of technological innovation has been concentrated on a firm's core business related factors. How a firm's corporate social responsibility (CSR) initiatives impact a firm's technological innovation is notably understudied in the literature, even though business firms are increasingly recognizing the multifaceted impact of CSR on various corporate outcomes including technological advancements. This study bridges this gap by linking CSR to firm technological innovation as measured by both innovation volume and value. Furthermore, a set of business architectural factors, including market emphasis, related/unrelated diversification, and vertical integration, are incorporated as moderating factors to generate a granular understanding pertaining to CSR's innovation implications. We collected a large sample set, employed a series of robust empirical methods, and found that CSR has a consistently positive impact on both innovation volume and value, and the magnitude of these relationships differs across various business architectural factors. This study contributes to the innovation literature, strategic CSR theory, instrumental stakeholder theory, and provides useful guidelines for business practices.

Assessing the Nexus between Supplier and Customer Integration and Environmental Cost Performance: Insights into the Role of Digital Transformation

Since the beginning of the 21st century, environmental protection and digital supply chains have increasingly garnered attention. As firms transition to green practices, how to achieve competitive advantage by reducing environmental costs has become one of the key concerns for many business managers. This study aims to examine how supplier and customer integration affect a firm’s environmental cost performance while considering the moderating effect of digital transformation. Following a survey conducted by a professional research agency on 800 Chinese manufacturing firms specializing in green products, the research model was tested using structural equation modeling and hierarchical regression analysis. The results indicate a significant positive relationship between both supplier integration and customer integration with a firm’s environmental cost performance. Additionally, positive digital transformation reinforces the relationship between supplier integration and customer integration. However, there are limitations due to the study’s background, scope, and sample size. This study underscores the impact of supplier integration and customer integration on a firm’s environmental cost performance, as well as the crucial moderating role of digital transformation. It contributes to the growing literature on sustainable supply chain management and provides valuable insights for relevant practitioners.

Modelling volumetric growth of emerging urban areas around new transit stations

Cities in developing countries are fast transforming from area-based expansion, representing spatial growth, to volumetric expansion, representing a higher skyline. Existing urban growth prediction models predict only spatial or two-dimensional growth. This paper demonstrates a volumetric urban growth model, incorporating the vertical expansion of urban areas. Two separate models were calibrated for spatial and built-up height growth, using historical growth patterns of transit-triggered new town development in India. The models were applied to upcoming transit station areas in India to predict the volumetric urban expansion for the next twenty years.

Better policy to support climate change action in the built environment: A framework to analyse and design a policy portfolio

Climate change action in built environments has not been at the scale or pace required to achieve the global goal (Paris Agreement) to limit warming to 1.5 °C above pre-industrial levels. Action towards climate change goals can be facilitated by effective policy design, and policy reform. However, this is challenging because built environment policy contexts are complex and include policy from multiple sectors (e.g. urban planning, construction, design and property); supporting infrastructures (e.g. transport and water) and areas of cross cutting importance (e.g. climate change and sustainability). Limited guidance exists on how to design or analyse portfolios of policy instruments to meet climate change goals and challenges. The aim of this paper is to develop a framework for designing and analysing policy portfolios. The method of developing this framework was via a descriptive and explorative review of literature and a synthesis of key attributes yielded in the review. The framework is comprised of seven attributes: inclusion, prescription, discretion, legibility, vertical integration, horizontal integration, and balance. The framework can be used to analyse the appropriateness of the content of existing policy instruments and portfolios of policy instruments to address climate change goals. Additionally, the framework can be used to guide the development and design of policy portfolios for urbanising and rapidly urbanising areas, to address the challenge of climate change effectively and adequately.

Three-dimensional integrated metal-oxide transistors

AbstractThe monolithic three-dimensional vertical integration of thin-film transistor (TFT) technologies could be used to create high-density, energy-efficient and low-cost integrated circuits. However, the development of scalable processes for integrating three-dimensional TFT devices is challenging. Here, we report the monolithic three-dimensional integration of indium oxide (In2O3) TFTs on a silicon/silicon dioxide (Si/SiO2) substrate at room temperature. We use an approach that is compatible with complementary metal–oxide–semiconductor (CMOS) processes to stack ten n-channel In2O3 TFTs. Different architectures—including bottom-, top- and dual-gate TFTs—can be fabricated at different layers in the stack. Our dual-gate devices exhibit enhanced electrical performance with a maximum field-effect mobility of 15 cm2 V−1 s−1, a subthreshold swing of 0.4 V dec−1 and a current on/off ratio of 108. By monolithically integrating dual-gate In2O3 TFTs at different locations in the stack, we created unipolar invertor circuits with a signal gain of around 50 and wide noise margins. The dual-gate devices also allow fine-tuning of the invertors to achieve symmetric voltage-transfer characteristics and optimal noise margins.

Transfer Pricing Implications for the Cannabis Industry

The US cannabis industry encounters substantial tax challenges stemming from the classification of cannabis as a Schedule I controlled substance and the implications of section 280E of the Internal Revenue Code. To mitigate the adverse tax treatment imposed by this section, cannabis companies can employ various transfer pricing strategies. Vertical integration strategies, which allow companies to segregate activities across distinct business units within different industry verticals, serve to maximize the cost of goods sold calculation while minimizing the impact of section 280E. However, it is essential to recognize that such strategies also subject cannabis companies to transfer pricing regulations under section 482 of the Internal Revenue Code. Adequate transfer pricing documentation plays a crucial role in supporting pricing structures and minimizing tax exposure.

Supplier and Retailer Supply Chain Integration Model; Fashion Industry

Supplier and Retailer Supply Chain Integration Model; Fashion Industry

Mapping the cobalt and lithium supply chains for e-mobility transition: Significance of overseas investments and vertical integration in evaluating mineral supply risks

The potential shortages of critical materials such as cobalt and lithium induced by the global e-mobility transition have recently raised enormous concerns. Here, we map the global cobalt and lithium material flows and discuss their supply risks at both country and company levels. We demonstrate highly concentrated supply chains for cobalt and lithium, especially in the production (69 % of cobalt in DRC and 80 % of lithium in Australia and Chile), refining (over half in China), and for cathode materials and cell production (by Eastern Asian countries). The top 10 companies control around 80 % of global mining and refining production. Overseas investments, particularly by multinational companies, may potentially decrease supply chain concentration. Many upstream companies engage in vertical integration to enhance business value, whereas downstream companies invest in mining or refining operations for a reliable supply. Achieving supply chain security for cobalt and lithium requires transparent international trading systems, responsible sourcing practices, and enhanced recycling.