Vertical Integration Dynamics to Innovate in Technology Business

Abstract

Companies try to acquire the finest advantages and techniques in a technologically advanced and end-to-end market to have a stronger foothold there. Although empirical research on this topic links IT to a decline in vertical integration, corporations are increasingly using this corporate strategy. The goal of this study is to show how over the past 22 years, scientific literature has changed with regard to how information technology (IT) affects vertical integration, one of the main types of corporate strategies. The findings demonstrated that vertical integration has been evolving in a balanced manner in a technological environment. Three categories—information technology, innovation, and processes—help explain this association and were discovered through cluster analysis. The direction of operational integration, the degree of industry concentration, demand unpredictability, and innovation should all be considered while making integration decisions.

Keywords

• vertical integration
• information technology
• technology innovation
• business innovation