Title: Scale, scope and spin-off from firms

Authors: T.V.S. Ramamohan Rao

Addresses: Indian Institute of Technology, Kanpur, 6-5-45/1 Type 1, Self Finance Colony, Vanastalipuram, Hyderabad, A.P. 500070, India

Abstract: A firm's decision to integrate a new and innovative product depends on the scale and scope of its operations. Market interaction, organisational capabilities, managerial priorities, distribution of gains among stakeholders, and financial arrangements determine the nature and extent of scale and scope that a firm experiences. Disagreements may arise with respect to any of these aspects due to information asymmetry. Utilising a general specification of the revenue function of the firm this study proposes a lexicographic ordering of the above sources of spin-off.

Keywords: operational scale; operational scope; spin-offs; disagreements; product integration; new products; company operations; market interaction; organisational capabilities; managerial priorities; gains distribution; stakeholders; financial arrangements; information asymmetry; revenue function; lexicographic orderings; innovative products; economics; business research.

DOI: 10.1504/IJEBR.2013.051897

International Journal of Economics and Business Research, 2013 Vol.5 No.2, pp.183 - 203

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 10 Jan 2013 *

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