Proceedings of the 2015 International Conference on Management Engineering and Management Innovation

Intra-product Specialization, Technological Dependency and Organization Structure of Heterogeneous Firms

Authors
Yang Liu
Corresponding author
Liu
Keywords
Technological dependency, Organization structure, Heterogeneous firms.
Abstract
This document integrates GHM model and Nash-bargain game into dynamic game of north-south framework with heterogeneous firms, and uses backward deduction method to resolve the equilibrium organization structure of heterogeneous firms. This document argues that the degree of technological dependency of final-good producers on the intermediate suppliers is the key to the optimal organization structure of heterogeneous final-good produces. It concludes that when final-good producers in head-quarter intensive industry, get intermediate input from home country, and when final-good producers in component intensive industry get intermediate input from foreign the degree of technological dependency of final-good producer on intermediate supplier is very important for his organization structure.
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