Vertical integration: applying an economic calculus to knowledge

Herman A. Van Den Berg
  • International Journal of Learning and Intellectual Capital, January 2011, Inderscience Publishers
  • DOI: 10.1504/ijlic.2011.043063

What is it about?

The paper presents a framework suggesting that specialization leads to differences in costs and efficiency in using various forms of knowledge between adjacent stages of production. The differences in costs and efficiencies of the various forms of knowledge help determine boundaries between firms. Three forms of knowledge are used (tacit, codified, and encapsulated) and a number of dimensions are suggested as being useful for distinguishing between them.

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