Government policies shape organizational choices in Malaysian auto industry
The article explores why companies in the Malaysian automobile industry choose different ways of organizing themselves. By looking at factors like how specific their assets are, how often they trade, and how uncertain outcomes are, the researchers found that these elements can predict whether a company will integrate vertically. They also considered how government policies influence these decisions. The study confirmed that transaction costs and government policies play a significant role in determining the organizational structure of firms in the Malaysian automobile industry.