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The concept of ‘impartition’ policies: A different approach to vertical integration strategies

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  • P. Y. Barreyre

Abstract

The inverse of vertical integration, ‘impartition’, is defined as an entrepreneurial behaviour which consists in casting other firms (partners) for different parts of its overall system of activities. A firm imparts when, in order to allocate its own resources to activities more congruent with its strategic objectives, it contracts out instead of doing in‐house. This concept also involves a cooperative attitude towards partners for a mutual profit based on external synergies. The developed pattern has a large range of applications: subcontracting, proxy agreements, agency contracts, international production sharing, product mandating, franchising, licensing and a growing number of intangibles. The use of the impartition leverage may amplify the strategic power of a firm and its capacity for fast growth. In response to severe worldwide competition and accelerating technological and social changes, four overall principles underlie an impartition policy: high turnover, organizational flexibility, strategic mobility and external synergies. In conclusion the author insists on the necessity of mastering the art of resources management.

Suggested Citation

  • P. Y. Barreyre, 1988. "The concept of ‘impartition’ policies: A different approach to vertical integration strategies," Strategic Management Journal, Wiley Blackwell, vol. 9(5), pages 507-520, September.
    • Handle: RePEc:bla:stratm:v:9:y:1988:i:5:p:507-520
    DOI: 10.1002/smj.4250090509
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    Cited by:

    1. Cesaroni, Fabrizio, 2004. "Technological outsourcing and product diversification: do markets for technology affect firms' strategies?," Research Policy, Elsevier, vol. 33(10), pages 1547-1564, December.
    2. Peter W. Liesch & Peter J. Buckley & Bernard L. Simonin & Gary Knight, 2012. "Organizing the Modern Firm in the Worldwide Market for Market Transactions," Management International Review, Springer, vol. 52(1), pages 3-21, February.
    3. Richard Calvi, 1999. "L'externalisation des activités d'achat:l'apport du modèle contractualiste appliqué au processus d'achat," Revue Finance Contrôle Stratégie, revues.org, vol. 2(1), pages 27-47, March.
    4. Dean, Thomas J. & Meyer, G. Dale, 1996. "Industry environments and new venture formations in U.S. manufacturing: A conceptual and empirical analysis of demand determinants," Journal of Business Venturing, Elsevier, vol. 11(2), pages 107-132, March.
    5. Martin-Rojas, Rodrigo & Garcia-Morales, Victor J. & Gonzalez-Alvarez, Nuria, 2019. "Technological antecedents of entrepreneurship and its consequences for organizational performance," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 22-35.
    6. Ana Redondo-Cano & M. Canet-Giner, 2010. "Outsourcing agrochemical services: economic or strategic logic?," Service Business, Springer;Pan-Pacific Business Association, vol. 4(3), pages 237-252, December.
    7. Dongli Zhang, 2013. "The Revival of Vertical Integration: Strategic Choice and Performance Influences," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 4(1), pages 1-14, February.
    8. Sihem Ben Mahmoud-Jouini & Florence Charue-Dubosc & François Fourcade, 2007. "Favoriser l’innovation radicale dans une entreprise multidivisionnelle. Extension du modèle ambidextre à partir de l’analyse d’un cas," Revue Finance Contrôle Stratégie, revues.org, vol. 10(3), pages 5-41, September.

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