nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2010‒03‒28
two papers chosen by
Walter Frisch
University Vienna

  1. Information technology, capabilities and Asset Ownership: Evidence from Taxicab Fleets By Evan Rawley; Tim Simcoe
  2. The Influence of Installed Technologies on Future Adoption Decisions: Empirical Evidence from E-Business By Koellinger, Ph.D.; Schade, C.

  1. By: Evan Rawley; Tim Simcoe
    Abstract: We examine how information technology (IT) influences asset ownership through its impact on firms’ and agents’ capabilities. In particular, we propose that when IT is a substitute for agents’ industry-specific human capital, IT adoption leads to increased vertical integration. We test this prediction using micro data on vehicle ownership patterns from the Economic Census during a period when computerized dispatching systems were first adopted by taxicab firms. The empirical tests exploit exogenous variation in local market conditions, to identify the impact of dispatching technology on firm asset ownership. The results show that firms increase the proportion of taxicabs owned by 12% when they adopt new computerized dispatching systems. The findings suggest that firms increasingly vertically integrate when they acquire resources that substitute for their agents’ capabilities.
    Date: 2010
  2. By: Koellinger, Ph.D.; Schade, C. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This paper studies the adoption times of various e-business technologies in a large sample of firms from 10 different industry sectors and 25 European countries between 1994 and 2002. The results show that the probability of adoption increases with the number of previously adopted e-business technologies. Hence, the more advanced a firm is in using e-business technologies, the more likely it is to adopt additional e-business technologies, provided technologies do not substitute each other in their functionalities. This result is relevant for the marketing of new technologies, strategic planning and, from an economic perspective, for the convergence of growth across regions.
    Keywords: technology adoption;e-business;IT;digital divide
    Date: 2010–03–02

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