The Impact of Information Technology on Vertical Integration

The Impact of Information Technology on Vertical Integration PDF Author: Ajit Kambil
Publisher:
ISBN:
Category :
Languages : en
Pages : 330

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Book Description

The Impact of Information Technology on Vertical Integration

The Impact of Information Technology on Vertical Integration PDF Author: Ajit Kambil
Publisher:
ISBN:
Category :
Languages : en
Pages : 330

Get Book Here

Book Description


Production Technology, Information Technology, and Vertical Integration Under Asymmetric Information

Production Technology, Information Technology, and Vertical Integration Under Asymmetric Information PDF Author: Gamal Atallah
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
The paper addresses the effect of technological progress on the boundaries of the firm, building on transaction cost theory and agency theory. The model incorporates four types of costs: production, coordination, management, and transaction costs. The market has lower production costs, but higher coordination costs, than the firm. A principal-two agents framework with adverse selection and moral hazard is adopted. It is found that technological progress in production and information technologies tend to have diametrically opposite effects on procurement. In general, progress in production technology leads to more vertical integration, whereas progress in information technology leads to more subcontracting. When technological change concerns the level of costs, its effect on procurement depends on the cost differential between the firm and the market, and on the relative importance of production and coordination costs; whereas, when technological change affects the effect or disutility of effort, its impact on procurement is unambiguous. The paper provides an explanation for the changing effect of technological progress on procurement throughout the twentieth century: why it favoured vertical integration historically, and why it favours subcontracting (or has a mixed effect) today. This explanation relies on the implication of the evolution of the relative importance of production and coordination activities for the relationship between technological progress and vertical integration. The paper constitutes a bridge between contractual explanations and technological explanations of the existence and boundaries of the firm.

Vertical Integration and Technological Innovation

Vertical Integration and Technological Innovation PDF Author: Yeong Heok Lee
Publisher: Routledge
ISBN: 0429852177
Category : Business & Economics
Languages : en
Pages : 136

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Book Description
Originally published in 1994 this volume investigates the relationship between a firm's decision to integrate vertically and its research and development (R & D) strategy. Literature on vertical integration is reviewed and a framework presented to analyze the costs and benefits of vertical integration. The theoretical basis for the proposed hypostheses is investigated and the hypotheses tested empirically.

The Effect of Information Technology on Average Firm Size and the Degree of Vertical Integration in the Manufacturing Sector

The Effect of Information Technology on Average Firm Size and the Degree of Vertical Integration in the Manufacturing Sector PDF Author: Nicholas Evangelos Komninos
Publisher:
ISBN:
Category : Industrial organization (Economic theory)
Languages : en
Pages : 488

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Book Description


Is Vertical Integration Profitable?

Is Vertical Integration Profitable? PDF Author: Buzzell
Publisher:
ISBN: 9780000831033
Category :
Languages : en
Pages :

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Book Description


Impact of Information Technology Capital on Firm Scope and Performance

Impact of Information Technology Capital on Firm Scope and Performance PDF Author: Gautamn Ray
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
This research draws on transaction-cost and resource-based theory to examine how information technology (IT) capital moderates the relationship between different types of assets and firm scope -- both vertical integration and diversification. The analysis suggests that IT capital enables firms with narrowly valuable assets to be less vertically integrated and less diversified, and enables firms with broadly valuable assets to be more vertically integrated and more diversified. The moderating influence of IT capital on the relationship between different types of assets and firms' vertical and product market scope is consistent with transactions-cost as well as resource-based traditions.

Information Technology and Boundary of the Firm

Information Technology and Boundary of the Firm PDF Author: Chris Forman
Publisher:
ISBN:
Category :
Languages : en
Pages : 35

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Book Description
We study the relationship between different margins of information technology (IT) use and vertical integration using plant-level data from the U.S. Census of Manufactures. Focusing on the short-run decision of whether to allocate production output to downstream plants within the same firm or to external customers, we find that customer-focused IT, by itself, has surprisingly little impact. In contrast, adoption of upstream supplier-focused IT at a plant is associated with a significant decline in downstream vertical integration. However, the greatest decline in within-firm transfers occurs when supplier- and customer-facing IT are adopted together, suggesting the presence of complementarities in supply chain technology adoption. These results are consistent with the view that, by reducing external coordination costs, IT investments promote a decline in plant-level vertical integration, but only when those investments are made jointly with both suppliers and customers. Our results provide less support for the view that IT investments led to a decline in vertical integration by lowering transactions risks.

Fostering Research on the Economic and Social Impacts of Information Technology

Fostering Research on the Economic and Social Impacts of Information Technology PDF Author: National Research Council
Publisher: National Academies Press
ISBN: 0309173736
Category : Computers
Languages : en
Pages : 226

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Book Description
The tremendous growth in use of information technology (IT) has led to an increased interest in understanding its social and economic impacts. This book presents examples of crosscutting research that has been conducted to understand the impact of information technology on personal, community, and business activities. It explores ways in which the use of methodology from economics and social sciences contributes to important advances in understanding these impacts. The book discusses significant research issues and concerns and suggests approaches for fostering increased interdisciplinary research on the impacts of information technology and making the results of this research more accessible to the public and policymakers. This volume is expected to influence funding priorities and levels of support for interdisciplinary research of this kind.

Evaluation of Information Technology

Evaluation of Information Technology PDF Author: E. W. Berghout
Publisher:
ISBN:
Category : Computers
Languages : en
Pages : 244

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Book Description


Information Technology: Impacts, Policies and Future Perspectives

Information Technology: Impacts, Policies and Future Perspectives PDF Author: Frieder Meyer-Krahmer
Publisher: Springer Science & Business Media
ISBN: 3642755771
Category : Science
Languages : en
Pages : 230

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Book Description
Economical and political aspects of information technology in Europe and Japan are dealt with in this book. European and Japanese technology policies, the possibilities of cooperation on all economic and business levels as well as future perspectives on world information markets from the Japanese and European points of view form the priority areas of the book. Special attention is given to - the case study of a Swiss-Japanese business cooperation with many practical references, - an analysis of East European information markets and, - the relations between Europe and Japan from the viewpoint of the USA. The reader is given an insight into new developments in the information technology markets in Europe and Japan as well as into the economic and political framework within which the developments are taking place.