Competition, strategic delegation and delay in technology adoption

Abstract

This paper examines how strategic managerial delegation affects firms' timing of adoption of a new technology under different modes of product market competition. It demonstrates that delegation has differential impacts on adoption dates under

On vertical relations and the timing of technology adoption

“…5 In addition, the speed of the adoption of new technologies constitutes a fundamental determinant of economic growth. Given this, an extensive literature on the timing of technology adoption in the presence of strategic interactions has been developed (e.g., Reinganum, 1981a&b, 1983a&b (Cabral, 1990;Choi and Thum, 1998), information externalities (Chamley and Gale, 1994), strategic managerial delegation (Mahathi and Rupayan, 2013), and the mode and intensity of market competition (Milliou and Petrakis, 2011). However, the aforementioned literature has dealt exclusively with one-tier markets, that is, markets with in-house input production.…”

Upstream market structure and the timing of technology adoption

“…A number of papers within this literature suggest that the differences in the speed of technology adoption across alternative markets can be explained by the differences in the markets' features, such as the presence of network externalities (Cabral, 1990;Choi & Thum, 1998), informational externalities (Chamley & Gale, 1994), strategic managerial delegation (Mahathi & Rupayan, 2013) or the mode and intensity of market competition (Milliou & Petrakis, 2011). Nevertheless, in contrast to us, all these papers have analyzed the firms' timing of technology adoption in one-tier industries.…”