Research Archive

Information Technology, Productivity and Asset Ownership: Evidence from Taxicab Fleets

Evan Rawley, Timothy Simcoe

Publication type: Journal article

Research Archive Topic: Leadership, Organizations

Abstract

We develop a simple model that links the adoption of a productivity-enhancing technology to increased vertical integration and a less skilled workforce. We test the model's key prediction using novel micro data on vehicle ownership patterns from the Economic Census during a period when computerized dispatching systems were first adopted by taxicab firms. Controlling for time-invariant firm-specific effects, firms increase the proportion of taxicabs under fleet-ownership by 12 percent when they adopt new computerized dispatching systems. An instrumental variables analysis suggests that the link between dispatching technology and vertical integration is causal. These findings suggest that increasing a firm's productivity can lead to increased vertical integration, even in the absence of asset specificity.
Download PDF
View Ideas at Work: Feature

Citation

Rawley, Evan, and Timothy Simcoe. "Information Technology, Productivity and Asset Ownership: Evidence from Taxicab Fleets." Organization Science 24, no. 3 (2013): 831-845.


Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.

Each topic is linked to an index of publications on that topic.