Mergers Along the Global Supply Chain: Information Technologies and Routine Tasks

Mergers Along the Global Supply Chain: Information Technologies and Routine Tasks This paper empirically analyses how the adoption of Information Technologies (IT) has changed the organization of global supply chains. We focus on international mergers, which are a growing and important component of foreign direct investment. We use data on North–South mergers and acquisitions (M&As). We show that the effect of IT adoption on the number of vertical M&As is decreasing with the routine intensity of the industry. Our interpretation is that the IT revolution enabled new monitoring mechanisms. This allowed Northern headquarters to better monitor suppliers, especially those in less routine‐intensive industries –which were harder to monitor before. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Oxford Bulletin of Economics & Statistics Wiley

Mergers Along the Global Supply Chain: Information Technologies and Routine Tasks

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Publisher
Wiley
Copyright
Copyright © 2018 The Department of Economics, University of Oxford and John Wiley & Sons Ltd
ISSN
0305-9049
eISSN
1468-0084
D.O.I.
10.1111/obes.12165
Publisher site
See Article on Publisher Site

Abstract

This paper empirically analyses how the adoption of Information Technologies (IT) has changed the organization of global supply chains. We focus on international mergers, which are a growing and important component of foreign direct investment. We use data on North–South mergers and acquisitions (M&As). We show that the effect of IT adoption on the number of vertical M&As is decreasing with the routine intensity of the industry. Our interpretation is that the IT revolution enabled new monitoring mechanisms. This allowed Northern headquarters to better monitor suppliers, especially those in less routine‐intensive industries –which were harder to monitor before.

Journal

Oxford Bulletin of Economics & StatisticsWiley

Published: Jan 1, 2018

References

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