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The Utilization of Competing Technologies Within the Firm: Evidence from Cardiac Procedures

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  • Robert S. Huckman

    (Harvard Business School, T17 Morgan Hall, Boston, Massachusetts 02163)

Abstract

This paper examines the role of technological status in determining the rates at which competing techniques are used within a firm. Consistent with prior studies, technological status is measured on the basis of an actor's prior contributions to the body of knowledge concerning a given technique. The empirical analysis considers two treatments for coronary artery disease (CAD), each of which is associated with a distinct professional group within a hospital. These two groups are often characterized as engaging in a "turf war" for patients. After controlling for several factors that might explain technological choice---the clinical severity of patients, the relative quality of the two procedures at a given facility, firm-level financial performance, and other firm-level characteristics---I find that the technological status of the group associated with each technique affects the relative rate at which it is used within a given hospital. Moreover, this effect is strongest for patients at the margin between the two techniques. These results suggest that viewing the choice between competing innovations as a single, firm-level decision may not always capture the true dynamics underlying such a situation.

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  • Robert S. Huckman, 2003. "The Utilization of Competing Technologies Within the Firm: Evidence from Cardiac Procedures," Management Science, INFORMS, vol. 49(5), pages 599-617, May.
    • Handle: RePEc:inm:ormnsc:v:49:y:2003:i:5:p:599-617
    DOI: 10.1287/mnsc.49.5.599.15145
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    Cited by:

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    2. Tinglong Dai & Kelly Gleason & Chao‐Wei Hwang & Patricia Davidson, 2021. "Heart analytics: Analytical modeling of cardiovascular care," Naval Research Logistics (NRL), John Wiley & Sons, vol. 68(1), pages 30-43, February.
    3. Varabyova, Yauheniya & Blankart, Carl Rudolf & Greer, Ann Lennarson & Schreyögg, Jonas, 2017. "The determinants of medical technology adoption in different decisional systems: A systematic literature review," Health Policy, Elsevier, vol. 121(3), pages 230-242.
    4. Diwas Singh KC & Bradley R. Staats, 2012. "Accumulating a Portfolio of Experience: The Effect of Focal and Related Experience on Surgeon Performance," Manufacturing & Service Operations Management, INFORMS, vol. 14(4), pages 618-633, October.
    5. Robert S. Huckman & Gary P. Pisano, 2006. "The Firm Specificity of Individual Performance: Evidence from Cardiac Surgery," Management Science, INFORMS, vol. 52(4), pages 473-488, April.

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