IDEAS home Printed from https://ideas.repec.org/a/oup/jleorg/v27yi1p180-218.html
   My bibliography  Save this article

Vertical Integration and Information Technology Investment in the Insurance Industry

Author

Listed:
  • Chris Forman
  • Anne Gron

Abstract

In this paper, we examine whether frictions created by differences in firm boundaries affect the speed with which firms adopt new Information Technology. Using a rich dataset on organizational characteristics and Internet investment by over 100 firms in the insurance industry, we show that vertical integration in distribution has a significant impact on the speed with which insurers adopt consumer Internet applications that complement the existing distribution relationship. Vertical integration, however, has no effect on the adoption of tools that enable electronic communication between an insurer and its sales force. Furthermore, vertical integration has no affect on the adoption of Internet technologies, such as basic access, that are not used in distribution. The Author 2009. Published by Oxford University Press on behalf of Yale University. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Chris Forman & Anne Gron, 2011. "Vertical Integration and Information Technology Investment in the Insurance Industry," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 27(1), pages 180-218.
  • Handle: RePEc:oup:jleorg:v:27:y::i:1:p:180-218
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jleo/ewp023
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leila Agha & Keith Marzilli Ericson & Xiaoxi Zhao, 2020. "The Impact of Organizational Boundaries on Healthcare Coordination and Utilization," NBER Working Papers 28179, National Bureau of Economic Research, Inc.
    2. Dionne, Georges & Harrington, Scott, 2017. "Insurance and Insurance Markets," Working Papers 17-2, HEC Montreal, Canada Research Chair in Risk Management.
    3. Alipranti, Maria & Milliou, Chrysovalantou & Petrakis, Emmanuel, 2015. "On vertical relations and the timing of technology adoption," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 117-129.
    4. Ajay Agrawal & Joshua S. Gans & Avi Goldfarb, 2023. "Similarities and Differences in the Adoption of General Purpose Technologies," NBER Chapters, in: Technology, Productivity, and Economic Growth, National Bureau of Economic Research, Inc.
    5. Atnashev, Timur M. (Атнашев, Тимур) & Balobanov, A.E. (Балобанов, А.Е.), 2016. "The Ratio of Project Management Tools and 'Classical' Public Service in OECD Countries and Developing Countries [Соотношение Инструментов Проектного Управления И «Классической» Государственной Служ," Working Papers 2869, Russian Presidential Academy of National Economy and Public Administration.
    6. Marissa Beck & Fiona Scott Morton, 2021. "Evaluating the Evidence on Vertical Mergers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 273-302, September.
    7. Venkat Kuppuswamy & Carliss Y. Baldwin, 2012. "Risky Business: The Impact of Property Rights on Investment and Revenue in the Film Industry," Harvard Business School Working Papers 13-007, Harvard Business School, revised Aug 2012.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jleorg:v:27:y::i:1:p:180-218. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jleo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.