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Technology, Firm Size, and Safety: Theory and Empirical Evidence from the US Motor‐carrier Industry

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  • David E. Cantor
  • Thomas M. Corsi
  • Curtis M. Grimm
  • Prabhjot Singh

Abstract

The purpose of this paper is to examine the relationship between motor‐carrier firm size and safety outcomes. Leveraging insights from the resource‐based view of the firm, we develop hypotheses regarding this important relationship. To test our hypotheses, we constructed an original commercial motor‐carrier safety database, drawing on data from the Motor Carrier Management Information System and the Safety Measurement System. The results demonstrate that there is a significant and positive relationship between firm size and safety performance as measured through a carrier's number of crashes, unsafe driving violations, hours‐of‐service compliance, and vehicle maintenance violations. The impact of firm size on safety performance varies according to industry segment. This study has important academic and public policy implications.

Suggested Citation

  • David E. Cantor & Thomas M. Corsi & Curtis M. Grimm & Prabhjot Singh, 2016. "Technology, Firm Size, and Safety: Theory and Empirical Evidence from the US Motor‐carrier Industry," Transportation Journal, John Wiley & Sons, vol. 55(2), pages 149-167, April.
    • Handle: RePEc:wly:transj:v:55:y:2016:i:2:p:149-167
    DOI: 10.5325/transportationj.55.2.0149
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