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Technology adoption and training practices as a constrained shortest path problem

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  • Formaneck, Steven D.
  • Cozzarin, Brian P.
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    Abstract

    Technology adoption is not a new venue for research. Much work of decision modeling, diffusion of new technology and statistical analysis of survey data has been done. Some studies focus on finding the optimal forms of technology to adopt within a complementarity framework, but there is no mention of finding an optimal path from a firm's current state to its optimal state. This represents a significant gap in the literature. The paper applies a constrained shortest path problem to training and technology adoption decisions by firms. Given the current set of training and technology adoption the method solves for what technology/practice should be adopted or removed from the complete set of combinations and in what order so as to maximize performance subject to budget constraints. To the authors' knowledge, this is the first application of the constrained shortest path problem to technology adoption decisions.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 41 (2013)
    Issue (Month): 2 ()
    Pages: 459-472

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    Handle: RePEc:eee:jomega:v:41:y:2013:i:2:p:459-472

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    Related research

    Keywords: Constrained shortest path; Technology adoption; Complementarity;

    References

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    2. David Autor & Lawrence Katz & Alan Krueger, 1997. "Computing Inequality: Have Computers Changed the Labor Market?," Working Papers 756, Princeton University, Department of Economics, Industrial Relations Section..
    3. Hsu, Chin-Lung & Lu, Hsi-Peng & Hsu, Huei-Hsia, 2007. "Adoption of the mobile Internet: An empirical study of multimedia message service (MMS)," Omega, Elsevier, vol. 35(6), pages 715-726, December.
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    7. Richard Blundell & Lorraine Dearden & Costas Meghir & Barbara Sianesi, 1999. "Human capital investment: the returns from education and training to the individual, the firm and the economy," Fiscal Studies, Institute for Fiscal Studies, vol. 20(1), pages 1-23, March.
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    9. Eli Berman & John Bound & Zvi Griliches, 1993. "Changes in the Demand for Skilled Labor within U.S. Manufacturing Industries: Evidence from the Annual Survey of Manufacturing," NBER Working Papers 4255, National Bureau of Economic Research, Inc.
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    11. Teo, Thompson S.H. & Lin, Sijie & Lai, Kee-hung, 2009. "Adopters and non-adopters of e-procurement in Singapore: An empirical study," Omega, Elsevier, vol. 37(5), pages 972-987, October.
    12. Dimnik, TP & Johnston, DA, 1993. "Manufacturing managers and the adoption of advanced manufacturing technology," Omega, Elsevier, vol. 21(2), pages 155-162, March.
    13. Huisman, K.J.M. & Kort, P.M., 2000. "Strategic Technology Adoptation Taking into Account Future Technological Improvements: A Real Options Approach," Discussion Paper 2000-52, Tilburg University, Center for Economic Research.
    14. Choi, Byounggu & Poon, Simon K. & Davis, Joseph G., 2008. "Effects of knowledge management strategy on organizational performance: A complementarity theory-based approach," Omega, Elsevier, vol. 36(2), pages 235-251, April.
    15. Yasin, Mahmoud M. & Small, Michael H. & Wafa, Marwan A., 2003. "Organizational modifications to support JIT implementation in manufacturing and service operations," Omega, Elsevier, vol. 31(3), pages 213-226, June.
    16. Brian Cozzarin & Jennifer Percival, 2006. "Complementarities between organisational strategies and innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(3), pages 195-217.
    17. Amini, Mehdi & Li, Haitao, 2011. "Supply chain configuration for diffusion of new products: An integrated optimization approach," Omega, Elsevier, vol. 39(3), pages 313-322, June.
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