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Why Are Process Monitoring Technologies Valuable? The Use of On-Board Information Technology in the Trucking Industry

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  • Thomas N. Hubbard

Abstract

Recent advances in information technology (IT) have enabled firms in many industries to give middle managers new access to timely production data. Process monitoring' technologies give distant managers a window to production which can both lower their cost of monitoring subordinates and provide them better information toward allocating their firms' resources in the short term. This paper investigates where and why IT-based process monitoring is valuable within the trucking industry, distinguishing between its incentive- and coordination-related benefits. Using truck-level data, it examines how the use of on-board computers varies with characteristics of carriers, shippers, and hauls. It then analyzes these patterns in light of existing theory and relates them to how supply chains are organized.

Suggested Citation

  • Thomas N. Hubbard, 1998. "Why Are Process Monitoring Technologies Valuable? The Use of On-Board Information Technology in the Trucking Industry," NBER Working Papers 6482, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:6482
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    Cited by:

    1. Gamal Atallah, 2002. "Production Technology, Information Technology, and Vertical Integration Under Asymmetric Information," Working Papers 0203EClassification-JEL: , University of Ottawa, Department of Economics.
    2. Bronwyn H. Hall & Beethika Khan, 2003. "Adoption of New Technology," NBER Working Papers 9730, National Bureau of Economic Research, Inc.
    3. Gillen, David & Haynes, Matt, 2002. "Public and Private Benefits in Intelligent Transportation Systems/Commercial Vehicle Operations: Electronic Clearance and Supply Chain Management," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt8qt8w8kp, Institute of Transportation Studies, UC Berkeley.
    4. Timothy F. Bresnahan, 2002. "Prospects for an Information-Technology-Led Productivity Surge," NBER Chapters, in: Innovation Policy and the Economy, Volume 2, pages 135-162, National Bureau of Economic Research, Inc.
    5. Chakraborty, Atreya & Kazarosian, Mark, 2001. "Marketing strategy and the use of information technology: New evidence from the trucking industry," Research in Transportation Economics, Elsevier, vol. 6(1), pages 71-96, January.
    6. Marco Delmastro, 2002. "On the choice of incentives in firms: influence activity, monitoring technology and organizational structure," Economics Bulletin, AccessEcon, vol. 12(2), pages 1-13.
    7. David Levinson & Reinaldo Garcia & Kathy Carlson, 2001. "A Framework for Assessing Public Private Partnerships," Working Papers 200712, University of Minnesota: Nexus Research Group.
    8. Atreya Chakraborty & Mark Kazarosian, 1999. "Product Differentiation and the Use of Information Technology: New Evidence from the Trucking Industry," NBER Working Papers 7222, National Bureau of Economic Research, Inc.
    9. José Albors & José Hervas & Antonio Hidalgo, 2006. "Analysing High Technology Diffusion and Public Transference Programs: The Case of the European Game Program," The Journal of Technology Transfer, Springer, vol. 31(6), pages 647-661, November.
    10. repec:ebl:ecbull:v:12:y:2002:i:2:p:1-13 is not listed on IDEAS

    More about this item

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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