Year: 2018
Type: dissertation
Abstract: In this dissertation, I examine how using an employment contract to integrate human capital affects the technology adoption process, including both the firm’s decision to adopt a new technology and the subsequent implementation of a new technology. I specifically focus on the integration of the set of human capital beyond firm management who will be responsible for incorporating the new technology into a new product or process following the decision to adopt. First, I address competing predictions in the literature that create ambiguity around the effect of integrating human capital on the timing of the technology adoption decision. I show that a firm that uses an employment contract to integrate the human capital who will be responsible for implementing a new technology will adopt a new technology sooner than a firm that maintains an arm’s length relationship with that set of human capital because integration raises managerial expectations of successful implementation. While the presence of influence activity may weaken this effect, I demonstrate that the extent to which influence activity arises depends on the type of technology. Second, I establish conditions under which using an employment contract to integrate human capital will facilitate the implementation of a new technology. I demonstrate why using an employment contract to integrate human capital should generally facilitate implementation, but I identify two caveats. The employment contract should be less advantageous in implementation when continuity of association is not unique to the employment relationship. Furthermore, the employment contract should be less advantageous in implementation when the technology in question targets tasks for which human capital have greater expertise than firm management.
Author: Casidhe Horan Troyer
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2904101404