Frenemies: The Influence of Competitors’ Cooperation on Technological Adoption

Paul Décaire, Finance, The Wharton School

Abstract: The development and adoption of new innovative technologies confront firms into making decisions in highly uncertain environment. Past experience and the available public information are seldom sufficient to support firms in their decision process; firms ability to experiment and produce new information is then paramount. In this sense, firms’ organizational structure influences their ability to efficiently allocate resources, such as processing and producing new information; a central feature when it comes to new technology adoption. However, multiple empirical challenges have long constrained economists to properly investigate such phenomenon. Using a natural experiment in the American oil and gas industry, this study will provide the first set of causal evidence of the role organizational structure (i.e. Joint-venture) on the development and adoption of new technology.

Michelle Eckert is Marketing and Communications Coordinator for the Mack Institute, where she works to engage students, researchers, and corporate partners in opportunities for collaboration. Michelle received her B.A. in Art from Valparaiso University in 2007. Her background includes two AmeriCorps terms of service working to teach mathematics, computer literacy, and job readiness skills to out-of-school youth in Philadelphia, focusing particularly on promoting access to post-secondary education.