Mergers along the Global Supply Chain: Information Technologies and Routineness

Basco, Sergi and Mestieri, Marti (2013) Mergers along the Global Supply Chain: Information Technologies and Routineness. TSE Working Paper, n. 13-428, Toulouse

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Official URL: http://tse-fr.eu/pub/27548

Abstract

This paper empirically analyzes how the adoption of Information Technologies (IT) has changed the organization of global supply chains. We focus on international mergers, which are a growing and important component of foreign direct investment. We use data on North-South vertical mergers and acquisitions for all manufacturing industries. We show that the effect of IT adoption on the number of vertical mergers and acquisitions is decreasing with the “routineness” of the industry. Our interpretation is that the IT revolution has enabled new monitoring mechanisms. This has allowed Northern headquarters to better monitor suppliers, specially those in less routine-intensive industries –which were harder to monitor prior to the IT revolution.

Item Type: Monograph (Working Paper)
Language: English
Date: July 2013
Place of Publication: Toulouse
Uncontrolled Keywords: Mergers and Acquisitions, Information Technologies, Routine Intensity
JEL codes: D23 - Organizational Behavior; Transaction Costs; Property Rights
F14 - Country and Industry Studies of Trade
F23 - Multinational Firms; International Business
L22 - Firm Organization and Market Structure - Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 09 Jul 2014 17:38
Last Modified: 20 Mar 2018 14:55
OAI ID: oai:tse-fr.eu:27548
URI: http://publications.ut-capitole.fr/id/eprint/15707

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