TY - JOUR TI - Change in firm technology strategy in response to a disruptive event DO - https://doi.org/doi:10.7282/T3416ZPH PY - 2014 AB - This dissertation examines change in firm technology strategy in response to an industry wide disruptive event. More specifically, this research focuses on how firm technology strategy changes (as measured by changes in technology investment levels) in response to a downward price shock in the industry. While economic theory would generally suggest that firms would likely reduce their technology investment levels in an industry experiencing significant declining price levels does this outcome occur in all cases? Under what circumstances might firms sustain or increase their technology investment levels in response to a disruptive event that creates significant downward price pressures? Two models are examined. The first evaluates overall industry behavior in response to this type of disruptive event. The second model then examines the association of a set of relevant factors to specific observed changes in firm technology investment levels following the disruptive event. A study was conducted to examine whether significant medical procedure reimbursement reform in the healthcare industry during the 1980s (a significant, disruptive event that created downward price pressure on the medical device industry) resulted in a change in technology strategy (increase or decrease in technology investment levels) of technology oriented medical device firms. To track changes in technology investment levels U.S. patent data for technology oriented medical device firms was collected for the period 1976 through 1990 (periods before, during, and after the period of the healthcare reimbursement reforms). The results of the study found that overall, contrary to general economic theory and to the predictions of a government sponsored comprehensive research study, technology oriented medical device firms significantly increased their technology investment levels following this disruptive event. Further, firms with high technology intensity prior to the disruptive event were more likely to increase their technology investment levels post the disruptive event while small firms were less likely to increase their technology investment levels post the disruptive event. Firms that were not affiliated with a technology oriented parent firm were more likely to decrease their technology investment level post the disruptive event. Proposed explanations for these findings are presented. The research has potential implications for policy makers evaluating the likely impact of healthcare reforms on medical technology investment levels. Limitations of the study and recommendations for further research are also presented. KW - Management KW - Information technology--Management KW - Strategic planning KW - Crisis management LA - eng ER -