Why Do Carriers Use Owner Operators in the U.S. For-Hire Trucking Industry?-Reference-Cited by-同舟云学术

Why Do Carriers Use Owner Operators in the U.S. For-Hire Trucking Industry?

Published:2008 Issue:3 Volume:47 Page:22-35
ISSN:0041-1612
Container-title:Transportation Journal
language:en
Short-container-title:

Author:

HAN CHAODONG,CORSI THOMAS M.,GRIMM CURTIS M.

Abstract

Abstract Using the theoretical lenses of transaction cost economics and the structure-conduct-performance paradigm, this article examines the rationale for U.S. for-hire trucking carriers' use of owner operator contract drivers. The analysis employs a cross-sectional financial and operational data set from the U.S. Department of Transportation on the largest U.S. for-hire trucking carriers. Regression results show that the use of specialized equipment and the engagement in less-than-truckload services reduce the use of owner operators. These findings provide a strong support for Williamson's core notion of asset specificity as a driver of make-or-buy decisions. Results also demonstrate that higher segment concentration levels reduce the use of owner operators. This suggests that lack of segment competition may facilitate a higher level of vertical integration among for-hire trucking carriers as evidenced by a greater reliance on employee drivers as opposed to contract owner operators.

Publisher

The Pennsylvania State University Press

Subject

Transportation

Link

https://scholarlypublishingcollective.org/psup/transportation-journal/article-pdf/47/3/22/1457354/transportationj_47_3_22.pdf

Reference28 articles.

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5. Corsi, T. M. (2005), “Motor Carrier Industry Profile (2004-2005),” Robert. H. Smith School of Business, University of Maryland, pp. 1-34. http://ai.volpe.dot.gov/ CarrierResearchResults/PDFs/Motor_Carrier_Industry_ Profile_Update_2004-2005-final.pdf, accessed November 6, 2007.