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Pandemic shock and technology replacement: evidence from EMR data on high-end medical treatment India

journal contribution
posted on 2023-11-20, 11:45 authored by Sawan RathiSawan Rathi, Anindya Chakrabarti, Chirantan ChatterjeeChirantan Chatterjee, Anthony Vipin Das, Raja Narayanan

New technology adoption is driven by a troika – demand-pull, technology-push, and institutions shaped by market and non-market forces. In technologically laggard countries, often this process is slowed due to frictions arising from the fact that the new technology has to replace an established older technology. In this paper, we exploit the COVID-19 pandemic shock to examine how intraorganization technology replacements occurred due to concurrent shifts in the demand and the supply side. Specifically, we focus on the adoption of a highend medical technology, Optical coherence Tomography Angiography (OCTA), by ophthalmologists to diagnose prevalent eye diseases – replacing less costly and older technology OCT. We use novel Electronic Medical Records (EMR) data from one of the largest eye-care hospital chains in India that treats both non-paying and paying patients with a not-for-profit orientation. In a differencein-differences setup, we consider non-paying patients as the treatment group and paying patients as the control group. We find that visual acuity among the pool of non-paying patients worsened during lockdown. Demand-pull generated through increased impairment propelled OCTA adoption by 21.6% points, predominantly facilitated through technology-push by young physicians. Higher adoption of OCTA, in turn, contributed to improving the eyesight of the non-paying patients. Our results go through various robustness checks and we conclude discussing the managerial and policy implications of our findings.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Academy of Management Proceedings

ISSN

0065-0668

Publisher

Academy of Management

Issue

1

Volume

2023

Event name

The 83rd Annual Meeting of the Academy of Management

Event location

Boston, Massachusetts, USA

Event type

Conference

Event start date

2023-08-04

Event finish date

2023-11-08

Department affiliated with

  • Business and Management Publications
  • SPRU - Science Policy Research Unit Publications

Institution

University of Sussex

Peer reviewed?

  • Yes

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