The effects of safety practice, technology adoption, and firm characteristics on motor carrier safety
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2004
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NTL Classification:NTL-FREIGHT-FREIGHT;NTL-FREIGHT-Trucking Industry;NTL-SAFETY AND SECURITY-SAFETY AND SECURITY;
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Abstract:The theory of the firm suggests that firms should maximize profit by investing in safety until
marginal cost is equal to the marginal benefit. This paper addresses motor carrier safety from the
perspective of the firm, developing the theoretical framework for firm safety decisions. Additionally, this
paper tests the relationship between firm safety performance and safety practices, new safety
technologies, and firm marketing strategies. By testing the impact of the safety performance marketing
strategy on carrier accident rates, it can be shown that firm managers have control over the safety
performance of their firm through management decisions.
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