Adopting technology: Institutional drivers and barriers
We examine the institutional facilitators and barriers to adopting technology. We will focus on the legal industry. Law firms have been slow to adopt technology, perhaps due to the billable hour fee model that determines the revenue of the firm. Nonetheless, many firms have started adopting technology that would allow lawyers to perform their task more efficiently. We investigate the institutional barriers such as incentive structure and human inertia.
We will examine the consequences of adopting technology. Using a broad sample of contracts drafted by law firms, we ask whether introducing technology lead to higher quality contract drafting. Legal contracts are a powerful setting to examine this question because the quality of the service offered by lawyers are well defined: to draft clearly defined contracts. We predict that various frictions in the legal industry will cause price to diverge from the quality of the service rendered. We also examine potential costs to adopting technology, such as documents becoming less customized.