nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2009‒10‒10
three papers chosen by
Walter Frisch
University Vienna

  1. Does social software support service innovation? By Meyer, Jenny
  2. Shopping Cost and Brand Exploration in Online Grocery By Andrea Pozzi
  3. Roadmap for Real World Internet applications By Fabrice Forest; Olivier Lavoisy; Markus Eurich; Jilles Van Gurp; Duncan Wilson

  1. By: Meyer, Jenny
    Abstract: Recent Internet technologies and web-based applications, such as social software, are being increasingly applied in firms. Social software can be employed for knowledge management and for external communication enabling access to internal and external knowledge. Knowledge in turn constitutes one of the main inputs to service innovation. Hence, social software has the potential to support service innovation. Using data from 505 German Information- and Communication Technology (ICT) and knowledge-intensive service firms, this is the first paper which empirically analyses the question whether the use of social software applications triggers innovation. Thereby, it refers to a knowledge production function in which social software use constitutes the knowledge sourcing activity. The results reveal that there is a positive relationship between social software and service innovation. Since this result is robust when controlling for former innovative activities and the previous propensity to adopt new technologies and to change processes, the analysis suggests that the causality runs from social software to innovation.
    Keywords: Social software,web 2.0,service innovation,knowledge management
    JEL: O31 O33 M10
    Date: 2009
  2. By: Andrea Pozzi (Einaudi Institute for Economics and Finance (EIEF))
    Abstract: This paper explores differences in consumers' grocery shopping behavior when they shop online and in a brick-and-mortar store. To do so, I assemble a new scanner dataset that tracks customers' grocery purchases in-store and on the Internet. This allows comparison in behavior of the same households, shopping in the same chain, for identical items and for identical prices, eliminating many possible confounding factors. I focus on the breakfast cereals category, and start by documenting that brand exploration is systematically more prevalent in-store than online. I propose three possible explanations for this finding: (i) shocks to the instantaneous utility of time correlated with the decision to shop online (ii) features of the grocer's website; and (iii) difficulty in assessing quality of unknown items while shopping online. I then continue by developing and estimating a model of consumer behavior that allows me to quantify each effect. I find that all of these effects contribute to hamper trial of new brands online. The counterfactual shows that altering the design of the website to remove potential obstacles to new trials increases brand exploration by 23%. More generally, in contrast to the conventional wisdom of the Internet reducing entry barriers, my work points to features of the online environment that in certain contexts actually could make entry of new brands more difficult.
    Keywords: retail, e-commerce, panel data, entry barriers
    JEL: L22 L81 M21
    Date: 2008–09
  3. By: Fabrice Forest (PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS : UMR5194 - Université Pierre Mendès-France - Grenoble II - Institut d'Études Politiques de Grenoble - Université Joseph Fourier - Grenoble I); Olivier Lavoisy (PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS : UMR5194 - Université Pierre Mendès-France - Grenoble II - Institut d'Études Politiques de Grenoble - Université Joseph Fourier - Grenoble I); Markus Eurich (SAP Research/ETH, D-MTEC, TIM, Zurich - SAP/ETH Zurich); Jilles Van Gurp (NOKIA Research Center, Helsinki - Nokia); Duncan Wilson (Ove Arup and Partners International, London - Ove Arup and Partners International)
    Abstract: This paper emphasises the socioeconomic background required to design the Future Internet in order that its services will be accepted by its users and that the economic value latent in the technology is realised. It contains an innovative outlook on sensing aspects of the Future Internet and describes a scenario-based design approach that is feasible to roadmap the dynamic deployment of Real World Internet applications. A multifaceted socioeconomic assessment leads to recommendations for the technology deployment and key features of the Future Internet that will globally integrate technologies like Wireless Sensor and Actuator Networks and Networked Embedded Devices.
    Keywords: Real World Internet ; Future Internet ; Scenario-based Design ; Socioeconomics ; Business Models ; Requirements
    Date: 2009

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