nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2012‒02‒20
two papers chosen by
Walter Frisch
University Vienna

  1. The adoption of social enterprise software By Engelstätter, Benjamin; Sarbu, Miruna
  2. Information Technology and Bilateral FDI: Theory and Evidence By Jeon, Bang Nam; Tang, Linghui; Zhu, Lei

  1. By: Engelstätter, Benjamin; Sarbu, Miruna
    Abstract: Social enterprise software is a highly promising software application for firms, though it is still in an infancy state. It offers rapid real-time information transfer based on business collaboration tools or instant messaging. The software collects and processes customer data from surveys, consumer feedback, reviews, blogs or social networks. This enables firms to build up detailed customer profiles potentially anticipating upcoming trends. We analyze the determinants of social enterprise software adoption based on the literature on the adoption of new technologies. In our analysis, we control for factors like firm size, intensity of information and communication technology, human capital and international competitive situation. Exploiting recent German firm-level data and a model controlling for sample selection, the results reveal that firms with highly qualified workers, a large share of young employees and international business activity are more likely to adopt social enterprise software. Larger and more ICT-intensive firms and recent innovators also have a higher propensity to use social enterprise software. In addition, firms belonging to the service sector are more eager to implement social enterprise software applications than manufacturing firms. --
    Keywords: enterprise software,social software,social enterprise software
    JEL: L10 M20 O31
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:11078&r=ict
  2. By: Jeon, Bang Nam; Tang, Linghui; Zhu, Lei
    Abstract: This paper investigates the impact of communication cost on the FDI activities of multinational corporations (MNCs). First, we provide a theoretical foundation for a gravity-type FDI model, which shows that physical distance and communication technology are important determinants of FDI activities. Second, we apply the IT-augmented gravity model to bilateral FDI data for a total of 47 OECD and non-OECD countries from 1980 to 1997 and find that distance is negatively related to inward FDI stocks while the growth of IT, measured by teledensity and celldensity, has encouraged FDI significantly. The impact is found to be more prominent on FDI from G7 countries to OECD countriesthan to non-OECD countries, and more prominent in the 1990s than in the 1980s. Moreover, IT plays a more effective role by reducing communication cost when distance is beyond a threshold range.
    Keywords: communication cost; FDI; distance
    JEL: F23 F21
    Date: 2012–02–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:36628&r=ict

This nep-ict issue is ©2012 by Walter Frisch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.