nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2014‒11‒28
twelve papers chosen by
Walter Frisch
Universität Wien

  1. Role of ICT in the innovation process based on firm-level evidence from four ASEAN economies: An SEM approach By Idota, Hiroki; Ueki, Yasushi; Bunno, Teruyuki; Shinohara, Sobee; Tsuji, Masatsugu
  2. The role of telecommunications operators on smart home service platforms By Kuebel, Hannes; Zarnekow, Ruediger
  3. Demand for internet access and use of Small and Medium Enterprises (SMEs) in Thailand By Srinuan, Chalita
  4. The productivity paradox: A Meta-analysis By Petr Polák
  5. The impact of local loop and retail unbundling revisited By Klein, Gordon J.; Wendel, Julia
  6. Publicité intrusive sur Internet : une étude exploratoire des profils de résistance By Chouk, Inès; Guiot, Denis
  7. The impact of regulation and competition on the migration from old to new communications infrastructure: Recent evidence from EU27 member states By Briglauer, Wolfgang
  8. The Role of Card Acceptance in the Transaction Demand for Money By Kim Huynh; Philipp Schmidt-Dengler; Helmut Stix
  9. The Effect of Communication Channels on Lying By Julian Conrads
  10. Sustaining a federation of Future Internet experimental facilities By Van Ooteghem, Jan; Taylor, Steve; Grace, Paul; Lobillo, Felicia; Smirnov, Mikhail; Demeester, Piet
  11. Market driven network neutrality and the fallacy of a two-tiered Internet traffic regulation By Knieps, Günter; Stocker, Volker
  12. The costs and benefits of leaving the EU By Ottaviano, Gianmarco; Pessoa, João Paulo; Sampson, Thomas; Van Reenen, John

  1. By: Idota, Hiroki; Ueki, Yasushi; Bunno, Teruyuki; Shinohara, Sobee; Tsuji, Masatsugu
    Abstract: Although the East Asian economies have been developing in the 21th century, innovation is indispensable for their further economic development. In order to achieve successful innovation, firms have to elevate their capability including technology, human resources, business organization, ICT use and so on by collaborating with outside organizations such as MNCs (Multi-national companies), universities, public organizations. The outside organizations are termed as external linkages. Based on authors' survey data of four ASEAN economies such as Vietnam, Indonesia, the Philippines, and Thailand from 2012 to 2013, this paper examines how factors such as organizational learning, ICT use, and technology enhance product and process innovation. These factors are used as latent variables in analysis and consist of the following variables: (i) technology such as capital goods, (ii) organizational learning including QC, cross-functional teams, (iii) ICT use such as B2B, B2C, EDI, SCM, ERP, CAD/CAM, groupware, SNS etc., and (iv) external linkages, such as MNCs, local and public organizations, and universities. This study employs SEM (Structural equation modeling) in order to analyze the causal relationships not only among the above four latent variables but also between these and innovation. The six hypotheses were postulated as follows: H1. External linkages enhance organizational learning; H2. External linkages improve capital goods; H3. External linkage improves ICT use; H4. Organizational learning improves capital goods; H5. Organizational learning improves ICT use; and H6. Organizational learning, ICT use, and capital goods enhance innovation. Estimation results on product innovation demonstrate that organization learning, technology (capital goods), and ICT use enhance product innovation. On the other hand, organization learning promotes technology (capital goods) and ICT use, which promotes process innovation. Accordingly, this study clarifies that ICT use, technology and innovation capability enhance product and process innovation.
    Keywords: ICT use,innovation, internal capability,external linkages,SEM (Structural equation modeling)
    Date: 2014
  2. By: Kuebel, Hannes; Zarnekow, Ruediger
    Abstract: The formation and evolution of digital service platforms is changing the balance of powers in the ICT industry. In particular, telecommunications operators feel the need to gain more control over the creation and provision of new services and to revise their roles in different service ecosystems. Therefore, both researchers and practitioners call for a better understanding of emerging digital services, such as smart home services, and corresponding platform strategies. Therefore, we assess the roles of leading telecommunications operators on smart home service platforms based on data gathered from in-depth desk research. Drawing on platform theory and the industry perspective on the smart home market, we identify how operators control technological and organizational assets to act as system integrator, enabler, broker and neutral platforms. Further, we discuss operators' strategies and major challenges in establishing common service platforms in a varied smart home ecosystem. Additionally, we point out aspects of interest for further research.
    Keywords: smart home,service platforms,business strategy,telecommunications industry
    Date: 2014
  3. By: Srinuan, Chalita
    Abstract: The aim of this paper is to analyse the demand and use of Internet access by small and medium enterprises (SMEs) in Thailand. Given the huge importance of SMEs to a national economy such as Thailand, this paper dives into the data to understand the magnitude of the issue. Official 2010 Thai government statistics state there are 2.82 million SMEs with unregistered SMEs triple this size. This compares to a population figure of 66.79 million and an Internet user community of 36 million users. This study therefore set out to empirically examine by use of a bivariate probit model whether the variables of computer availability, business sector, SME size, organizational form or foreign shareholding has a systematic link to Internet access. After this, once Internet use was determined, to analyse and estimate specific usage. The impact of these factors varies from service to service (i.e. e-mail, searching, retrieving and interacting with governmental agencies or purchasing goods and services online). Implications suggest that SME Internet connectivity and subsidy should be considered by key policy makers while developing and implementing more robust infrastructure and better support which could stimulate the growth of Internet access and use. Along with fixed/land line technologies, wireless broadband technologies such as 3G/4G could be another alternative to solve the lack of fixed infrastructure and provide an opportunity for SME Internet services. This must also be combined with better education and support for the entrepreneurial SME owner/manager.
    Keywords: Internet access,Internet use,SMEs,Thailand
    Date: 2014
  4. By: Petr Polák (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)
    Abstract: The impact of ICT (information and communication technology) on economic performance has been the subject of academic research for several decades, and despite the remarkable and significant innovation in computer technology, usage, and investments, only a small growth in productivity was observed. This observations has been coined the productivity paradox. This paper meta-analytical methods to examine publication bias and size of ICT elasticity. The empirical part is based on a collection of more than 800 estimates of IT payoff effects from almost 70 studies written in the last 20 years. The metaanalysis reveals strong presence of publication bias within ICT productivity literature and using mixed effect multilevel model estimates the ICT elasticity to be only 0.3%, which is more than ten times smaller than what was reported by previous meta-analysis 10 years ago.
    Keywords: meta-analysis, meta-regression analysis, publication bias, productivity paradox, Solow paradox, productivity, firm, ICT elasticity, IT payoff, information technology
    JEL: C83 O12 O32 D24
    Date: 2014–09
  5. By: Klein, Gordon J.; Wendel, Julia
    Abstract: For more than a decade the unbundling of telecommunications networks has been used as a regulatory means to stifle competition. However, despite its assumed positive effects on market entry and competition intensity, the negative effects on network investment incentives are widely shown in the theoretical literature. Therefore broadband penetration might also be affected negatively. In our paper we concentrate on the impact of local loop unbundling and Bitstream access on broadband penetration. Using a panel of European countries for a time period of 17 years, we find that the effect of unbundling on penetration is positive when an intermediate level of broadband penetration has been achieved in a country. However, this impact turns negative if the initial level of broadband penetration is rather low or high. We argue that this confirms possible negative effects on investment incentives, but may successfully lower prices to foster demand. These are two findings which should be carefully considered by policy makers when deciding on unbundling policies.
    Keywords: Broadband Internet Penetration,Local Loop Unbundling,Bitstream Access,Policy Evaluation,Panel Data Analysis
    Date: 2014
  6. By: Chouk, Inès; Guiot, Denis
    Abstract: This article focuses on the practices of resistance to intrusive advertising on the Internet. The analysis of 19 interviews reveals the existence of different resistance profiles when exposed to interstitial: functional resistance, ideological resistance, conative avoidance and non-resistance. From a managerial point of view, this typology is interesting for two main reasons. On the one hand, it is a decision tool when choosing an advertising format that takes into account oppositional responses to perceived intrusion. On the other hand, it provides a better understanding of the cyber-resistance movement due mainly to an increasingly perceived level of online advertising intrusion.
    Keywords: Résistance; Publicité intrusive; Interstitiels; Internet; Resistance; Intrusive advertising; Interstitial; Web marketing;
    JEL: D11 D12 M37
    Date: 2014–09
  7. By: Briglauer, Wolfgang
    Abstract: Fibre-deployment of next-generation communications networks is currently a major challenge for investing firms as well as for national regulators and is also subject to hot debates at EU level. This work examines the role of regulatory policies and competition controlling for relevant supply and demand side factors. Our econometric model employs dynamic panel data methods that take into account potential endogeneity due to omitted heterogeneity, reverse causality and the dynamic investment specification. Our results indicate that relevant forms of previous broadband access regulations have had a negative impact on investment in new infrastructure. Furthermore, infrastructure-based competition from mobile operators and the replacement effect stemming from the incumbents' existing infrastructure exert a negative impact on ex ante investment incentives. As regards the dynamics of the adjustment process, we find that there are both short-term and long-term effects towards the desired infrastructure level.
    Keywords: next-generation communications networks,sector-specific regulation,infrastructure competition,investment conditions,adjustment process,EU27 panel data
    JEL: H5 L38 L43 L52
    Date: 2014
  8. By: Kim Huynh; Philipp Schmidt-Dengler; Helmut Stix
    Abstract: The use of payment cards, either debit or credit, is becoming more and more widespread in developed economies. Nevertheless, the use of cash remains significant. We hypothesize that the lack of card acceptance at the point of sale is a key reason why cash continues to play an important role. We formulate a simple inventory model that predicts that the level of cash demand falls with an increase in card acceptance. We use detailed payment diary data from Austrian and Canadian consumers to test this model while accounting for the endogeneity of acceptance. Our results confirm that card acceptance exerts a substantial impact on the demand for cash. The estimate of the consumption elasticity (0.23 and 0.11 for Austria and Canada, respectively) is smaller than that predicted by the classic Baumol-Tobin inventory model (0.5). We conduct counterfactual experiments and quantify the effect of increased card acceptance on the demand for cash. Acceptance reduces the level of cash demand as well as its consumption elasticity.
    Keywords: Bank notes, E-Money, Econometric and statistical methods, Financial services
    JEL: C C3 C35 C8 C83 E E4 E41
    Date: 2014
  9. By: Julian Conrads (University of Cologne)
    Abstract: This paper investigates the effect of different channels of communication on lying behavior. A simple coin flip game with four coin tosses is adapted in which subjects have monetary incentives to misreport their private information. The treatments differ with respect to the communication channel employed to convey the private information, i.e., face-to face, phone, computer-mediated, and online. Against the hypotheses, the results show that a majority of subjects lies independently of communication channel in use. However, the decision whether to lie either to some or the full extent depends on the communication channel. Compared to more socially-distant communication, direct communication encourages partial lying, but decreases lying to the extreme. Women tend to lie to the full extent only under online communication. Social distance considerations and the probability of being detect lying may drive observed behavioral patterns. The findings highlight the relevance of lying costs in relation to the decision making environment.
    Keywords: experiment, private information, lying costs, communication
    JEL: C91 D63 D82 D83
  10. By: Van Ooteghem, Jan; Taylor, Steve; Grace, Paul; Lobillo, Felicia; Smirnov, Mikhail; Demeester, Piet
    Abstract: The growing complexity of the Future Internet landscape has driven the need for large-scale federations of experimental testbeds that support the next generation of research and experimentation. However, such facilities are typically difficult to sustain in the long term, particularly in the transition from a publically funded development to a self-sustaining operation. Fed4FIRE is a cross-domain federation of Future Internet testbeds that seeks to lower the barrier to complex experimentation. This paper explores the Fed4FIRE sustainability plan in further detail, and first documents how our value proposition was elicited from key stakeholder requirement analysis. We examine and analyse further the potential service portfolio to be offered and operated by the federator, making use of a service management approach, and how this applies to the viability of potential federation business scenarios and their impact on all involved stakeholders in the long term. A plausible scenario is then proposed and evaluated. Finally we present some conclusions.
    Keywords: Sustainability,Value proposition,Federation,Experimentation,FIRE
    Date: 2014
  11. By: Knieps, Günter; Stocker, Volker
    Abstract: Within a Generalized DiffServ architecture entrepreneurial flexibility for build-ing intelligent multipurpose traffic architectures enables the provision of a varie-ty of tailored traffic services for a wide range of heterogeneous application ser-vices. In order to solve the entrepreneurial traffic capacity allocation problem, we propose an incentive compatible pricing and quality of service (QoS) differ-entiation model for the Generalized DiffServ architecture resulting in market driven network neutrality. Optimal allocation decisions based on the opportunity costs of capacity usage require that all relevant traffic classes are taken into ac-count simultaneously, rather than 1) excluding traffic classes (by means of min-imum traffic quality requirements), 2) prescribing a maximum or minimum number of traffic classes or 3) arbitrarily including parameter specifications for or levels of QoS which are not reflected by demand side. It is particularly im-portant that the opportunity costs of capacity reservations for deterministic pre-mium traffic classes are interrelated with subsequent non-deterministic traffic classes. As a consequence, every form of market split would be artificial.
    Date: 2014
  12. By: Ottaviano, Gianmarco; Pessoa, João Paulo; Sampson, Thomas; Van Reenen, John
    Abstract: What would be the economic effects of the UK leaving the European Union on living standards of British people? We focus on the effects of trade on welfare net of lower fiscal transfers to the EU. We use a standard quantitative static general equilibrium trade model with multiple sectors, countries and intermediates, as in Costinot and Rodriguez-Clare (2013). Static losses range between 1.13% and 3.09% of GDP, depending on the assumptions used in our counterfactual scenarios. Including dynamic effects could more than double such losses.
    Keywords: Trade,European Union,welfare
    JEL: F13 F17
    Date: 2014

This nep-ict issue is ©2014 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.
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