nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2015‒10‒10
eight papers chosen by
Walter Frisch
Universität Wien

  1. The measurement of internet availability and quality in the context of the discussion on digital divide By Lüdering, Jochen
  2. E-business classification of selected retailers in South Africa By Janine Kruger; Miemie Struwig
  3. Resources on the Stage: A Firm Level Analysis of the ICT Adoption in Turkey By Derya Findik; Aysit Tansel
  4. Loss aversion on the phone By Genakos, Christos D.; Roumanias, Costas; Valletti, Tommaso
  5. Attribute Search in Online Retail Grocery Markets By Timothy Richards; Stephen Hamilton
  6. Towards smarter regulation of innovation? By Serge Gijrath
  7. Methodology for improving Romanian Linked Open Government Data ecosystem By Codrin-Florentin Nisioiu
  8. Creating Strategic Focus in Modern Business: E-Company Entering the Market. By Anna Dokukina

  1. By: Lüdering, Jochen
    Abstract: My contribution is concerned with measures of Internet quality and availability used and usable in the analysis of the so called digital divide. The usage of the share of Internet users in the population - widely used in economic analysis - can easily be misleading in this debate, suggesting that the digital divide is narrowing. This appears to be an artifact of the data, as some industrialized countries are already close to a share of 100 % Internet users in the population, while the ratio of Internet users to total populations is still growing for developing countries. I argue that one should focus on the study of Internet quality provided in a demand and supply model of infrastructure. To this end, I introduce a new latency-based measure to judge the quality of Internet, based on a novel data set, and compare it to related measures. The results indicate that it may indeed be useful to measure Internet quality across countries. In particular the availability of the indicator for 247 countries and semiautonomous regions makes it an interesting tool for policy analysis. The possibility to examine the effects of different determinants on individual quantiles is particularly interesting. ICT investment appears to be strongly correlated with lower latency (better Internet quality) in the lower part of the distribution, while there appears to be little explained variation in the top of the latency distribution. In addition we find that population density is an important determinant of latency - an argument which is brought up in the theoretical discussion on ICT investment but - to my knowledge - not found empirically to date.
    Keywords: Digital Divide,Internet,Telecommunication infrastructure,Measurement,Bandwidth,Latency
    Date: 2015
  2. By: Janine Kruger (Nelson Mandela Metropolitan University); Miemie Struwig (Nelson Mandela Metropolitan University)
    Abstract: Purpose of the study: To classify selected retailers according to the type of business and the e-business model stage used to adopt e-business strategies in order to create a competitive advantage.Research design and methodology: The study will be qualitative in nature as the homepage of each selected retailer’s internet site will be analysed in terms of content. The procedure used in content analysing the printed screen dumps involves making notes of the links and interesting information in the margin. The margin notes will be studied and grouped themes. As many themes as required will be included, as the number of themes can be reduced if necessary. A final list of themes will be compiled when no new themes have emerged, and all the notes and information have been accommodated in the themes. The different themes will be colour coded using a coloured highlighter pen for each theme in the transcripts. A final check of all text and links on the screen dumps and on the homepage will be done to ensure that the information not highlighted is not relevant. The finalised themes will be given to another researcher to confirm the themes. Trustworthiness of the research will be enhanced by triangulation. Inter-rater reliability will be performed in that another researcher will verify the categories and ensure that the data was indeed correct.Research findings: The findings showed that one retailer is classified as a brick-and-mortar, two as brick-and-click and one as an online business. The e-business strategies adopted by the four retailers ranged from limited online presence to e-commerce. Research limitations: Only four public companies operating in two industries have been investigated. Results may also differ if this study is replicated in a developed country. The adoption of a high level e-business strategy is limited in South Africa.Practical implications: Management of retailers should consider the various e-business strategies as it may assist in creating wealth for the shareholders. Retailers may also outsource some of the e-business strategy activities therefore reducing the cost of implementing such strategies. Contribution of paper: No paper could be found within the South African context that investigates the impact of e-business strategies on business performance. Additionally, no study could be found highlighting the importance of considering the extent of Internet usage for trading purposes to increase their visibility in the market place.
    Keywords: E-commerce, E-business, E-business model
    JEL: L81
  3. By: Derya Findik (Science and Technology Policy Studies Program, METU); Aysit Tansel (Department of Economics, METU; Institute for the Study of Labor (IZA) Bonn, Germany; Economic Research Forum (ERF) Cairo, Egypt)
    Abstract: This study examines the impact of firm resources on ICT adoption by the Turkish business enterprises using firm level data. ICT adoption is measured at three levels: The first level is technology ownership. The second level is the presence of enterprise resource planning (ERP) and customer resource management (CRM), and the third level is the use of narrowband and broadband technologies. The effects of the three main features of each technology level, which are complementarity, specificity, and the complexity, are analyzed by using firm level data in Turkey. This study has three main conclusions. As for the complementarity, firm’s resources play an important role in the adoption of technology while advancing from single technology to the multiple ones. Further, in the use of specific technologies such as ERP and CRM, firm resources generate differential effects between those technologies. Finally, the use of simple technologies does not require the same amount of firm resources as complex technologies.
    Keywords: adoption, ICT, complementarity, specificity, complexity
    JEL: D22 D24 O30 O47
    Date: 2015–08
  4. By: Genakos, Christos D.; Roumanias, Costas; Valletti, Tommaso
    Abstract: We analyze consumer switching between mobile tariff plans using consumer-level panel data. Consumers receive reminders from a specialist price-comparison website about the precise amount they could save by switching to alternative plans. We find that the effect on switching of being informed about potential savings is positive and significant. Controlling for savings, we also find that the effect of incurring overage payments is also significant and six times larger in magnitude. Paying an amount that exceeds the recurrent monthly fee weighs more on the switching decision than being informed that one can save that same amount by switching to a less inclusive plan, implying that avoidance of losses motivates switching more than the realization of equal-sized gains. We interpret this as evidence of loss aversion. We are also able to weigh how considerations of risk versus loss aversion affect mobile tariff plan choices: we find that a uniform attitude towards risk in both losses and gains has no significant influence on predicting consumers’ switching, whereas perceiving potential savings as avoidance of losses, rather than as gains, has a strong and positive effect.
    Keywords: consumer switching; loss aversion; mobile telephony; risk aversion; tariff plans
    JEL: D03 D12 D81 L96
    Date: 2015–10
  5. By: Timothy Richards (Arizona State University); Stephen Hamilton (Department of Economics, California Polytechnic State University)
    Abstract: Online shopping is common in many categories of retail goods. The recent trend towards online retailing has created an unprecedented empirical opportunity to examine consumer search behavior using click stream data. In this paper we examine consumer search intensity across a wide range of grocery products that differ in the depth of product assortment. We develop a model of attribute search in which consumers search within a chosen retailer for products that match their tastes, and that equilibrium prices reflect retailers’ expectations of how intensively consumers intend to shop. The model predicts an inverse relationship between product variety and attribute search in which greater product variety reduces search intensity and leads to higher retail prices. We test these hypotheses using consumer data on online search and purchase behavior from the comScore Web Behavior Panel. Our results indicate that consumer’s search less and pay higher retail prices in categories with deeper product assortments, a finding that suggests deeper product assortments can produce anti-competitive effects in retail food markets mediated through equilibrium responses in consumer search.
    Keywords: consumer search, variety, retail prices, attribute search, market power.
    JEL: D12 D83 L13 L81
    Date: 2015–09
  6. By: Serge Gijrath (Universiteit Leiden)
    Abstract: The paper assesses the scope of current regulation in the electronic communications sector in a period of rapid technological changes. It explores the network operator’s dilemma how to deal with investments in innovation in a time where fundamental innovation comes from outside; and the regulator’s dilemma how to improve the conditions for access to financial resources for research and innovation. The contention is to look whether different regulatory tools, such as proactively enhancing interoperability levels, subsidies and standardization measures could complement or supplement existing measures to safeguard competition. In terms of interoperability, two cases are discussed: IP connectivity and broadband access. The focus will be on measures proposed by the Commission in 2015 for the achievement of the Digital Single Market: what is the right track: does yardstick regulation imposing price-caps still work. The road to achieving more incentive regulation appears to be bumpy as well and reorganizing the level playing field does not appear to be a viable regulatory option. Some thought is given to how infrastructure sharing and other long-term contracts could form an alternative for regulation. A mix of regulation is proposed to move towards smarter electronic communications networks.
    Keywords: Interoperability, innovation; standardization; connected continent; IP connectivity; broadband access; incentive regulation; deregulation
    JEL: K00 K23 K33
  7. By: Codrin-Florentin Nisioiu (Bucharest University of Economic Studies)
    Abstract: Open Government Data (OGD) is seen as an enabler for Open Government. Open Data usually refers to public records that can be used and redistributed by anyone. Linked Open Government Data (LOGD) is a way of identifying, linking and accessing OGD Data. In the LOGD ecosystem, public administrations are data providers that provide Open Government Data as an online LOGD service to data consumers – citizens, businesses and other public administrations. The article is divided in 2 sections. The first section is describing the Linked Open Government Data ecosystem, the second section propose a methodology for a coherent Romanian Linked Open Government Data Ecosystem.
    Keywords: Linked Open Government Data, Romanian Linked Open Government Data ecosystem, methodology
    JEL: M15 C89
  8. By: Anna Dokukina (Plekhanov Russian University of Economics)
    Abstract: Cognitive business philosophy related to the information analysis, marketing research, consumer needs assessment, etc. becomes the key tendency of the organizations’ successful development. Among other industries e-commerce business considers digital marketing strategies as must-have for day-to-day activity as well as for the sustainable innovation growth.This paper describes main results of consulting project which includes a research connected with the company’s strategic focus development on the basis of digital marketing. The key idea is to prove the necessity of digital marketing development as an integral part of the organization’s general strategic planning. A hypothesis was formulated as follows: if a company considers the digital marketing strategically it creates an effective system to manage both internal and external factors of business environment.The practical goal of the project was to create the digital marketing strategy for e-commerce in order to develop its general strategic focus.As an object of research the e-company YYRRAA Ltd. is described. This is a new production-friendly small-scale organization which deals with different tools and solutions to simplify the wholesale trading and enable B2B-sector entrepreneurs to expand commercial opportunities.The main result of this project consists in the development of digital marketing strategy on the basis of SOSTAC model and the presentation of action plans for each step to ensure that the tactics is executed to the highest possible standards.The logics behind this project can be described in the following way. First, models, levels and approaches to strategic planning were clarified. It was necessary to examine factors of business environment which are the most influential to shape modern strategies of market players in e-business spheres. Second, the steps of strategic marketing plan were considered along with the frameworks of digital strategic planning and its tools. Third, the company’s current business strategy was analyzed in order to provide recommendations concerning the improvement of overall planning system on the basis of digital marketing strategy.As a conceptual and information background the publications of such authors as J.M. Bryson, F Martinelli, L.T. Hosmer and others as well as internal and external OORRAA.COM resources (that do not include NDA materials) have been used.The aim of this paper is to discuss the most essential bottom line of the consulting project. So, the material is focused on specifics of e-business strategic plan, digital marketing planning model including marketing tools and techniques for e-marketplaces, and main points of marketing strategy development for OORRAA.COM company.
    Keywords: Business environment, economic development, e-business, strategic focus, management decisions
    JEL: O10 M00 O32

This nep-ict issue is ©2015 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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