nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2021‒02‒01
thirteen papers chosen by
Marek Giebel
Universität Dortmund

  1. Data (r)evolution - The economics of algorithmic search and recommender services By Budzinski, Oliver; Gänßle, Sophia; Lindstädt-Dreusicke, Nadine
  2. Addressing territorial digital divides through ICT strategies: Are investment decisions consistent with local needs? By Reggi, Luigi; Gil-Garcia, J. Ramon
  3. Why Do People Switch Mobile Platforms? By Khurram, Anoshay; Hashmi, Rabia; Khalid, Saaniya; Ali, Areesha; Khan, Muhammad Shams-UR-Rehman
  4. Detecting coverage bias in user-generated content By Anna Kerkhof; Johannes Münster
  5. Measuring overall convenience of consumers on online shopping and their behavioral intention By Munshi, M.Faris Uddin; Hussain, Hammad; Ahmed, Muneeb; Idress, Amir
  6. Structural Change in the ICT Sector – Where Have Former Nokia Employees Ended up? By Ali-Yrkkö, Jyrki; Kuosmanen, Natalia; Pajarinen, Mika
  7. The Sharing Economy: Definition, Measurement and its Relationship to Capitalism By Bergh, Andreas; Funcke, Alexander; Wernberg, Joakim
  8. Accommodating Employees with Disabilities: The Role of Flexible Employment Schemes in Europe By Giovanis, Eleftherios; Ozdamar, Oznur
  9. Trade sentiment and the stock market: new evidence based on big data textual analysis of Chinese media By Marlene Amstad; Leonardo Gambacorta; Chao He; Dora Xia
  10. Profiting from big data analytics: The moderating roles of industry concentration and firm size By Elisabetta Raguseo; Claudio Vitari; Federico Pigni
  11. Measuring cloud services use by businesses By Daniel Ker
  12. IT/IS strategy research and digitalization: An extensive literature review By Teubner, Alexander; Stockhinger, Jan
  13. China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach By Min Zhu; Longmei Zhang; Daoju Peng

  1. By: Budzinski, Oliver; Gänßle, Sophia; Lindstädt-Dreusicke, Nadine
    Abstract: The paper analyses the economics behind algorithmic search and recommender services, based upon personalized user data. Such services play a paramount role for online services such as marketplaces (e.g. Amazon), audio streaming (e.g. Spotify), video streaming (e.g. Netflix, YouTube), app stores, social networks (e.g. Instagram, Tik Tok, Facebook, Twitter) and many more. We start with a systematic analysis of search and recommendation services as a commercial good, highlighting the changes to these services by the systematic use of algorithms. Then we discuss benefits and risk for welfare arising from the widespread employment of algorithmic search and recommendation systems. In doing so, we summarize the existing economics literature and go beyond its insights, including highlighting further research desires. Eventually, we derive regulatory and managerial implications drawing on the current state of academic knowledge.
    Keywords: algorithmic search and recommender services,data economics,media economics,internet economics,digital economy,cultural economics,competition,antitrust,industry regulation,digital business ecosystems
    JEL: L86 L40 K21 K23 K24 L13 L51 L82 M21 Z10
    Date: 2021
  2. By: Reggi, Luigi; Gil-Garcia, J. Ramon
    Abstract: Governments around the world are investing a great amount of resources in the development of an information society. These investments are particularly important as an attempt to close digital divides among countries and regions within countries. However, there is no clear evidence that suggests that current Information and Communication Technology (ICT) policies are helping align investments with the actual needs of the local contexts. Based on data about the allocation of 2014-2020 EU Funds, this paper analyzes the relationship between local needs and investment decisions aiming at bridging territorial digital divides. The results identify four different regional strategies developed around four policy goals: broadband, digital inclusion, digital government services, and the use of ICTs in enterprises. The results also show that unlike the past 2007-13 period, the allocations to these goals appear to be consistent with the ICT local context, i.e. funding for a given goal is higher in the regions that need it the most. Therefore, our main recommendation for the European Commission and Member States is to keep existing requirements for developing evidence-informed “Digital Growth” strategies for the next 2021-27 period. We also suggest to strengthen existing support tools for regional governments.
    Keywords: Digital divide, Broadband, Technology Policy, Smart City, European Policy, Regional Planning, European Funds
    JEL: O2 O38 R58
    Date: 2021
  3. By: Khurram, Anoshay; Hashmi, Rabia; Khalid, Saaniya; Ali, Areesha; Khan, Muhammad Shams-UR-Rehman
    Abstract: This study aims to examine the factors that influence customers to switch mobile platforms in Karachi. For this purpose, the study uses Information System Success Model (ISSM) to find out individuals’ intention of using mobile platforms and to predict and explain their behavior towards mobile phone devices. Further, the study also intends to analyze the effects of System Quality, Information Quality, Service Quality, User Satisfaction, Perceived Switching Value and Switching Intentions. Using the Information System Success Model (ISSM), data has been collected from telecommunications customers in Karachi, using self-administered questionnaires. A total of 424 questionnaires are found usable. We use Structural Equation Modeling (PLS-SEM) to analyze the effects of System Quality, Information Quality, Service Quality, User Satisfaction, Perceived Switching Value on Switching Intentions. Using the Structural Equation Modeling (PLS-SEM), this study finds that Information Quality (IQ) has negative and significant impact on Perceived Switching Value (PSV) whereas Service Quality (SE-Q) has significant and positive impact on Perceived Switching Value (PSV). While Information Quality (IQ), Service Quality (SE-Q) & System Quality (SY-Q) also have positive and significant impacts on User Satisfaction (US) whereas Perceived Switching Value (PSV) and User Satisfaction (US) have a significant impact on Switching Intentions (SI). Moreover, Perceived Switching Value (PSV) has positive impact on Switching Intention and System Quality has negative and insignificant impact on Perceived Switching Value. Four limitations are available for future studies. First, as our variables are limited so in future other variables could be included in this study. Second, our population was only Karachi’s telecommunication customer which influences the results of the study. Third, our sample size was 573 respondents which ultimately decrease the generalizability of the paper because of not having appropriate sample size. Fourth, respondent was not cooperative while filling up questionnaire which might negatively influence the results. These limitations, however, provide directions for further future research.
    Keywords: Switching Intention, User Satisfaction, Perceived Switching Value, System Quality, Information Quality, Service Quality, Information System Success Model.
    JEL: I0 I2 I29
    Date: 2020
  4. By: Anna Kerkhof (ifo Institute for Economic Research, LMU Munich, and CESifo); Johannes Münster (University of Cologne)
    Abstract: The importance of user-generated content is growing as media consumption is moving online; yet, investigations of media bias on user-generated content platforms are rare. We develop a novel procedure to detect coverage bias - i.e., bias in the amount of coverage certain topics or issues receive - on user-generated content platforms. We proceed in two steps. First, we focus on a sample of homogeneous observations and control for observable differences. Second, we compare the coverage of our observations between different language versions of the same platform in a difference-in-differences framework, which allows us to disentangle coverage bias from unobserved heterogeneity between observations. We apply our procedure to Wikipedia and examine whether it has a coverage bias in its biographies of German (and French) Members of Parliament (MPs). Our analysis reveals a small to medium size coverage bias against MPs from the center-left parties in Germany and in France. A plausible explanation are partisan contributions to the Wikipedia biographies, as we show by analyzing patterns of authorship and Wikipedia's talk pages for the German case. Practical implications of our results include raising users' awareness of coverage bias when searching for and processing information obtained on user-generated content platforms.
    Keywords: bias, media bias, media economics, social media, user-generated content
    JEL: L82 L86 P16
    Date: 2021–01
  5. By: Munshi, M.Faris Uddin; Hussain, Hammad; Ahmed, Muneeb; Idress, Amir
    Abstract: The purpose of this research to analyze overall convenience for consumers through online shopping and their behavioral intention towards online customer satisfaction. This study helps people who purchases product and services online because its aim on main factors which create impact on consumers when they buy from web-stores. Moreover, it is also beneficial for the companies and individual who sell their product and services via online. We used Structural Equation Modeling (SEM) with the sample size of 531. We have collected online survey questionnaire from respondent who are convenient to us from Karachi. The nature of the research is quantitative. The purpose of utilizing quantitative methodology that we are able to focus on variety of data to understand the behavior intention and customer satisfaction of those who engage in online shopping. The findings of this research shows that what factors managers should focus on to grow their online sales and improves the efficiency of their websites. Managers should be use it to develop strategies for effective and efficient business, enhance these variable in their online shopping process and make the experience convenient and safe for their customers. Five limitations are available for future studies. First, the data was only collected by 531 respondents. Second, data was collected by respondents living in Karachi, Pakistan. Third, data was collected by respondents that are convenient to us. Fourth, there was limited variable. Fifth, it only perform on SPSS and PLS, no other software used in this research for calculating result and we run only three test on PLS. These limitations, however, provide directions to the researcher.
    Keywords: Online shopping, Online customer satisfaction, Online transaction, Cash on delivery, Behavioral intention
    JEL: I20 I23
    Date: 2020–03–30
  6. By: Ali-Yrkkö, Jyrki; Kuosmanen, Natalia; Pajarinen, Mika
    Abstract: Abstract This study examines the employment status of workers who left Nokia during the period 2009–2014. The results reveal that the workers were quite successful in finding employment. According to the latest available data, more than three-quarters of these individuals found a new job, while the share of unemployed was 9.6 percent. The remaining share of ex-employees retired or started to study. Workers with higher education and workers who had held senior officer positions at Nokia were more successful in finding a new job than others. New jobs were often found in the service sector. Some regional differences existed in the employment of the former Nokia employees: finding employment was more successful in North Ostrobothnia, Uusimaa and Central Finland than in Southwest Finland.
    Keywords: ICT, Structural change, Nokia, Employment, Employee, Personnel, Find employment
    JEL: J01 J21 J23 J64 L16
    Date: 2021–01–18
  7. By: Bergh, Andreas (Research Institute of Industrial Economics (IFN)); Funcke, Alexander (University of Pennsylvania); Wernberg, Joakim (Swedish Entrepreneurship Forum and CIRCLE, Lund University)
    Abstract: For the past decade, the sharing economy has not only grown but also expanded to cover a wide variety of different activities across the globe. Despite a lot of research, there is still no agreement on how to define and measure the sharing economy, and no consensus on whether the sharing economy is a part of or an alternative to a regular capitalist economy. This paper contributes by presenting a framework for classification of firms and services in three dimensions (decentralized supply, ad hoc matchmaking and microtransactions), thus effectively creating a definition of the sharing economy. Using clickstream data collected in 2016-2017, we show that the sharing economy consists of many services, but the distribution is highly skewed: Six percent of the services account for 90 percent of the traffic. Using cross-country regressions for 114 countries, we show that while the most important determinant of sharing economy usage is internet access, usage is significantly higher in countries with fewer regulation of capital, labor, and business. We conclude that the sharing enables new types of entrepreneurial efforts within the digitized capitalist economy.
    Keywords: Economic freedom; Sharing economy; Broadband; Capitalism
    JEL: M20 O33 O57 P12
    Date: 2021–01–25
  8. By: Giovanis, Eleftherios; Ozdamar, Oznur
    Abstract: Over the past 30 years, the workplace has witnessed significant changes. The fast growth in the use of information technology, changes in working hours and agreements radically changed the nature of job. One such change is the flexible employment schemes, which can provide alternatives for employees with disabilities, giving incentives to increase their productivity and their job satisfaction. The aim of this study is to examine the impact of those schemes on job satisfaction, job quality and absenteeism in this group of people. Furthermore, the objective is to explore the role of flexible employment to carers of disabled people. The empirical analysis relies on the European Working Conditions Survey over the period 2000-2015. The results show a positive impact on both disabled workers and carers’ job satisfaction and lower incidence of absenteeism at work. The policy recommendations and implications are further discussed.
    Keywords: Disability; European Working Conditions Survey; Flexible Employment Schemes; Flexi-Time; Health Conditions; Homework; Job Quality; Job Satisfaction; Teleworking; Wage Gap
    JEL: I14 I18 J22 J24 J28
    Date: 2019–08
  9. By: Marlene Amstad; Leonardo Gambacorta; Chao He; Dora Xia
    Abstract: Trade tensions between China and US have played an important role in swinging global stock markets but effects are difficult to quantify. We develop a novel trade sentiment index (TSI) based on textual analysis and machine learning applied on a big data pool that assesses the positive or negative tone of the Chinese media coverage, and evaluates its capacity to explain the behaviour of 60 global equity markets. We find the TSI to contribute around 10% of model capacity to explain the stock price variability from January 2018 to June 2019 in countries that are more exposed to the China-US value chain. Most of the contribution is given by the tone extracted from social media (9%), while that obtained from traditional media explains only a modest part of stock price variability (1%). No equity market benefits from the China-US trade war, and Asian markets tend to be more negatively affected. In particular, we find that sectors most affected by tariffs such as information technology related ones are particularly sensitive to the tone in trade tension.
    Keywords: stock returns, trade, sentiment, big data, neural network, machine learning
    JEL: F13 F14 G15 D80 C45 C55
    Date: 2021–01
  10. By: Elisabetta Raguseo (Polito - Politecnico di Torino [Torino]); Claudio Vitari (AMU - Aix Marseille Université); Federico Pigni (GEM - Grenoble Ecole de Management)
    Abstract: Big data has gained momentum as an Information Technology that is capable of supporting organizational efforts to generate new and better business value. We here contribute to the emerging literature on big data analytic (BDA) solutions by investigating the moderating roles of firm size and industry concentration in the relationship between BDA solutions and firm profitability. Using a unique panel data set that covers 13 years, from 2004 to 2016, which contains information about 176 firms, we provide robust econometric empirical evidence of the negative moderating effects of industry concentration and the positive moderating effects of firm size on the relationship between the use of BDA solutions and firm profitability. Our findings provide strong empirical evidence on the business value of BDA as well as the essential role played by contextual conditions that managers should consider.
    Keywords: IT business value,big data analytics,firm profitability,econometric analysis,industry concentration,firm size
    Date: 2020–11
  11. By: Daniel Ker
    Abstract: Cloud computing infrastructures underpin an ever-increasing range of business tools, yet measures of cloud service adoption based on business ICT usage surveys give only a partial view of their diffusion. They do not reveal the intensity or volume of use by businesses, or the amount spent on cloud services. This paper assesses the extent to which insights on the use of commercial cloud services (i.e. services purchased from external providers) can be gleaned from economic and business statistics – in particular, from supply-use tables and the underlying business surveys. The paper examines the defining features of cloud services and their treatment in various statistical product classifications, before deriving estimates on the use of specific “cloud-containing product classes” across businesses. A key finding is that efforts are needed to improve the availability of data that can be used to gain robust insights on business use of cloud services.
    Date: 2021–01–27
  12. By: Teubner, Alexander; Stockhinger, Jan
    Abstract: IT/IS strategy is of central importance to practice and many well-developed lines of research have contributed to our understanding of IT/IS strategy. However, throughout the last decade, digitalization has fundamentally transformed the business world and put into question traditional strategy wisdom. As information technologies are the driver of this digital transformation, we can expect an even more fundamental change in IT/IS strategy thinking. To verify this expectation, we undertook an in-depth, extensive review of the academic literature on this topic. Our review, which is time-framed to the years 2008-2018, distils five different directions in the development of IT/IS strategy research. It also identifies a shift in how IT/IS strategy is defined and investigated over this period. Moreover, we present an emerging debate on how digitalization challenges traditional IT/IS strategy wisdom. As this debate is still in its infancy, we take it further by entering into the larger discussion on digitalization, including digital innovation, digital ecosystems, and digital transformation. Building on this, we derive at deeper insights on how IT/IS strategy could, should, or should better not be understood in the digital age.
    Keywords: IT/IS Strategy,IS Strategy,Digitalization,Digital Transformation,Digital Business Strategy,Digital Strategy
    Date: 2020
  13. By: Min Zhu; Longmei Zhang; Daoju Peng
    Abstract: China’s growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the “middle-income trap” and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level aggregates, which are ill suited to understanding China’s significant structural transformation and its impact on economic growth. To fill the gap, this paper takes a deep dive into China’s convergence progress in 38 industrial sectors and 11 services sectors, examines past sectoral transitions, and predicts future shifts. We find that China’s productivity convergence remains at an early stage, with the industrial sector more advanced than services. Large variations exist among subsectors, with high-tech industrial sectors, in particular the ICT sector, lagging low-tech sectors. Going forward, ample room remains for further convergence, but the shrinking distance to the frontier, the structural shift from industry to services, and demographic changes will put sustained downward pressure on growth, which could slow to 5 percent by 2025 and 4 percent by 2030. Digitalization, SOE reform, and services sector opening up could be three major forces boosting future growth, while the risks of a financial crisis and a reversal in global integration in trade and technology could slow the pace of convergence.
    Keywords: Productivity;Services sector;Labor productivity;Industrial sector;Industrial productivity;WP,market services,productivity convergence,high-productivity industrial sector,potential GDP
    Date: 2019–11–27

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