nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2021‒08‒16
eleven papers chosen by
Marek Giebel
Universität Dortmund

  1. Technological Change and Domestic Outsourcing By Bergeaud, Antonin; Mazet-Sonilhac, Clément; Malgouyres, Clément; Signorelli, Sara
  2. What do Firms Gain from Patenting? The Case of the Global ICT Industry By Dimitrios Exadaktylos; Mahdi Ghodsi; Armando Rungi
  3. Supporting teachers’ use of ICT in upper secondary classrooms during and after the COVID-19 pandemic By OECD
  5. Adjusting to the digital: societal outcomes and consequences By Mansell, Robin
  6. Affordable Connectivity and Digital Entrepreneurial Ecosystem for Rural Africa By Odusola, Ayodele; Mekuria, Fisseha; Mzyece, Mjumo; Mfupe, Luzango
  7. State-firm coordination and upgrading in Spain's and Korea's ICT industries By Calvo, Angela Garcia
  8. Digital Transformation and IT Security Issues - Analyzing Organizational Decision-Making Processes through a Behavioral Lens By Heidt, Margareta
  10. Examining the role of consumer satisfaction within mobile eco-systems: Evidence from mobile banking services By Sajid, Zoya; Iftikhar, Naba; Ghouri, Ushna; Siddiqui, Humbal; Uddin, Kaleem
  11. Investment triggers inclusiveness in the Bolivian TELECOM Sector? By Javier Aliaga Lordemann; Sergio Mansilla

  1. By: Bergeaud, Antonin (Bank of France); Mazet-Sonilhac, Clément (Sciences Po, Paris); Malgouyres, Clément (Paris School of Economics); Signorelli, Sara (University of Amsterdam)
    Abstract: Domestic outsourcing has grown substantially in developed countries over the past two decades. This paper addresses the question of the technological drivers of this phenomenon by studying the impact of the staggered diffusion of broadband internet in France during the 2000s. Our results confirm that broadband technology increases firm productivity and the relative demand for high-skill workers. Further, we show that broadband internet led firms to outsource some non-core occupations to service contractors, both in the low and high-skill segments. In both cases, we find that employment related to these occupations became increasingly concentrated in firms specializing in these activities, and was less likely to be performed in-house within firms specialized in other activities. As a result, after the arrival of broadband internet, establishments become increasingly homogeneous in their occupational composition. Finally, we provide suggestive evidence that high-skill workers experience salary gains from being outsourced, while low-skill workers lose out.
    Keywords: broadband, firm organization, labor market, outsourcing
    JEL: G14 G21 O33
    Date: 2021–07
  2. By: Dimitrios Exadaktylos; Mahdi Ghodsi; Armando Rungi
    Abstract: This study investigates the relationship between patenting activity, productivity, and market competition at the firm level. We focus on the Information and Communication Technology (ICT) industry as a particular case of an innovative sector whose contribution to modern economies is pivotal. For our purpose, we exploit financial accounts and patenting activity in 2009-2017 by 179,660 companies operating in 39 countries. Our identification strategy relies on the most recent approaches for a difference-in-difference setup in the presence of multiple periods and with variation in treatment time. We find that companies being granted patents increase on average market shares by 11%, firm size by 12%, and capital intensity by 10%. Notably, we do not register a significant impact of patenting on firms' productivity after challenging results for reverse causality and robustness checks. Findings are robust after we consider ownership structures separating patents owned by parent companies and their subsidiaries. We complement our investigation with an analysis of market allocation dynamics. Eventually, we argue that policymakers should reconsider the trade-off between IPR protection and market competition, especially when the benefits to firms' competitiveness are not immediately evident.
    Date: 2021–08
  3. By: OECD
    Abstract: School systems around the world are making efforts to enhance and make education more efficient with information and communications technology (ICT). This has become especially urgent due to the current pandemic. Because of its rapidly evolving nature, ICT places unique demands on teachers, requiring a certain level of digital literacy and specialised pedagogical knowledge to integrate it into the classroom.Teacher training in ICT usage and instruction at the collective and official level is key to a successful transition from an old to a new educational system. But efforts and careful analysis will be needed to ensure that the training actually increases teacher preparedness and meets their educational demands. Without proper implementation, ICT use may not only be ineffective but have a negative impact on teaching and learning.
    Keywords: COVID-19, information and communications technology, pandemic, schools, students, teachers, teaching
    Date: 2021–08–24
  4. By: Asha Elizabeth Chhetri; Thokchom Asha Sinha
    Abstract: ICT (Information and Communication Technology) has been considered as a powerful tool in bringing efficient teaching-learning in educational settings. Efficiency in a task can only be brought if there is positive attitude and competence towards that task. This paper aims to measure validity and reliability of ICT attitude and competence instruments for students studying during the session 2017-18. A pilot study was conducted on 50 class-X students of four high schools in Imphal West, Manipur for measuring validity of self-made ICT Competence instrument. For checking the reliability of ICTAttitude Scale developed by Kofi Ayebi Arthur (2010), test-retest method was adopted. Self-made ICT Competence instrument obtained an acceptable valid result. The test-retest result for ICT-Attitude Scale also gave an acceptable reliability value of 0.96. Key Words: Valid and reliable, ICT-Attitude, ICT Competence, instrument Policy
    Date: 2021–03
  5. By: Mansell, Robin
    Abstract: Innovation in digital technologies is central to contemporary debates about the need for policy and regulatory adjustment in response to the consequences of the centrality of these technologies in contemporary societies. Christopher Freeman's research in relation to changes in techno-economic paradigm and, specifically, in relation to the information and communication technology (ICT) paradigm, cautioned that assessments of these changes needed to go beyond market dynamics to examine social, cultural and political issues. In this paper several predominant themes in his work are foregrounded – the ambiguity of changes within the ICT paradigm; the role of guiding principles in influencing expectations about societal outcomes; and the importance of political factors in shaping the consequences of technological innovation. These three themes are then deployed in a discussion of recent innovations – two technical (5G mobile networks and artificial intelligence-as-a-service) and one institutional (proposals for changes in the international taxation regime in response to claims that the existing regime is inappropriate in the face of global online service provision). In each instance, the aim is to illustrate how following Freeman by giving attention to the themes operates as an important guide to analysis of adjustments to novel deployments of digital technology. The conclusion emphasizes the value of Freeman's contributions to shaping research agendas that acknowledge the need to humanize technology, to consider alternatives to taken-for-granted principles and practices, and to take into account the role of political power in tandem with concentrated economic power.
    Keywords: ICT paradigm; innovation; datafication; 5G network; artificial intelligence; taxation; Elsevier Covid Relief Fund
    JEL: H00 P16
    Date: 2021–11–01
  6. By: Odusola, Ayodele; Mekuria, Fisseha; Mzyece, Mjumo; Mfupe, Luzango
    Abstract: Innovation on sustainable ICT technologies to realize affordable broadband connectivity for rural and underserved communities is a crucial component of the effort to achieve the aim of “leaving no one behind by 2030” as championed by the United Nations. Digital connectivity and the creation of a digital entrepreneurial rural ecosystem (DERE) are two interconnected interventions necessary to achieve digital inclusion with rural communities as the main target. This paper defines the ecosystem components for the DERE, which include affordable broadband, sustainable business models and co-creation of relevant ICT services involving beneficiary rural communities. This framework presents a proof of concept on rural SMEs-driven digital inclusion being implemented at four sites in South Africa.
    Keywords: Community/Rural/Urban Development, International Development, Research and Development/Tech Change/Emerging Technologies
    Date: 2021–08–10
  7. By: Calvo, Angela Garcia
    Abstract: Generating sustainable growth and reaching advanced economy status depend on the ability of countries to host local, globally competitive firms in skill-, capital-, and knowledge-intensive industries. However, few countries succeed. This paper asks whether state activism is necessary to foster economic transformation at high levels of complexity in the globalisation era, and if so, what strategies are effective. Using evidence from Spain's and Korea's ICT industries since the 1980s, the paper argues that state-firm coordination remains necessary to reach the efficiency frontier in complex industries. However, coordination has shifted from hierarchical structures to nonhierarchical models in which states and firms develop mutually agreed-upon working rules to reach beneficial outcomes. Nonhierarchical coordination may involve adopting different institutional configurations, depending on the identities and capabilities of firms and national governments and on the nature of linkages with other nations. These linkages may lead to alternative pathways to upgrading and diverse productive specialisations.
    Keywords: business-government relationships; industrial upgrading; late development; Political economy; state activism; EU747943
    JEL: R14 J01
    Date: 2021–01–02
  8. By: Heidt, Margareta
    Abstract: Digital transformation has established itself as an omnipresent term in the new millennium. Often considered synonymous with the so-called Fourth Industrial Revolution, the term describes the convergence of information technology and the ubiquity of data in private life as well as in business and social lives. Inherent to the term "revolution" is radical change and the upheaval of existing processes and relationships. Translated into a business context, revolution leads to the transformation of business models and established work processes as well as the increasing dependence on data and new technologies. In times of digital transformation, managers and organizational decision-makers are faced with constant, potentially business-critical, decisions regarding these new technologies and the maintenance of information and data security. The analysis of management decisions, therefore, plays a crucial role in comprehending and researching digital transformation. This dissertation, therefore, seeks to improve our understanding of decision-making processes regarding the adoption of cloud computing solutions and data protection measures as well as investments in information technology (IT) security in primarily small and medium-sized enterprises. Article A examines the influence of status quo bias and reference dependency in the decision to adopt cloud computing solutions. Based on the tenets of prospect theory, findings suggest that rather inexperienced decision-makers are taking their evaluation of the existing technology more into account when assessing a cloud-based replacement technology. As a consequence, status quo thinking leads to a more negative assessment of the new technology, which hinders its potentially beneficial introduction to the organizational IT service architecture. Article B investigates decision-making processes related to end-user data protection measures and the impact of psychological ownership on the motivation to protect data. In a questionnaire study and based on the protection motivation theory, the influence of psychological ownership on the decision-making behavior of individuals in both private and work contexts is analyzed. The results demonstrate that psychological ownership exerts a stronger impact on the protection motivation of participants in a private context. The analysis further indicates that employees partly relinquish their responsibility regarding security responses to protect data in their work context. Fostering feelings of psychological ownership could possibly counteract such detrimental effects and improve the adoption of data protection measures in a work context. In Article C, the previously demonstrated cognitive and behavioral aspects of decision-making are contextualized into a holistic conceptual framework. Based on a comprehensive literature analysis and an interview study, this study finds that decisions regarding IT security in companies are influenced by organizational, economic, environmental, cognitive, and behavioral aspects. The literature analysis further demonstrates that existing research still emphasizes economic aspects based on the assumption of purely rational decision-makers. Studies that shed light on IT security decisions from a behavioral, environmental or organizational perspective are significantly less frequent, although the analysis of the expert interviews emphasizes the influence of these aspects. Article D validates that decision-makers in companies are influenced by a variety of aspects when making investment decisions in IT security. The studies of both Article D and Article E aim at decision-makers from small and medium-sized enterprises (SMEs), since an in-depth literature review of existing research in the area of organizational IT security indicates that organizational IT security in SMEs has been largely neglected. The analysis of expert interviews conducted with SME decision-makers, however, indicates that implications of existing research can be transferred only to a limited extent due to unique constraints and their influence on decisions in the SME context. The studies, therefore, investigate and validate the impact of these SME-specific constraints regarding IT security decisions. The findings imply that invest-ment decisions with regard to organizational IT security are strongly influenced by SME-specific characteristics such as insufficient IT budget planning, undocumented processes, or multiple roles due to lack of resources. Consequently, this dissertation provides valuable insights for both practice and research regarding typical and frequent decision-making processes in the context of digital transformation. In particular, this study examines the influence of biases and non-rational aspects in the decision-making process regarding new technologies or measures to ensure their security as well as the effects of SME-specific constraints demonstrate and emphasizes the need for further behavioral research in technology adoption and IT security.
    Date: 2021
  9. By: Jean de Dieu Mushimiyimana
    Abstract: Many countries are improving education system as an instrument that can lead them to speed development. This study was carried out to investigate the School management and effective use of smart classroom in teaching and learning process. The study used 39 participants from Gicumbi District in Rwanda. The results of study indicate that majority of respondents explained that leadership has great effect on the effective use of smart classroom, contributing in ICT development in country and rising country economy.. And teachers gave suggestion on how government help in improving use of smart classroom. Key Words: school management, smart classroom, teaching and learning process, Rwanda Policy
    Date: 2021–03
  10. By: Sajid, Zoya; Iftikhar, Naba; Ghouri, Ushna; Siddiqui, Humbal; Uddin, Kaleem
    Abstract: Mobile banking is a convenient solution to access the financial services from anywhere around. Corporates, entrepreneurs and business person can easily use mobile apps to directly receive money from customers to phone numbers to process payments and save time. Mobile technology allows banks to reduce operating costs while maintaining customer satisfaction – but how real and true is this in Pakistan? The purpose of this study is to figure out what are the primary drivers of mobile banking adoption in Pakistan and how they affect customer satisfaction... Banking as a developing technology is being adopted by the surrounding banking departments. The research includes a survey and analysis based on a total of 250 replies, the majority of which were from Karachi, Pakistan. PLS-SEM was utilized in the study to test the research model and hypothesis. The data reveal that service quality, structural assurance, system quality, information quality, task characteristics, and task characteristics all have a favorable impact on consumer satisfaction, whereas, trust fully mediates the relationship. So because data was acquired from a small number of people, the study may be biased because the results are self-reported and respondents may have answered incorrectly, making the findings less credible.
    Keywords: Mobile Phone, Online Banking services, Customer Satisfaction, Internet banking, e-banking in Pakistan.
    JEL: M1 M3
    Date: 2021
  11. By: Javier Aliaga Lordemann (Senior Associate Researcher at INESAD); Sergio Mansilla (Junior Researcher at INESAD)
    Abstract: Public and private infrastructure has an important role in economic growth, human development, and quality of life; hence the investment on infrastructure provision (access) probably will have a direct and positive effect on productivity and innovation, at the same time a better distribution of this infrastructure access (equity) will have a positive but indirect effect on welfare. Under these assumptions, the objective of this paper is to assess the impact of Telecommunications (TELECOM) investment over - first - the growth and evolution in the access and equity to various services – i.e., fixed, mobile, and broadband during the last 15 years in Bolivia; and – second – to evaluate the investment causality over the sectoral GDP. First, we derived a long-term parsimonious equation specified as an Error Correction Model (ECM) estimated from an Autoregressive Model with distributed lags (ARDL). Second, we estimated several sets of Social Opportunity Functions (FOS) for the TELECOM to evaluate the degree of inclusiveness in the sense of Ali and Son (2007). Our main findings show that Public investment indicates a crowding-out effect in the short and long term over the sectoral GDP; and the long-term relationship between these variables has convergence toward its long-term equilibrium for the period 1990-2020. Also, the access to household’s internet in the urban areas has been moderate during the last 15 years, but there is still a lack of distribution to this opportunity. Regarding to rural household’s, we verify that it continues to be very low and has an inequitable distribution of access; however, we expect this result due to this service (household internet) is competing with mobile devices. Summarizing, we verify the hypothesis of Chatterjee and Turnovsky (2012) “… higher spending on infrastructure increases the growth rate, but it favors the rich and increases inequality” … in the absence of mechanisms to improve equity in access.
    Keywords: Infrastructure, growth, inclusiveness, access, equity, telecommunications .
    JEL: H54 D63 L96 O41
    Date: 2021–07

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