nep-net New Economics Papers
on Network Economics
Issue of 2009‒10‒10
five papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Peer Effects, Social Networks, and Intergroup Competition in the Workplace By Kato, Takao; Shu, Pian
  2. The Impacts of Airport Centrality in the EU Network and Inter- Airport Competition on Airport Efficiency By Malighetti, G; Martini, G; Paleari, S; Redondi, R
  3. Social network driven innovation By Ronald Jean Degen
  4. Does social software support service innovation? By Meyer, Jenny
  5. Roadmap for Real World Internet applications By Fabrice Forest; Olivier Lavoisy; Markus Eurich; Jilles Van Gurp; Duncan Wilson

  1. By: Kato, Takao (Department of Economics, Aarhus School of Business); Shu, Pian (Department of Economics, Aarhus School of Business)
    Abstract: Using weekly data for defect rates (proportion of defective output) for all weavers in a Chinese textile firm during a 12 months (April 2003 - March 2004) period, we provide some of the first rigorous evidence on the presence and nature of peer effects in the manufacturing workplace. First, a worker is found to put in more effort and improve her performance when she is working with more able teammates. Second, by exploiting the well-documented fact that an exogenouslyformed strong divide between urban resident workers and rural migrant workers exists in firms in Chinese cities, we provide novel evidence on the interplay between social networks (urban resident group and rural migrant group) and peer effects. Specifically, we find that a worker puts in more effort when she is working with more able outgroup teammates but not when working with more able ingroup teammates, pointing to intergroup competition as a powerful source of the peer effects. Such peer effects across the social network, combined with the presence of incentive to outperform teammates at this firm, are largely consistent with recent experimental evidence on the important role that group identities play in facilitating altruistic behaviors.
    Keywords: peer effects in the workplace; social networks; intergroup competition
    JEL: J24
    Date: 2009–08–07
  2. By: Malighetti, G; Martini, G; Paleari, S; Redondi, R
    Abstract: In this paper we study the relationship between airport efficiency and two factors: an airport’s centrality in the EU network, and the intensity of competition from alternative airports in the same catchment area. We apply a two-stage econometric model based on the Simar & Wilson (2007) bootstrap procedure to a balanced sample of 57 European airports. We also design and compute our own measures of airport centrality and competition. The results show that efficiency is positively related to centrality in the European network, as measured by a weighted sum of minimal paths passing through the airport in question. The intensity of competition between airports also has a positive effect on efficiency. Our analysis suggests that air transportation policies should focus on increasing competition within important catchment areas (e.g., by investing in infrastructure facilitating access to alternative airports) and enhancing the connectivity of the EU network (e.g., by subsidizing new point-to-point connections between airports with capacity to spare).
    Keywords: air transportation; efficiency; network centrality; inter – airports competition.
    JEL: L93 L11 L59
    Date: 2009–01–10
  3. By: Ronald Jean Degen (International School of Management Paris)
    Abstract: This paper explains how the increasingly popular social network driven ideation works for some companies, and how this can be expanded to encompass the complete crowdsourcing innovation process (beyond simple ideation). In a contemporary context, businesses that are unable to keep up with innovations are simply overrun by those who are more efficient at this. This results in the dilemma that confronts all innovating companies in the 21st century: while innovation is critical for survival of a company, internal R&D is an inefficient approach to innovation. As a result of this dilemma, today?s innovative companies generally conduct little or no basic research on their own. They mostly innovate using the research discoveries of others. Some of these companies promote ideation forums on social networks to gain ?memes? for innovative ideas. This first step in the crowdsourcing innovation process can be expanded to include all the remaining steps of the innovation process, up to marketing and selling the product or service, as these all originate from ?crowdsourcing ideation?.
    Keywords: social network driven innovation, ideation forums, crowdsourcing ideation, crowdsourcing innovation process, memes, mavens, connectors, influencers, nanostories, flash mobs, job to be done
    JEL: M0 M1
    Date: 2009–10–04
  4. By: Meyer, Jenny
    Abstract: Recent Internet technologies and web-based applications, such as social software, are being increasingly applied in firms. Social software can be employed for knowledge management and for external communication enabling access to internal and external knowledge. Knowledge in turn constitutes one of the main inputs to service innovation. Hence, social software has the potential to support service innovation. Using data from 505 German Information- and Communication Technology (ICT) and knowledge-intensive service firms, this is the first paper which empirically analyses the question whether the use of social software applications triggers innovation. Thereby, it refers to a knowledge production function in which social software use constitutes the knowledge sourcing activity. The results reveal that there is a positive relationship between social software and service innovation. Since this result is robust when controlling for former innovative activities and the previous propensity to adopt new technologies and to change processes, the analysis suggests that the causality runs from social software to innovation.
    Keywords: Social software,web 2.0,service innovation,knowledge management
    JEL: O31 O33 M10
    Date: 2009
  5. By: Fabrice Forest (PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS : UMR5194 - Université Pierre Mendès-France - Grenoble II - Institut d'Études Politiques de Grenoble - Université Joseph Fourier - Grenoble I); Olivier Lavoisy (PACTE - Politiques publiques, ACtion politique, TErritoires - CNRS : UMR5194 - Université Pierre Mendès-France - Grenoble II - Institut d'Études Politiques de Grenoble - Université Joseph Fourier - Grenoble I); Markus Eurich (SAP Research/ETH, D-MTEC, TIM, Zurich - SAP/ETH Zurich); Jilles Van Gurp (NOKIA Research Center, Helsinki - Nokia); Duncan Wilson (Ove Arup and Partners International, London - Ove Arup and Partners International)
    Abstract: This paper emphasises the socioeconomic background required to design the Future Internet in order that its services will be accepted by its users and that the economic value latent in the technology is realised. It contains an innovative outlook on sensing aspects of the Future Internet and describes a scenario-based design approach that is feasible to roadmap the dynamic deployment of Real World Internet applications. A multifaceted socioeconomic assessment leads to recommendations for the technology deployment and key features of the Future Internet that will globally integrate technologies like Wireless Sensor and Actuator Networks and Networked Embedded Devices.
    Keywords: Real World Internet ; Future Internet ; Scenario-based Design ; Socioeconomics ; Business Models ; Requirements
    Date: 2009

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