Technology Firms Research Articles

Towards better IT governance: A comprehensive IT internal control model for information technology firms

Purpose- The primary objective of this study is to enhance IT governance within the information technology sector by developing a comprehensive IT Internal Control Model. This model is designed to address the unique and evolving challenges in IT internal control processes, providing a structured approach to risk optimization, resource optimization, and benefit management. By introducing this model, the study aims to offer IT firms a robust internal control model that can be adapted to their specific operational needs, promoting a more effective, efficient, and resilient IT governance structure. Methodology- A thorough literature review, incorporating a wide array of international sources, forms the foundation of this study. The research involved designing an IT Internal Control Model, informed by the processes observed at THY Technology. This model was then applied across 12 distinct operational processes, and feedback from stakeholders was systematically gathered through surveys to evaluate its practicality and impact. Findings- The feedback from stakeholders was predominantly positive, underscoring the model’s efficacy in bolstering IT governance. The model was praised for its thoroughness and adaptability, successfully addressing a broad spectrum of IT internal control issues while remaining flexible enough to be tailored to various IT environments. Conclusion- This study highlights the importance of dynamic and adaptable IT internal control model in the fast-paced technology sector. The developed IT Internal Control Model opens new avenues for research into effective governance practices and provides a valuable blueprint for IT firms seeking to enhance their governangfce and control mechanisms in a digitally-driven world. Keywords: IT internal control model, internal control, IT governance, IT compliance, continuous improvement JEL Codes: M15, M19, M42

Death by remote control: Drone warfare in Afghanistan, Ukraine and beyond

This article examines the use of military drones over the past 20 years. It includes the following: (1) a critical review of how drone warfare in the US‐led ‘war on terror’ affected drone crews and those ‘living under drones’; (2) an analysis of how drone warfare in Ukraine and Russia differs from previous deployments of the technology; and (3) a careful assessment of what lies ahead, as national governments and technology firms race to develop AI‐enabled drones and autonomous weapons systems on a broad scale.

Subverting or preserving the institution: Competing IT firm and foundation discourses about open source

The data economy depends on digital infrastructure produced in self-managed projects and communities. To understand how information technology (IT) firms communicate to a volunteer workforce, we examine IT firm and foundation employee discourses about open source. We posit that organizations employ rhetorical strategies to advocate for or resist changing the meaning of this institution. Our analysis of discourses collected at three open source professional conferences in 2019 is complemented by computational methods, which generate semantic clusters from presentation summaries. In terms of defining digital infrastructure, business models, and the firm-community relationship, we find a clear division between the discourses of large firm and consortia foundation employees, on one hand, and small firm and non-profit foundation employees, on the other. These divisions reflect these entities’ roles in the data economy and levels of concern about predatory “Big Tech” practices, which transform common goods to be shared into proprietary assets to be sold.

Collaborative innovation, strategic agility, & absorptive capacity adoption in SMEs: the moderating effects of customer knowledge management capability

PurposeThe purpose of this study is to identify the relationship between collaborative innovation and the financial performance of information technology (IT) firms through the mediating role of strategic agility and absorptive capacity. Customer knowledge management capability (CKMC) is also explored as a potential moderator.Design/methodology/approachData were collected from 300 respondents working in different small to medium IT enterprises operating in different cities around Portugal. The simple random sampling method was used for data collection, and Smart partial least squares-structural equation modeling (Smart PLS-SEM version 3.2.8) was used to test the hypotheses.FindingsThe findings demonstrate that collaborative innovation contributes significantly to the financial performance of IT firms in Portugal. The results also indicate that absorptive capacity and strategic agility both positively and significantly affect the relationship between collaborative innovation and firms’ financial performance. However, while the moderating role of CKMC has a positive and significant effect on the relation between collaborative innovation and strategic agility, CKMC insignificantly moderates the relation between collaborative innovation and absorptive capacity.Originality/valueFew studies have explicitly connected collaborative innovation with firms’ financial performance; this study attempts to fill that gap. Moreover, this research investigates the mediating role of strategic agility and absorptive capacity in the relationship between collaborative innovation and financial performance. Finally, by discussing the moderating effect of CKMC, which leads to enhanced financial performance, this study proposes that when complex and unpredictable situations occur, managers should focus on customer-oriented strategies and innovation at the same time to outpace their competitors.

More vocal when satisfied: the effect of need satisfaction on employees' voice to coworkers

PurposeThis study aimed to explore the effects of the satisfaction of employees' need for autonomy, relatedness and competence on their voice behavior through the mediation of self-efficacy for voice and perceived risk for voice.Design/methodology/approachThe theoretical model is tested using survey data collected from 209 employees of information technology (IT) firms located in five major cities in China.FindingsThe study found that satisfaction of employees' need for autonomy, relatedness and competence facilitated their self-efficacy for voice and inhibited perceived risk for voice. Self-efficacy for voice was positively related to voice, whereas perceived risk for voice was negatively related to it. Perceived risk for voice hampered self-efficacy for voice.Practical implicationsThe findings indicate that organizations can boost employees' voice behavior by making them feel that they have autonomy in their work, by helping them maintain good relationships with others in the workplace and by enabling their competence in accomplishing their job.Originality/valueThis study highlights that satisfying employees' psychological needs plays a pivotal role in facilitating their voice behavior. The authors provide new insights into the relationship between need satisfaction and voice behavior and into the mediating roles of self-efficacy for voice and perceived risk for voice.

The Influence of Digital Marketing and Brand Awareness on Forming the Branding Image of Technology Companies

The advancement of technology serves as a pivotal force driving transformation across diverse sectors, with technology companies assuming a central role in this evolution. The dynamic landscape of the digital age has significantly impacted technology firms, influencing the global business environment and shaping how companies operate, innovate, and interact with their clientele. The establishment and reinforcement of a brand image hold immense importance, influencing customers' purchasing decisions and fostering loyalty. For technology companies, the pivotal role of digital marketing and brand awareness in crafting their brand image cannot be overstated, allowing them to adapt to technological advancements and changing consumer preferences. The significance of brand awareness in molding consumer perceptions is crucial, where trust and understanding of the brand emerge as critical success factors. An optimal level of brand awareness contributes to the company's recognition as a prominent player in the industry, enhances customer loyalty, and provides a competitive edge. Within the context of this discourse, the primary aim of this study is to explore the influence of digital marketing and brand awareness on shaping the brand image of technology companies. This research employs a quantitative method utilizing a questionnaire approach supported by descriptive and causal methodologies. The assessment in this study involves the utilization of a Likert scale, capturing responses to statements gathered from 75 respondents. The sampling technique applied is the data analysis technique using Partial Least Squares. The findings of this research establish a correlation between digital marketing and brand awareness in shaping the branding image of technology companies.

Technology distraction in Generation Z: The effects on consumer responses, sensory overload, and discomfort

Drawing on social cognitive theory, this study examines the effects of technology distraction on consumers’ responses, sensory overload, and discomfort. Its three objectives are: (i) to explore the effects of technology distraction on three types of consumer responses, i.e. cognitive, affective, and behavioural responses; (ii) to explore the effects of technology distraction on sensory overload; and (iii) to explore the effects of technology distraction on discomfort. To achieve these objectives, two qualitative studies were carried out. In Study 1, 25 semi-structured interviews were conducted with members of Generation Z in London, UK. Its purpose was to devise a model based on the objectives. In Study 2, 12 practitioners and academics specialising in technology-related disciplines were consulted to explore the practical utility of the model. Thematic analysis by means of NVivo 12 was carried out. The findings confirm all the objectives were achieved based on social cognitive theory, with a few additional suggestions collected from Study 2. The main implications for researchers and technology firms are provided, along with the study’s limitations and possibilities for future research.

FinTech Can Prevent the Formation of Zombie Firms: Evidence from China

The interplay between financial technology (FinTech) and real economy firms has garnered considerable attention. This paper explores the relationship and mechanism between FinTech and corporate zombification using the data of Chinese A-share listed firms in China from 2011 to 2021. The research findings reveal that FinTech significantly inhibits firm zombification, and FinTech breadth and depth both play a significant role in restraining firm zombification. Mechanism exploration indicates that, on the one hand, FinTech reduces friction in the financial market, inhibiting firm zombification by improving firm investment efficiency, especially alleviating under-investment. On the other side, FinTech indirectly affects the technological investment, production, and operation of firms, thereby inhibiting firm zombification by increasing their total factor productivity. Heterogeneity analysis suggests that the inhibitory effect of FinTech on corporate zombification is more pronounced for non-stateowned firms and small-sized firms, as well as those in manufacturing industries and highly competitive industries. This paper provides some novel evidence on evaluating the effect of FinTech on firms and also offers new insights for efficient governance of zombie firms.

Beyond Boundaries: The Relevance of R&D Innovation, Financial Ratios, and Revenue Diversification in Driving Business Growth in Technology Firms

Beyond Boundaries: The Relevance of R&D Innovation, Financial Ratios, and Revenue Diversification in Driving Business Growth in Technology Firms

The moderating role of perceived environmental uncertainty in the impact of corporate governance on strategy implementation: An agency theory perspective

The study delves into how governance, environmental unpredictability and strategic management intersect, with agency theory offering a framework to comprehend this connection. It is evident how the structure of governance can influence the actions of managers and the results of organizations, amidst evolving conditions. Descriptive analytical approaches were used, and utilized an electronic questionnaire, as the main tool for gathering data. It involved 254 individuals randomly selected from Information and Communication Technology companies in Amman, Jordan including both managers and non-managers. Various statistical techniques, such as inferential methods using SPSS version 26 for Windows were employed to explore research questions and test hypotheses. The study discovered that the perceived uncertainty in the environment plays a role in influencing how corporate governance affects strategy implementation, in information technology firms. The findings suggest. Studying the environment to better grasp and respond to uncertainties. Additionally, it is advised to tailor governance practices and strategies to manage risks and obstacles resulting from shifts.

The Made in China 2025 strategy: Perceptions and reservations of China’s state capitalist economic model

The Made in China 2025 (MIC 2025) strategy was introduced in 2015 and aims to reduce Chinese reliance on foreign technologies by adopting the import-substitution policy. The United States (US) considers China’s super-ambitious industrial policy as a serious threat and is concerned about its high-tech industries, especially as Chinese technological firms are receiving generous government subsidies and tax cuts. The US, thus, entered a direct trade war with China to protect its domestic industries from unfair and inequitable competition. The US-China trade war has seriously shifted and interrupted global supply chains, thus creating a situation of uncertainty and instability for businesses that import and export US and Chinese products. The article is policy-based, and we reviewed the existing literature in depth. We addressed the industrialization pursuits of China under the MIC 2025. Furthermore, the article has analyzed the impact of the US-China trade war on global supply chains. Finally, the article has many implications; the article provides the possible policy routes for the governments of developing countries and regulators to address the reservations of developed countries regarding state-sponsored industries.

The strategy of virtual banking adoption in the digital economy

Most traditional banks offer digital services, promoting cashless payments. Digital-only banks, operating solely through mobile apps, are a growing trend. These virtual banks have no physical branches and reshape individuals’ financial habits (Windasari et al., 2022). This study aims to explore virtual banking adoption in Thailand, using a qualitative approach. In-depth interviews with ten informants were conducted through purposive sampling. Data analysis involved content analysis and NVivo. The findings reveal Thailand as a recent adopter of virtual banks, driven by technology firms meeting regional demand. Virtual banks aim to enhance financial inclusion through improved accessibility and cutting-edge online experiences, emphasising simplicity, personalization, and client focus. However, technological advancements may deepen financial exclusion for those unable to access or utilise technology, creating unbanked or underbanked segments. To address this, banks must prioritise user-friendly digital platforms; ensuring customers can access services anytime, anywhere, like branchless banking. In regard to further research, it is recommended that researchers study ethical and policy issues related to virtual banking. In addition, quantitative research, such as an online questionnaire, should be considered to explain the relationship phenomenon in a large group in general.

Risk Reporting to Management on Federal Offers and How to Navigate the Conundrum?

Technology firms mainly based out of U.S, in and around Silicon valley, in addition to a few firms on the U.S west coast, have products primarily catering to commercial customers across the globe, these are known as Commercial offers but there is another variant catering to the federal agencies and organizations known as Federal offers or Govt offers, the reason to keep this portfolio of products separate is because of the different set of criterias that need to be met and more stringent requirements. Since we are stepping into the government sector, the products in use for this sector have to be rock solid from a risk posture standpoint and in the case of cybersecurity threats hence the need for such criterias and requirements. Management and Senior leadership of these technology firms are constantly interested in viewing the security and risk posture of all the products designed, developed and marketed to customers, risk reports of commercial offers have no regulatory obstruction or confidentiality requirements hence it’s easier to present the risk overview along with the underlying details if requested , however, for federal offers, depending on the level of certification pursued and market access, there are some overarching regulations and confidentiality requirements around personnel viewing the metrics , storage locations. This article sheds some light on the afore mentioned restrictions and a simple solution or rather an abstraction approach that helps navigate this problem, at the same time, ensuring no impact to the federal product or its customers.

Investigating the Barriers to Electric Vehicle Adoption among Older Adults using Grey Relational Analysis: A Cross-country Survey

The adoption of electric vehicles (EVs) is a critical step towards the achievement of sustainable transportation, mitigated environmental challenges, and reduction in dependence on fossil fuels. In recent years, the popularity of EVs has grown, yet their adoption among seniors (older adults aged 50 and above) remains a challenge. This paper presents a comparative analysis of the barriers to EV adoption among seniors in two major economies, China and Russia. These two major economies have vast territories and significant transportation demands and as such they play crucial roles in the global shift towards EV adoption. We collected data from Russian and Chinese senior citizens using a comprehensive drafted questionnaire (252 respondents). Also, the Dynamic Grey Relational Analysis (DGRA) is used to analyze the quantitative data and rank the barriers to EV adoption. Our results suggest the inability of seniors to smartly locate available charging stations as the barrier to adopting EVs in China, while the lack of charging infrastructure at home is identified as the main barrier for seniors in Russia. Our findings provide valuable insights for manufacturers, technology firms, and policymakers, in the ongoing promotion of electric mobility.

Systemic Risk and Tail Risk of Fintech Firms During Covid 19: A Case of Southeast Asian Economy

The main goal of this research is to compare the tail risk faced by Thai financial technology firms with the systemic risk experienced by financial technology companies in Thailand. During the COVID-19 outbreak, it was also investigated how the effects of tail risk and systemic risk affected Thailand's financial technology businesses. During COVID-19, the number of individuals using financial applications online surged drastically, giving clear proof of the sector's stratospheric ascent. During the same time period, the number of people using cryptocurrency apps increased dramatically. This study is the inaugural examination of its kind, investigating the interplay between tail risk, systemic risk, and Fintech, utilizing data from a sample representative of the Thai economy. Our study primarily centers on the financial technology sector, with the data for Fintech companies being computed for the periods between December 2019 and February 2022. Fintech businesses in Thailand look through the theoretical lens provided by the extreme value theory when calculating the tail risk of their portfolios. The fall in the value of technology businesses has given rise to the idea of establishing a significant number of financial technology companies located in Thailand. A lengthier and more widespread dispersion is consistent with an exponential growth of fintech businesses in Thailand during the course of the COVID-19 time period. Some businesses within our sample exhibit notably short tails, indicating a heightened susceptibility to adverse events, particularly during the COVID-19 period. The results indicate that the global technology index during COVID-19 is reliant on the systemic risk posed by Fintech. It's possible that these outcomes might be attributed to the large growth in customer bases seen by FinTech businesses during COVID-19. Fintech companies in Thailand saw significant growth during the epidemic of swine flu. The current research is among the first of its type when it comes to grasping the issues of tail risk and systemic risk in fintech enterprises in Thailand. This development is highly beneficial for policymakers, financial experts, and academics, as it facilitates a deeper comprehension of these issues.

Assessing Knowledge Configuration of New Product Development Teams and Performance

In order to better understand how team composition is related to performance, this research investigates new product development (NPD) team composition and performance based on the individual team member’s knowledge rather than the function to which he or she is currently assigned. A survey of 174 technology firms in Korea, rated as “excellent” companies, shows that the inclusion of multi knowledge members with both marketing and technological knowledge in NPD teams significantly improves innovativeness and time efficiency in comparison to NPD teams without such diverse membership. These findings help illuminate previous contradictory findings in the NPD literature and show the important role of multi knowledge members in NPD performance for senior managers to consider when staffing such teams.

Digital Contact Tracing for Pandemic Response: The Roles of Cultural Worldviews and Technology Awareness

Information technologies have been developed and used by government agencies and public authorities to address societal issues, but their effectiveness often hinges on public support and participation. This is evidenced in the use of digital contact tracing (DCT) technology to contain the spread of the coronavirus. Despite the efforts of public authorities and technology firms to develop and promote DCT, its adoption in the United States had been low and uneven. This research resolves the puzzle by showing that the public’s mixed views on DCT are caused by their cultural worldviews, which represent their values and attitudes toward collective responsibility in addressing personal needs as well as social hierarchies and established norms in regulating behaviors. These worldviews influence not only their perceptions of the risks and benefits of the technology but also how they interpret information about the technology. Being more aware of the technology may contribute to, rather than correct, the biases resulting from individuals’ prominent cultural worldviews. This research has practical implications for policymakers and technology developers, highlighting the importance of considering cultural worldviews in communication strategies and technology design. It offers a unique perspective on the interplay between worldviews, technology, and public perception, providing valuable insights for navigating the complex landscape of emerging technologies addressing diverse societal issues.

Digital maturity index for accounting firms

PurposeThis study aims to develop a maturity model designed for assessing the current state of digitization in accounting firms.Design/methodology/approachThe authors have developed this index where the maturity levels are defined from the life cycle theory. For the items of a maturity measure, the authors have adopted a multimethodological approach. That approach allows to identify 27 measurement items to cover the three dimensions of audit, reporting and taxation.FindingsThis research proposes a diagnostic tool specific to accounting firms. The authors have tested this index in the Tunisian context. The results show that there are two types of accounting firms. This study found the first firm in the embryonic phase and the other in the growth phase. This points out the active role of Tunisian accounting firms in technology integration.Research limitations/implicationsThis study highlights the integration of technology in the accounting field. Specifically, it aims to address technology management in accounting firms by measuring the degree of digitization of accounting firms. This research projects the use of information technologies (artificial intelligence, cloud, big data, etc.) in auditing, reporting and taxation.Practical implicationsOn a practical level, this research provides an organizational diagnostic tool to assess the status of their accounting firms in terms of digitization. This will motivate practitioners to make frequent assessments, thus contributing to continuous improvement toward digitization.Originality/valueThe theoretical foundation of this research is based on the theory of the life cycle of technologies. This study is using this theory to identify and describe the current phase of the organization. And that is by indicating the overall scores on the technological capabilities of the accounting firms.

Augmented reality and radiology: visual enhancement or monopolized mirage.

Augmented reality (AR) exists on a spectrum, a mixed reality hybrid of virtual projections onto real surroundings. Superimposing conventional medical imaging onto the living patient offers vast potential for radiology, potentially revolutionising practice. The digital technology and user-interfaces that allow us to appreciate this enhanced environment however are complex, expensive, and development mainly limited to major commercial technology (Tech) firms. Hence, it is the activity of these consumer-based businesses that will inevitably dictate the available technology and therefore clinical application of AR. The release of mixed reality head-mounted displays in 2024, must therefore prompt a review of the current status of AR research in radiology, the need for further study and a discussion of the complicated relationship between consumer technology, clinical utility, and the risks of monopolisation.

Beyond the finish line: How losing in patent race drives post‐race innovation

AbstractResearch SummaryAlthough patent races of leading technology firms have garnered significant attention in the prior literature, it remains unclear how the outcome of a patent race affects subsequent firm‐level innovation. Drawing on agency theory, we propose that losing a patent race drives firms to pursue more technological innovation than winning due to managerial concerns. To investigate the mechanism, we hypothesize that the positive impact of a lost race on a firm's innovation is more pronounced when more shareholders hold near‐term investment horizons and when a CEO is less protected against the pressure of shareholders. By constructing a unique dataset of simultaneous patent applications, we find evidence consistent with the proposed theory.Managerial SummaryThis study explores the impact of a patent race on the subsequent innovation of leading technology firms. We find that losing firms tend to pursue more innovation after the race, surpassing the winner in terms of innovation. This finding is particularly pronounced when top managers are more pressured by the shareholders. Specifically, we show that the positive effect of a lost race is especially evident in publicly listed companies with a higher ratio of short‐term institutional investors and where CEOs have less protection from shareholder pressures in the public market. This research underscores how a setback in a technology competition can act as a catalyst to change innovation dynamics among competitors at the technology frontiers.