Information And Communication Technology Firms Research Articles

How much is too much? Inter-city brokerage in ICT industry innovation networks

ABSTRACT In today’s world, where global connectivity drives economic growth, it is essential to understand how cities can leverage intercity networks for innovation. This study explores the role of strategic network brokerage in enhancing cities’ innovation performance in the Information and Communications Technology (ICT) sector. We propose an inverted U-shaped relationship between inter-city network brokerage and ICT innovation performance, suggesting that optimal brokerage levels can maximize innovation outputs. Furthermore, we anticipate that city ICT specialization and internet maturity will positively moderate this relationship. Our analysis, using negative binomial regression on a panel of 65 cities from 2002 to 2015, largely supports our hypotheses, highlighting that cities with advanced ICT capabilities achieve higher levels of innovation at the same brokerage level. We discuss the implications of these findings for city policymakers and ICT firms.

Carbon Emissions and the Search for Renewable Energy Technology: Information and Communication Technology (ICT) Firms’ Environmental Responsibility

The literature in sustainability has emphasized external pressures as a main driver of firms’ environmental responsibility. However, under similar external pressures, some firms search for environmental technology, while others do not. By focusing on information and communication technology (ICT) firms, we try to answer the question of when firms are motivated to search for renewable energy technology. Drawing on the framework of the behavioral theory of the firm, we propose that a mismatch between ICT firms’ CO[Formula: see text] emissions performance and their aspiration to a certain level of emissions induce firms to evaluate their environmental performance status—whether they are aligned well with environmental requirements and their peer firms—and their technology status—whether they possess sufficient technologies to reduce emissions—which in turn affects their search for renewable energy technology. We corroborate our hypotheses using data on CO[Formula: see text] emissions and renewable energy patents of U.S. ICT firms from 2010 to 2018. When we compare two groups of firms—one group whose emissions performance is poor and the other group whose emissions performance is good compared to their own past emissions—we find that the former is more likely to search for renewable energy technology compared to the latter. When we focus on each of the two groups, we find that firms decrease their search for renewable energy technology as the degree of poor emissions performance exacerbates (firms’ emissions increase above aspiration) or the degree of good emissions performance increases (firms’ emissions decrease below aspiration). Our findings have implications for public policy as well as firms’ environmentally sustainable operations.

Cloud-Based Accounting Information Systems and Financial Reporting Quality of Listed Information and Communication Technology Firms in Nigeria

The confluence of cloud-based Accounting Information Systems (AIS) adoption and financial reporting quality within Nigeria's Information and Communication Technology (ICT) sector is explored in this study. Given the dynamic landscape of the ICT industry characterized by technological advancements, evolving market dynamics, and regulatory shifts, ICT firms are increasingly turning to cloud-based AIS to streamline their accounting processes and adapt to changing business requirements. The population of the study consists of all eight (8) Information and Communication Technology (ICT) enterprises that are listed on the Nigerian Exchange Group as of 31st December 2022. As a result, this study delves into the impact of Cloud-Based AIS adoption on the Financial Reporting Quality of Listed ICT Firms in Nigeria over a decade-long period from 2013 to 2022. Utilizing a Panel Regression Technique (Random Effect Model), the study identifies a significant overall effect of Cloud-Based AIS on the Financial Reporting Quality of Listed ICT Firms in Nigeria. Moreover, it highlights the significant influence of Cloud Security Investment on financial reporting quality among ICT firms in Nigeria, while Cloud Expenditure Growth is found to have no statistically significant effect. The study emphasizes the need for strategic resource allocation and exploration of cost optimization opportunities, given that cloud expenditure growth may not directly impact financial reporting quality. However, the study recommends for prioritizing cloud security investments to safeguard financial data integrity, mitigate cybersecurity risks, and enhance trust in financial reporting practices, thereby bolstering investor confidence.

Technological cooperation or competition? optimal strategies of incumbent and entrant in ICT markets

This study examines the patterns of technological cooperation or technological competition between an incumbent firm and an entrant firm in Information and Communications Technology (ICT) markets. The incumbent firm in ICT markets often licenses its key technology to a new entrant, who is usually the rival to the incumbent and has the option to enter the market early through licensing in the technology (i.e., technological cooperation), or to delay its entry for producing a higher quality product through in-house R&D (i.e., technological competition). Using a game-theoretical model, we find that technological cooperation is an equilibrium strategy when the technology transfer rate and entrant's R&D capacity are intermediate; while two firms engage in technological competition when the technology transfer rate is high and the entrant's R&D capacity is low, or when the technology transfer rate is low and the entrant's R&D capacity is high. We also find that the high royalty rate and mitigated price competition incentivize technological cooperation, while firms engage in technological competition when the royalty rate is low, or when the royalty rate is high and the price competition is intense. In addition, the incentives for firms to form technological cooperation vary non-monotonically with the length of the entrant's in-house R&D phase, and technological cooperation is reached only when the in-house R&D phase is of medium length. From a social perspective, both fairly high and low technology transfer rates ensure higher social welfare under technological cooperation, which under certain conditions can lead to a win-win-win outcome for the incumbent, entrant, and consumers. Furthermore, technological cooperation is less likely to be an equilibrium strategy when the entrant's market entry timing under in-house R&D is endogenously determined. Our findings can explain the observations of the incumbent and entrant's technological cooperation or competition strategies and provide managerial implications for competing ICT firms and policymakers.

Measuring Innovation in Mauritius’ ICT Sector Using Unsupervised Machine Learning: A Web Mining and Topic Modeling Approach

AbstractMeasuring innovation accurately and efficiently is crucial for policymakers to encourage innovation activity. However, the established indicator landscape lacks timeliness and accuracy. In this study, we focus on the country of Mauritius that is transforming its economy towards the information and communication technology (ICT) sector. We seek to extend the knowledge base on innovation activity and the status quo of innovation in Mauritius by applying an unsupervised machine learning approach. Building on previous work on new experimental innovation indicators, we combine recent advances in web mining and topic modeling and address the following research questions: What are potential areas of innovation activity in the ICT sector of Mauritius? Furthermore, do web mining and topic modeling provide sufficient indicators to understand innovation activities in emerging countries? To answer these questions, we apply the natural language processing (NLP) technique of Latent Dirichlet Allocation (LDA) to ICT companies’ website text data. We then generate topic models from the scraped text data. As a result, we derive seven categories that describe the innovation activities of ICT firms in Mauritius. Albeit the model approach fulfills the requirements for innovation indicators as suggested in the Oslo Manual, it needs to be combined with additional metrics for innovation, for example, with traditional indicators such as patents, to unfold its potential. Furthermore, our approach carries methodological implications and is intended to be reproduced in similar contexts of scarce or unavailable data or where traditional metrics have demonstrated insufficient explanatory power.

Digital Entrepreneurship and growth-oriented performance: commercialisation narrative of SMEs in the ICT sector in China

ABSTRACT This article addresses the dynamics of Small and Medium Enterprises (SMEs) during the commercialization process in high-tech sectors, particularly in the Information and Communication Technology (ICT) field. Except for early-stage entrepreneurial activities in technology firms, SMEs in the commercialization stage have received limited attention. Employing the Construal-Level Theory (CLT) and a concrete-abstract dimensional narrative approach, the study explores the relationship between narrative construal levels and SMEs’ success in Chinese cities. Encompassing ICT firms with 6 to 1000 employees, the study utilizes a Multilevel Mixed Method approach. Findings reveal that concrete narratives play a moderating role in the relationship between specific business technology and firm performance, emphasizing the importance of aligning a firm's business with its target audience during commercialization. However, the competition level (ICT firms’ population) in the city reduces the firm’s success. The study extends our understanding of entrepreneurial activity in the ICT sector, CLT, and potential policy guidelines.

Exploring the Process of Technology Socialization (TS) in the Family: ICT Adoption for Middle-aged Parents with the Influence of Adult Children

AbstractFamily is an important socialization environment for adopting information and communication technologies (ICTs). However, while existing information systems research focuses on individual factors that influence digital inequity, it tends to ignore the influence of relational/collective factors on individuals’ ICT adoption. Drawing on technology adoption, socialization, and social identity theories, this study focuses on the process of technology socialization of ICT adoption for middle-aged parents with the influence of their adult children in Chinese families. Through in-depth interviews with thematic analysis, we identify three mechanisms in the family, including creating a family shared environment, negotiating a family ICT identity and interplay, and generating digital differentiation. These findings contribute to a technology socialization framework, addressing how individuals can become digitally savvy with the influence of the socialization agents in the family. The findings have implications for ICT firms and policy makers to promote the family shared environment as a vehicle for achieving social wellbeing and digital upskilling of middle-aged adults.

Dynamic technological capabilities in leading European R&D firms: a panel data analysis with structural equations

ABSTRACT The deployment of R&D-driven dynamic technological capabilities (DTCs) is related to firm performance and represents a critical point in global socio-economic development. This is an interesting topic for EU economic, political and business actors confronted with increasingly changing environments. This study analyzed the influence of DTCs on firm performance using a longitudinal approach based on a structural equation modelling technique with a panel dataset with 268 observations from a sample of 67 leading European firms in the Information and Communication Technology (ICT) industry. The results show that firm performance is positively influenced by the deployment of DTCs, and this effect is significant, at least in the subsequent year's performance. These results shed light on the latent learning effect in the development of R&D-driven DTCs in ICT firms.

Beyond Smart: How ICT Is Enabling Sustainable Cities of the Future

Cities around the world face pressing sustainability challenges such as climate change, resource scarcity, and unsustainable growth. Smart cities have emerged as a response to these challenges, leveraging information and communication technologies (ICTs) to create more efficient and liveable urban environments. However, the concept of smart cities is often defined in vague and ideologically driven terms that lack clear guidelines for promoting sustainability. In this study, we use qualitative methods to examine how the use of ICTs can support the goals of sustainability in smart city development, resulting in what we call a ‘smart sustainable city’. Drawing on a case study involving stakeholder analysis, semi-structured interviews, and document analysis, we investigate the key roles of local government, ICT firms, and citizens in shaping sustainable urban development through smart city initiatives. Our findings shed light on the potential of ICTs to promote sustainability in smart cities and provide insights for policymakers, practitioners, and scholars working towards creating more sustainable urban environments. The findings of this research showed that ICT’s role in supporting sustainability in smart cities relies on understanding the interests and priorities of civic, ICT firms, and citizens, promoting effective collaboration and avoiding self-serving outcomes.

Role of Customer Participation in Technology Innovation in Higher Education Institutions (HEIs): A Qualitative Study on Value Co-Creation and Co-Destruction

Bringing innovation to organizations is not only considered to be a growth strategy but also a way to survive in the current technological era. Technological innovation involves customer participation and engagementfor value co-creation and co-destruction, which raises new challenges in theory and practice. It becomes more challenging in the service industry, specifically the education sector. Limited literature is available regardingdifferent roles played by the participating customers during technology innovation. Therefore, an empirical study was needed to explore the role(s) of customer participation in the entire process of co-creation, the drivers for customers’ positive engagement, and the reasons behind the negative engagement of customers while participating in technology innovation process. The negative engagement of the customers not only hinders the success of the co-creation process, rather it also causes co-destruction from multiple aspects. The current study followed the qualitative method to explore the phenomenon of value co-creation and co-destruction. In order to perform this task, semi-structured in-depth interviews were conducted with the representatives of Information and Communication Technologies (ICT) firms and Higher Education Institutions (HEIs) of Pakistan. The collected qualitative data was sorted in Nvivo 13 and thematic analysis wasperformed. The study concluded with the identification of multiple roles/dimensions of customer participation to foster or hinder the cocreation process. The major beneficiaries of the study include ICT firms and HEIs which need to re-assess their business processes. The study also contributes to the evolving theory of value co creation, while engaging the actors (customers).

The negative effects of the US-China trade war on innovation: Evidence from the Chinese ICT industry

Many countries, including China, have gradually realized the importance of leading innovation capabilities in the world market. The innovation capabilities of the information and communication technology (ICT) industry have received widespread attention as an important means to stimulate a productivity revolution in the new era and its innovative development. This paper adopts a differences-in-differences method and treats the US-China trade war as a quasi-natural experiment to empirically analyze its impact on technological innovation in the Chinese ICT industry. The results find that the US-China trade war has a significant negative impact on ICT firms' technological innovation, mainly by increasing their operating costs, and that the negative impact of the trade war is much greater than the positive impact from the reverse incentive effect. Moreover, the decline in technological innovation of ICT firms is mainly due to the reduction in innovation efficiency caused by the decrease in the number of patent applications for inventions with the highest technological content, rather than the change in R&D investment. In the US-China trade war, firms with low financing constraints and non-state enterprises are more significantly affected. Thus, it can be seen that the intention of the US-China trade war to inhibit the development of Chinese high-technology firms has been achieved to a certain extent, which requires new countermeasures from the Chinese government.

The Impact of Capital Structure on the Profitability Performance of ICT Firms

Information and communication technology (ICT) companies strive for ceaseless innovation to remain competitive while facing the challenge of maximizing firm value (FV) with limited resources, and increasing the interests of shareholders. However, capital structures have a considerable effect on FV, and the literature still disagrees with the optimum structure in specific industries and countries. Therefore, this study evaluates the FV of ICT companies in terms of profitability efficiency using data envelopment analysis. In addition, this study applies a Tobit regression and Kruskal-Wallis one-way ANOVA to identify the impact of leverage, liquidity, and firm size, which are major capital structure factors influencing FV. The analysis yields three main results. First, in the ICT industry, small and medium companies tend to have better profitability efficiency than companies of other sizes. Second, only small and medium ICT manufacturing companies’ profitability efficiency is positively impacted by the current ratio. Third, only mid-sized service companies’ profitability efficiency is positively impacted by the debt-equity ratio. The results have policy and practical implications for improving the FV of ICT companies.

Chain upgrading, technology transfer, and legitimacy: The Schumpeterian character of China in the information and communication technology sector in SSA

Drawing on technical change and technology transfer theories, we explore the Schumpeterian character of China in the information and communications technology (ICT) value chain in sub-Saharan Africa (SSA). Using data collected from various online sources, including the International Telecommunication Union (ITU) and World Integrated Trade Solutions (WITS) databases, we establish three key findings. First, relative to the traditional Global North sources, China has become a major source of ICT in SSA. Second, over the past two decades, Chinese firms operating in SSA have adopted a Schumpeterian character to gain legitimacy in the communities in which they operate. Third, with the easier transfer of ICT from China, local ICT firms in SSA have upgraded their value chains from only delivering information services to becoming important players in the financial sector, including the provision of mobile money transfer services. We conclude that China's expansive size, coupled with its ability to produce technologies for low-income economies, is likely to ensure that it will remain the dominant source of ICT innovations for SSA.

Effects of supplier orientation and competitive strategies on ICT firms’ performance

PurposeThe purpose of this study is to investigate the relationship between supplier orientation, which is Porter's general competitive strategy, and the market and financial performance in the Turkish Information and Communication Technologies (ICTs) sector, taking into account the problems in the supply chain during the pandemic process.Design/methodology/approachThis study used a quantitative research design where 550 questionnaires were collected from respondents operating in various ICT companies in Turkey to obtain necessary data to test the hypotheses developed for the study. Mediation effect and path analysis were used to analyze the research data. Smart PLS 3.3 version was used for all the mentioned analyzes.FindingsThe results of the analysis revealed that supplier orientation was positively and significantly related to financial and market performance. The findings of this study also showed that Porter’s generic competitive strategies have a mediator role in the relations of supplier orientation, financial and market performance.Practical implicationsThese findings contribute to the understanding of the importance of supplier orientation along with competitive strategies to increase market and financial performance in ICT companies, especially during the pandemic process. These findings provide recommendations for researchers, professionals and senior and supply chain managers to apply at their firms.Originality/valueThis is a study that adequately covers the relationship between supplier orientation, general competitive strategies and market and financial performance in the Turkish ICT sector, taking into account the pandemic process.

Does diversity make collaborative subsidies effective? ICT sector in Korea

ABSTRACT Research and development (R&D) collaboration becomes essential as technology becomes more complex, and technological change occurs at an unprecedented rate in high-tech sectors such as information and communication technologies (ICT). However, no concrete evidence exists on the benefits of collaboration diversity in terms of government support. Therefore, this study investigates whether a firm’s innovation increases not only as R&D collaboration partners’ diversity increases but also as firms engage in cross-sectoral R&D collaboration. Government subsidies for ICT firms that collaborate with other firms and research institutions at the same time have significantly positive effects on firm performance. Interestingly, cross-sectoral collaborations increase innovation activity. The results suggest that firm innovation can be efficiently achieved through R&D partner diversity, and the R&D subsidy scheme needs to focus on collaboration with diverse R&D partners with different knowledge to generate innovative outcomes.

Systems approach to cloud computing adoption in an emerging economy

PurposeCloud computing (CC) services have given a tremendous boost to the creation of efficient and effective solutions. With developing countries at a slow pace of adoption, this research aims to identify factors and their interrelationships influencing the adoption of CC in a developing country context. The developing countries are enjoying numerous benefits from CC services; however, its low adoption is still a question in developing economies; hence, the authors have selected the context of information and communication technology (ICT) firms in India.Design/methodology/approachThe qualitative research method is used where experts from thirteen ICT firms in India are interviewed.FindingsSixteen factors, twenty-eight subfactors, and 25 interrelationships are revealed through content analysis. Further, causal loop diagrams are proposed to display the behavior of cause and effect of these factors from a system's perspective. This will help to understand the relationships among the factors in order to enhance the speed of CC adoption. Possible financial loss and resistance to change are found as the key barriers to adoption. The proposed interrelationships can guide both policymakers and service providers for designing effective CC policies.Originality/valueThis is the first scholarly work that identifies interrelationships among factors and subfactors, thereby providing a holistic picture to decision-makers while making a choice on whether to adopt cloud services or continue with on premise data centers and servers.

Inter-Organizational Trust on Financial Performance: Proposing Innovation as a Mediating Variable to Sustain in a Disruptive Era

Hungarian Information and Communication Technology (ICT) companies have an essential role to play in a disruptive era. ICT firms should collaborate and innovate to obtain profit. The elusive correlation between trust in business partners and financial performance inspired this study, which proposed innovation as a mediating variable. The research had two objectives: to investigate the effect of inter-organizational trust on financial performance and innovation and to observe the role of innovation in improving financial performance within different categories of ICT companies. The population included active Hungarian ICT firms. The analysis used 100 samples, comprising micro-, small-, and medium-sized ICT corporations. Those samples were selected by random cluster sampling. This research used Partial Least Square Structural Equation Modelling. This study supported the idea that inter-organizational trust improved innovation, and that innovation enhanced financial performance. As an expected finding, innovation could mediate a positive direction between inter-organizational trust and financial performance.

Micro-Geographies of Information and Communication Technology Firms in a Shrinking Medium-Sized Industrial City of Ostrava (Czechia)

We aimed to explain the spatial distribution of information and communication technology (ICT) firms in the city of Ostrava as an example of a medium-sized, shrinking, polycentric industrial city. The primary research question was to what extent micro-geographic location factors affect the current spatial clustering of ICT firms in polycentric cities characteristic by relatively weak urbanization economies and mostly routine character of ICT activities. We analyse and test the effects of the urban form at the level of urban blocks and individual buildings (considering their height, technical condition, age and dominant function) on the clustering of ICT firms of various sizes and ownership statuses. The inquiry was based on a detailed field mapping (using ArcGIS Collector) of ICT firms and physical/functional characteristics of the buildings and their immediate surroundings. ICT firms are significantly spatially concentrated in the historic city centre and inner city. Spatial patterns of ICT firms focused on less knowledge-intensive, routine and/or lower value-added functions do not differ fundamentally from innovative firms developing new products. Preference of denser, walkable, mixed-use neighbourhoods in urban cores/inner cities can be found in the group of firms focusing on routine functions: rather for larger than for smaller firms and domestic than foreign-owned firms.

Trust levels within categories of information and communication technology companies.

The arguable claims of levels of trust in politics and business situations motivated this study, which investigates the degree of trust within micro, small, and medium categories of Hungarian Information and Communication Technology (ICT) companies. Different sizes of companies have varying interactions between internal members and their business partners. This study concentrated on exploring Hungarian ICT companies due to their significant role in supporting Industry 4.0. The study population are active Hungarian ICT companies. This research implemented random cluster selection related to the location of ICT firms. It exploited 100 samples, including micro, small, and medium-sized companies, and implemented discriminant analysis to examine the description and hypotheses. First, this study found that the level of trust in institutions within micro, small, and medium-sized companies varies significantly. The level of trust in institutions proliferates within corporations due to the capability of the formal institution to provide fair public services. This research additionally underlined that the performance of the Hungarian government would improve trust amongst the companies. Second, this study concluded that the level of interpersonal trust within three categories of companies was similar. A high level of interpersonal trust would expand internal engagement among the members of companies. Finally, the level of trust in business partners varied significantly within the distinct sizes of Hungarian ICT companies. A high level of trust in corporate associates improves business collaboration, reduces uncertainty, and supports long-term business connections. Levels of institutional trust and inter-organizational trust differed amongst different categories of companies. However, the level of interpersonal trust remained similar within companies of the various sizes.

Total factor productivity enablers in the ICT industry: A cross-country firm-level analysis

Advancements in productivity in the digital economy constitute an important engine for economic growth. What drives productivity dynamics in the information and communication technology (ICT) sector? This study examines the productivity dynamics of ICT firms across countries from the perspective of corporate balance sheets. We study the effects of intangible assets and leverage on productivity growth using firm-level panel data from five industrialized countries. We find that intangible assets positively affect the total factor productivity in the ICT sector. The positive effect of intangible assets on total factor productivity growth is larger for ICT manufacturing firms than for ICT service firms. We also find that leverage has a positive relationship with total factor productivity development in the ICT sector. In addition, our empirical results substantiated that productivity is catching up to the technological frontier. Furthermore, larger firms and/or younger firms generally show higher total factor productivity growth than their peers. Economies of scale are more prominent in the ICT service sector than in the ICT manufacturing sector. Our findings contribute to the understanding of cross-country productivity dynamics in the ICT sector at the firm level in the digital economy.