IT Capital Research Articles

Technological catch-up, nonmonotonicity, and convergence: Parametric evidence from the BRICS and European banking systems

IT-driven productivity growth offers banks an intriguing opportunity to differentiate their offerings in a monopolistic market, introduce attractive products, enhance customer service, streamline back-office processes, and ultimately achieve the twin goals of cost minimization and profit maximization. However, there has been no convincing explanation for the observed divergence in the IT-productivity literature, raising doubts about whether IT can significantly improve performance in contemporary banking markets. The article examines the role of IT-led productivity growth in governing the direction and magnitude of intra-industry and inter-country convergence by investigating the potential nonmonotonicity of IT in influencing frontier-based efficiency of the BRICS and European banking markets. Findings reveal U-shaped associations between IT and cost (profit) efficiency, suggesting that excessive investment in IT may explain the productivity conundrum for BRICS nations. IT capital is not a significant driver of cost efficiency for European nations. Nevertheless, R&D spending significantly influences frontier efficiency, reinforcing that European banks can achieve frontier-level performance by investing in innovative solutions. Inter-regional comparisons reveal that BRICS banks are converging with their European counterparts by leveraging IT solutions, while diminishing marginal benefits for the latter reinforces the presence of a catch-up effect. Intra-industry comparisons reveal that size, age, and R&D intensity drive technological catch-up and convergence.

Cows in the city: How consumer demands sustain urban dairying in the IT capital of India

Cows in the city: How consumer demands sustain urban dairying in the IT capital of India

Cows in the City: How Consumer Demands Sustain Urban Dairying in the IT Capital of India

Cows in the City: How Consumer Demands Sustain Urban Dairying in the IT Capital of India

Ethical leadership and environmental performance: The role of green IT capital, green technology innovation, and technological orientation

Drawing upon the resource-based perspective, we develop and test a serial mediation model of CEO ethical leadership and environmental performance. Specifically, we propose that ethical leadership enhance environmental performance and this link is explained by green IT capital and green technology innovation, with a particular focus on the moderating role of firm technological orientation. The hypothesized relationships were tested in structural equation modeling with survey data from 303 Saudi small and medium-sized enterprises (SMEs). The results illustrate that the indirect effect of CEO ethical leadership on environmental performance is serially mediated by green IT capital and green technology innovation. The results also show that firm technological orientation moderates the relationship between CEO ethical leadership and green IT capital. This study offers practical insights and suggests that SMEs leadership focus on the creation and implementation of green infrastructure for successful implementation of green practices that can contribute to improved environmental performance.

Taemong Technology : Symbolic Frequencies in Contemporary Korean Birth Dreams

In his 1989 study Oriental Birth Dreams, Fred Jeremy Seligson presented statistical figures on the frequencies of primary dream symbols in conception dreams (taemong) indicating the genders, personality characteristics and future careers of the children they represent. One of the most rapidly shifting and developing socio-economic landscapes in the world, South Korea has gone from one of its poorest countries in 1953 (post-Korean War) to the tenth largest economy in the world today. While the operative dream symbols in the birth dreams collected by Seligson thirty-three years ago reflect a society still highly attuned to the natural world, the author asks: what might occur if the symbolic frequencies of the dream images shift in accordance with Korea’s socio-cultural, technological, and environmental changes? As South Koreans continue their exodus from the countryside to the urban center of the Seoul metro area the IT capital of the world and now the site of residence of approximately half the country’s population (26 million people) the nature-based conception images (such as animals, fruits and flowers) of their ancestors may be increasingly supplanted by the unnatural objects of their immediate surroundings (such as smart phones, computers and characters from video games). With attention to the spiritual, psychological and biological aspects of birth dreams, their medical applications, epistolary, and poetic forms, this paper examines their nature as personal mythologies. It then concludes with a close reading of a recently discovered digital birth dream in order to understand how it might affect the oral tradition of taemong, the lives of those who dream them and those who are dreamt.

A Study on Effectiveness of E-Recruitment Method in IT Industries in Bangalore City, India

Abstract: This E-recruitment is also known as Online recruitment where companies and HR professionals use Online methods such as posting the job online, on social media, or on their in-house platforms to post their job advertisements in search of potential candidates. E-recruitment is faster and more effective compared to the traditional methods of hiring and due to this fast-changing environment and trends, Companies/HR professionals want to adopt E-recruitment as a part of their hiring process. The title of my study is "A study on the effectiveness of adoption of E-recruitment method in IT industries in Bangalore city". Bangalore city is the IT Capital of India and is the fastest growing industry in the world and hence provides millions of job opportunities and there is a need for an effective and faster hiring process to fill this massive need. As Bangalore is called the Silicon Valley of India, I felt that there was a need to study how effective the E-recruitment methods are. This study was done to understand how effective the E-recruitment methods are in IT industries in Bangalore. This study was done using research methodologies where the sample size is 6 and sampling technique is Random Sampling method, data collection tool is Structured Questionnaire and Telephonic interview with HR professionals in Bangalore city. Variables like time saved, organizational change, unqualified candidates, etc. are chosen to collect and analyze the data. In this study, how effective the adoption of Erecruitment is in IT industries in Bangalore city is measured. To measure and analyze this, a Structured Questionnaire with a set of questions was administered via Google Forms and received 50 responses from HR professionals who reside in Bangalore City. The analysis for the study was carried out using SPSS Software and conclusions were drawn with the help of that analysis. This study concludes that there is good effectiveness of adoption of E-recruitment methods in IT industries in Bangalore city. HR professionals feel that time is saved in E-recruitment as many unqualified candidates do not apply to the unqualified job and the satisfaction of the candidates they hired, organization change in E-recruitment is important. HR professionals think that there is a need for good verification of candidates during online job postings.

Un‐Fare: “Local” Share‐Auto Rickshaw Drivers and the Work of Belonging in the Midst of Urban Change in India's “IT Capital”

AbstractIn Bengaluru, India's “IT capital,” global capital and processes of world city‐making valorize specific kinds of work and workers as “formal” while categorizing others as “informal,” “chaotic” and “unregulated.” This article draws attention to the work of share‐auto rickshaw driving among local men from formerly farmland‐owning households in a rapidly urbanizing pocket in peripheral Bengaluru. Why do these drivers, whose work is situated outside of visions of world‐classness, engage in the practices that they do? How do processes of urbanization shape how they see and situate themselves and their work in the city? This article argues that the drivers construct themselves as urban laboring subjects through their deep ties with place. Their identity as “local” refers to new manifestations of their ties to agrarian land and life, their place‐based knowledge in providing transport services, their selfhood, and their logic of operation. Local is also a discursive strategy that differentiates their work from that of non‐locals (or “outsiders”), and situates their work as neither formal nor informal. In illuminating the experiences of urban transformation among members of this driving community, this article asserts that local is the drivers’ way of co‐opting the urban present.

The power of prediction: predictive analytics, workplace complements, and business performance

Anecdotes abound suggesting that the use of predictive analytics boosts firm performance. However, large-scale representative data on this phenomenon have been lacking. Working with the Census Bureau, we surveyed over 30,000 American manufacturing establishments on their use of predictive analytics and detailed workplace characteristics. We find that productivity is significantly higher among plants that use predictive analytics—up to $918,000 higher sales compared to similar competitors. Furthermore, both instrumental variables estimates and the timing of gains suggest a causal relationship. However, we find that the productivity pay-off only occurs when predictive analytics are combined with at least one of three workplace complements: significant accumulation of IT capital, educated workers, or workplaces designed for high flow-efficiency production. Our findings support claims that predictive analytics can substantially boost performance, while also explaining why some firms see no benefits at all.

Experimental Evidence for the Effects of Organizational Culture on Managers’ IT Capital Expenditure Decisions

The research question addressed in this study is whether, in the context of an information technology investment decision, a manager will decide differently in a situation where there is no information about a firm’s organizational culture compared with a situation where the firm’s organizational culture is known to be either bureaucratic or innovative. This paper’s experimental results show that a person will decide differently in response to knowledge of the firm’s organizational culture. Results also show that for the same types of organizational culture there are no significant differences in investment decisions among participants classified as being provincial, transnational, or foreign. Additional analysis shows that personal risk profile is a significant covariate for the group of participants classified as provincials but has no effect on decision-making for participants classified as foreigners and transnationals.

EMPLOYEES ATTITUDE TOWARDS STRESS AND ABSENTEEISM DURING COVID-19 CRISIS IN INDIAN HEALTHCARE INDUSTRY

The recent Covid-19 pandemic has created shockwaves across the globe and caused mental stress and depression leading to significant impact on an employees personal and professional life. Stress has profound impact on employees job performance, morale, job-satisfaction, behaviour, commitment and long-term productivity. Its malicious impact on employee wellbeing, job conduct and absenteeism cannot be ignored.The covid-19 crisis has imposed myriad of challenges on the healthcare professionals and stress levels have invariably soared, leading to depression, absenteeism, attrition, illness and lower morale to tackle the daily challenges in the healthcare industry. Thus, it becomes mandatory to focus on employees mental health, their attitude towards stress and absenteeism, especially during the crisis. The study attempts to understand the impact of work pressure of health-care workers during current pandemic as they have suffered maximumwork-stress due to overtime, workload and distressful work environment, leading to low job morale and absenteeism. The research design adopted is empirical involving a survey conducted on 108 healthcare workers through stratified sampling technique in sub-groups such as doctors, nurses, and frontline workers of private and government hospitals in the IT capital of India, Bangalore. The data was evaluated using descriptive analysis, regression test, correlation test, ANOVA, Chi square test through SPSS software.Findings show that the stress level among the employee in health-care sector leads to absenteeism and it has been particularly high during the current pandemic. Thus, healthcare sector should focus on such HR interventions that de-stress these employees and improve their morale to reduce absenteeism.

Investment in Accounting Information Systems, Financial Performance and Productivity of Malmquist and IFR as Intervening in the Banking and Financial Industry

The purpose of this study was to examine the effect of investment in information systems in the banking industry and financial institutions as measured by IT capital expense on profitability as measured by return on assets and productivity as measured by the malmquist measurement, and how will it affect if it is intervening with disclosure of information through Internet Financial Reporting. This research method is quantitative using SPSS-assisted regression analysis. Research on the topic of productivity is usually carried out in manufacturing companies, but this research uses the banking industry and financial institutions.Based on the results of the study, it shows that investment in accounting information systems as measured by IT capital or investment in software or hardware has a strong influence on the level of profitability both directly and through disclosure of internet financial reporting (IFR). However, investment in IT in the banking industry and financial institutions has no effect on malmquist productivity. If through IFR, there is an influence between IT capital and malmquist productivity.

The Power of Prediction: Predictive Analytics, Workplace Complements, and Business Performance

Anecdotes abound suggesting that the use of predictive analytics boosts firm performance. However, large-scale representative data on this phenomenon have been lacking. Working with the Census Bureau, we surveyed over 30,000 American manufacturing establishments on their use of predictive analytics and detailed workplace characteristics. We find that productivity is significantly higher among plants that use predictive analytics—up to $918,000 higher sales compared to similar competitors. Furthermore, both instrumental variables estimates and timing of gains suggest a causal relationship. However, we find that the productivity pay-off only occurs when predictive analytics are combined with at least one of three workplace complements: significant accumulation of IT capital, educated workers, or workplaces designed for high flow-efficiency production. Our findings support claims that predictive analytics can substantially boost performance, while also explaining why some firms see no benefits at all.

IT Capital in improving national innovation productivity: understanding IT productivity paradox through cognitive path-dependence model

ABSTRACT This paper deals with the issue of IT productivity paradox and examines the influence of IT capital and IT institution on the national innovation productivity. Applying North’s neo-institutional economics, Hayek’s model of the mind, and Bandura’s explanation of learning we try to understand this relationship through the cognitive path dependence model. We perform our analysis using a data set of 137 countries and apply Partial Least Square (PLS) technique of Structural Equation Modeling (SEM); our finding suggests existence of strong IT institutions as an essential step to capitalize IT investments to national innovation productivity. The IT institutions of the nation fully mediate the relationship between IT capital and national innovation productivity. The study demonstrates a cognitive perspective to the subject of IT & development and brings about policy recommendation for diverse national scenarios.

IT Capital in Improving National Innovation Productivity: Understanding the IT Productivity Paradox

Our paper deals with the issue of the IT productivity paradox. Our research examines the influence of IT capital and IT institution on the national innovation productivity. Applying Hayek’s model of the mind, and Bandura’s explanation of learning we understand this relationship through the cognitive path dependence model. Using a data set of 137 countries, we perform our analysis. We use the Partial Least Square (PLS) technique of Structural Equation Modeling (SEM) to conduct our investigation. Our empirical findings suggest that the existence of strong IT institutions is essential to transform the presence of IT capital to national innovation productivity. The IT institutions of the nation fully mediate the relationship between IT institutions and national innovation productivity. The direct relationship of IT capital to national innovation productivity is non-significant in the presence of IT institutions.

Economies of Scale Revisited: Evidence from Italian Banks

This paper provides new estimates of cost scale economies for Italian banks, based on a model of bank production that takes into account a comprehensive definition of output including different categories of loans, deposits, off-balance sheet items, payment services, and brokerage and asset management activities. The output definition is more in line with the current business model of banks than previous studies since it explicitly accounts for transaction banking and IT capital. We find returns to scale in operating costs, especially for small and medium-sized institutions. For the largest institutions there is on average no statistically significant evidence of returns from scale on the cost side; however, banks falling into this latter category are quite heterogeneous in size and business model. A more extensive adoption of digital technologies in the future could expand the size range over which positive returns to scale are achievable. These results are robust to alternative input and output specifications and functional forms. An important caveat to this conclusion is that we focus solely on operating costs.

Robots and Jobs: Evidence from US Labor Markets

As robots and other computer-assisted technologies take over tasks previously performed by labor, there is increasing concern about the future of jobs and wages. We analyze the effect of the increase in industrial robot usage between 1990 and 2007 on US local labor markets. Using a model in which robots compete against human labor in the production of different tasks, we show that robots may reduce employment and wages, and that the local labor market effects of robots can be estimated by regressing the change in employment and wages on the exposure to robots in each local labor market—defined from the national penetration of robots into each industry and the local distribution of employment across industries. Using this approach, we estimate large and robust negative effects of robots on employment and wages across commuting zones. We bolster this evidence by showing that the commuting zones most exposed to robots in the post-1990 era do not exhibit any differential trends before 1990. The impact of robots is distinct from the impact of imports from China and Mexico, the decline of routine jobs, offshoring, other types of IT capital, and the total capital stock (in fact, exposure to robots is only weakly correlated with these other variables). According to our estimates, one more robot per thousand workers reduces the employment to population ratio by about 0.18-0.34 percentage points and wages by 0.25-0.5 percent.

미국 전자산업에서 IT자본의 효과 : 부가가치 창출 또는 근로자의 감소

미국 전자산업에서 IT자본의 효과 : 부가가치 창출 또는 근로자의 감소

Attrition of Employees of Information Technology (It) Companies in Bangalore City

To manage their business in the competitive environment, management should focus on the company’s internal power, this internal power is proven based on their attrition rates. Bangalore is called as IT capital of India, hundreds and thousands of people from different parts of the country come to Bangalore for their career growth and development. There are nearly 12000+ companies in Bangalore hence the possibility of employees switching companies is high and hence the HR professionals are challenged more. It becomes ineluctable for the IT companies of Bangalore to tackle high attrition rate issue. This study is to with-stand the challenges faced due to high attrition and how to address them. In this study, the opinions of 200 respondents were taken for the analysis purpose. In this research, structured questionnaire has been incorporated for collecting data and chi-square test, percentage analysis and ANOVA were used for analysis.

Accounting for Innovations in Consumer Digital Services: IT Still Matters

This paper develops a framework for measuring digital services in the face of ongoing innovations in the delivery of content to consumers. We capture what Brynjolfsson and Saunders (2009) call "free goods" as the capital services generated by connected consumers' stocks of IT digital goods; this service flow augments the existing measure of personal consumption in GDP. Its value is determined by the intensity with which households use their IT capital to consume content delivered over networks, and its volume depends on the quality of the IT capital. Consumers pay for delivery services, however, and the complementarity between device use and network use enables us to develop a quality-adjusted price measure for the access services already included in GDP. Our new estimates imply that accounting for innovations in consumer content delivery matters: The innovations boost consumer surplus by nearly $1,800 (2017 dollars) per connected user per year for the full period of this study (1987 to 2017) and contribute more than 1/2 percentage point to US real GDP growth during the last ten. All told, our more complete accounting of innovations is (conservatively) estimated to have moderated the post-2007 GDP growth slowdown by nearly .3 percentage points per year.

Assimilation of Big Data Innovation: Investigating the Roles of IT, Social Media, and Relational Capital

In a knowledge-based economy with increasing competition, firms are under pressure to enhance their innovation capability. Social capital theory advances the idea that social capital promotes firm-level innovation. However, little is known about the process by which social capital of a firm translates into innovation outcomes such as implementation of big data initiatives. Little research has been done on what role information technology plays, if any, in this translation process. In this paper, we investigate how relational capital, a form of social capital, in the presence of social media and IT platforms, impacts innovation in the form of assimilation of big data technologies. The direct and indirect effects of the three variables: social media, relational capital and IT platform is studied. Direct effects of the three variables on big data innovation is established. Social media and IT platforms are found to significantly add to the positive relationship between relational capital and big data innovation.