IT Industry Development and the Knowledge Economy: A Four Country Study

IT Industry Development and the Knowledge Economy: A Four Country Study

Phillip Ein-Dor (Tel Aviv University, Israel), Michael Myers (University of Auckland, New Zealand) and K. S. Raman (National University of Singapore, Singapore)
Copyright: © 2006 |Pages: 29
DOI: 10.4018/978-1-59140-923-6.ch001
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Abstract

It is generally accepted that knowledge has become a third major factor of production, in addition to the traditional factors — labor and capital. Information technology production is a significant factor in the knowledge economy both because it is a major enabler of that economy and because it is itself highly knowledge intensive. Many countries around the world are looking for ways to promote the development of the knowledge economy, and information technology industries in particular. An important question is to what extent — and how — small developed countries might succeed in this endeavor. This study suggests a modified and more comprehensive version of the Ein-Dor et al. (1997) model of IT (information technology) industry success in small developed countries. Whereas the earlier model of IT industry success was based solely on the macro-economic theory of Grossman and Helpman (1991), the revised model suggested here incorporates Romer’s (1990) work in New Growth economics. A significant advance over earlier work in this area is the use of both longitudinal and time slice data. This article provides an in-depth analysis of the IT industry in four countries over a five-year period: Finland, Israel, New Zealand and Singapore. It analyses some changes that occurred over the period 1994 through 1998 and thus provides a reasonably comprehensive picture of the factors affecting the production of IT in these small developed countries. Our study reveals that four of the five endogenous variables studied have a close relationship to the development of IT industries in small developed countries. These variables are research and development, technological infrastructure, firm strategies, and capital availability. On the other hand, domestic IT use does not seem to be a major factor in IT industry development. Our analysis thus largely supports the more comprehensive model of IT industry success. These findings should be of interest to both researchers and policy makers seeking to develop the knowledge economy and information technology industries in particular.

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Table of Contents
Acknowledgments
Chapter 1
Phillip Ein-Dor, Michael Myers, K. S. Raman
It is generally accepted that knowledge has become a third major factor of production, in addition to the traditional factors — labor and capital.... Sample PDF
IT Industry Development and the Knowledge Economy: A Four Country Study
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Chapter 2
Elena Karahanna, J. R. Evaristo, Mark Srite
In an organizational setting, national culture is not the only type of culture that influences managerial and work behavior. Rather, behavior is... Sample PDF
Levels of Culture and Individual Behavior: An Integrative Perspective
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Chapter 3
Brian J. Corbitt, Konrad J. Peszynski, Saranond Inthanond, Byron Hill
This paper explores an alternative way of framing information systems research on the role and impact of national culture. It argues that the widely... Sample PDF
Cultural Differences, Information and Code Systems
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Chapter 4
Gerald Grant, Derek Chau
Electronic government (e-government) initiatives are pervasive and form a significant part of government investment portfolio in almost all... Sample PDF
Developing a Generic Framework for E-Government
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Chapter 5
David Gefen, Gregory M. Rose, Merrill Warkentin, Paul A. Pavlou
Trust is a cornerstone of society, and it enables democratic institutes. It captures people’s expectations about others’ (the trustees)... Sample PDF
Culture and Trust in the Adoption of Electronic Voting: A Look at the USA and South Africa
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Chapter 6
John Sagi, Elias Carayanis, Subhasish Dasgupta, Gary Thomas
Many authors argue that information and communications technology (ICT) in this New Economy is causing a globalized, unified society. Others take... Sample PDF
Globalization and E-Commerce: A Cross-Cultural Investigation of User Attitudes
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Chapter 7
Pauline O. Chin
Information technology (IT) governance structures focuses on the distribution of the IT decision-making process throughout the enterprise to achieve... Sample PDF
The Evolution of IT Governance Structure in Dynamic Environments
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Chapter 8
H. Keith Edwards, Varadharajan Sridhar
Round-the-clock work cycle, low cost of software development, and access to specialized skills have prompted many companies in the USA, Canada, and... Sample PDF
Collaborative Software Requirements Engineering Exercises in a Distributed Virtual Team Environment
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Chapter 9
Bill Doolin, Stuart Dillon, James L. Corner
This chapter presents a research model of the determinants of online purchasing behaviour. The model assesses the importance of various dimensions... Sample PDF
Determinants of Online Purchasing Behaviour
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Chapter 10
Prateek Vasisht, Jairo A. Gutierrez
This chapter describes an empirical investigation into the revenue streams of online content providers in New Zealand. It extends previous academic... Sample PDF
An Investigation of Revenue Streams on New Zealand Online Content Providers
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Chapter 11
Peter Kawalek, David Wastall
This article is concerned with the pursuit of radical organizational transformation in information age government. It focuses on three cases, each... Sample PDF
Pursuing Radical Transformation in Information Age Government: Case Studies Using the SPRINT Methodology
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Chapter 12
Victor W. Mbarika, Peter N. Meso, Philip F. Musa
With the dynamic and meteoric rise in teledensity diffusion across Sub Saharan Africa, one would expect a departure in the perceptions of... Sample PDF
A Disconnect in Stakeholders' Perceptions from Emerging Realities of Teledensity Growth in Africa's Least Developed Countries
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Chapter 13
Ibrahim Elbeltagi, Neil McBride, Glenn Hardaker
The study of factors influencing the adoption and use of information systems in less-developed countries is an important area to address since... Sample PDF
Evaluating the Factors Affecting DSS Usage by Senior Managers in Local Authorities in Egypt
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Chapter 14
Siu-cheung Chan, Ming-te Lu
This study investigates adoption/use behavior within the context of Hong Kong Internet Banking services. A research framework based on the extended... Sample PDF
Understanding Internet Banking Adoption and Use Behavior: A Hong Kong Perspective
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Chapter 15
Dorothy G. Dologite, Robert J. Mockler, Quinghua Bai, Peter F. Viszhanyo
This chapter presents a case study that documents how information systems (IS) principals in China strategically shifted to different change agent... Sample PDF
IS Change Agents in Practice in a US-Chinese Joint Venture
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Chapter 16
Chee-Wee Tan, Eric T.K. Lim, Shan-Ling Pan
As e-government plays an increasingly dominant role in modern public administrative management, its pervasive influence on organizations and... Sample PDF
E-Government Implementation: Balancing Collaboration and Control in Stakeholder Management
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