Bm Bert Sadowski

Strategic use of the Internet by small- and medium-sized companies: an exploratory study

The paper investigates the extent to which the adoption of Internet software and services in small- and medium-sized enterprises (SMEs) has been strategic, i.e. based upon the exploitation of the network characteristics of the new technology. Within SMEs, it seems that opportunistic motivations towards the adoption of the Internet, i.e. until cost-effectiveness of adoption becomes apparent to managers, are predominate. In applying a modified strategic use model, the paper considers strategic use as the ability of business users to recognize the strategic elements in the usage of the Internet and to relate them to network formation in the specific user environment. The extent of strategic use is linked to communication requirements, competitive pressure and the support and incentives in the adoption process of the Internet by SMEs. The empirical analysis employs a large data set on 264 Dutch SMEs that provided detailed information on their adoption of Internet services and software. The research shows that the communication requirements have been a motivating factor of Internet adoption by SMEs. Other strategic determinants derived from the diffusion literature such as competitive pressure or support and incentives for adoption hardly stimulate SMEs to adopt the Internet.

The Transition from Strategic Technology Alliances to Mergers and Acquisitions: An Exploratory Study

This paper studies a number of research topics derived from the basic question: do interfirm alliances change into mergers and acquisitions as companies that were previously co‐operating become integrated? The analysis is limited to the group of strategic technology alliances, i.e. those interfirm agreements for which joint technology development or technology sharing is part of the agreement. The paper first explores the literature that refers to the possible transition from strategic technology alliances to mergers and acquisitions. Based on this we formulate a number of hypotheses regarding the change in modes of governance and several dimensions of this process related to the international distribution of transformed alliances, their industry specificity, the size of firms, and the distribution of contractual and equity agreements. The major finding of our research is that the transformation from strategic technology alliance to merger and acquisition hardly ever takes place. This suggests that alliances and mergers and acquisitions are not part of a rather smooth continuum but they are first of all different modes of governance where one mode certainly does not lead to the other

Collaborative Strategies in the event of technological discontinuities : the case of Nokia in the mobile telecommunication industry

The paper examines the extent to which collaboration between large and small companies has been able to deal with the effects of discontinuous technological change. In applying an evolutionary perspective, the paper examines the process by which technological competencies and resources of large firms evolve and its effects on the characteristics of their collaboration with smaller companies. In focusing on the issue of complementary between local and international sourcing of capabilities and resources in the mobile telecommunication industry, it combines an empirical analysis of the structure of Finnish Science Parks with an examination of internationalisation strategies of large Finnish companies. The papershows that Nokia has increasingly become engaged in sourcing capabilities internationally, this might, however, pose some long-term problems for the local embeddedness of the company in Finland.

Transition of governance in a mature open software source community : evidence from the Debian case

As open source software (OSS) communities mature, they have to introduce a variety of governance mechanisms to manage the participation of their members and to coordinate the launch of new releases. The Debian community introduced new mechanisms of informal administrative control based on a constitution, elected leaders, and used interactive communication channels. We show that these control mechanisms were introduced as a response to emerging innovative opportunities due to the usage of source packages and to the need to build a responsive organization within the Debian OSS community.

Does the “Do-It-Yourself Approach” Reduce Digital Inequality? Evidence of Self-Learning of Digital Skills

The development of individuals’ digital skills has received much attention as a remedy for digital inequality. Although some researchers favor courses and guided learning for skills development, others propose learning by trial-and-error. Unfortunately, studies examining the value of the so-called “do-it-yourself approach” for the development of digital skills remain lacking. One difficulty lies in the vicious circle of lack of skill leading to infrequent Internet usage and vice versa, which limits the value of cross-sectional data for assessing the impact of this approach. We present longitudinal data on a random sample of Internet users in a Dutch city, which show that more frequent Internet use leads to more digital skills, but not the other way around. However, contrary to expectations about the potential of trial-and-error learning to reduce inequality, results also suggests that this approach is not always more beneficial to the “have-little” as compared to the “have-more.” The only inequality-reducing effect of this approach is that that older users profit more from it than younger users do.

Towards market repositioning in Central and Eastern Europe: international cooperative ventures in Hungary, Poland and the Czech Republic

The paper examines the influence of international cooperative ventures on indigenous firms in Central and Eastern European (CEE) countries. It has been widely recognized that multinational enterprises (MNEs) predominately utilize these ventures to rationalize their international production. However, research has rarely focused on the gains of CEE firms in these ventures. The paper applies the concept of distinct capabilities to characterize the ability of CEE firms to adequately absorb technological knowledge and skills from these ventures. In examining the characteristics of distinct capabilities empirically, the paper uses a sample of 35 firms in Hungary, the Czech Republic and Poland in seven different high-technology industries. The paper suggests that CEE firms in technology-intensive industries were rarely able to increase their technology base as a result of their venturing activity.

The myth of market dominance : telecommunication manufacturing in Poland, Hungary and the Czech Republic : a case study

The paper discusses the impact of Western manufacturers on competition and innovation in the telecommunication sector in Hungary, Poland and the Czech Republic. It examines the issue of market dominance by shedding some light on the industrial history, the current evolution and market structure of telecommunication equipment industry in these countries. In using case study evidence, the paper demonstrates that the contribution of Western manufacturers has been important to the accumulation of firm specific assets and sectoral growth of the telecommunication switching industry in CEE countries. It concludes that an involvement of competition authorities in the telecommunication switching market or strict imposition of procurement initiatives of the European Union does not seem desirable for the time being. Furthermore, there are serious threats to local telecommunication manufacturing in CEE countries if current EU procurement policies are imposed.

Communication and Cooperation in the Virtual Workplace

This innovative book explores the structure, growth and effectiveness of virtual communities in computer-mediated environments. In spite of initial enthusiasm, much uncertainty remains about the prospects of virtual teams and the technology that supports their collaboration. The book seeks to confront these issues and offers a unique insight into the realities of virtual working.

Should next generation access networks fall within the scope of universal service? : a European union perspective

Abstract In 2010 the European Commission (EC) undertook a review of its current Universal Service Obligation (USO) to discuss whether or not broadband should be included in it. In fact, convergence of telephony, internet and media, further market liberalization and rapid technological development in the broadband market challenge the traditional definition of USO and increasingly question its notion of a “basic set of communication services”, which does not include broadband. In this context, the paper looks at the origins, the theoretical arguments for, and the empirical basis of the USO in light of the ongoing debate in the EU, and links these arguments to technological developments and changing demand conditions in European broadband markets. The authors propose that the European Commission should include in its future USO regulation provisions for a wider set of services based on Next Generation Access (NGA) networks rooted in the ECs new regulatory approach. Even if these provisions have not been included in the new USO framework in November 2011 further discussions are needed to account for the new realities of broadband markets in the European Union.

On the Relationship Between Acquisitions, Divestitures and Innovations: An Explorative Study

Firms increasingly use acquisitions and divestitures to acquire strategic assets such as technological know-how and technological capabilities that can contribute to their innovation potential. This study investigates whether firms combining acquisitions and divestitures have been more innovative than those that did not. It uses an empirical model to examine the relationship between acquisitions and/or divestitures, on the one hand, and the probability of firms to produce innovations, on the other hand. Innovations are distinguished according to products and/or processes that are “new to the firm” as a proxy for all innovations including imitations and those that are “new to the market” which is a proxy for so-called real innovations, excluding imitations. In order to test the model a data set is used that includes 2381 firms and was derived from the Dutch Community Innovation Survey (CIS-2) survey for the years 1994–1996. The estimation results show that divestitures in the services industry affect the probability to innovate positively in case of innovations that are “new to the firm”. In the manufacturing industry, a stable and positive correlation was found between acquisitions and/or divestitures on the hand, and real innovation activities of firms on the other hand.