Kenneth L. Kraemer

Innovation Diffusion in Global Contexts: Determinants of Post-adoption Digital Transformation of European Companies

Grounded in the diffusion of innovation theory and the technology–organization–environment framework, we develop an integrative model to study the determinants of post-adoption stages of innovation diffusion, using enterprise digital transformation as an example of technology-enabled innovations. We specify four innovation characteristics (relative advantage, compatibility, costs and security concern) and four contextual factors (technology competence, organization size, competitive pressure and partner readiness) as determinants of post-adoption usage, and postulate usage as an intermediate link to impact on firm performance. We test the proposed model using a dataset of 1415 companies from six European countries. We find that the innovation needs to be used extensively in value-chain activities before its impact can be realized. Among the innovation characteristics, we find that compatibility is the strongest driver, and security concern outweighs cost as a usage inhibitor. Among the contextual variables, technology competence, partner readiness and competitive pressure significantly drive e-business usage, and the structural inertia of large firms tends to slow down its penetration. Collectively, these results indicate that innovation diffusion can be better understood by including both innovation characteristics and contextual factors, whereas earlier literature has traditionally treated the two separately. Finally, we evaluate an international dimension among European countries and tease out important boundary conditions that would not have been evident in a single-country dataset. Our results show that careful attention must be paid to the economic and regulatory factors that may result in uneven innovation diffusion even among developed European countries.

A dynamic model of offshore software development

As the offshoring of knowledge work has accelerated, theoretical models to explain the phenomenon have not kept up. Most theoretical models assume a static transactional relationship from various factors to a binary offshoring decision. Such models do not take into account the mix of sourcing choices at the level of a firm, nor do they consider dynamic changes over time. To help fill these gaps, we use five case studies on offshore migration of software work by major US companies. Data were collected from senior executives. We use these data to develop a dynamic conceptual model that incorporates three factor groupings which collectively help explain offshore sourcing outcomes: (1) economic factors; (2) the nature of the development activity; and (3) managerial capabilities and practices. Importantly, the model includes five feedback loops among sourcing decisions, sourcing mix, and these three factors. Thus, the relationships in the model are not unidirectional, nor static; rather, they are iterative and dynamic, involving feedback loops, learning, and cumulative effects over time. In this dynamic model, the sourcing ‘mix,’ a continuously changing offshore portfolio, is a key firm-level dependent variable, closer to the economic concept of a ‘stock’ measure that represents the cumulative effect of sourcing decisions over time. This variable may be measured in different ways, for instance as the amount of work done offshore, or the number of workers employed offshore.

Towards an agenda for EFT research

During the past decade the foundation has been laid for a major change in the payment and fund transfer system in American society. As technological advances are achieved, their application could eventually mean that the payments system will be based on digital impulses rather than on cash or paper checks. Preauthorization techniques, automated banking, and point of sale devices are already part of rapidly expanding new technology---electronic fund transfer (EFT) systems.

Spillover effects of production of IT on use of IT

We analyze new data on the production and use of IT around the world to assess the impact of changes in IT production in the 1990s on economic development. We provide empirical evidence on a fundamental question: Besides the direct effect on GDP, does an emphasis on IT production have a spillover effect on the level of IT diffusion? We show that the results of our diffusion model indicates that the correlation between production of IT goods and use of goods is confined to specific scenarios and, in the case of developing economies, may have a substitution effect. Based on our analysis, we conclude that the experiences of developing economies with respect to production of IT may not include the same demand stimulation effect that has been enjoyed in developed economies. This has an impact on the computer development policies of developing economies.

The implications of group support technologies: an evaluation of the emipirical research

The authors define and differentiate two broad technological support systems for group processes: group decision support systems (GDSS), and group communication support systems (GCSS). They present a framework and method for analyzing the impact of such information systems on groups. They develop the framework from the literature of organization behavior and group psychology and apply it to the literature of management information systems. The authors review and compare empirical research and findings concerned with the impact of GDSS and GCSS on groups. Five major implications stem from the analysis: (a) there is a lack of research on some important formal aspects of groups; (b) there is a paucity of research on the impacts of GDSS and GCSS on the informal dimension of groups; (c) there is a need to move away from laboratory settings to field study in organization settings; (d) more research is needed on the stages in group development and how they affect the impact of GDSS and GCSS; and (e) more research is needed to understand how the structure imposed by the technological supports affect group processes.<<ETX>>

Pulling Offshore and Staying Onshore: A Framework for Analysis of Offshoring Dynamics

Author(s): Carmel, E; Dedrick, J; Kraemer, KL | Abstract: Given that the force of offshoring is one of the most important economic changes in the early 2000s it is vital to understand what propels it further. The landscape of offshoring is such that firms in the wealthy nations (onshore) have already off-shored, sometimes extensively. As researchers, we need to ask not whether the firm will offshore, but rather how far the firm will go offshore and what are the subtle factors that are driving this offshore decision process. Therefore, in this paper we propose a framework in order to understand the firm-level decisions that are not as well understood and not as well researched. There are a number of key variables that we already collectively know about offshoring. First, we already know that offshoring is driven by low wages and large labor pools in India, China and elsewhere. Thus, everything else being equal, work will flow to the less expensive offshore locations.

The Tech-Enabled Neighborhood: Findings from an experience in Tecámac, Mexico

Following worldwide tendencies, the patterns of usage of Information and Communication Technologies (ICT) in Mexico are being influenced by increasing affordability. In this work we present the results of a study on the use and adoption of ICTs to support daily life in residential communities conducted in Tecamac, Mexico. There, neighbors were provided with computers and broadband internet access as part of the facilities. The study consists of analysis of interviews conducted in situ with members of the community. We mainly discuss incidents and situations beyond and around the use of technology such as the services neighbors need when moving in. This study provides some insights for the design and deployment of technology in real communities on a large scale.

Spezialisten für Informationstechnik und Fachverwaltungen - von Mißklängen zu Harmonie?

Die Verunsicherung uber Sinn und Ziel des technischen Fortschritts hat nach Energie und Verkehr auch den Bereich der Informationstechnik erfast. Hiervon ist unmittelbar auch die offentliche Verwaltung betroffen. Deutlich sichtbar brachten DV-Fachleute in der offentlichen Verwaltung ihre Verunsicherung auf Tagungen dieses Jahres zum Ausdruck, wo Diskussionen bis zu der Forderung fuhrten, man musse sich bestimmten Automationswunschen verweigern oder gar ein Moratorium durchsetzen.

Transfer von Informations-Technologie: Amerikanische Erfahrungen

Uber den Transfer von Verfahren der Informations-Technologie im Bereich der Kommunalverwaltung wird heute viel und uberwiegend positiv gesprochen. Regierungen wie internationale Organisationen befurworten die Ubertragung moderner Management- und Organisationsmethoden von der Stelle, an der sie entwickelt und angewendet werden, an andere Stellen. Dabei wird etwa so argumentiert: