Xiaowei Liu, Wen Guang Qu and Alain Pinsonneault
Nowadays, an increasing number of firms choose to develop proprietary software, instead of buying packaged software. What factors will affect different types of software…
Abstract
Purpose
Nowadays, an increasing number of firms choose to develop proprietary software, instead of buying packaged software. What factors will affect different types of software investments? According to the environment-strategy alignment research, environment should be an influential factor. However, environment's role has received scarce attention in the literature. The authors' study addresses this research gap by investigating how industry environment affects different types of software investments. The study identifies three types of software investments (software insourcing, outsourcing, and buying) and examines how the characteristics of the industry environment (including industry munificence, dynamism, and concentration) influence each software investment.
Design/methodology/approach
The generalized least squares (GLS) model and the ordinary least squares with panel-corrected standard errors (OLS-PCSE) model are applied to test the hypotheses, based on industry-level panel data from the US Bureau of Economic Analysis (BEA).
Findings
The analysis shows that industry munificence, dynamism, and concentration have different impacts on software insourcing, outsourcing, and buying, respectively.
Originality/value
This study classifies software investment into three types – software insourcing, outsourcing, and buying and investigates how the industry environment affects them. The findings suggest that research should distinguish among software insourcing, outsourcing, and buying due to their different characteristics.
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Wen Guang Qu and Alain Pinsonneault
Software has become increasingly important in business. However, the value of aggregate in-house and packaged software investments and the influence of an industry's software…
Abstract
Purpose
Software has become increasingly important in business. However, the value of aggregate in-house and packaged software investments and the influence of an industry's software investment opportunities (SIOs) are poorly understood in the literature. This study addresses this research gap and proposes that an industry's SIOs play an essential role in the economic impacts of industry in-house and packaged software investments.
Design/methodology/approach
A model of the economic impacts of in-house and packaged software investments at the industry level under different SIOs is developed and empirically tested based on a panel dataset of private industries in the USA between 1998 and 2020.
Findings
The results show that with the increase in the number of SIOs in an industry, the economic performance of in-house software investments increases, while that of packaged software investments decreases.
Originality/value
By highlighting the role of SIOs in moderating the economic performance of in-house and packaged software, this study shows the critical role of the information technology (IT) environment in understanding software's economic value.
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Jing Fang, Xiaowei Liu and Wen Guang Qu
Prior IT productivity research usually assumes constant returns on IT investment. This study suggests that the impact of IT investment on productivity may not be constant but may…
Abstract
Purpose
Prior IT productivity research usually assumes constant returns on IT investment. This study suggests that the impact of IT investment on productivity may not be constant but may change with the IT investment scale and over time. Specifically, we divide IT investment into commercial IT and in-house IT and investigate their changing impacts on industry labor productivity.
Design/methodology/approach
A model of the productivity impacts of commercial IT and in-house IT with changing effects of scale and over time is developed and empirically tested based on industry-level panel data from the US. Bureau of Economic Analysis (BEA).
Findings
The returns on commercial IT investment increase with scale but decrease over time, while the returns on in-house IT increase over time.
Originality/value
This study provides a new perspective for IT productivity research by investigating the changing productivity impacts of IT investment. It also suggests that commercial IT and in-house IT should be distinguished, as they have different impacts on productivity.
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Wen Guang Qu and Zhongming Wang
Little research to date has investigated how firm experience and industry experience in related inter‐organizational systems (IOS) affect the adoption of open IOS. The purpose of…
Abstract
Purpose
Little research to date has investigated how firm experience and industry experience in related inter‐organizational systems (IOS) affect the adoption of open IOS. The purpose of this paper is to address this issue.
Design/methodology/approach
Based on large‐scale archival data from European countries, logistic regression was used to test the research model.
Findings
It was found that firm experience in EDI and experience in proprietary IOS positively affect the adoption of open IOS; industry experience in EDI and experience in proprietary IOS have a negative effect on the adoption of open IOS; and industry experience in open IOS has a positive effect on the adoption of open IOS.
Research limitations/implications
One main limitation is that the measures of the variables are based on single‐item and dichotomic scales. Also, this study only focused on the industry level and alternative explanations for the results have not been ruled out. The main implication is that IOS experience at firm and industry levels should be distinguished, as they can have different effects on the adoption of open IOS.
Originality/value
This paper is among the first that examines how the experience in prior generations of IOS affects the adoption of open IOS. Furthermore, the authors expand the literature by distinguishing IOS experience at two levels – firm level and industry level and show that it is necessary to recognize the different roles of different types of experience.
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Sen Liu, Yang Yang, Wen Guang Qu and Yuan Liu
The purpose of this paper is to focus on the value creation potential of cloud computing in inter-firm partnerships. It examines how cloud-based IT infrastructure capabilities in…
Abstract
Purpose
The purpose of this paper is to focus on the value creation potential of cloud computing in inter-firm partnerships. It examines how cloud-based IT infrastructure capabilities in flexibility and integration contribute to partnering agility and, consequently, firm performance. This study also introduces business lifecycle and market turbulence as internal and external context variables, respectively, to investigate the different roles of cloud computing in value creation.
Design/methodology/approach
A questionnaire was used to collect data from 184 client firms of the largest cloud computing services provider in China (Alibaba Cloud). The theoretical model was tested using PLS analysis.
Findings
Cloud infrastructure (CI) flexibility has a positive effect on partnering agility, while the effect of CI integration on partnering agility is moderated by business lifecycle and market turbulence.
Research limitations/implications
The surveyed firms are all Alibaba Cloud clients, which may limit the generalization of the findings.
Practical implications
The study suggests that besides the cost benefits, the value creation aspect of cloud computing should also be emphasized in research and practice. The study provides a new perspective to understand the business value of cloud computing in inter-firm partnerships.
Originality/value
The study suggests that the flexibility-related and integration-related features of cloud computing can create value for firms by facilitating inter-firm collaboration in exploiting business opportunities.
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The purpose of this paper is to explore the means for enhancing the image and business legitimacy of a socially discredited industry – pawnbroking in pre-1949 China – are…
Abstract
Purpose
The purpose of this paper is to explore the means for enhancing the image and business legitimacy of a socially discredited industry – pawnbroking in pre-1949 China – are explored. Previous studies suggest companies operating within such industries cannot solely rely on hard marketing strategies “to maximize sales and profits as they do with soaps and shoes” (Davidson, 2003, p. 7). Instead, they must find soft strategies for improving company and industry image and legitimacy.
Design/methodology/approach
This research relies on qualitative analysis of historical data and documents.
Findings
Soft strategies deployed by Chinese pawnbrokers – such as interpretations, moral value advocacies and institutionalized arrangements – contributed substantially to improving pawnbroking’s image and business legitimacy.
Research limitations/implications
Interconnections among ethical values, image, business legitimacy and select marketing strategies are clarified. The efficacy of historically analyzing previously implemented business strategies and their embedding contexts is discussed.
Practical implications
Strategies Chinese pawnbrokers used to mitigate their previously negative image and boost their business legitimacy suggest strategies current socially disapproved companies can use to improve their image and business legitimacy.
Originality/value
A historical analysis of pre-1949 Chinese pawnbroking can suggest soft marketing strategies for overcoming consumers’ negative company and industry impressions.
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Yanfeng Zhou, Paul Chao and Guang Huang
The purpose of this research is to test the applicability of a model showing the relationship between a set of modified MARKOR scales used to measure market orientation (MO) and a…
Abstract
Purpose
The purpose of this research is to test the applicability of a model showing the relationship between a set of modified MARKOR scales used to measure market orientation (MO) and a set of organizational antecedents in an emerging market.
Design/methodology/approach
The study is conducted using a survey instrument administered to a large national sample of management personnel in various blood collection centers in China. A structural equation modeling approach is used in the data analysis.
Findings
The results support the model and show robustness of the scales used as well as a positive relationship between some organizational antecedents and the MO construct.
Practical implications
The results of the study provide some new insights on what managers in non‐profit organizations (NPOs) can do in implementing marketing strategies to improve organizational effectiveness through a greater emphasis on MO.
Originality/value
This is the first study to focus on a state‐controlled NPO whose mission is to deliver social values to its constituents in an emerging economy. The results should prove valuable not just for other organizations in the country but also for other emerging countries whose NPOs are still largely state‐controlled.
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Economic statecraft is a critical aspect of China’s foreign policy and has played a vital role in China’s relations with its Asian neighbors. The Chinese economic ties with Asia…
Abstract
Purpose
Economic statecraft is a critical aspect of China’s foreign policy and has played a vital role in China’s relations with its Asian neighbors. The Chinese economic ties with Asia are significant not only because China is the second largest economy in today’s world but also because it has an important impact on regional economic co‐operation and international supply chains. Relentless growth in military buildup and more assertive foreign policy led many pundits to focus almost exclusively on political and military aspects of the Chinese grand strategy in Asia. The purpose of this study is to re‐examine this picture by studying China’s economic statecraft in the region.
Design/methodology/approach
This paper will address following research questions: How does the Chinese foreign economic policy serve its political aspirations in East Asia? Why has China increasingly relied on a combination of economic pressures and incentives to achieve its foreign policy objectives? How effective is China’s economic diplomacy as a strategic weapon? What are the limitations of such policy? What challenges does Beijing face in exercising its economic power in East Asia?
Findings
Beijing has a comprehensive, long-term grand strategy in Asia, and economic statecraft is a major component of it. Economic statecraft is a double-edged sword. It has given the People’s Republic of China more political influence but frictions and disputes between China and its trading partners are growing as well. Even with the slower growth of the Chinese economy, China will continue to be a game changer for the region. The economic diplomacy has long been part of the foreign policy toolkit used by the People’s Republic of China and will play more important role in the years to come.
Research limitations/implications
Thus far, China’s expanding economic ties with many countries in the world have not generated significant spillover effects. Although China is the dominant economic partner for every country in East Asia, its “soft power” remains to be weak. With the slower growth of the Chinese economy, another looming issue is whether China is going to be able to make a shift away from a trade- and export-led growth model that brought its dramatic economic success. All these could lead China’s economic statecraft less potent. Meanwhile, it should be noted that Asian economies that once relied on the USA are reaching a turning point as China comes to the fore, a trend that may challenge the existing international order. Should this momentum continue, it could alter the balance of power between Washington and Beijing in the region.
Practical implications
For Beijing, economic statecraft concerns both the economic dimension of foreign policy and the strategic dimension of economic policy. Although there is a growing literature on China’s soft power and military capabilities, the study of the economic dimensions of China’s foreign policy remains underdeveloped. With rising confidence and sophistication, Beijing has deployed economic resources to achieve geopolitical aims.
Originality/value
Needless to say, China’s economic statecraft has already triggered heated debate in the United States, Asia and elsewhere in the international community. However, the study of the Chinese economic diplomacy has received relatively little scholarly attention in the English-speaking world. This paper will fill a gap in the analysis and literature.
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Yi-Chun Huang and Chih-Ta Chen
Integrating economic and green initiatives into firm strategies is a challenge for firms in various industries. The study aims to incorporate multiple views, i.e. green innovation…
Abstract
Purpose
Integrating economic and green initiatives into firm strategies is a challenge for firms in various industries. The study aims to incorporate multiple views, i.e. green innovation theory (GIT), the green institutional perspective (GIP) and the natural-resource-based view (NRBV), to develop a comprehensive model to explore why and how firms implement green product innovation (GPI).
Design/methodology/approach
The study explores the relationships among institutional pressure, the firm's green resources and GPI. The research also distinguishes two different types of GPI: exploratory GPI and exploitative GPI. A total of 270 valid questionnaires were collected from electrical and electronics manufacturers in Taiwan. The authors employed structural equation modeling (SEM) using analysis of moment structures (AMOS) 23.0 to test the hypotheses.
Findings
The results show that institutional pressure has a significant positive correlation with the firm's green resources. Furthermore, institutional pressure has a significantly positive influence on exploratory GPI and exploitative GPI, respectively. The firm's green resources also have a significantly positive effect on both exploratory GPI and exploitative GPI. In addition, institutional pressures have significantly positive indirect effect on both exploratory GPI and exploitative GPI.
Research limitations/implications
Economic benefits and environmental sustainability are the most pressing issues faced by the electrical and electronics industry today. The study's investigation covers Taiwanese electrical and electronics manufacturers only, so the test of the research model has limited generalizability. The authors suggest that to expand the generalizability of the findings, future research should examine this model in the context of other regions such as Southeast Asia, Africa, South America, etc.
Practical implications
The study has many interesting implications for both practitioners and policymakers. The authors' findings suggest that while Taiwanese electrical and electronics manufacturers face significant pressure from customers, competitors and regulation requirements (e.g. waste electrical and electronic equipment [WEEE], restriction of hazardous substances [RoHS] and energy using product [EuP] directives), firms in that sector should efficiently and effectively deploy their green resources and then perform proper GPI (e.g. exploratory GPI or exploitative GPI). These results also serve as a reminder to policymakers that balancing coercive (command-and-control) mechanisms with incentives and voluntary mechanisms is the best means by which to develop motivational and effective GPI policies.
Originality/value
First and foremost, the paper divides GPI into exploratory GPI and exploitative GPI. Furthermore, the research incorporates two important schools of thought, i.e. the GIP and NRBV, thus providing a more holistic view by which to explore why and how companies adopt GPI.
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Fan Li, Dangui Li, Maarten Voors, Shuyi Feng, Weifeng Zhang and Nico Heerink
Soil nutrient management and fertilizer use by farmers are important for sustainable grain production. The authors examined the effect of an experimental agricultural extension…
Abstract
Purpose
Soil nutrient management and fertilizer use by farmers are important for sustainable grain production. The authors examined the effect of an experimental agricultural extension program, the science and technology backyard, in promoting sustainable soil nutrient management in the North China Plain (NCP). The science and technology backyard integrates farmer field schools, field demonstrations, and case-to-case counselling to promote sustainable farming practices among rural smallholders.
Design/methodology/approach
The authors conducted a large-scale household survey of more than 2,000 rural smallholders. The authors used a multivariate regression analysis as the benchmark to assess the effect of the science-and-technology backyard on smallholder soil nutrient management. Furthermore, the authors used coarse exact matching (CEM) methods to control for potential bias due to self-selection and the (endogenous) switching regression approach as the main empirical analysis.
Findings
The results show that the science-and-technology backyard program increased smallholders' wheat yield by approximately 0.23 standard deviation; however, no significant increase in maize yield was observed. Regarding soil nutrient use efficiency, the authors found a significant improvement in smallholders' phosphorus and potassium use efficiencies for both wheat and maize production, and a significant improvement in nitrogen use efficiency for wheat production, but no significant improvement of nitrogen use efficiency for maize production.
Originality/value
This study evaluated a novel participatory agricultural extension model to improve soil nutrient management practices among smallholders. The integration of agronomists' scientific knowledge and smallholders' local contextual experiences could be an effective way to improve farmers' soil nutrient management. This study provides the first quantitative estimates based on rigorous impact assessment methods of this novel extension approach in rural China.