Country Environments and the Adoption of IT Outsourcing

2011 ◽  
Vol 19 (1) ◽  
pp. 30-50 ◽  
Author(s):  
Wen Guang Qu ◽  
Alain Pinsonneault

Research on information technology (IT) outsourcing adoption has been confined to a single-country perspective. The understanding of how country-specific variables influence the adoption of IT outsourcing is limited. This study uses new institutional economics to build a framework that links country-level factors to the adoption of IT domestic outsourcing. The authors suggest that country-level factors, such as the maturity of the IT-related legal system, social trust, uncertainty avoidance, Internet penetration, and the maturity of the IT outsourcing market, affect the opportunism costs and coordination costs involved in domestic IT outsourcing and influence its adoption among firms. The results show that the maturity of the IT-related legal system, social trust, and the maturity of the IT outsourcing market are positively associated with IT outsourcing adoption. The authors conclude the paper with a discussion of the study’s implications for practice and future research.

Author(s):  
Wen Guang Qu ◽  
Alain Pinsonneault

Research on information technology (IT) outsourcing adoption has been confined to a single-country perspective. The understanding of how country-specific variables influence the adoption of IT outsourcing is limited. This study uses new institutional economics to build a framework that links country-level factors to the adoption of IT domestic outsourcing. The authors suggest that country-level factors, such as the maturity of the IT-related legal system, social trust, uncertainty avoidance, Internet penetration, and the maturity of the IT outsourcing market, affect the opportunism costs and coordination costs involved in domestic IT outsourcing and influence its adoption among firms. The results show that the maturity of the IT-related legal system, social trust, and the maturity of the IT outsourcing market are positively associated with IT outsourcing adoption. The authors conclude the paper with a discussion of the study’s implications for practice and future research.


Author(s):  
Blaine G. Robbins ◽  
Maria S. Grigoryeva

The country-level determinants of generalized trust that usually command the most research are ethnic homogeneity, institutional performance, civic culture, and economic development. Despite the popularity and insight of this research, there is little quantitative empirical evidence that explores the impact of technology—a necessary and exogenous condition for many of these determinants—on generalized trust. In this chapter, technology measures from the World Bank are combined with a generalized trust measure from the World Values Survey and other country-level predictors from various data sources to test two competing theories of generalized trust across 57 countries. One theory, new institutional economics, argues that technology will yield formal institutions, which structure incentives and reduce uncertainty, that, in turn, increase generalized trust. The other perspective, overjustification and crowding theory, argues that actors constrained by extrinsic motivators, such as technology and institutional incentives, will attribute trust to the incentive rather than to the individual, and generalized trust, as a result, will decrease. Structural equation model results confirm the new institutional economics claim that the positive effects of technology on generalized trust are positively mediated by formal institutions. The authors conclude by outlining various managerial implications and directions for future research.


PCD Journal ◽  
2019 ◽  
Vol 6 (2) ◽  
pp. 305
Author(s):  
Erickson D Calata ◽  
Reginald G. Ugaddan

There are frequent calls to enhance citizens' trust in government to pave the way towards a new paradigm of participatory governance and strong citizen support for government. In various realms, citizens may directly or indirectly engage with the government through various available mediums, even though, despite the availability of various policies and services provided by the government, citizens are generally passive and adamant in trusting the public sector. While many studies have explored a set of determinants that influence citizens' trust in government (i.e., central government, local government, parliament, and the legal system), few studies have ascertained the relationship and the role of social trust, happiness, governance, and political systems. These are critical factors that may influence trust in government. To address this gap, this study draws on the theoretical lens of social capital theory, proposing that cognitive social trust and citizen happiness—environment and performance—are the most likely predictors of citizen trust in government. This study assumes that citizens' perceptions of governance and political systems will moderate the effect of social trust and happiness on trust in government. Using data from the Asia Barometer Survey 2007, and focusing on data collected from the Philippines, this study tests a latent model employing the structural equation modelling technique. It finds that happiness negatively predicts trust in the central government and the legal system, while all other predictors do not have a significant effect. The findings also show that the political system moderates the impact of social trust and happiness on trust in government. Finally, this article points out its theoretical, empirical, and practical implications and provides directions for future research.


Author(s):  
Otuo Serebour Agyemang

This chapter examines how country-level institutional structures influence the prevalence of foreign ownership of firms in Africa. It reinforces the new institutional economics perspective by empirically highlighting that institutional structures influence the prevalence of foreign ownership of companies in an economy. Using archival data from 39 African economies, the authors found that there is a significant positive association between regulatory quality and foreign ownership prevalence. Also, foreign ownership is prevalent in African countries that are politically stable and embrace rule of law. However, the authors found that countries with high voice and accountability structures are associated with low foreign ownership prevalence.


Author(s):  
Blaine Robbins ◽  
Maria Grigoryeva

In a recent study, the authors reveal with structural equation models that the positive effect of information technology on generalized trust is mediated by political institutions. Although insightful, a key question remains: Is it the effectiveness and efficiency, the universality, and/or the power-sharing capacity of the state that mediates this effect? Drawing on new institutional economics, political culture, and theories of the welfare state, the authors derive a number of hypotheses connecting information technology to generalized trust vis-à-vis elements of the state. The study shows with structural equation models that what accounts for the technology-trust relationship is not necessarily the public allocation of resources or political mechanisms of sharing power, but the incentive structures found in effective and efficient legal institutions that reduce uncertainty and increase generalized trust. The paper concludes by outlining the implications and directions for future research.


2019 ◽  
Vol 20 (2) ◽  
pp. 54-73
Author(s):  
Feihu Zheng ◽  
Wenyan Yin ◽  
Zhiwei Niu

-ownership mainstream FDI theories, extended theories proposed by East Asian scholars, and new institutional economics. We argue that under an uncertain environment, when firwithin their capabilities, OFDI based on static and dynamic advantages and country-specific advantages will be effective. On the other hand, when firms in their capabilities, they will pursue OFDI based on a hybrid governance mode, which includes implications for explaining OFDI by Chinese firms and the strategic guidelines for the synergistic interaction between business and government.


2020 ◽  
Vol 12 (21) ◽  
pp. 9261
Author(s):  
Mudassar Hasan ◽  
Muhammad Abubakr Naeem ◽  
Muhammad Arif ◽  
Syed Jawad Hussain Shahzad ◽  
Safwan Mohd Nor

A bulk of literature suggests that geopolitical events such as terrorist attacks dampen tourism demand. However, there is little research on whether this effect helps predict the return of the tourism equity sector. We provide country-level evidence on whether local and global geopolitical risk (GPR) predicts the first and second moments of tourism stocks in emerging economies. This objective was achieved by employing the non-parametric causality-in-quantiles (CiQ) model and a cross-quantilogram (CQ) test, which allowed us to uncover the predictive potential of GPR for the tourism sector equities. Our findings, obtained through the CiQ model, suggest that while both local and global GPRs carry significant potential for predicting the returns and volatility of tourism stocks of most emerging economies under normal market conditions, they seem to play no such role in certain countries. These countries include South Korea, for which only a limited number of tourism stocks trade on the domestic stock market compared to other sectors, and Colombia, for which both the domestic stock market and tourism sectors are at an emerging stage. Further, it turns out that, compared to its local counterpart, global GPR has a more pronounced predictive power for the tourism stocks of emerging economies. Finally, with some exceptions, the results are qualitatively similar, and hence reasonably robust, to those when a directional predictability model is applied. Given that geopolitical shocks are largely unanticipated, our findings underscore the importance of a robust tourism sector that can help the market recover to stability as well as an open economy that allows local investors to diversify country-specific risks in their portfolios. Implications and directions for future research are discussed.


2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Zofia Szczuka ◽  
Charles Abraham ◽  
Adriana Baban ◽  
Sydney Brooks ◽  
Sabrina Cipolletta ◽  
...  

Abstract Background The COVID-19 pandemic has affected people’s engagement in health behaviors, especially those that protect individuals from SARS-CoV-2 transmission, such as handwashing/sanitizing. This study investigated whether adherence to the World Health Organization’s (WHO) handwashing guidelines (the outcome variable) was associated with the trajectory of the COVID-19 pandemic, as measured by the following 6 indicators: (i) the number of new cases of COVID-19 morbidity/mortality (a country-level mean calculated for the 14 days prior to data collection), (ii) total cases of COVID-19 morbidity/mortality accumulated since the onset of the pandemic, and (iii) changes in recent cases of COVID-19 morbidity/mortality (a difference between country-level COVID-19 morbidity/mortality in the previous 14 days compared to cases recorded 14–28 days earlier). Methods The observational study (#NCT04367337) enrolled 6064 adults residing in Australia, Canada, China, France, Gambia, Germany, Israel, Italy, Malaysia, Poland, Portugal, Romania, Singapore, and Switzerland. Data on handwashing adherence across 8 situations (indicated in the WHO guidelines) were collected via an online survey (March–July 2020). Individual-level handwashing data were matched with the date- and country-specific values of the 6 indices of the trajectory of COVID-19 pandemic, obtained from the WHO daily reports. Results Multilevel regression models indicated a negative association between both accumulation of the total cases of COVID-19 morbidity (B = −.041, SE = .013, p = .013) and mortality (B = −.036, SE = .014 p = .002) and handwashing. Higher levels of total COVID-related morbidity and mortality were related to lower handwashing adherence. However, increases in recent cases of COVID-19 morbidity (B = .014, SE = .007, p = .035) and mortality (B = .022, SE = .009, p = .015) were associated with higher levels of handwashing adherence. Analyses controlled for participants’ COVID-19-related situation (their exposure to information about handwashing, being a healthcare professional), sociodemographic characteristics (gender, age, marital status), and country-level variables (strictness of containment and health policies, human development index). The models explained 14–20% of the variance in handwashing adherence. Conclusions To better explain levels of protective behaviors such as handwashing, future research should account for indicators of the trajectory of the COVID-19 pandemic. Trial registration Clinical Trials.Gov, #NCT04367337


2010 ◽  
pp. 110-122 ◽  
Author(s):  
S. Avdasheva ◽  
N. Dzagurova

The article examines the interpretation of vertical restraints in Chicago, post-Chicago and New Institutional Economics approaches, as well as the reflection of these approaches in the application of antitrust laws. The main difference between neoclassical and new institutional analysis of vertical restraints is that the former compares the results of their use with market organization outcomes, and assesses mainly horizontal effects, while the latter focuses on the analysis of vertical effects, comparing the results of vertical restraints application with hierarchical organization. Accordingly, the evaluation of vertical restraints impact on competition differs radically. The approach of the New Institutional Theory of the firm seems fruitful for Russian markets.


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