Information Economics

Information economics can be best described as a shift in the traditional neoclassical assumption of perfect information. Neoclassical economics assumes that all actors have access to perfect information and are rational in their behavior. Over the years, as scholars have realized that the assumptions of neoclassical economics are not an accurate reflection of the real world, other research streams have developed that relax these assumptions. Information economics is one such stream, arguing that actors or parties have differential access to information, which raises the concern of adverse selection and moral hazard when the actors or parties participate in a transaction. Adverse selection occurs when one party has more information about the product or service than the other party and it leads to a less profitable or riskier transaction for the uninformed party. Alternatively, moral hazard occurs after the transaction, where one party has an incentive to engage in risky behavior when the other party bears the cost of failure. Information economics offers insights to both these concerns and offers solutions in the form of signaling and protection mechanisms. Signaling theory, a component of information economics, addresses how one party can credibly convey information to its potential exchange partners to facilitate transactions. The concepts of information asymmetry and signaling have been widely used in economics and business research to understand concepts ranging from game theoretic models of investments to principal–agent relationships to adverse selection problems in transactions. Information economics offers strong foundations for research within management as it helps understand several phenomena related to organizational transactions. For instance, corporate strategy scholars have utilized the predictions stemming from information economics in acquisition research to study target search, selection, signaling behavior, acquisition contracting, premiums, and governance. Information economics also has broad potential to affect firms’ organizational governance and entry mode choices. The following paragraphs will discuss how this theory has been developed and provide a few applications of information economics in strategy and management research.

Evaluasi Sistem Informasi Dosen pada ITB Stikom Bali Menggunakan Metode PIECES (Performance Information Economics Control Efficiency and Service)

ITB STIKOM BALI is an educational institution that uses a lecturer information system to help work. However, there are still some obstacles regarding how effective the lecturers' satisfaction is in using the Lecturer Information System. This research is focused on the analysis of the effectiveness of satisfaction using the Lecturer Information System as measured by the PIECES variables. The population of this study includes all active lecturers who use the lecturer information system as many as 155 people. The samples were determined by applying the SRS (Simple Random Sampling) technique using tables developed by Isaac and Michael. Of the 155 populations based on the 10% significance calculation selected to get a total of 99 samples, data collection was carried out by giving a questionnaire to all samples and there were as many as 93 people that returned it. The technique used to evaluate the Lecturer Information System is the PIECES method which focuses on 6 variables; Performance, Information, Economic, Control, Efficiency, and Service. This technique is more suitable to use and can focus on measuring the accuracy of each variable. To measure the level of user satisfaction from each variable, the questionnaire had 17 statements using a Likert scale to determine the value of the user's opinion on the system. The results of the analysis were obtained from the calculation of the questionnaire value of all respondents using the satisfaction calculation formula developed by Kaplan and Norton. From the reference criteria for the assessment of satisfaction, the results of the analysis show that the average value is 3.4 - 4.91, which means that users are satisfied using the Lecturer Information System with details of the scores on the variables Performance 4.19, Information 4.16, Economic 4.26, Control 3.85, Efficiency 4.23, and Service 4.21. It can be concluded that the use of Lecturer Information Systems statistically shows that it is quite effective. After getting the results of the value of each variable, a summary of recommendations will be given based on the smallest value in the sub-variables in each variable that received dissatisfied and very dissatisfied responses from the average questionnaire value.

Optimal versioning strategy of enterprise software considering the customer cost-acceptance level

PurposeThe emergence of the Software-as-a-service (SaaS) licensing model dramatically changes how enterprise software is released. Especially, it is favored by small and medium enterprises (SMEs) because of the cost-friendly feature. In contrast, many large enterprises (LEs) own relatively abundant budgets and prefer the on-premise software to fulfill demands through customization. Considering the differentiated cost-acceptance level among customers, this study aims to address the versioning problem of the enterprise software faced by software firms.Design/methodology/approachA two-point distribution model is formulated to calculate the maximal profits software firm earned from both LEs and SMEs under three strategies (On-premise, SaaS and Hybrid). Then through profit comparison, this paper obtains the optimal versioning strategy and corresponding feasible conditions. Finally, the optimal solutions are derived concerning social welfare.FindingsA significant finding is that moving to SaaS becomes necessary for the software firms in product releases since the on-premise strategy will not be optimal. Based on this, this paper discovers that when LEs own a cost-acceptance level close to that of SMEs, the hybrid strategy is the only optimal choice. When LEs become less sensitive to costs, the hybrid strategy is suggested if the customization cost falls below the threshold. Otherwise, the SaaS strategy becomes the optimal option. The conclusions explain why some software vendors transit to “cloud companies” thoroughly and provide practical insights for software firms’ future decisions.Originality/valueTo the best of the authors’ knowledge, this paper is the first information economics study to consider consumer cost sensitivity in discussing enterprise software versioning. The differentiated cost-acceptance level is introduced to describe the customer utilities, and the results uncover the necessity of moving to SaaS under diversified customer composition. This work provides significant theoretical value and practical insights.

Vulnerable Company’s Triumphs in M&A Negotiation under the Impact of COVID-19 — An Empirical Study of Asian Companies

The worldwide lockdown caused by COVID-19 has led to the complete suspension of shipping, land transportation, and aviation. As a result of the redistribution of global resources, governments have recently advocated acquisitions and mergers with strategic alliances and vertical integrations to revitalize the economy. This study aims to investigate how the mergers and acquisitions (M&A) were negotiated and how the equilibrium price was achieved with game theory and information economics in agricultural and fishery biotechnology industry. The findings in the present study propose that by adopting investment valuation (asset-based approach, revenue method, market method) and presenting three patents (globally unique nondrug-denatured pure male tilapia and GPS [Formula: see text]C cloud cold chain logistics), the more the vulnerable company is able to attain a triumphant price during the negotiation of M&A.

Aplikasi Pelayanan Rumah Susun Berbasis Website (Studi Kasus: Rumah Susun Cinta Kasih Tzu Chi)

Rumah Susun Cinta Kasih Tzu Chi menerapkan manajeman pelayanan secara manual, sehingga terdapat beberapa kendala yang menghambat proses pelayanan terhadap penghuni rumah susun, yaitu belum terdapat sistem pelayanan berbasis website yang dapat menampung pengaduan atau keluhan penghuni rumah susun. Oleh karena itu, Aplikasi “RUSUN” Berbasis Website dengan metode analisis Performance, Information, Economics, Control, Efficiency, Service (PIECES) sehingga mengatasi kendala yang terjadi dan dapat meningkatkan efektifitas dalam memberikan pelayanan terhadap penghuni rumah susun.

Analisa Aspek Non-Finansial Pemanfaatan Virtual Reality Technology Menggunakan Domain Teknologi Pada Metode Information Economics

Pada era Revolusi Industri 4.0 saat ini, investasi teknologi informasi merupakan hal penting agar sebuah produk digital mempunyai kekuatan atau daya saing di lingkungan bisnis yang dinamis dan kompetitif. Beralihnya dunia analog menuju digital menambah variasi dalam visualisasi sebuah karya. Perkembangan pengetahuan teknologi informasi multimedia dan animasi yang dimanfaatkan sebagai media promosi melalui Virtual Reality Technology saat ini juga semakin beragam dan akan terus berkembang dengan cepat. Virtual Reality Technology menjadi alternatif dikarenakan penyajian pesan yang disampaikan sangat interaktif karena memberikan lingkungan yang imersif sebagai daya tarik pengguna. Penelitian ini dilakukan untuk membantu melakukan analisa dan mengukur kelayakan investasi teknologi informasi sebuah produk digital Virtual Reality Technology menggunakan metode Information Economics dengan proses bisnis yang akan memberikan kontribusi secara non-finansial (intangible) pada domain teknologi. Dari hasil analisis domain teknologi yang telah dilakukan dapat menunjukkan bahwa pada sebuah produk digital yang memanfaatkan Virtual Reality Technology memiliki nilai keuntungan investasi yang baik dan memberikan manfaat yang lebih besar daripada risiko yang akan didapatkan.

Penerapan Metode PIECES Framework Dalam Analisis dan Evaluasi Aplikasi M-BCA

Mobile BCA atau yang biasa di sebut M-BCA, merupakan sebuah aplikasi perbankan diperuntukan kepada semua nasabah BCA yang memiliki tabungan, namun M-BCA tidak diperuntukan kepada nasabah tahapan tabunganku, karena tahapan tersebut hanya diperuntukan bagi anak-anak. Aplikasi M-BCA dapat diinstal pada smartphone, seperti Android dan IOS. Cukup dengan terhubung internet dan mengakses M-BCA, maka seluruh urusan perbankan selesai dalam hitungan menit.Ada banyak menu yang disediakan pada aplikasi M-BCA seperti m-info, BagiBagi, Flazz, m-Info, m-Transfer, m-Payment, m-Commerce, Cardless (khusus OS Android dan IOS), QR, m-Admin, Aktivasi BCA Keyboard. Dengan adanya aplikasi M-BCA perlu dilakukan identifikasi masalah untuk mengetahui seberapa puas pengguna terhadap aplikasi M-BCA. Salah satu metode yang bisa digunakan untuk mengevaluasinya adalah dengan menggunakan metode PIECES (Performance, Information, Economic, Control, Efficiency, Service). Berdasarkan metode PIECES yang terdiri dari Performance, Information, Economics, Control, Efficiency dan Service dalam mengukur tingkat kepuasan terhadap pengguna aplikasi m-BCA dapat dilihat tingkat kepuasan pengguna dari masing-masing domain, dimana Performance memperoleh nilai 4.23, Information memperoleh nilai 4.44, Economy memperoleh nilai 4.60, Control memperoleh nilai 4.59, Efficiency memperoleh nilai 4.62, dan Service memperoleh nilai 4.65. Karena masing-masing nilai berada di 3.4 - 4.91, yang berarti pengguna merasa PUAS terhadap aplikasi m-BCA.