AN EXPLORATORY ECONOMETRIC ANALYSIS OF SHARED ELECTRONIC BANKING NETWORK ADOPTION

What are the determinants of early interorganizational system (IOS) adoption? This paper focuses on a specific kind of IOS -- shared electronic banking networks -- and employs an economic approach that views adoption and diffusion in terms of cost and benefit. We attempt to identify firm characteristics that are likely to influence the perceived business value of network membership and develop specific hypotheses that can be tested empirically using historical data in a realistic setting. We undertake an exploratory econometric analysis of the adoption of Yankee 24, a large shared electronic banking network in the northeastern United States. Using Bass' analytical diffusion model, we categorize Yankee 24 network members into earlier and later adopters. Probit models are estimated to assess the impact of explanatory variables on shared electronic banking network adoption. The number of branch offices operated by a bank, its total demand deposits, and the proportion of its total deposits accounted for by demand deposits are found to be important predictors of earlier adoption. We find that the number of branch offices operated by a bank, a proxy for the size of its proprietary network, has a negative impact on early adoption, which contradicts the common wisdom that a large firm size is a prerequisite for adoption of technological innovations.Information Systems Working Papers Serie

AN EXPLORATORY ECONOMETRIC ANALYSIS OF SHARED ELECTRONIC BANKING NETWORK ADOPTION

What are the determinants of early interorganizational system (IOS) adoption? This paper focuses on a specific kind of IOS -- shared electronic banking networks -- and employs an economic approach that views adoption and diffusion in terms of cost and benefit. We attempt to identify firm characteristics that are likely to influence the perceived business value of network membership and develop specific hypotheses that can be tested empirically using historical data in a realistic setting. We undertake an exploratory econometric analysis of the adoption of Yankee 24, a large shared electronic banking network in the northeastern United States. Using Bass' analytical diffusion model, we categorize Yankee 24 network members into earlier and later adopters. Probit models are estimated to assess the impact of explanatory variables on shared electronic banking network adoption. The number of branch offices operated by a bank, its total demand deposits, and the proportion of its total deposits accounted for by demand deposits are found to be important predictors of earlier adoption. We find that the number of branch offices operated by a bank, a proxy for the size of its proprietary network, has a negative impact on early adoption, which contradicts the common wisdom that a large firm size is a prerequisite for adoption of technological innovations.Information Systems Working Papers Serie

Technology Adoption and Innovation in Public Services.The Case of E-Government in Italy

Using data on 1,176 Italian municipalities in 2005, this paper discusses a number of factors associated with the development of a particular type of innovative activities, namely e-government services supplied by local public administrations (PAs). We find that municipalities which got involved into e-government are larger, carry out more in-house ICT activities and are more likely to have intra-net infrastructures, relative to PAs that do not offer front office digitalised services. They are also generally located in regions with relatively large shares of firms using or producing ICT, where many other municipalities offer digitalised services, and where concentration of inhabitants in metropolitan areas is not very high. The range and quality of e-government services supplied by local PAs tend to increase with their stock of ICT competencies, with their efforts to train workers, and with their ability to organise efficient interfaces with end-users. Moreover, there is a correlation between the range and quality of e-government services offered and the broadband infrastructure development of the geographic area in which local PAs are located. In more general terms, we show that the combination of internal competencies and context specific factors is different when explaining the decision to start e-government activities vs. the intensity of such activities. Regional factors, relating to both demand and supply of services, appear to affect only the decision to enter e-government activities. Competencies needed to expand and improve the quality of services are much more numerous and complex than the ones associated with the mere decision to start e-government activities.Innovation system, Dynamic capabilities, Technology adoption, Electronic government, Innovation in services, Two-part model.

Determinants of a digital divide in Sub-Saharan Africa : a spatial econometric analysis of cell phone coverage

Most discussions of the digital divide treat it as a"North-South"issue, but the conventional dichotomy doesn't applyto cell phones in Sub-Saharan Africa. Although almost all Sub-Saharan countries are poor by international standards, they exhibit great disparities in coverage by cell telephone systems. Buys, Dasgupta, Thomas and Wheeler investigate the determinants of these disparities with a spatially-disaggregated model that employs locational information for cell-phone towers across over 990,000 4.6-km grid squares in Sub-Saharan Africa. Using probit techniques, a probability model with adjustments for spatial autocorrelation has been estimated that relates the likelihood of cell-tower location within a grid square to potential market size (proximate population); installation and maintenance cost factors related to accessibility (elevation, slope, distance from a main road, distance from the nearest large city); and national competition policy. Probit estimates indicate strong, significant results for the supply-demand variables, and very strong results for the competition policy index. Simulations based on the econometric results suggest that a generalized improvement in competition policy to a level that currently characterizes the best-performing states in Sub-Saharan Africa could lead to huge improvements in cell-phone area coverage for many states currently with poor policy performance, and an overall coverage increase of nearly 100 percent.E-Business,ICT Policy and Strategies,Population Policies,Technology Industry,Geographical Information Systems

The long-term effect of digital innovation on bank performance: An empirical study of SWIFT adoption in financial services

We examine the impact on bank performance of the adoption of SWIFT, a network-based technological infrastructure for worldwide interbank telecommunication. We construct a new longitudinal dataset of 6,848 banks in 29 countries in Europe and the Americas with the full history of adoption since SWIFT’s initial operations in 1977. Our results suggest that the adoption of SWIFT (i) has large effects on profitability in the long-term; (ii) is greater for small than for large banks; and (iii) exhibits significant network effects on performance. We use an in-depth field study to better understand the mechanisms underlying the effects on profitability

The Determinants of Network Growth: The Case of Commercial Online Information Networks

With the advent of modern telecommunications capabilities, networks are rapidly becoming a competitive necessity in a wide variety of industries. The literature on networks suggests that networks have characteristics (e.g., network externalities) not shared by many other products or services, and thus traditional explanations of product growth or diffusion may not apply. Because there have been few empirical studies on networks, little is known about how networks grow and compete in the marketplace and the impact of network externalities. Using commercial online information networks as a context, this research examines the determinants of network growth. We find that make effect, usability, and compatibility with the dominant technological architecture are important variables influencing network growth. The results are also weakly supportive of the network externalities hypothesis, i.e., the online services industry exhibits some extent of network externalities

The influences of e-satisfaction, e-trust and hedonic motivation on the relationship between e-banking adoption and its determinants in Nigeria

The main objective of this study is to investigate factors that can predict adoption of ebanking in Nigeria. Specifically, it aims at investigating mediating influences of esatisfaction, e-trust and hedonic motivation on the relationship between e-banking adoption and its other determinants. The motivation of this study is driven by the inconsistent findings in the literature with respect to the relationships between e-banking adoption and its determinants: perceived usefulness, perceived ease of use, perceived security and facilitating condition. In line with the inconsistencies, various suggestions have emerged pointing to the need to investigate the possible mediating variables that could explain the inconsistencies. For that purpose, this study employed theories of Technology Acceptance Model (TAM), Universal Theory of Acceptance and Use of Technology (UTAUT) and Social Exchange theory to synchronize the possible relationships among the variables in the conceptual framework. Survey questionnaire was advocated and the questionnaires were distributed randomly to 382 customers of four major banks in Nigeria. Out of 291 returned questionnaires, 266 were useable for analysis. PLS-SEM was used to analyze both direct and indirect relationships among the variables of the study. The results reveal that perceived usefulness, perceived security, perceived ease of use, facilitating condition, and awareness are positive determinants of e-banking adoption, e-satisfaction, hedonic motivation and e-trust accordingly with an exception of perceived usefulness that does not determine e-trust. The study also found that e-satisfaction; e-trust and hedonic motivation mediate the relationship between perceived usefulness, perceived ease of use, perceived security and facilitating conditions and e-banking adoption. Finally, managerial, policy and theoretical implications as well as directions for future research are discussed in this paper

Technological Leadership and Late Development: Evidence from Meiji Japan, 1868-1912

Large family-owned conglomerates known as zaibatsu have long been credited with leading Japanese industrialization during the Meiji Period (1868-1912), despite a lack of empirical analysis. I develop a new dataset collected from corporate genealogies and estimate the likelihood of a firm being an industry pioneer with discrete choice econometric methods. I find that certain characteristics associated with zaibatsu increase the likelihood of leading entry into new industries. In particular, first entry probabilities increase with industry diversification and private ownership, which may provide internal financing and risk-sharing. Nevertheless, the costs of excessive diversification may deter additional pioneering, which may account for the loss of zaibatsu technological leadership by the turn of the century