Technology resistance and globalisation with trade unions: the choice between employment protection and flexicurity

We analyse how different labour market institutions — employment protection versus ‘flexicurity’ — affect technology adoption in unionised firms. The analysis is cast in a setting of corporate globalisation, where domestic unionised labour face the double threat of labour-saving technological innovations and international outsourcing of domestic production. In the main part of the analysis, we analyse trade unions’ incentives to oppose or endorse the adoption of new technology. Our main result is that both weaker employment protection and a higher reservation wage for unionsed workers (interpreted as increased ‘flexicurity’) contribute to making trade unions more willing to accept labour-saving technological change. Furthermore, these effects are reinforced by globalisation. In an extension to the main analysis, we endogenise the technological progress by studying firms’ incentives to invest in new technology and find that these incentives are also generally strengthened in a labour market with more ‘flexicurity’.Technology adoption; Globalisation; Trade unions; Employment protection; Flexicurity.

Technology resistance and globalisation with trade unions: the choice between employment protection and flexicurity

We analyse how different labour market institutions — employment protection versus ‘flexicurity’ — affect technology adoption in unionised firms. The analysis is cast in a setting of corporate globalisation, where domestic unionised labour face the double threat of labour-saving technological innovations and international outsourcing of domestic production. In the main part of the analysis, we analyse trade unions’ incentives to oppose or endorse the adoption of new technology. Our main result is that both weaker employment protection and a higher reservation wage for unionsed workers (interpreted as increased ‘flexicurity’) contribute to making trade unions more willing to accept labour-saving technological change. Furthermore, these effects are reinforced by globalisation. In an extension to the main analysis, we endogenise the technological progress by studying firms’ incentives to invest in new technology and find that these incentives are also generally strengthened in a labour market with more ‘flexicurity’.Technology adoption; Globalisation, Trade unions, Employment protection, Flexicurity

The effects of outsourcing practices conducted by organisations in Nairobi

The purpose of this study is to investigate the relationship between outsourcing and development in Nairobi. The key research question for this study is what are the impacts of outsourcing practices conducted by organisations in Nairobi? Data were obtained from questionnaires distributed in December 2010. A total of 85 profit-making firms in Nairobi with a sample of 165 management employees were selected for this study. The empirical findings obtained relate to four outsourcing theories. Transaction Cost Analysis (TCA) Theory focuses on the cost savings that result from outsourcing. Agency Outsourcing Theory centres on outsourcing firms hiring agents to achieve productivity. Hiring agents may result in permanent staff being retrenched and additional outsourcing personnel being contracted and job creation and/or job loss results. Expectation Confirmation Theory (ECT) emphasises the importance of an outsourcing provider conforming to quality management principles. Resource Based Theory (RBT) proposes that organisations need a collection of resources and capabilities to execute outsourcing successfully. Findings further suggested that outsourcing can yield positive and/or negative outcomes depending on risks encountered, the business environment, company policies, function/s to be outsourced, and the competence and commitment of an outsourcing vendor. To further enhance the positive impact of outsourcing three improvements need to be executed: formulation of standard policies, price regulations, and commitment of outsourcing firms in adhering to set contract deadlines. It is suggested that the following would allow organisations to gain more from outsourcing in the future: the adoption of international/offshore outsourcing practices, more commitment by outsourcing consultants, the standardisation of charges for outsourcing contracts, and the use of new technology that would improve how outsourcing is conducted. It is concluded that the positive impacts of outsourcing would foster development to some extent while the possible negative impact of outsourcing would impede development

Technology resistance and globalisation with trade unions: the choice between employment protection and flexicurity

We thank seminar participants at the Norwegian School of Economics and Business Administration, the University of Copenhagen, and the University of Nottingham, for helpful comments and suggestions.We analyse how di.erent labour market institutions — employment protection versus ‘flexicurity’ — a.ect technology adoption in unionised firms. The analysis is cast in a setting of corporate globalisation, where domestic unionised labour face the double threat of labour-saving technological innovations and international outsourcing of domestic production. In the main part of the analysis, we analyse trade unions’ incentives to oppose or endorse the adoption of new technology. Our main result is that both weaker employment protection and a higher reservation wage for unionised workers (interpreted as increased ‘flexicurity’) contribute to making trade unions more willing to accept labour-saving technological change. Furthermore, these e.ects are reinforced by globalisation. In an extension to the main analysis, we endogenise the technological progress by studying firms’ incentives to invest in new technology and find that these incentives are also generally strengthened in a labour market with more ‘flexicurity’

Adoption of Cloud Computing in Organizations

Cloud Computing is gaining popularity as a new IT arrangement in organizations, offering many advantages such as cost reduction and high flexibility that help in coping with high elasticity of demand. This study investigates organization‟s propensity to adopt Cloud computing services. The decision is viewed as an IT outsourcing decision and as a technology adoption decision through three theoretical perspectives: Transaction cost theory, resource dependence theory and diffusion of innovation theory. Based on these theories, a conceptual model is proposed with research hypotheses for future empirical testing. The study makes an attempt to contribute to the emerging literature of cloud computing, in addition to offering organizations considering adoption a list of benefits and risks of adopting cloud computing

Sukuk dan wakaf bagi majukan Kampong Bharu

Sejak berkurun lamanya, filantrofi telah memainkan peranan penting dalam menyumbang kepada meningkatkan kebajikan seluruh manusia di muka bumi ini. Dalam konteks ini, wakaf merupakan penyelamat yang mampu menyediakan pelbagai kemudahan untuk rakyat yang memerlukan. Wakaf dapat menjadi sebagai benteng yang kukuh menyelamatkan umat daripada hakisan sosial dan juga ekonomi. Apabila dana wakaf dikumpul dan digunakan dengan sebaik-baiknya, berbagai bentuk pembangunan ekonomi boleh dilakukan dengan menggunakan pendanaan melalui wakaf

UNDERSTANDING THE SOCIO-TECHNICAL ASPECTS OF LOW-CODE ADOPTION FOR SOFTWARE DEVELOPMENT

The digital transformation of organizations’ leverages several approaches for creating software applications that meet the requirements of the specific context. Besides well-researched approaches like software development, outsourcing, or customizing commercial software packages, low-code platforms today offer a new approach for creating software. The low-code approach allows to develop software without or with limited actual coding, but by combining executable software components into workflows. While the low-code approach simplifies software development and offers a reduction in effort and time, we lack explanations on why organizations adopt it, and which challenges are associated with this adoption. We, therefore, investigate the adoption of the low-code approach based on the technology-organization-environment framework. We identified ten aspects supporting and six aspects hindering the adoption of the low-code approach. For practice, we propose a model that can assist organizations in determining the adequacy for adopting the low-code approach

Understanding smart contracts as a new option in transaction cost economics

Among different concepts associated with the term blockchain, smart contracts have been a prominent one, especially popularized by the Ethereum platform. In this study, we unpack this concept within the framework of Transaction Cost Economics (TCE). This institutional economics theory emphasizes the role of distinctive (private and public) contract law regimes in shaping firm boundaries. We propose that widespread adoption of the smart contract concept creates a new option in public contracting, which may give rise to a smart-contract-augmented contract law regime. We discuss tradeoffs involved in the attractiveness of the smart contract concept for firms and the resulting potential for change in firm boundaries. Based on our new conceptualization, we discuss potential roles the three branches of government – judicial, executive, and legislative – in enabling and using this new contract law regime. We conclude the paper by pointing out limitations of the TCE perspective and suggesting future research directions

ICT, corporate restructuring and productivity

Stronger productivity growth in the US than the EU over the late 1990s is widely attributed to faster, more widespread adoption of information and communication technology (ICT). The literature has emphasised complementarities in production between ICT and internal restructuring as an important mechanism. We investigate the idea that increased use of ICT has facilitated outsourcing of business services, and that these are complementary activities in production because they allow firms to focus on their core competencies. This is consistent with evidence from the business literature and aggregate trends, and we show evidence from microdata that is consistent with this idea