Beyond electronic disintermediation through multi-agent systems

Supply chain management represents a critical competency in today's global business environment and has been the focus of considerable, but mixed, information systems research. The research described in this paper builds on work in multi-agent systems to argue that intelligent agents offer excellent potential and capability for supply chain management, and contributes to discussion and theory pertaining to electronic markets and supply chain disintermediation. Argues that the knowledge associated with intermediation work represents a key mediating variable between disintermediating technology and supply chain efficacy and discusses how intelligent agent technology can be employed to both intermediate and disintermediate the supply chain, attaining the cost and cycle-time benefits of disintermediation without the attendant loss of human knowledge and expertise. The paper outlines a number of implications for theory and practice in information systems, and it formalizes some important research questions through a contingency framework to help stimulate and guide future work along these lines

Adaptation and the Boundary of Multinational Firms

What determines the boundary of multinational firms? According to Williamson (1975), a potential rationale for vertical integration is to facilitate adaptation in a world where uncertainty is resolved over time. This paper offers the first empirical analysis of the impact of adaptation on the boundary of multinational firms. To do so, we first develop a ranking of sectors in terms of their groutinenessh by merging two sets of data: (i) ratings of occupations by their intensities in gproblem solvingh from the U.S. Department of Labor's Occupational Information Network; and (ii) U.S. employment shares of occupations by sectors from the Bureau of Labor Statistics Occupational Employment Statistics. Using U.S. Census trade data, we then demonstrate that, in line with adaptation theories of the firm, the share of intrafirm trade tends to be higher in less routine sectors. This result is robust to inclusion of other variables known to influence the U.S. intrafirm import share such as capital intensity, R&D intensity, relationship specificity, intermediation and productivity dispersion. Our most conservative estimate suggests that a one standard deviation decrease in average routineness raises the share of intrafirm imports by 0.26 standard deviations, or an additional 7% of import value that is intrafirm.

Adaptation and the Boundary of Multinational Firms

What determines the boundary of multinational firms? According to Williamson (1975), a potential rationale for vertical integration is to facilitate adaptation in a world where uncertainty is resolved over time. This paper offers the first empirical analysis of the impact of adaptation on the boundary of multinational firms. To do so, we first develop a ranking of sectors in terms of their "routineness" by merging two sets of data: (i) ratings of occupations by their intensities in "problem solving" from the U.S. Department of Labor's Occupational Information Network; and (ii) U.S. employment shares of occupations by sectors from the Bureau of Labor Statistics Occupational Employment Statistics. Using U.S. Census trade data, we then demonstrate that, in line with adaptation theories of the firm, the share of intrafirm trade tends to be higher in less routine sectors. This result is robust to inclusion of other variables known to influence the U.S. intrafirm import share such as capital intensity, R&D intensity, relationship specificity, intermediation and productivity dispersion. Our most conservative estimate suggests that a one standard deviation decrease in average routineness raises the share of intrafirm imports by 0.26 standard deviations, or an additional 7% of import value that is intrafirm.

The Effects of E-commerce on the Structure of Intermediation

The paper questions the notion that the diffusion of electronic commerce will lead to disintermediation. Rather than interpreting intermediation as a single service it is pointed out that intermediaries can provide a number of services. The analysis based on the New Institutional Economics, Market Microstructure Theory, and Information Economics shows that the three intermediation services studied are, generally, not under threat by the diffusion of electronic commerce. The overall effects on intermediation depend on the relevance of these services relative to others (e.g. order processing) which are supposed to become obsolete.B2C eCommerce, intermediation, new institutional economics

The role of an intermediary agent in technology integration within developing countries: a film industry perspective

AbstractThe Bangladesh Film Industry has been attempting to move from traditional analogue film production to digital production during the last decade without much success. One major problem is that the digital technology has to be acquired from international donors in advanced countries and the Government's public procurement policy stipulates that this transfer of technology from the donor to the recipient must be expedited by a local ‘intermediary agent’ (e.g. business entrepreneurs). Our research findings have confirmed that the local film industry (recipient) requires support with installation of technology, film distribution/ exhibition, and maintenance (production level) and some management tasks. All of which is not usually provided because of incompetency on the part of the intermediary agents and because of limitations in the public procurement policy for this industry sector. One policy implication is whether government procurement policy should target more direct B2B contact between the technology recipient and the international donor. This could help upgrade innovation capabilities of local industry. Our empirical research findings are based on direct insights gained from six semi-structured face-to-face interviews with key respondents based in Bangladesh (e.g. Directors and Senior Management staff of the Bangladesh Film & Development Corporation and other key respondents). Note: findings reported here are from a larger study of 40+ interviews on the theme of digital technology integration in Bangladesh film industry. We report that policy makers should direct policy toward the development of technological system, infrastructure and technical training in the long run, rather than mainly focusing on boosting foreign technical assistance, which does not appear to help support manufacturing processes in film making to make a smooth transition from analogue to digital technology use. There should also be a sterner public evaluation body that pre-evaluates and post-evaluates the success or otherwise of the technology integration process

Pre-empting protectionism in services - the WTO and outsourcing

Cross-border trade in services is growing rapidly, with both industrial and developing countries among the most dynamic exporters. Despite the substantial global benefits from such trade, the adjustment pressures created in importing countries could provoke a protectionist backlash-some signs of which are already visible in procurement and regulatory restrictions. The current negotiations under the Doha Development Agenda offer an opportunity to lock in current openness and preempt protectionism. This paper describes how a bold initiative under the General Agreement on Trade in Services can help secure openness.Decentralization,Enterprise Development&Reform,Payment Systems&Infrastructure,ICT Policy and Strategies,Banks&Banking Reform,ICT Policy and Strategies,Banks&Banking Reform,Governance Indicators,Health Economics&Finance,Knowledge Economy

The paradox of high R&D input and low innovation output: Sweden

This chapter takes its point of departure in the so-called Swedish paradox, according to which the Swedish NSI is plagued by low pay-off in relation to very high investments in R&D and innovation efforts. Using new data, we show that this paradox is still in operation, i.e. the productivity or efficiency of the Swedish NSI remains low. We also specify the paradox in several respects. By focussing upon nine activities in the NSI, we attempt to explain why and how the paradox operates. The paradox is also related to the moderate growth of labour productivity in Sweden. Further, we show that the paradox is linked to globalization: internationalization of production by Swedish firms has proceeded further than the internationalization of R&D. On the basis of this analysis, we identify strengths and weaknesses of the Swedish NSI – many of which are related to the Swedish paradox. We take account of the history of innovation policy in Sweden and – on the basis of the analysis as a whole -- we identify future policy initiatives that might help to mitigate the Swedish paradox.Innovation; innovation system; Swedish national system of innovation; Swedish paradox