Tacit Web: Entrepreneurial Discovery, Institutional Complexity and Internet Diffusion

This dissertation investigates how institutional frameworks and entrepreneurial discovery processes condition internet diffusion. While internet and internet-based technologies have received considerable scholarly attention, the dissertation emphasizes tacit elements in understanding internet diffusion. In order to do so, it incorporates perspectives on insttitutional complexity stemming from interactions of formal and informal institutions and different institutional logics. Empiral part consists both macro level comparisons of Estonia and Slovenia as well as micro level analysis of internet diffusion processes within Estonia. Estonia and Slovenia are selected for comparison because of considerable variance in insitutional frameworks. At the same time, both countries are relatively small and members of the European Union. This allows to focus on specific institutional configurations and path-dependencies in constraining and enabling the diffusion of internet. I find that internet is diffused more extensively and intensively in Estonia. Different socio-economic groups use more sophisticated online services in Estonia than in Slovenia. Once specific institutional configurations in general and in the telecom sector in particular are considered then it emerges that insitutional frameworks in Estonia have been more facilitative of entrepreneurial discovery processes over time. As a result, supply and demand for innovative online services in Estonia is greater than in Slovenia. After comparative perspective on two countries, the dissertation proceeds to analyze specific cases of online initiatives in Estonia such as internet banking and internet voting. Examination of outcomes shows how some of these initiatives have been successful and created reasons for adoption and use of internet on the individual level leading to a greater diffusion on macro level. My analysis demonstrates that positive outcomes have often been unintended result of experimentation through the process of entrepreneurial discovery within the context of institutions and path-dependencies. Evidence for this finding is bolstered by study of heterogeneous cases of various ICT initiatives. By emphazing institutional complexity and policy heterogeneity, the dissertation illuminates and explains the tacit nature of internet diffusion in a specific context of Estonia. This implies that Estonia has followed a unique developmental trajectory which cannot be generalized and transferred to other countries

The Estonian experience shows that while online voting isfaster and cheaper, it hasn’t increased turn-out

Estonia is the only country in the world where citizens have used remote internet voting in the municipal, national and European elections. Here Meelis Kitsing offers a brief overview of the last five elections, highlights key elements of voting process and discusses briefly some major debates concerning the internet voting in Estonia. He argues that though online voting is faster and cheaper, it doesn’t necessarily work to the benefit of all citizen

Beyond The Internet: Radical Reformer Versus Smooth Transformer

The importance of facilitating the increase of Internet diffusion has become widely recognized by the policymakers in transition and developing countries. A wider use of the Internet will foster both economic and political development. Based on the case studies of Estonia and Slovenia, this article finds that Internet diffusion in transition and developing economies is encouraged through the privatization of an incumbent telecom company and the opening of a telecom market. To secure maximum openness and fair play in the telecom sector a truly independent telecom regulatory agency has to be established and regulators need to stay free of political interventions. In order for this to be successful, this article argues that these policies have to be combined with a liberal trade and a foreign direct investment regime

Small is beautiful and important: economies and firms trading in digital services

Although many firms operate on global digital platforms, small countries and firms also play an essential role at the national level, especially during crises and the slowdown in globalization. This research investigates trade patterns in digital services at the country and firm level and identifies challenges in this area in providing new information and tools to startup mentors and policymakers, who need more evidence for national authorities to develop mentorship and digital programmes. The study also contributes to transaction cost theory, explaining how it is possible to reduce transaction costs. The methodology involves using quantitative and experimental methods, logistic regression for firms and correspondence analysis for countries. The WTO dataset was used to visualise trade in services data and to interpret clusters of digitalised countries. Interestingly, Estonia stands apart from other post-socialist countries in terms of digital services exports, being among smaller countries and hosting the highest concentration of startups per capita. The firmlevel analysis revealed that firms trading in digital services differ from others – being smaller, more focused on exports and more often controlled by non-residents. The study encourages investments in small countries and small firms that trade successfully in digital services

Applying Elinor Ostrom\u27s Rule Classification Framework to the Analysis of Open Source Software Commons

This research investigates the utility of Ostrom and Crawford’s rule classification framework (elaborated in Understanding Institutional Diversity) in the systematic study of rule systems in a set of relatively complex open source projects and their overarching non-profit foundation. Using this framework, rule configurations are described for the overall Open Source Geospatial Foundation and for each of seven associated geospatial projects

“Brooks’ versus Linus’ Law: An Empirical Test of Open Source Projects

In this paper, we investigate collective action in open source software development, where both volunteers and paid professionals essentially produce a public good. By using a large dataset, our logistic regression shows that adding more programming staff to the software projects increases their probability of success. This finding contradicts some dominant theories on software development as well as on the provision of public goods. As governments worldwide increasingly rely on open source software, our analysis has concrete implications for the public sector in contributing to the success of these projects