Privacy regulation is one of the most important debates in internet policy. For instance, Goldfarb & Tucker (2011) suggest that the EU’s e-Privacy Directive affects the performances of online advertising but more generally internet-based activities because of the importance of advertising revenues in supporting the development of the digital economy. A delicate compromise is to be found concerning legal restrictions on the commercial use of personal data. On the one hand, many online businesses are suspected of invading the privacy of individuals causing them various forms of harm. On the other hand, over-stringent rules can impede innovation on the web – targeted marketing, online customization – and perhaps impact internetfirms' location decisions in favor of less protective countries. In turn, this could entail a race to the bottom leading to laxer privacy to the detriment of internet users. This may be a new privacy paradox, i.e. stronger local privacy laws entail a reduction in global privacy protection for internet users. This new paradox can be explained by the contrast between national jurisdictions and the 'global village' nature of the internet.
The last two decades have witnessed an exponential growth in internet and social media based commerce in China, resulting in a number of foreign Internetfirms launching their businesses to capitalize on the market opportunities. Surprisingly though, having been successful globally, these firms were not able to remain competitive in China with majority of them suffering losses from their failed ventures and ceasing their operations. Despite this ongoing problem, little or no research exists that might explain what is causing these problems. Addressing this gap in knowledge, we build literature-based insights and through our analysis, we: (1) provide a structured understanding of some of the major issues causing failures, (2) identify and categorize factors/sources of failures into internal versus external driven, and (3) grounded in theory and supplemented by literature evidence, develop hypotheses and a corresponding conceptual model explaining the relationships among these factors/sources and the failure of foreign Internetfirms. The proposed model serves as a means by which Information systems managers / Chief Information Officers (CIOs) / Technology and Business managers can understand the sources of failures and conduct an introspective exercise within the firm to plug some gaps before launching a business in a foreign country. Academically, the study has developed a theoretically-grounded comprehensive model to advance knowledge in a scantly researched area of challenges faced by the foreign Internetfirms and to help in the development of strategies to mitigate these problems. The proposed model also adds to the current knowledge on information systems Socio-Technical Theory and the Comparative theory of Competitive Advantage.
The authors aim to “examine and identify some of the possible sources or factors driving failure of Internetfirms in general, by learning from the experience of China and build fundamental knowledge on the challenges of operating in a foreign Internet market” (p.2, para 5). The paper gives several examples in support of each factor of failure to construct the propositions for a conceptual model. It is a different approach considering that existing studies have relied on a multiple case study approach to illustrate the performance of foreign internetfirms (e.g. Zeng & Glaister, 2016; Nummela, Saarenketo & Loane, 2016).
Evaluation of inside trade patterns has proven useful for analyzing the stock prices of traditional firms for which prior research has found that inside sells give out a negative signal about the company (see Lorie and Niederhoffer, 1968; Seyhun, 1986). When insiders in such firms sell, it points to overvaluation of the stock for outsiders and a negative abnormal return results. Internetfirms differ in two very important aspects from traditional firms as insider ownership is extensive and volatility high. These two characteristics lead to a very risky position for the manager as both income and wealth are subject to large fluctuations and even instant loss. In this respect, it has been suggested that diversification might be the leading motive for inside trades by managers of Internetfirms (see Meulbroek, 2000). From this, it follows that if inside sells do not have negative information content, no negative abnormal return should be observed.
New Digital Rules of the Game: Differences between Internet and Traditional Businesses Some fundamental differences between internet and traditional businesses contributed to the failure of WIFs in China, and this factor was only identified by the outside view (Table 6 & 7). Internet services usually have a much shorter lifecycle compared with traditional industries; and WIFs only have 2-3 years rather than decades to fine-tune their business models and educate customers. This limited the buildup of any sustainable advantages by WIFs and gives Chinese internetfirms a much better chance to compete with them than in traditional industries. Unlike aerospace or pharmaceuticals, most internetfirms do not rely on cutting edge technologies so the entry barriers are relatively low. Car engines are far more difficult to imitate than search engines. The ancillary assets and tacit knowledge embedded in production processes and supply chains in traditional industries also serve as major entry barriers. As a result, WIFs have fewer
The data sample of this paper is restricted to the Internet industry as classified by the Bloomberg Industry Classification Standard (BICS) 1 , which includes Internet-based services including Social media platforms, Online travel agents, Online real-estate agents and E- commerce services. Since a part of the data had to be hand-collected, this restriction was vital due to practical considerations. Furthermore, the intuition is that substantial benefit from underpricing can only be derived in a relatively hot IPO industry that is followed by and invested in by a wide range of investors. The last decade saw well-known Internet based firms such Facebook, Twitter, LinkedIn, Etsy, Zillow going public and Alibaba setting the record for the largest US-listed IPO. In the last ten years, Internetfirms comprised of 20% and 12% of number of initial offerings and size of initial offerings respectively; no other industry comes as close. Moreover, while the use of stocks and options for executive
As more entrepreneurs enter the arena of electronic commerce, research is also needed to examine how they effectively design and integrate new business processes and practices. Although researchers have made important first steps in identifying dimensions of innovative behavior associated with and found inside Internetfirms, more work should concentrate on how innovations relate to changes in organizational training and development, channel management, and client and customer relationships. These are all particularly relevant, given that the expanded description of electronic commerce includes on-line information technology and communication that is used to enhance customer service and support (Choi, Stahl, and Whinston, 1997; Koshiur, 1997). Keeney (1999) has outlined several areas of customers’ concerns and values that can be used by an entrepreneur to design and grow Internet ventures.
Of the structural unit - About 80% of the surveyed companies have a production unit, 62% of sales, more than half of the marketing and research departments and 15% in logistics. With firms having sales, are characterized by higher profitability and revenue growth; firms with logistics Department has high staff numbers and the rate of revenue growth; the company’s production plant is more cost effective than not having these units, and IT company with a research Department, demonstrating a lower rate of revenue growth. The system of marketing - The vast majority of the companies of the cluster (85%) use such form of product sales as a Commission. The second most popular form of marketing is orientation but a certain group of permanent and major customers (69%), followed by the use of our own sales structure (54%) and sales channels of other organizations (46%). The analysis showed that the last of these mechanisms for the sale of used mainly the export-oriented IT companies.
E-business technologies constitute such a cluster of technological innovations with a unique paradigm (i.e. the Internet), owing to significant complementarities which extend to IT-infrastructure, organization, processes, know-how of employees and firm strategy. Thus, it can be expected that the adoption of one particular e-business technology (such as online sales) provides positive externalities to the adoption of another e- business technology (such as supply chain management). This can be due to the efficient supply of complementary inputs (for example in-house IT specialists), availability of technological and organizational infrastructures (for example an Intranet), or the transmission of information and know how (organizational learning). Colombo and Mosconi  refer to this as cumulative learning-by-using effects, which reflect the stock of knowledge, capabilities, technical and managerial skills that a firm has been developing through the use of previous technologies related to the new technology under scrutiny. The existence of such effects should have an impact on the adoption pattern of firms: As far as complementarities prevail, the marginal benefits from adoption of a technology are greater for firms which have previously adopted other related technologies. This should result in a more rapid diffusion of technologies in firms that are already experienced users of related technologies.
investments encourage a firm to over-invest and adopt a "Top Dog" strategy should prior motivation have focused on eliminating existing or potential competitors. With respect to websites, a Top Dog strategy consists of investing in transactional functionalities; through a commercial website, a firm can credibly appear as a Top Dog with the ability to reduce operational costs, set aggressive prices and wrest market share from rivals (BESANKO et al., 2003). We are conjecturing here that the incentives to invest in Internet technologies, and particularly in a commercial website, should be higher in industries characterized by low entry barriers or low sunk costs. In such industries, incumbent firms are being encouraged to over-invest in order to erect artificial entry barriers.
A great deal of discussion among researchers is related to the subject of Internets’ contribution to the internationalization process of small and medium-sized enterprises. While there are several research studies denoting that the Internet has the potential of neutralizing some existing advantages of bigger corporations and thus of creating a level playing field for almost any interested small and medium-sized enterprise to obtain a presence on the Internet and to list its address on various directories and Internet search engines (Quelch and Klein 1996, 60; Hamill and Gregory 1997, 23; Wilson and Abel 2002, 88; Moen, Endresen, and Gavlen 2003, 129), there are other researchers expressing a different point of view by underlining the fact that large firms still enjoy a substantial competitive advantage because of larger resources, more visibility among prospective customers
One of the most serious gaps in P3P regards the enforcement of the privacy policies set forth by firms and agreed to by consumers. Few automated enforcement solutions exist, and their auditability is limited. The Privacy-Aware Database Interface (PADI) provides a platform with which firms can ensure that the use of data collected by their Internet- enabled systems is compliant with the policies under which it was collected.
Strategy is the key area for business firms and it ensures the firm existence and longevity. Academic literature classifies strategies in a variety of ways. While Mintzberg (1973) classified them into three modes – entrepreneurial, adaptive and planning (Miller and Friesen, 1983), Miles and Snow (1978) classified as prospector, analyser, defender and reactor. However, in the context of generic level strategy at business level, Hofer’s (1975) “contingency theory” made a considerable contribution to the strategic field. Subsequently, Porter’s (1980) well- known competitive strategy identified three business level strategies viz cost leadership, differentiation and focus. On the whole, strategies demonstrate the ways and means; a firm adopts to achieve its organizational goals. However, no doubt, strategies are critical and important for any kind of firms. Firms progress through an orderly succession of stages as they grow and age (Beverland & Lockshin, 2001; Miller and Friesen, 1983). These stages are characterized by differences in the strategies (Miller & Friesen, 1983, 1984; Quinn and Cameron, 1983), behaviours (Masurel, 2006) and changes in the growth levels. Quinn and Cameron (1983) synthesized nine life cycle models of different researchers and developed a four-stage life cycle model which includes entrepreneurial stage, collectively stage, formalization and control stage, and elaboration of structure stage. Beverland and Lockshin (2001) argue that as firms develop; they go through a series of stages, adopt different strategies. Although studies use different dimensions to develop life cycle models (Masurel, 2006; Quinn and Cameron, 1983), all of them concluded that firms adopt different strategies along their life cycle. In this study we adopt Miller and Friesen life cycle model. Miller and Friesen (1983) found that firm has a five- stage life cycle: birth, growth, revival, maturity and decline and strategies will shift from highly innovative to more conservative across the stages of firm life cycle. This model further describes that whilst major or incremental product/service innovation, diversification and vertical integration are prominent strategies in the birth, growth and revival phases, price cutting, lobbing, product substitution are major in the maturity and decline phases. The strategies associated with each phase of Miller and Friesen model are shown in Table 1.
As the world move rapidly after we enter new millennium, information technology (IT) is the powerful tool in order to get a higher level of competitiveness. IT helps most of the firm to create an excellent strategy in business because IT allows them to explore many ways of business strategies. Reality shows that Internet technology is the most form of Information Technology used (Ferguson, 1996). Internet provide more benefit to facilitate get easiness in information without limitation in time, high- interaction and also cost saving (Asbaugh et al.,1999). Internet becomes effective instrument to share important information, data, together with attractive pictures, tables, videos, ect. Actually, internet helps many firms accomplish the new level of efficiency and effectiveness (Molloy and Schwenk, 1995). Many of the companies that succeed will be ones that use the Internet as a complement to traditional ways of competing, not those that set their Internet
Bond, Seiler, Seiler and Blake (2000) examine the extent to which real estate brokers use the Internet for marketing real estate. Their study of 249 Ohio real estate brokerage firms in early 1999 indicates that only 41 firms maintained their own website, but 80 of the remaining 208 firms listed their properties on someone else's server. These researchers suggest that smaller firms do not want to avoid the expense of operating their own sites. Seventy firms indicated that they planned to add a site in the future and the remainder indicated that websites were too expensive, unprofitable, unnecessary, or that they did not know how to maintain the site. The average number of website "hits" was 440 per day; however, it was a vastly skewed distribution with the median being only five while one firm received as many as 5,393 hits per day. These findings indicate that most real estate brokerage firms are aware of the opportunities and threats of the Internet; based upon their perceptions, however, they responded differently.
We pooled the data on firms’ strategy types, capabilities and financial performance, creating a cross-sectional, time- series data panel of 1,237 total observations for 178 software firms over 10 years (note that the panel is unbalanced as some firms entered the panel later in the time period, and some firms dropped out of the panel as they went bankrupt or became acquired by another firm). We also identified two time periods, using a dummy variable to identify observations in years 1995-1999 as the Internet boom (=0) and observations in years 2000-2004 as the Internet bust (=1). According to Standard & Poor’s software industry report (2006), the software industry experienced the crash in the year 2000; thus, we identified the years prior to 2000 as the boom, and those starting with 2000 and after as the bust. We also added a variable for firm size, to control for a relationship between firm size and performance (Dutta 1999). We then estimated a model relating each firm’s Tobin’s q value in each year (log transformed to mitigate skewness) to the firm’s strategic type (represented as dummy variables, one each for Analyzer, Defender or Prospector, with Reactors as the base), measures of the firm’s marketing capabilities, R&D capability and operations capabilities (using the DEA efficiency scores for each type of capability, and centering each efficiency score for each type of capability year-by-year so that the scores are comparable across years), the dummy variable for Internet boom/bust, and interactions between the Internet boom/bust variable with strategy types and capabilities, and controlling for firm size. We used feasible generalized least squares (FGLS) to estimate the model, correcting for cross-sectional heteroscedasticity and for serial correlation using a panel-specific AR(1) procedure (Greene 2003). The results from the FGLS estimations of our panel are shown in Table 1. Because our model includes interaction effects, we must differentiate it with respect to the particular variable of interest to determine the coefficient to be evaluated for comparing values in the Internet boom and bust; however, as we have a dummy variable representing the Internet boom/bust, this process is simplified, since the respective coefficients can be added together as appropriate. Table 2 shows the computed coefficients in the Internet boom and in the Internet bust exponentiated for ease of interpretation as the marginal value of each variable associated with Tobin’s q.
incomprehensible, overly frequent, or don't give the average user enough information to make an informed decision. Frequently, they'll simply report a connection attempt to or from an IP address with little or no additional information. I also commonly see people asking about warnings that arise from totally legitimate processes on their machine accessing the internet for things like software updates or the current time and date. With too many errors, indecipherable messages or false positives, people tend to ignore the warnings after a while, rendering the outbound firewall
Investment in information and communication technologies (ICT) has historically made a significant contribution to aggregate productivity growth. Policymakers understandably seek to obtain further societal benefits from this source by encouraging investment in the latest forms of ICT. Yet it is not obvious that the benefits of past generations of technology will necessarily be repeated in future ones. Firms and governments are now contemplating sizeable investments and other forms of support for high speed ‘next generation’ broadband. One factor behind this enthusiasm is an expectation that high speed broadband will increase the productivity of firms that use it. But the view that adoption of basic broadband, as opposed to ICT investment generally, increased firms’ productivity has surprisingly limited empirical support. Even if one is willing to extrapolate the experience of basic broadband to its high speed successor, it is reasonable to ask whether adoption by firms of basic broadband had a direct effect on productivity or not. This paper adds to the literature on the effects of ICT by asking whether we can observe the sorts of productivity benefits seen in macro data when we focus on the micro level. More importantly, it adds to the limited base of evidence on the specific effects of broadband adoption on firms’ productivity.
with a large sample of employees. The study also provided valuable reference to future researchers. And since the quantitative research methodology was adopted on this research, researchers can use other type of methodologies such as qualitative method to examine the style of leadership (autocratic leadership, democratic leadership, laissez- faire leadership) and their influence on employees’ job satisfaction. In future, researcher can also study related topic that comprising job satisfaction and style of leadership as well as perception towards gender and perception towards ethnicity factor. Moreover, it is also recommended for future studies to consider other groups relevant to the firms apart from the managers. In this study, the managers were specifically approached to complete the questionnaires based on their perceptions. However, their accounts may not be adequately comprehensive in understanding the contribution of leadership styles to organizational effectiveness. It is thus, highly recommended to take into consideration the views of other potentially useful respondents from different positions for cross-checking purposes. More specifically, it may prove useful for future studies on organizational effectiveness to include the views from a wider range of respondents other than the managers themselves such as their employees or their clients. Due to cultural diversity and peculiar history of the major population of Jordan, the members of each cultural groups are known to have different disposition and attitudes towards work and business activities. Therefore, it is important that studies of this nature should be carried out among the other cultural groups in Jordan. The success of such study will enable a general conclusion to be made on evaluation of leadership and organizational performance in small- scale industries in Jordan as a whole. In achieving the above task, it would be necessary to focus on the level of motivation of employees by employers in the other ethnic or cultural groups in Jordan. Comparative studies that will focus on the attitude of employees to work as well as their level of commitment in private and public firms will also be of interest. This aspect is of importance, because irrespective of the different races of the employees in Jordan, their background, education and exposure often affect the way and manner they respond and carry out their duties at work.