Sector, Firm Size and ICT investments

1
Sector, Firm Size and ICT investments

• A statistical analysis of ICT investment
  behaviour by Dutch companies
• by
• Robin Muurling
• rmrg_at_cbs.nl

2
Outline

• Organization of Ph.D. research E-business, ICT
  and Statistics
• Hypothesis for research and measuring model
• Size, Sector and ICT adoption theory
• Size, Sector and ICT adoption empirical results
• Empirical results
• Conclusion

3
Project organization

• NSI University collaboration
• CBS Programme New Economy
• 2 PhD Students
• 1 Supervisor
• - prof.dr.ir W.J. Keller (VU, Argitek)
• Steering Committee, above 3 and
• - prof.dr. Y.H. Tan (VU),
• prof.dr. E.J. Bartelsman (VU/CBS),
• dr. T.J.J.B. Wolters (CBS)

4
Hypothesis for Research and Measuring model (1/2)

• Main hypothesis
• To what extent will the introduction of
  e-business in a company influence its
  organization and internal processes in order to
  meet its customer demands, and how will
  e-business, together with pivoting and the
  factors that stimulate the introduction of
  e-business, impact company performance.

5
Hypothesis for Research and Measuring model (2/2)
6
Size, Sector and ICT adoption theory

• Size
• Small companies have less need to ICT
• Small companies have less resources to adopt ICT
• Economies of scale
• Large companies possess more power to urge
  trading partners to adopt ICT with network
  externalities

• Sector
• Main differences per sector
• Supply chains
• Different innovation patterns per sector
• Life-cycle of a sector

7
Size, Sector and ICT adoption empirical results
(1/3)
8
Size, Sector and ICT adoption empirical results
(2/3)
9
Size, Sector and ICT adoption empirical results
(3/3)

• Some sectors are not size class sensitive such
  as wholesalers, retailers, insurances, service
  and public administration
• Some sectors are less size class sensitive such
  as the financial sector
• Some sectors are size class sensitive such as
  agriculture, transport, production of raw
  materials

10
Conclusion

• Sector is more important than size
• Impact of size on ICT adoption depends per sector