Entry barrier's difference between ICT and non‐ICT industries

Yang, Chang-Gyu; Lee, Sang‐Gun; Lee, Jaebeom

doi:10.1108/02635571311312712

Cited by 16 publications

(9 citation statements)

References 70 publications

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“…ICT manufacturing and ICT service industries have a highly interactive connection. Thus, it is necessary to identify the barriers and characteristics of the ICT market entry (Yang et al, 2013). Manufacturing industry creates added values through service industry (Saara, 2005) because a country can use the developed ICT manufacturing industry to develop ICT service industry more easily.…”

Section: ⅵ Conclusionmentioning

confidence: 99%

A Comparative Study on Production Inducement E ffects in Key Industries of Korea and the Netherlands

Kim¹,

Lee²

2020

Glob Bus Financ Rev

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Although the growth of trade industry has been pushed mainly by intermediary trades due to Korea's geopolitical characteristics, intermediary trades fail to take the pivotal role in industrial growth because the environment could not support the industry on the national level. This study intends to help find new trade structures and directions to break the problem, by comparing Korea with the Netherlands, which has similar characteristics with Korea. Design/methodology/approach: This study applied the competitive import model and used data from World Input-output Data(WIOD), and focused on Information and Communications Technologies(ICT) manufacturing and ICT service industries as the key industries in Korea, and chemical and medical industries as the key industries in the Netherlands. Findings: The results indicated that Korea's ICT manufacturing and chemical industries have high backward linkage effect, while the Netherlands' ICT manufacturing, ICT service, and medical industries have high forward linkage effect.Research limitations/implications: When comparing between industries, it is clearer to consider not only the effect of generating production but also the creation of value added and the creation of employment in order to directly compare differences. As a contribution, comparisons between countries with large-scale trade were found to require the use of competitive models over non-competitive ones. Originality/value: This study showed that competitive analysis model should be used instead of non-competitive import model when Input-Output(IO) analysis is applied to countries with a high proportion of intermediary trade.

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Section: ⅵ Conclusionmentioning

confidence: 99%

A Comparative Study on Production Inducement E ffects in Key Industries of Korea and the Netherlands

Kim¹,

Lee²

2020

Glob Bus Financ Rev

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“…General Yang et al (2013) The entry barriers of ICT firms are lower than those of non-ICT firms, and the manufacturing sector finds a stronger innovation effect than the service sector Garcia and Vincente (2014) Analyzed the capabilities of ICT in Europe using the structure hole theory Country Jung et al (2013) Verified the hypothesis that technology convergence is the main motivation of the recent productivity increment in Korea, and estimated the effect of ICT on total factor productivity (TFP) Xing et al (2011) Analysis of convergence status and roles of ICT manufacture and ICT service industries of China for the period of 2002 Fransman ( 2009) Showed that the USA operated the innovation process of ICT ecosystem better than Europe and other developing countries Kim (2014) Strategies for improving global competitiveness and strengthening overseas expansion of the ICT industry through fundamental changes and innovations for revitalize the Japanese economy Machinery•equipment industry General Arnold (2001) Took a general view of the history of machine tool industry, and explained and noted the industry's sharp changes caused by the adoption of numerical control system Richter and streb (2011) German machine tool traders blamed China on patent infringement, while Germany itself used imitation strategy until the 1920s Country Shinno et al…”

Section: Ict Industrymentioning

confidence: 99%

A comparative study on industrial spillover effects among Korea, China, the USA, Germany and Japan

Min

Lee

Aoshima

2019

IMDS

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Purpose Starting from industry 4.0 in Germany and followed by the New Strategy for American Innovation in the USA and the smartization strategy in Japan, developed countries are pushing nation-wide innovation strategies. Similarly, China is pursuing the Made in China 2025, and Korea announced the Manufacturing Industry Innovation 3.0 strategy. However, few researchers have identified the industrial structure that establishes the foundation of the 4th Industrial Revolution or have derived strengths and weaknesses to provide implications on policy formulation through quantitative comparison with developed countries. Therefore, the purpose of this paper is to analyze the spillover effect of the information and communication technology (ICT) industry (the foundation of the 4th Industrial Revolution) and machinery·equipment industry (the foundation of smart manufacturing through convergence with ICT industry). Design/methodology/approach This study examines the industrial spillover effects of the ICT industry and machinery·equipment industry in the USA, Germany, Japan, China and Korea by using the World Input–Output Table from 2000 to 2014. Findings The results showed that backward linkage effect of the ICT Industry are high in the order of Korea≑China>Japan>the USA≑Germany, and forward linkage effect of the ICT industry are high in the order of Japan ≑> the USA≑Korea ≑> China ≑> Germany. Backward linkage effects of the machinery·equipment industry are high in the order of China>Japan≑Korea>the USA>Germany, and forward linkage effects of the machinery·equipment industry are high in the order of China>Korea>Germany≑Japan≑the USA. Practical implications China and Korea encourage active government investment in ICT and machinery·equipment industries, especially the intentional convergence between ICT and machinery·equipment industries is expected be generate higher synergy. The “innovation in manufacturing” strategy in the USA that utilizes its strength in ICT services seems appropriate, whereas Germany needs to revitalize the ICT industry to strengthen its manufacturing industry. Japan’s strategy is to focus its ICT capabilities on robot sector. While the scope of innovation is limited, its synergy is worth expecting. Originality/value This study attempted to provide a theoretical approach to the determination of national policy strategies and provide practical implications for response to the impacts of the 4th Industrial Revolution, by comparing the inducement effects of ICT and machinery·equipment industries between major countries.

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“…Innovation can also redefine markets, industries, and lead organizations to increased competitiveness and performance (Tuan, Nhan, & Ngoc, 2016;Dotzel & Shankar, 2019). The advantages associated with innovation and first-movers, often revolve around the benefits of building competitive barriers, which include usurping market share (Kerin, Varadarjan, & Peterson, 1992); building brand and customer loyalty (Pappu & Quester,2016); achieving economies of scale (Yang, Sang-Gun & Lee, 2013); and causal ambiguity (Reed &DeFillippi, 1990).…”

Section: Innovation Vs Imitationmentioning

confidence: 99%

The Impact of the Internet on Experience Services and the Cost of Information: An Updated Conceptual Model of Innovation vs. Imitation and Firm Performance in Services.

Parker

Griffin

2019

ijbass

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The extant service innovation literature suggests the high cost of an information search, when evaluating a new service provider, creates switching costs that hold customers hostage, allowing first-movers to recoup their investments and sustain an advantage. We utilize Transaction Cost Economics as a theoretical foundation to expand the service innovation literature by examining the Internet’s impact on the cost of information. We propose that as a result of the Internet, experience services offered by service firms have largely become search services, with lower levels of information asymmetry. We also suggest that the Internet has had little impact on information costs related to firms that offer largely credence services. These services will continue to exhibit higher levels of information asymmetry. Finally, we present a moderated model of innovation vs. imitation strategies that suggests that firms offering search services will increase firm performance through imitation, while credence firms will increase firm performance through innovation strategies. The extant service innovation literature suggests the high cost of an information search, when evaluating a new service provider, creates switching costs that hold customers hostage, allowing first-movers to recoup their investments and sustain an advantage. We utilize Transaction Cost Economics as a theoretical foundation to expand the service innovation literature by examining the Internet’s impact on the cost of information. We propose that as a result of the Internet, experience services offered by service firms have largely become search services, with lower levels of information asymmetry. We also suggest that the Internet has had little impact on information costs related to firms that offer largely credence services. These services will continue to exhibit higher levels of information asymmetry. Finally, we present a moderated model of innovation vs. imitation strategies that suggests that firms offering search services will increase firm performance through imitation, while credence firms will increase firm performance through innovation strategies.

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Entry barrier's difference between ICT and non‐ICT industries

Cited by 16 publications

References 70 publications

A Comparative Study on Production Inducement E ffects in Key Industries of Korea and the Netherlands

A Comparative Study on Production Inducement E ffects in Key Industries of Korea and the Netherlands

A comparative study on industrial spillover effects among Korea, China, the USA, Germany and Japan

The Impact of the Internet on Experience Services and the Cost of Information: An Updated Conceptual Model of Innovation vs. Imitation and Firm Performance in Services.

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