06/08/2004
THE RESER SURVEY 2004
Grete Rusten and Peter Sjøholt
Institute for Research in Business Administration and
Norwegian School of Economics and Business Administration.
Grete.Rusten@snf.no
Peter.Sjoholt@nhh.no
Biographical notes on the ‘Economics of telecommunications’ as evidenced in Norwegian
research literature 1999 –2003.
Introduction
It is always difficult to do justice to the ‘real’ spectrum of publications to be included in a
survey like this. The theme is very heterogeneous in nature and rather difficult to treat, and
several of the written sources dealing with the subject are outdated after a couple of years.
We have chosen to highlight the treatment of the theme in Norwegian research literature by
concentrating on works that we consider to be particularly relevant in an international context
and for international comparison. Thus, articles, books and excerpts from books published in
English are given the highest priority. The listed contributions are chosen primarily by subject
and searched for under the different relevant institutions. Publications may have been missed,
but we are confident that the most important ones on the theme have been included. We have,
by and large, left out publications like seminar papers, master theses, practical manuals and
the like, giving genuine research contributions the highest priority.
Literature
Berntsen, S. K. Eliassen, A. Særvoll and R. Amundsveen. 2002. ’E-handel med frukt og
grønnsaker. Bruk av Inernett som salgskanal for landsbruksprodukter.’
Report 4/02, Nordlandsforskning: Bodø. (Summary in English).
Bromfield, H., I.P. Grøtte, R.M. Tandle and S. Ølnes. 2002. Personalised web services.
Report 8/2002, Vestlandsforskning.
Braadland, F., T.E. Eikebrokk, E.S. Hauge, Ø.L. Laderud, C.E. Moe and D.H. Olsen. 2002,
Elektronisk forretningsdrift. Hindringer og tiltak. (in Norwegian)
Report 11/02, Agderforskning: Kristiansand.
1
Christensen, G.E., S.E. Grønland and L.B. Methlie 1999, Informasjonsteknologi
- Strategi, Organisasjon, Styring Oslo: Cappelen Akademiske forlag.
Ciborra, C.U., K.Braa, A. Cordella, B. Dahlblom, A. Failla, O. Hanseth, V. Hepsø, J.
Ljungberg, E. Monteiro, K.A. Simon, 2000, From Control to Drift.
The Dynamics of Corporate Information Infrastructures, Oxford: Oxford University
Press.
Foros, Ø, and H.J. Kind. 2003. The Broadband Access Market: Competition, Uniform
Pricing and Geographical Pricing. Journal of Regulatory Economics 23:3 pp 215-235.
Frønes, I. 2002, Digitale skiller. Utfordringer og Strategier.
Bergen: Fagbokforlaget. (in Norwegian).
Holmefjord, K. G. Rusten and D. Charles. 2002, ‘A Place on the Web: The Use of Spatial
Concepts in Business Websites,’ Workingpaper 5/02, Institute for Research in
Economics and Business Administration, Bergen
Nysveen, H. P.E. Pedersen and H. Thorbjørnsen. 2003. Using mobile services to strengthen
brand relationships: The effects of SMS and MMS channel additions on brand
knowledge, satisfaction, loyalty and main channel use. Report 22/2003, Institute for
Research in Economics and Business Administration, Bergen
Pedersen, P.E. 2002, ‘The adoption of text messaging services among Norwegian teens:
development and test of an extended adoption model report 23/2002, Institute for
Research in Economics and Business Administration, Bergen..
Pilskog, G.M., L. Solheim, and T. Ødegård 2002, Use of ICT in enterprises 2001.
Statistics Norway (Norwegian/English).
Rusten, G. and K. Holmefjord. 2002. Nettet i fanget. Norsk fiskeoppdrett desember. 20/2002.
pp 32-34. (In Norwegian).
Rusten, G. 2003, ’IKT and Regional Development (in Norwegian)
Workingpaper 5/02, Institute for Research in Economics and Business Administration,
Bergen
Rusten, G. and W. Ellingen 2003, ‘Food on the web. A new way to profit.’
Workingpaper, 37/03, Institute for Research in Economics and Business
Administration, Bergen.
Rusten, G. and W. Ellingsen 2004. ’Hvordan gjør vi oss nett? Webstrategier for
Hordalandskommuner, Workingpaper 24/04, Institute for Research in Economics and
Business Administration, Bergen
Rusten, G. 2004, ,IKT, foretak og næringsklynger.’ s129-144.. In: Arbo, P. and H. Gammelsæter, H.
(eds): Innovasjonspolitikkens scenografi. Nye perspektiver på næringsutvikling.
(In
Norwegian) Trondheim: Tapir akademisk forlag.
Skogseid, I. and K.G. Høyer. 2003. ‘The Information Society and Spatial Develoment’
2
Position Paper on the Information Society and Spatial Development
report 10/2003, Interreg IIIB, Vestlandsforskning.
Steineke, J.M. 2002. Wired cities-telecommunication structure, urban systems and
information accessibility. Nederladse Geografische Studies no. 303 6
Stemsrudhagen, J.I. 2002, ‘Creative SMC in a Norwegian ICT company: managerial
interaction with sources of realised strategies, report 26/2002. Institute for Research in
Economics and Business Administration, Bergen
Tepfers, C og C.M. Davidsen 2000, Elektronisk handel – Fra buzz til bix.
Trondheim: Tapir Akademiske Forlag. (In Norwegian)
Ulset, S. 2002, Mobile virtual network operators: a strategic transaction cost analysis of
preliminary experiences. Telecommunication Policy 26. 2002. pp 537-549.
3
Stage II Abstracts
Berntsen, S. K. Eliassen, A. Særvoll and R. Amundsveen. 2002. ’E-handel med frukt og
grønnsaker. Bruk av Internett som salgskanal for landsbruksprodukter.’
Report 4/02, Nordlandsforskning: Bodø. (Summary in English).
Abstract
Today the competitive situation for Norwegian farmers producing vegetables is harsh. The
Norwegian wholesaler market is very much dominated by four large retailer-wholesaler
chains, Coop (former NKL), Norgesgruppen, Reitangruppen and Hakongruppen. These have
Vertically integrated downwards and now control most of the distribution and wholesaler
companies. There has been an increase in focus on low cost strategies. The farmers are facing
demands as to lowering prices, new packaging routines, quality assurance and production
volume. Especially the volume level demand is difficult for the many rural farmers. Because
of this, the farmers now try to find alternative outlets to seller their products. In this study we
Explore how the Internet can be used as a strategic countermove for closure of the wholesale
link, and as an alternative sales outlet. We examine three Scandinavian websites specialised I
selling agricultural products, and one company which sells a wide range of ordinary grocery
producs using the Internet. We present the experiences from these companies using a
theoretical framework. We subsequently recommend solutions for a typical smaller farm
interested in using Internet as an alternative sales outlet.
Bromfield, H., I.P. Grøtte, R.M. Tandle and S. Ølnes. 2002. Personalised web services.
Report 8/2002, Vestlandsforskning.
Abstract
The report consists of three parts: a discussion of the term Personal Web Services, an
overview of status in different countries and finally a proposed project to bring the ideas
discussed forward. The status overview shows that much has been said and little has been
done when it comes to personalised web services. Norway is lagging behind in recent eEurope
benchmark studies and a project focussing on personalised access to your own data seems
timely. We also propose a project to lift the remaining municipalities in Sogn og Fjordane up
to the first step on the development stair.
Ciborra, C.U., K.Braa, A. Cordella, B. Dahlblom, A. Failla, O. Hanseth, V. Hepsø, J.
Ljungberg, E. Monteiro, K.A. Simon, 2000, From Control to Drift.
The Dynamics of Corporate Information Infrastructures, Oxford: Oxford University
Press.
Abstract
Firms are investing considerable resources to create large information, infrastructures to be
able to fulfill their varied information-processing and communication needs. The more the
drive towards globalization, the more such infrastructures become crucial. The “wiring” of the
corporation should be done in way that is aligned with its corporate strategy- is is global and
generates value. The book presents six in-debt case studies of large corporations-Astra Xeca,
IBM, Norsk Hydro Roche, SKF and Statoil –which offers a rich picture of the main issues
involved in information structure implementation and management. Far from being a linear
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process, the use of the information infrastructure is in fact an open ended-endeavour, in many
cases out of control. Current management models and consulting advice do not seem to be
able to cope with such a business landscape. The book provides the reader with
interpretations and theories that can foster a different understanding and approach. Thus, the
economies of standards complexity theory, and actor-network theory are harnessed to
penetrate the issues emerging from the case studies and to generate a new conception of the
information infrastructure that is relevant both for researchers and practitioners.
Foros, Ø, and H.J. Kind. 2003. The Broadband Access Market: Competition, Uniform
Pricing and Geographical Pricing. Journal of Regulatory Economics 23:3 pp 215-235
Abstract
In this paper we analyze for broadband access. A key feature of this market is that it is
considerably more expensive to connect consumers in rural locations than in urban locations.
We show that while competition increases welfare compared to monopoly when prices are
free to differ across locations the opposite may be true if there is a requirement of uniform
pricing across locations. Furthermore, we show that given uniform pricing, the regulator may
increase consumer surplus as well as profit by requiring a higher regional coverage than the
market outcome
Frønes, I. 2002, Digitale skiller. Utfordringer og Strategier.
Bergen: Fagbokforlaget. (in Norwegian).
Abstract
The growth of digital based technology such as robots, PCs, mobile telephones and internet
has roused the interest of focussing on social relationships: Which elites are being formed and
which groups are left out. In the US the concept digital divide is used to describe the situation.
In this book the situation in Norway is analysed. It is shown that infrastructure is rather
advanced in the country in the sense that quite many homes have access to internet and
mobile telephones and PCs are rather common. A great part of the population has a high
digital competence, reflected in the percentage of the population sending text messages, using
internet in different ways and using PC. Electric commerce is still rather uncommon, though.
One of the reasons for this is an already highly satisfactory commodity supply.
Groups falling outside the ‘digital revolution’ are old people and people in marginal position
generally. Often this coincides with social marginalisation, among people with low economic
and particularly low cultural capital.
Generally, Norway has been an advanced nation in use of technology for rationalising labour
operations and scores high in consumption of IT technology. On other indicators, however,
like development of competence and development of ICT industry the country has a
surprisingly low record. Likewise, the country is low on investment in research and
development of ICT production and development of relevant in depth competence.
International research networking has had a relatively low priority. Generally digital
competence is high on rationalisation in industry and on communication functions among
consumers, but many of the other producer indicators and R&D give reason for concern.
Nysveen, H. P.E. Pedersen and H. Thorbjørnsen. 2003. Using mobile services to strengthen
brand relationships: The effects of SMS and MMS channel additions on brand
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knowledge, satisfaction, loyalty and main channel use. Report 22/2003, Institute for
Research in Economics and Business Administration, Bergen
Abstract
The purpose of this report is to study effects of SMS and MMS as channel additions on
customers’ relationships with brands. Empirical studies are reported for three brands in which
have added SMS and MMS as brand channel additions (FINN, TV2 and Big Brother). The
main results of these studies may be summarized as follows. SMS seems to have a more
positive effect than MMS both on the variables included in the extended Relationship
Investment model (Rusbult, 1980) and on main channel use. * The effects of SMS/MMS as
channel additions are more positive on direct relationship investments and indirect
relationship investments than on the remaining variables in the extended Rusbult model. The
effects of SMS/MMS on main channel use seem to be mediated mainly by direct relationship
investments made by the consumer.
Pedersen, P.E. 2002, ‘The adoption of text messaging services among Norwegian teens:
development and test of an extended adoption model report 23/2002, Institute for
Research in Economics and Business Administration, Bergen..
Abstract
Text messaging in the form of SMS has become one of the most successful mobile services in
Norway, and the use of this service is now well integrated into the everyday life of young
Norwegians. To explain the widespread adoption of this service, findings from diffusion, uses
and gratifications, information systems and domestication research are reviewed and
integrated into a re-specified and extended model based upon the theory of planned behavior.
The model is tested on a sample of young users of text messaging services. We conclude that
the suggested re-specifications and extensions are justified. The final model shows good fit
and explains more than 70 % of the variance in intention to use text messaging services. The
results support including elements of enjoyment and expressiveness in models of text
messaging adoption, show little support for including subjective norm, and indicate that users
may perceive some form of deficient self-regulation in the use of these services. Implications
for the mobile services industry as well as for further research on users' adoption requirements
of mobile services are suggested.
Pilskog, G.M., L. Solheim, and T. Ødegård 2002, Use of ICT in enterprises 2001.
Statistics Norway (Norwegian/English).
Abstract
This publication provides a detailed description of the design and definitions used in statistics
about ICT usage in enterprises. The publication also contains selected time series table, which
provides an overview of development features for the period 1998-2001. To be able to
interpret an analyze the data on ICT usage in enterprises, it is important to have information
on how the statistics have been assembled, the definitions used and what the statistics cover.
The publication has been designed to give the reader a complete overview of the basic
principles and definitions on which the statistics are based. Detailed tables on statistics ICT
usage in enterprises is available at the homepage of Statistics Norway:
http//www.ssb.no/ikt_en/.
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Skogseid, I. and K.G. Høyer. 2003. ‘The Information Society and Spatial Develoment’
Position Paper on the Information Society and Spatial Development
report 10/2003, Interreg IIIB, Vestlandsforskning.
Abstract
This document is prepared in order to facilitate a better understanding of different concepts of
information society in a context of spatial development. A draft version of the scoping study
was prepared for a seminar on the topic “The Information Society and Spatial Development”
held in Stavanger on January 23d and 24th 2003. The draft Scoping study formed a basis of
the seminar discussions. An aim was to identify what potential Interreg IIIB projects within
the field of information society could deal with to best contribute to coherent spatial
development in the regions around the North Sea. The practical purpose of the scoping study
is thus to guide project developers as regards the information society issues of the North Sea
Programme
Stemsrudhagen, J.I. 2002, ‘Creative SMC in a Norwegian ICT company: managerial
interaction with sources of realised strategies, report 26/2002. Institute for Research
in Economics and Business Administration, Bergen.
Abstract
In recent years, telecommunications have represented one of the world's most dynamic
industries. This report describes a study of the Strategic Management Control (SMC) of a
software supplier in this sector. Over the three-year study period, the company's market value
fluctuated between NOK 2.5 and 10 bn., and it went through major strategic changes. Based
on conventional ideas, managers influencing processes of strategic importance were expected
to form the core of SMC. However, the study showed that managers saw SMC as a creative
process in which the essential challenge was to establish processes that would influence them
by attracting and interacting with other players. This creative process employed the traditional
SMC procedure, but the manner in which it was used, differed from the literature
prescriptions.
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Holmefjord, K. G. Rusten and D. Charles. 2002, ‘A Place on the Web: The Use of Spatial
Concepts in Business Websites,’ Workingpaper 5/02, Institute for Research in Economics and
Business Administration, Bergen.
Abstract
The communication revolution enables firms to build new links with customers and suppliers
around the world. Presenting business online offers new marketing and product opportunities
for trading with both businesses and consumers. However, experiences with actual
information and communication technology (ICT) use in general, and the Internet in
particular, show that geography still matters. One reason is that the majority of goods and
services still rely upon some physical movement. In addition, regulatory barriers and cultural
differences between nations still slow down e-commerce. Geography is also significant in
other ways -for example, some locations attract customers. Some firms that may have a rather
7
limited attraction value individually have enhanced their value through clusters, which are
developed with the aim of forming a regional brand. In other cases, firms downplay the use of
local references and present a global image instead. This paper discusses spatial concepts
expressed in firms’ websites. A general discussion shows how firms use spatial concepts in
various ways to engage trust, to develop a regional brand or to express strength through
cluster membership. The type of spatial statements will often vary according to the target
group. The discussion is further illustrated by referring to the web pages of two industries
with strong links to location: the food and tourist industries, often small and medium sized
firms (SMF) based in a rural setting. Examples are taken from both the UK and Norway, but a
comparative analysis has not been attempted.
.
Rusten, G. and W. Ellingen 2003, ‘Food on the web. A new way to profit.’
Workingpaper, 37/03, Institute for Research in Economics and Business
Administration, Bergen.
Abstract
Presenting business online offers opportunities for marketing and trade of regional products.
A key issue for the strategic use of information and communication technology (ICT) is the
firm’s level of awareness of the value and opportunities created by this technology.
Obviously, some firms have a culture for experimentation, whereas others are more sceptical.
This paper assesses how rural niche producers in the Norwegian food industry have used the
Internet to develop their business. Although demand and consumption issues are considered,
this paper's primary focus is on the production side of website marketing and trading by
producers. Knowledge about the motivations and conditions for setting up the website are
discussed. Our main results relate to the way the content and role of websites varies across
product categories, frequency and volume of orders, market range, and other distribution
channels.
Rusten, G. and W. Ellingsen 2004. ’Hvordan gjør vi oss nett? Webstrategier for
Hordalandskommuner, Workingpaper 24/04, Institute for Research in Economics and
Business Administration, Bergen (in Norwegian)
Abstract
This paper discusses municipalitys’ website performance and awareness and use of spatial
symbols in web presentations using websites analysis and some interviews. The empirical
evidence is based on investigation of the 32 municipality web sites in Hordaland in 2004. Our
main results relates to how performance on the web adds value to efficiency, services and
community building that gaining own population and businesses, visitors are potential
settlers. The paper starts with a background review of the literature on website performance,
infrastructure and the use of spatial concepts. This is followed by a discussion of strategies,
design and content particular about how municipality use spatial concepts in various ways to
offer their services in a more efficient way. An additional element is whether and how
websites can be used actively for community building. The empirical investigates
performance levels on this matter and illustrates various types and qualities of website
8
performance through a content analysis covering various subject. Finally, in the conclusions
the value of website performance is discussed.
Rusten, G. 2004, ,IKT, foretak og næringsklynger.’ s129-144.. In: Arbo, P. and H. Gammelsæter, H.
(eds): Innovasjonspolitikkens scenografi. Nye perspektiver på næringsutvikling.
(In
Norwegian) Trondheim: Tapir akademisk forlag.
Abstract
The growth of information and communication technology (ICT) is altering the plays
anyways in which firms are organised and perform. Website and e-commerce technologies
may also help efficient firms expand their market possibilities. ICT also enables the
customisation of products and services to such an extent that firms are able to exploit market
niches and rapidly and efficiently respond to changes in demand. ICT also helps firms to
reduce inventory, leading to better stock control and to further integration across the value
chain. Compared to a few years ago transport and communications have also become far more
efficient in terms of costs, capacity and speed. These technological developments have had
major impacts on firms in the ways in which they organise their production processes and on
the geographies of their trading patterns for products and sales. Nevertheless, many economic
activities are spatially concentrated: in some cases they form industrial clusters. These settings
are in some cases relatively geographically concentrated agglomerations in which firms and
organisations are integrated through business transactions, collaboration, rivalry, knowledge
transfer and a multitude of social relationships.
The chapter explores the impact ICT is having on geography of firm behaviour specifically its
implications on geographical proximity, in terms of, the foundations and functioning of
industrial clusters. First this discussion questions the role of nearness for business in the new
economy including issues concerning geography as well as economic and social processes.
The second question to be addressed is whether the use of ICT will undermine traditional
cluster advantages. Or new technology may rather act as tools that bind parties in clusters
closer together? This article combines a theoretical discussion with empirical evidence based
on case studies of Norwegian firms.
Steineke, J.M. 2002. Wired cities-telecommunication structure, urban systems and
information accessibility. Nederladse Geografische Studies no. 303 6
Abstract
This paper describes the evolution of broadband telecommunication infrastructure in Norway
in the late 1990s. Using standard transportation network analysis, we assess the network layer
within the Norwegian system of cities. We describe the emerging structure of virtual “hubs”
and “pathways” in this national info-structure. Examining the capacity of competing inter-city
“backbone” networks, we first show that the current telecommunication backbone links major
agglomerations, with regional centres more likely to have flexible communication capacity.
We then identify knowledge and action layers in the Norwegian “part” of cyberspace using
internet space and domain name principles. This is followed by details on data sources and on
how internet addresses may be mapped onto geospace. We demonstrate that commercial
internet domain registration is more prevalent in higher levels of the urban hierarchy. Finally,
we use the broadband network and internet space data to classify a set of Norwegian cities by
9
their wiredness. In closing, implications for the evolution of the urban system as well as the
future role of cities as breeding grounds for the discussion of ICTs are discussed.
Ulset, S. 2002, Mobile virtual network operators: a strategic transaction cost analysis of
preliminary experiences. Telecommunication Policy 26. 2002. pp 537-549.
Abstract
The paper describes and analyses critical conditions for achieving net benefit from opening
the value-chain in mobile communications by introducing mobile virtual network operators
(MVNOs) in the Scandinavian and British Markets. MVNOs are radio-less network operators
that outsource the radio part offering complex bundles of innovative value-added services will
probably not be competitively sustainable as separate firms, only as more tightly integrated
partners of radio-based network operators.
The Nordic countries are among the top in the IMDs ranking of countries measured by
computers per capita (IMD, 2002). The fact that these countries have a fairly developed ICTeconomy also by other measures about access, have several reasons. These countries are
relatively small, have a high living standard and level of education. The telecommunication
systems are fairly advanced with a high coverage of ISDN even in rural areas and the prices
for use are at least compared with salaries are quite low. An additional explanation of the high
number of users have probably also to do with the fact that these countries were not generally
among the pioneers in this field and have benefited from “rapid follower” advantages
compared to many of the larger industrialised countries for instance the US and France
Measures on access are however one thing, actual e-commerce something quite different.
International figures in table 1 show that the numbers for firms in Norway and the UK are
quite high and on a similar level. The same Table shows that about half of the firms in each
country have their own website. However, when it comes to e-commerce engagements the
levels really drop (Rusten 2004).
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A general overview and more detailed analysis
A key issue for strategic ICT use is awareness among individuals, communities and
companies about the value and opportunities created by use of this technology. Our findings
suggest two different categories of ICT- strategies among SMEs. One is the case where ICT
are actively initiated by the SMEs in order to be competitive. Other examples are ICT
initiated as a response of pressure from customers or other collaboration parties. In what way
implementation takes place does also vary from those that entirely rely on internal resources
at site or through a parent company. We have also been informed about firms that have joined
public funded research projects where the aim has been to implement this kind of technology
into the SME sector. Finally we see a clear distinction between those cases where the firm is
recommended on an informal basis to by a certain software package or equipment, and those
cases where the firm has actively engaged someone to give this particular advice.
This review has revealed the different ways ICT strategies have developed from being a
technology matter to questions of business process and business strategy. By including the
territorial dimension, the several of the studies to move beyond the limits of the individual
firm and discuss how business performance related to ICT also is tied to the presence and
absence of appropriate culture and spatial conditions in general, and to rural location in
particular.
Using firms web performance as an illustration, some of them have evidently moved from a
stage where they were operating on the web merely because everybody else did, to a stage
where the web had become a fully integrated and useful business tool. There is however also
those that have lost their interest of maintaining their website, and are even setback compared
to their level 2-3 years ago. However, a closer inspection of the reasons for the individual
course reveals a further need to nuance the picture. The review have showed that information
technology rather than being just an infrastructure is a flexible means of communication, by
which social structures are formed, reformed and dissolved. We can very short sum up this
analysis by stating that ICT strategies rather than always being a unidirectional stepwise
process take different directions, develop in different speed and are based on a great variety of
strategies.
Much of the existing ICT-literature focuses mainly on technical, managerial and marketing
issues where as more critical studies on challenges and hindrances are not that affluent.
Neither do many of the studies address the fact that, for many firms, the website complements
rather than replaces traditional marketing and distribution channels. In order to evaluate ICT
performance, it is necessary to know the motivations and conditions for ICT and how this part
of the ICT strategy fits in with the rest of the business.
11