Extending recent research on the institution-based view of international business strategy, this paper posits that the international diffusion of technology among firms is distinct from its intra-national counterpart because the adoption of technology across borders is influenced by differences in government institutions where each firm is located. The absence of clear contract enforcement processes and well-defined property rights reduces investment in unknown technologies, due to the difficulty in allocating the residual surplus gained from productive assets, thus requiring greater experience and learning when undertaking investment decisions.
I investigate this phenomenon by focusing on the impact of inter-country differences on the adoption of a single innovation worldwide across comparable firms: electronic ticketing among airlines. Using a unique dataset consisting of more than 180 airlines operating in 120 different countries, my analysis indicates that controlling for firm-specific factors, state governance characteristics - especially government effectiveness - have a significant impact on the pace at which individual airlines adapt the e-ticketing technology. Moreover, my results suggest that the diffusion of technology operates not on a global scale but along regional lines, alluding to the need to also focus supra-national institutions to properly understand these global processes.
Click here for more info.
Roberto Galang, John Gokongwei School of Management Ateneo de Manila University
- Wednesday, 06 October 2010
- 12.15 p.m. - 1.30 p.m.
Seminar Room 3-5
Level 3, Manasseh Meyer
Lee Kuan Yew School of Public Policy
469C Bukit Timah Road