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Cost Focussed Firms and Internet Usage

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  • Joanne Loundes

    () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

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    Abstract

    This paper looks at Internet usage by Australian firms that have a cost focussed competitive strategy. The data source for this analysis is the Melbourne Institute Business Survey, conducted by the Melbourne Institute of Applied Economic and Social Research. The survey was conducted in late 2001, and targeted large Australian firms. Instrumental variables estimation found that cost-focussed organizations utilised the Internet more intensively for both internal organizational activities and external market activities than organizations that did not have a high focus on costs. However, this impact appeared greater for internal organizational activities, suggesting that these firms possibly believed that there were greater cost savings and efficiency gains-at least in terms of Internet usage-to be had in using the Internet as part of the internal operations of the organization.

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    File URL: http://www.melbourneinstitute.com/downloads/working_paper_series/wp2002n29.pdf
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    Bibliographic Info

    Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2002n29.

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    Length: 23 pages
    Date of creation: Dec 2002
    Date of revision:
    Handle: RePEc:iae:iaewps:wp2002n29

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    Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
    Phone: +61 3 8344 2100
    Fax: +61 3 8344 2111
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    Web page: http://www.melbourneinstitute.com/
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    References

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    1. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, And The Demand For Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, MIT Press, vol. 117(1), pages 339-376, February.
    2. Gertner, Robert H & Stillman, Robert S, 2001. "Vertical Integration and Internet Strategies in the Apparel Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 417-40, December.
    3. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June.
    4. Andrew J. Schlauch & Steven Laposa, 2001. "E-Tailing and Internet-Related Real Estate Cost Savings: A Comparative Analysis of E-tailers and Retailers," Journal of Real Estate Research, American Real Estate Society, vol. 21(1/2), pages 43-54.
    5. Joanne Loundes, 2002. "Business Use of the Internet in Australia," Melbourne Institute Working Paper Series wp2002n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
    7. Luis Garicano & Steven N. Kaplan, 2001. "The Effects of Business-to-Business E-Commerce on Transaction Costs," NBER Chapters, in: E-commerce, pages 463-485 National Bureau of Economic Research, Inc.
    8. Martin Kenney & James Curry, 1999. "e-commerce: implications for firm strategy and industry Configuration," Industry & Innovation, Taylor and Francis Journals, vol. 6(2), pages 131-151.
    9. Dirk Pilat & Frank C. Lee, 2001. "Productivity Growth in ICT-producing and ICT-using Industries: A Source of Growth Differentials in the OECD?," OECD Science, Technology and Industry Working Papers 2001/4, OECD Publishing.
    10. Cheng, Chun Hung & Cheung, Waiman & Chang, Man Kit, 2002. "The use of the Internet in Hong Kong: Manufacturing vs. service," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 33-45, January.
    11. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x.
    12. Robert H. Gertner & Robert S. Stillman, 2001. "Vertical Integration and Internet Strategies in the Apparel Industry," NBER Chapters, in: E-commerce, pages 417-440 National Bureau of Economic Research, Inc.
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