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Effect of the ICT Ecosystem Structure on the Sustainable Growth of ICT Firms: A Metafrontier Analysis on China, South Korea, the United States, and Japan

Author

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  • Kyoungsun Lee

    (Department of ICT Strategy Research, Korea Information Society Development Institute, 18 Jeongtong-ro, Deoksan-myeon, Jincheon-gun, Chungchengbuk-do 27872, Korea)

  • Yuri Park

    (Department of ICT Strategy Research, Korea Information Society Development Institute, 18 Jeongtong-ro, Deoksan-myeon, Jincheon-gun, Chungchengbuk-do 27872, Korea)

  • Daeho Lee

    (Department of Interaction Science, Sungkyunkwan University, 25-2 Sungkyunkwan-ro, Jongno-gu, Seoul 03063, Korea)

Abstract

We study how the information and communications technology (ICT) ecosystem affects the sustainable growth of ICT firms. For our study, we analyze the efficiencies of ICT firms in China, South Korea, the United States, and Japan, which are the current leaders in the global ICT industry, each with different ICT ecosystem structures. We use metafrontier analysis (MFA) to compare the efficiencies among countries with different structures, and then use Tobit regression to identify the causes of the efficiency gaps. Our results reveal that the US has the highest efficiency, followed by Japan, South Korea, and China, in that order, and the countries with more balanced ICT ecosystems across sub-industries—manufacturing, software and IT services, content, and telecommunications—have more efficient ICT industries. This suggests that a more balanced industrial development is important to enhancing the overall competitiveness of the ICT industry.

Suggested Citation

  • Kyoungsun Lee & Yuri Park & Daeho Lee, 2016. "Effect of the ICT Ecosystem Structure on the Sustainable Growth of ICT Firms: A Metafrontier Analysis on China, South Korea, the United States, and Japan," Sustainability, MDPI, vol. 8(5), pages 1-9, May.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:5:p:469-:d:69883
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    Cited by:

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    2. Ryu, Min Ho & Cho, Yongsun & Lee, Daeho, 2019. "Should small-scale online retailers diversify distribution channels into offline channels? Focused on the clothing and fashion industry," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 74-77.
    3. Hana Kim & Daeho Lee & Min Ho Ryu, 2018. "An Optimal Strategic Business Model for Small Businesses Using Online Platforms," Sustainability, MDPI, vol. 10(3), pages 1-11, February.
    4. Emilia Madudova & Tatiana Čorejova & Marek Valica, 2018. "Economic Sustainability in a Wider Context: Case Study of Considerable ICT Sector Sub-Divisions," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    5. Chang Hee Yoon & Francis Joseph Costello & Cheong Kim, 2019. "Assisting Sustainable Entrepreneurial Activities Through the Analysis of Mobile IT Services’ Success and Failure Factors," Sustainability, MDPI, vol. 11(20), pages 1-22, October.
    6. Sadaf Hafeez & Noreen Izza Arshad & Lukman Bin A B Rahim & Muhammad Farooq Shabbir & Jawad Iqbal, 2020. "Innovation in Chinese internet companies: A meta-frontier analysis," PLOS ONE, Public Library of Science, vol. 15(5), pages 1-15, May.
    7. Lee, Kyoungsun & Park, Yuri & Lee, Daeho, 2018. "Measuring efficiency and ICT ecosystem impact: Hardware vs. software industry," Telecommunications Policy, Elsevier, vol. 42(2), pages 107-115.
    8. Bambang Budi Wiyono & Aan Komariah & Abdulelah A. Alghamdi & Sultoni & Mochammad Fahlevi, 2023. "The Influence of Principals’ e-Leadership on the Effectiveness of Schools’ Public Relations and Organizational Improvement," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    9. Dong Hyun Lee & Ga Youn Hong & Sang-Gun Lee, 2019. "The relationship among competitive advantage, catch-up, and linkage effects: a comparative study on ICT industry between South Korea and India," Service Business, Springer;Pan-Pacific Business Association, vol. 13(3), pages 603-624, September.

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