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Government efficiency and international technology adoption: The spread of electronic ticketing among airlines

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  • Roberto Martin N Galang

    (John Gokongwei School of Management, Ateneo de Manila University, Quezon City, Philippines)

Abstract

Extending research on the institution-based view of international business strategy, this paper posits that the international adoption of technology among firms is distinct from its intra-national counterpart because this process is influenced by the efficiency of the government institutions where each firm is located. Low government efficiency delays investment in unknown technologies by increasing contracting hazards, environmental uncertainty and the difficulty of allocating potential returns; thus requiring greater experience on the part of firms when undertaking investment decisions. Furthermore, government inefficiency accentuates the relative significance of firm-specific drivers of technology adoption, but reverses the positive effect of industry competition in promoting technology adoption. I empirically investigate this phenomenon through hazard models analyzing the factors that affect the timing of the adoption of electronic ticketing by close to 180 airlines operating in 110 different countries. The results imply that government inefficiency in certain countries not only leads to slower technology penetration rates compared with their counterparts, but also exacerbates the technology gaps within countries by providing unwarranted advantages to firms that are already well entrenched.

Suggested Citation

  • Roberto Martin N Galang, 2012. "Government efficiency and international technology adoption: The spread of electronic ticketing among airlines," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 43(7), pages 631-654, September.
    • Handle: RePEc:pal:jintbs:v:43:y:2012:i:7:p:631-654
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    Citations

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    Cited by:

    1. Brent B Allred & Michael G Findley & Daniel Nielson & J C Sharman, 2017. "Anonymous shell companies: A global audit study and field experiment in 176 countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 48(5), pages 596-619, July.
    2. Never, Jan & Suau-Sanchez, Pere, 2020. "Challenging the interline and codeshare legacy: Drivers and barriers for airline adoption of airport facilitated inter-airline network connectivity schemes," Research in Transportation Economics, Elsevier, vol. 79(C).
    3. Chang, Chun-Ping & Wen, Jun & Zheng, Mingbo & Dong, Minyi & Hao, Yu, 2018. "Is higher government efficiency conducive to improving energy use efficiency? Evidence from OECD countries," Economic Modelling, Elsevier, vol. 72(C), pages 65-77.
    4. Amankwah-Amoah, Joseph & Osabutey, Ellis L.C. & Egbetokun, Abiodun, 2018. "Contemporary challenges and opportunities of doing business in Africa: The emerging roles and effects of technologies," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 171-174.
    5. Kabbiri, Ronald & Dora, Manoj & Kumar, Vikas & Elepu, Gabriel & Gellynck, Xavier, 2018. "Mobile phone adoption in agri-food sector: Are farmers in Sub-Saharan Africa connected?," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 253-261.
    6. Luis Camilo Ortigueira Sanchez & Xavier Gimbert Rafols, 2018. "Institutionalism and Economic Development in Peru: A Senior Executive's View from the Application of Augmented Fuzzy Cognitive Maps," Revista Internacional de Gestión del Conocimiento y la Tecnología (GECONTEC), Revista Internacional de Gestión del Conocimiento y la Tecnología (GECONTEC), vol. 6(1), pages 15-38, February.
    7. Chun Yang & Bart Bossink & Peter Peverelli, 2018. "The Value of Business–Government Ties for Manufacturing Firms’ Product Innovation during Institutional Transition in China," Sustainability, MDPI, vol. 11(1), pages 1-27, December.
    8. Tedi Skiti, 2020. "Institutional entry barriers and spatial technology diffusion: Evidence from the broadband industry," Strategic Management Journal, Wiley Blackwell, vol. 41(7), pages 1336-1361, July.
    9. Shin, Donghoon & Seidle, Russell & Okhmatovskiy, Ilya, 2016. "Making the foreign familiar: The influence of top management team and board of directors characteristics on the adoption of foreign practices," Journal of World Business, Elsevier, vol. 51(6), pages 937-949.
    10. Chung-wen Chen & Hsiu-Huei Yu & Kristine Velasquez Tuliao & Aditya Simha & Yi-Ying Chang, 2021. "Supervisors’ Value Orientations and Ethics: A Cross-National Analysis," Journal of Business Ethics, Springer, vol. 170(1), pages 167-180, April.
    11. Zhao, Mengli & Yang, Jianjun & Shu, Chengli & Liu, Jinxin, 2021. "Sustainability orientation, the adoption of 3D printing technologies, and new product performance: A cross-institutional study of American and Indian firms," Technovation, Elsevier, vol. 101(C).
    12. Kum-Sik Oh & Yeon-Sik Ryu, 2019. "FDI, Institutional Quality, and Bribery: An Empirical Examination in China," Sustainability, MDPI, vol. 11(15), pages 1-11, July.
    13. Danquah, Michael & Amankwah-Amoah, Joseph, 2017. "Assessing the relationships between human capital, innovation and technology adoption: Evidence from sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 24-33.
    14. Xu, Kai & Hitt, Michael A. & Brock, David & Pisano, Vincenzo & Huang, Lulu S.R., 2021. "Country institutional environments and international strategy: A review and analysis of the research," Journal of International Management, Elsevier, vol. 27(1).
    15. Galang, Roberto Martin N., 2014. "Divergent diffusion: Understanding the interaction between institutions, firms, networks and knowledge in the international adoption of technology," Journal of World Business, Elsevier, vol. 49(4), pages 512-521.

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