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|Title: ||THE IMPACT OF NATIONAL DATA NETWORKS ON FIRM PERFORMANCE AND MARKET STRUCTURE|
|Authors: ||Streeter, Lynn A.|
Kraut, Robert E.
Lucas, Henry C. , Jr.
|Issue Date: ||1993 |
|Publisher: ||Stern School of Business, New York University|
|Series/Report no.: ||IS-93-13|
|Abstract: ||An open data network is one that allows firms to exchange information
with outside entities, and a national data network is one that provides
virtually universal access, interconnecting most businesses and private
citizens in a country. Establishing a national data network is very
costly and must be justified by its economic, service, and societal
impact. France with its Teletel system is close to having a national
data network, whereas the United States is not. Using data from 619
businesses in France and the United States we examine several claims: 1)
open networks have improve firms' productivity, efficiency, and quality
of service; 2) national open networks allow relationships among firms to
be based on an electronic marketplace; and 3) national open networks
differentially benefit small and medium sized firms. The results show
that firms using open networks are more efficient and profitable and
have more stable relationships with their customers. The natural
advantage that large firms have to exploit new technology has been
moderated in France, since small and medium-sized firms who used the
national network have gained the same advantages as large firms.
However, even in France, the use of open networks by the general
population of firms is still relatively low, thus arguing for a long
diffusion constant for the beneficial effects of open networks.|
|Appears in Collections:||IOMS: Information Systems Working Papers|
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