Finland and Singapore are easy to compare, they are the same size and have similar positions as global digital leaders. however, their performance is differing a lot. from 2006 to 2013, Singapore’s GDP growth rate was tenfold compared to Finland. four years later, in 2017 Finland is exceeding the growth rate of
Singapore. what are the reasons for the success of Finland? An empirical analysis of the factors contributing to GDP growth and the effects of the policy change was conducted. It was demonstrated that increase of export did not explain growth, but shifts in capital formation did. New dynamics was revealed that was triggered by the removal of structural impediments (hindrances) and by increasing use of soft innovation
resources. The virtuous cycle of increase of uncaptured GDP, increased multifactor productivity and growth of tangible capital and GDP was described. An insightful suggestion for activating a hybrid role for soft innovation resources in the digital economy was thus provided.
SOFT INNOVATION RESOURCES: ENABLER FOR REVERSAL IN GDP GROWTH IN THE DIGITAL ...IJMIT JOURNAL
While Finland and Singapore have been maintaining world digital leaders position, they demonstrate interlaced contrast: high welfare with low GDP growth in Finland and higher GDP growth with lower welfare in Singapore. This provokes an uncaptured GDP postulate that Finnish wellbeing has developed
more than one might conclude by GDP. However, a recent reversal in the GDP growth trend suggests the possibility that uncaptured GDP contributes to remove structural impediments in GDP growth.This paper demonstrates this hypothesis. An empirical analysis elucidating the inside the national accountings and institutional systems revealed that soft innovation resources have substituted for service capital in Finland and created uncaptured GDP which disseminated in tangible capital and removed structural impediments impeding development leading to GDP growth. In addition, this growth enables next generation intellectual property product (IPP) development. An insightful suggestion in overcoming a productivity paradox in the digital economy was thus provided.
CONSEQUENCES OF THE DIGITAL ECONOMY: TRANSFORMATION OF THE GROWTH CONCEPTIJMIT JOURNAL
The digital economy is transforming the traditional concepts of economic growth.The recent reversal trend
in GDP growth of ICT leaders can be attributed to effective utilization of soft innovation resources in
Finland and adherence to traditional resources in Singapore.Confronting a productivity decline in the
digital economy, global information and communication technology (ICT) leaders are transforming
business models into those with uncaptured GDP creation. This can be attributed tothe harnessing soft
innovation resourcesagainst a productivity decline. This in turn activates a self-propagating function and
induces supra-functionality beyond economic value corresponding to a shift in people’s preferences. It also
contributes to removingstructural impediments in GDP growth.Empirical analyses utilizing the
development trajectories of 500 global ICT firms and also world ICT leadersFinland and Singapore
demonstratedthese hypothetical views andprovided an insightful suggestion as to overcome aproductivity
decline in the digital economy.
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...IJMIT JOURNAL
As a consequence of the two-faced nature of information and communication technology (ICT), a majority of ICT leaders have been confronting the critical problem of a dilemma between R&D expansion and productivity decline in the digital economy. However, Amazon has been able to accomplish a skyrocketing increase in R&D and market capitalization. Finland has also accomplished balanced advancement not only of welfare but also economic resurgence. This paper attempted to elucidate the miracle of two ICT leaders. By means of a comparative empirical analysis of respective development trajectories, the sources of their success were analyzed thereby the comparative advantage and disadvantage of each respective trajectories supportive to find a practical solution to the critical problem of a dilemma were identified. The sources of both successes can be attributed to harnessing the vigor of soft innovation resources from the marketplace. However, contrary to Amazon’s complementary use, Finland has depended on substitutionary use. While this approach contributes to easy resurgence, it casts a shadow to the innovative growth in the future. An insightful suggestion regarding balanced sustainable growth by cross learning was thus provided.
Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturi...ijtsrd
The objective of the study is to examine the effect of voluntary disclosure on corporate performance of quoted manufacturing companies in Nigeria. The study specifically examined the effect of voluntary disclosure on ROA, ROE, and NPM. The population of the study was drawn from manufacturing firms quoted on the floor of the Nigerian Stock Exchange. financial year. The study was based on secondary sources of data, collected from annual financial reports. The study used content analysis to analyse the voluntary disclosure items. The study finds that voluntary disclosure has a significant negative effect on profitability return on assets, return on equity and net profit margin . The study therefore recommends, among others, manufacturing firms to enhance voluntary disclosure based on a cost benefit analysis of such, and also, help “bridge the gap†between financial numbers and the true economics underlying the company’s transaction. Voluntary disclosure is also recommended as a medium to curtail the shenanigans of earnings management. Ikemefuna, Victor C. | Onuora, J. K. "Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturing Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42600.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42600/effect-of-voluntary-disclosure-on-corporate-performance-of-quoted-manufacturing-companies-in-nigeria/ikemefuna-victor-c
Top Cited Articles in 2018 - International Journal of Managing Information T...IJMIT JOURNAL
The International Journal of Managing Information Technology (IJMIT) is a quarterly open access peer-reviewed journal that publishes articles that contribute new results in all areas of the strategic application of information technology (IT) in organizations. The journal focuses on innovative ideas and best practices in using IT to advance organizations – for-profit, non-profit, and governmental. The goal of this journal is to bring together researchers and practitioners from academia, government and industry to focus on understanding both how to use IT to support the strategy and goals of the organization and to employ IT in new ways to foster greater collaboration, communication, and information sharing both within the organization and with its stakeholders. The International Journal of Managing Information Technology seeks to establish new collaborations, new best practices, and new theories in these areas.
Hong Kong announced HKD 168 billion budget surplus from which 40% will be generated to the development and support towards technology and innovation focused businesses.
Focus has been set on four areas: biotechnology, artificial intelligence (AI), smart city and financial technologies.
SOFT INNOVATION RESOURCES: ENABLER FOR REVERSAL IN GDP GROWTH IN THE DIGITAL ...IJMIT JOURNAL
While Finland and Singapore have been maintaining world digital leaders position, they demonstrate interlaced contrast: high welfare with low GDP growth in Finland and higher GDP growth with lower welfare in Singapore. This provokes an uncaptured GDP postulate that Finnish wellbeing has developed
more than one might conclude by GDP. However, a recent reversal in the GDP growth trend suggests the possibility that uncaptured GDP contributes to remove structural impediments in GDP growth.This paper demonstrates this hypothesis. An empirical analysis elucidating the inside the national accountings and institutional systems revealed that soft innovation resources have substituted for service capital in Finland and created uncaptured GDP which disseminated in tangible capital and removed structural impediments impeding development leading to GDP growth. In addition, this growth enables next generation intellectual property product (IPP) development. An insightful suggestion in overcoming a productivity paradox in the digital economy was thus provided.
CONSEQUENCES OF THE DIGITAL ECONOMY: TRANSFORMATION OF THE GROWTH CONCEPTIJMIT JOURNAL
The digital economy is transforming the traditional concepts of economic growth.The recent reversal trend
in GDP growth of ICT leaders can be attributed to effective utilization of soft innovation resources in
Finland and adherence to traditional resources in Singapore.Confronting a productivity decline in the
digital economy, global information and communication technology (ICT) leaders are transforming
business models into those with uncaptured GDP creation. This can be attributed tothe harnessing soft
innovation resourcesagainst a productivity decline. This in turn activates a self-propagating function and
induces supra-functionality beyond economic value corresponding to a shift in people’s preferences. It also
contributes to removingstructural impediments in GDP growth.Empirical analyses utilizing the
development trajectories of 500 global ICT firms and also world ICT leadersFinland and Singapore
demonstratedthese hypothetical views andprovided an insightful suggestion as to overcome aproductivity
decline in the digital economy.
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...IJMIT JOURNAL
As a consequence of the two-faced nature of information and communication technology (ICT), a majority of ICT leaders have been confronting the critical problem of a dilemma between R&D expansion and productivity decline in the digital economy. However, Amazon has been able to accomplish a skyrocketing increase in R&D and market capitalization. Finland has also accomplished balanced advancement not only of welfare but also economic resurgence. This paper attempted to elucidate the miracle of two ICT leaders. By means of a comparative empirical analysis of respective development trajectories, the sources of their success were analyzed thereby the comparative advantage and disadvantage of each respective trajectories supportive to find a practical solution to the critical problem of a dilemma were identified. The sources of both successes can be attributed to harnessing the vigor of soft innovation resources from the marketplace. However, contrary to Amazon’s complementary use, Finland has depended on substitutionary use. While this approach contributes to easy resurgence, it casts a shadow to the innovative growth in the future. An insightful suggestion regarding balanced sustainable growth by cross learning was thus provided.
Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturi...ijtsrd
The objective of the study is to examine the effect of voluntary disclosure on corporate performance of quoted manufacturing companies in Nigeria. The study specifically examined the effect of voluntary disclosure on ROA, ROE, and NPM. The population of the study was drawn from manufacturing firms quoted on the floor of the Nigerian Stock Exchange. financial year. The study was based on secondary sources of data, collected from annual financial reports. The study used content analysis to analyse the voluntary disclosure items. The study finds that voluntary disclosure has a significant negative effect on profitability return on assets, return on equity and net profit margin . The study therefore recommends, among others, manufacturing firms to enhance voluntary disclosure based on a cost benefit analysis of such, and also, help “bridge the gap†between financial numbers and the true economics underlying the company’s transaction. Voluntary disclosure is also recommended as a medium to curtail the shenanigans of earnings management. Ikemefuna, Victor C. | Onuora, J. K. "Effect of Voluntary Disclosure on Corporate Performance of Quoted Manufacturing Companies in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42600.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42600/effect-of-voluntary-disclosure-on-corporate-performance-of-quoted-manufacturing-companies-in-nigeria/ikemefuna-victor-c
Top Cited Articles in 2018 - International Journal of Managing Information T...IJMIT JOURNAL
The International Journal of Managing Information Technology (IJMIT) is a quarterly open access peer-reviewed journal that publishes articles that contribute new results in all areas of the strategic application of information technology (IT) in organizations. The journal focuses on innovative ideas and best practices in using IT to advance organizations – for-profit, non-profit, and governmental. The goal of this journal is to bring together researchers and practitioners from academia, government and industry to focus on understanding both how to use IT to support the strategy and goals of the organization and to employ IT in new ways to foster greater collaboration, communication, and information sharing both within the organization and with its stakeholders. The International Journal of Managing Information Technology seeks to establish new collaborations, new best practices, and new theories in these areas.
Hong Kong announced HKD 168 billion budget surplus from which 40% will be generated to the development and support towards technology and innovation focused businesses.
Focus has been set on four areas: biotechnology, artificial intelligence (AI), smart city and financial technologies.
Nigeria is an oil producing nation which have been relying heavily on oil revenue for its economic well being. Oil depletes and its price can crash making dependence on oil as a mono means for the country’s future futile. Information and communication technology (ICT) on the other hand has impacted the economic growth of various nations such as India. ICT seems to be a key factor in stimulating the development of a country’s productivity across most sectors of the economy and ensuring global competiveness and a move to a New Economy. This Paper examines if a causal relationship exists between ICT and economic wellbeing (GCI) and if ICT can offer a way forward for Nigeria to move from oil based to service and product based economy. The paper also conducts an empirical analysis to find out if oil producing nations experience better growth against ICT innovative nations using 10 countries. The results of the analysis support the believe that ICT led development and of the existence of a causal link between ICT and economic growth and non-existence of a causal link between oil production alone and economic development.
it & Economic Performance a Critical Review of the Empirical DataWaqas Tariq
The present study undertakes a critical review of the research around the multi-significant issue of the correlation between the IT investments and the economic performance to both micro and macroeconomic level. The aim of this study is to shed light on the interaction of IT with the economy, at corporate, industry and national level and document it¢ s contribution to productivity and therefore to economic growth. My conclusion is that there is a positive effect of IT investments to both the above economic indicators in all aspects, but is something that needs further research so as to find a more clear and risk adjusted relation.
ICT Trends Article March 2016: Contrasts in DemandGarry Roberton
A quick glance at this month’s Seek ICT job advert figures (Fig.1) indicates that the usual upward trend for this time of the year is currently tracking below the same period for 2015. And in the NZ Ministry of Business, Innovation and Employment (MBIE) jobs online monthly report for February 2016, the all vacancies index fell by 0.5 percent with IT decreasing by 0.2 percent. Over the year to February, job vacancies increased in all of the industry groups, up 4.7 percent, while IT vacancies fell by 7.0 per cent. This slight trough in the current ICT job adverts market needs to be viewed in a global context, which reveals a robustly growing ICT industry where demand for skills continues to outstrip supply.
Brennan, Niamh [2001] Reporting Intellectual Capital in Annual Reports: Evide...Prof Niamh M. Brennan
This paper examines the extent to which a sample of 11 knowledge-based Irish listed companies is adopting methodologies for reporting of intellectual capital in their annual reports. Their market and book values were compared and a content analysis of the annual reports of the 11 listed companies was conducted. With the exception of two of the 11 listed companies, significant differences in market and book values were found suggesting that knowledge-based Irish listed companies have a substantial level of non-physical, intangible, intellectual capital assets. The level of disclosure of intellectual capital attributes by the 11 listed companies studied was low.
ASCERTAINING THE INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) MATURITY LEVE...ijait
Information and Communication Technology has indeed been the driving force in most economics of the world owing to its versatility in integrating with most national sectors. Information and Communication Technology (ICT) models have been developed with the sole aim of ascertaining the maturity level in various economic sectors from the perspective of ICT. Due to the divergent impact of ICT in the Banking sector in Nigeria; this research paper has attempted to ascertain the maturity level within the banking sector using KochiKar Model: a Knowledge-driven ICT maturity model. The dataset for analysis was obtained using structured interview approach spread across Ten (10) Nigeria banks, capturing 12 personnel’s each with an overall total of 120 respondents.The ICT maturity parameter indicators show clearly that Application, Human Resource Infrastructure and Policy have varied ratio of: 65%, 46% , 30% and 16%, respectively while the overall maturity index was captured at 0.40 (40%) falling into “BASIC” level within the stages of Kochikar model measurement. These results have highlighted the need in improving policies and infrastructures tremendously while applications and human resources can be expanded gradually which will overall increase the maturity index level.
The invention of information, communication, and computing technology (ICT) has made it possible to use automated processes to replace labor in certain ”routine” tasks, which require following exact, well-defined procedures. We study the implications of this for the labor income share as well as the allocation of labor across routine and non-routine occupations. We document a substantial decline in the routine labor income share since 1979 as well as a simultaneous rise in the the non-routine labor income share. At the same time, the ICT capital income share nearly doubled while the non-ICT capital income share remained at its historical levels. We use these trends to calibrate a neoclassical growth model, in which ICT capital and routine labor are imperfect substitutes. We further allow for exogenous changes in the production intensity of non-routine labor. Our calibration suggests that the decline in the aggregate labor income share is a result of the automation of routine tasks. However, the reallocation of labor toward non-routine occupations is due primarily to the increase in the production intensity of non-routine labor as opposed to the accumulation of ICT.
The annual IT barometer of the Finnish Information Processing Association has now been conducted for the third time. The barometer charts the importance of information technology (IT) for Finnish companies. Participating in the IT barometer this time were 176 persons in business or IT management in Finnish organisations of over 500 persons.
During the economic downturn, criticism levelled against the immediate utilisation of IT and, in particular, the operations of IT management has clearly increased, especially in business management. This increased criticism of IT and IT management likely reflects the high expectations placed on IT which have been difficult to fulfil in the poor financial situation.
Green Accounting and Firm Performance in NigeriaYogeshIJTSRD
This study examines the impact of green accounting on firm performance in Nigeria. TobinQ was use to measure the firm value. The study selected 72 manufacturing firms listed on the Nigerian Stock Exchange that disclosed green accounting information in line with GRI 4. Ex post facto research design was used and secondary data were collected from annual report of sampled firms from 2012 2019. The data were analyzed with descriptive statistics and correlation analysis while pooled ordinary least squared regression was employed to test formulated hypotheses. From the analysis it was discovered that material and energy disclosure have positive and significant effect on firm performance. Based on these findings, the study recommends that company’s should develop policy concerning materials used to produce and package company’s primary product and services during the reporting period and firms should also make their operation more sustainable by reporting on their energy consumption and energy efficiency policy being aware of it’s in becoming accountable and responsible. Okoli Pamela. C | Onuora J. K. J | Emeka- Nwokeji, N. A "Green Accounting and Firm Performance in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45057.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45057/green-accounting-and-firm-performance-in-nigeria/okoli-pamela-c
Digital Asia – ASEAN in ascendence. Team Finland Future Watch Report, May 2016Didar Kaitasalo
In Asia, three trends are driving digitalisation: mobile commerce, business intelligence and smart infrastructures. These will have a significant short- to midterm impact on companies and customers, and ways of doing business. See how digital transformation is shaping the future business landscape in Singapore, Vietnam and Philippines. Areas covered: Fintech: New lending models, mobile payments, blockchain
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...IJMIT JOURNAL
As a consequence of the two-faced nature of information and communication technology (ICT), a majority of ICT leaders have been confronting the critical problem of a dilemma between R&D expansion and productivity decline in the digital economy. However, Amazon has been able to accomplish a skyrocketing
increase in R&D and market capitalization. Finland has also accomplished balanced advancement not only of welfare but also economic resurgence. This paper attempted to elucidate the miracle of two ICT leaders. By means of a comparative empirical analysis of respective development trajectories, the sources of their success were analyzed thereby the comparative advantage and disadvantage of each respective trajectories supportive to find a practical solution to the critical problem of a dilemma were identified. The sources of both successes can be attributed to harnessing the vigor of soft innovation resources from the marketplace. However, contrary to Amazon’s complementary use, Finland has depended on substitutionary use. While this approach contributes to easy resurgence, it casts a shadow to the innovative growth in the
future. An insightful suggestion regarding balanced sustainable growth by cross learning was thus provided.
CO-EVOLUTIONARY COUPLING BETWEEN CAPTURED AND UNCAPTURED GDP CYCLES:CROSS LEA...IJMIT JOURNAL
A solution to the critical problem of a dilemma between R&D expansion and productivity decline that a
majority of information and communication technology (ICT) leaders have been confronting in the digital
economy is expected. It can be expected by a spinoff from economic functionality-seeking GDP-based coevolution cycle to supra-functionality beyond an economic value-seeking uncaptured GDP-driven coevolution cycle. However, the transformation dynamism remains a black box.
Nigeria is an oil producing nation which have been relying heavily on oil revenue for its economic well being. Oil depletes and its price can crash making dependence on oil as a mono means for the country’s future futile. Information and communication technology (ICT) on the other hand has impacted the economic growth of various nations such as India. ICT seems to be a key factor in stimulating the development of a country’s productivity across most sectors of the economy and ensuring global competiveness and a move to a New Economy. This Paper examines if a causal relationship exists between ICT and economic wellbeing (GCI) and if ICT can offer a way forward for Nigeria to move from oil based to service and product based economy. The paper also conducts an empirical analysis to find out if oil producing nations experience better growth against ICT innovative nations using 10 countries. The results of the analysis support the believe that ICT led development and of the existence of a causal link between ICT and economic growth and non-existence of a causal link between oil production alone and economic development.
it & Economic Performance a Critical Review of the Empirical DataWaqas Tariq
The present study undertakes a critical review of the research around the multi-significant issue of the correlation between the IT investments and the economic performance to both micro and macroeconomic level. The aim of this study is to shed light on the interaction of IT with the economy, at corporate, industry and national level and document it¢ s contribution to productivity and therefore to economic growth. My conclusion is that there is a positive effect of IT investments to both the above economic indicators in all aspects, but is something that needs further research so as to find a more clear and risk adjusted relation.
ICT Trends Article March 2016: Contrasts in DemandGarry Roberton
A quick glance at this month’s Seek ICT job advert figures (Fig.1) indicates that the usual upward trend for this time of the year is currently tracking below the same period for 2015. And in the NZ Ministry of Business, Innovation and Employment (MBIE) jobs online monthly report for February 2016, the all vacancies index fell by 0.5 percent with IT decreasing by 0.2 percent. Over the year to February, job vacancies increased in all of the industry groups, up 4.7 percent, while IT vacancies fell by 7.0 per cent. This slight trough in the current ICT job adverts market needs to be viewed in a global context, which reveals a robustly growing ICT industry where demand for skills continues to outstrip supply.
Brennan, Niamh [2001] Reporting Intellectual Capital in Annual Reports: Evide...Prof Niamh M. Brennan
This paper examines the extent to which a sample of 11 knowledge-based Irish listed companies is adopting methodologies for reporting of intellectual capital in their annual reports. Their market and book values were compared and a content analysis of the annual reports of the 11 listed companies was conducted. With the exception of two of the 11 listed companies, significant differences in market and book values were found suggesting that knowledge-based Irish listed companies have a substantial level of non-physical, intangible, intellectual capital assets. The level of disclosure of intellectual capital attributes by the 11 listed companies studied was low.
ASCERTAINING THE INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) MATURITY LEVE...ijait
Information and Communication Technology has indeed been the driving force in most economics of the world owing to its versatility in integrating with most national sectors. Information and Communication Technology (ICT) models have been developed with the sole aim of ascertaining the maturity level in various economic sectors from the perspective of ICT. Due to the divergent impact of ICT in the Banking sector in Nigeria; this research paper has attempted to ascertain the maturity level within the banking sector using KochiKar Model: a Knowledge-driven ICT maturity model. The dataset for analysis was obtained using structured interview approach spread across Ten (10) Nigeria banks, capturing 12 personnel’s each with an overall total of 120 respondents.The ICT maturity parameter indicators show clearly that Application, Human Resource Infrastructure and Policy have varied ratio of: 65%, 46% , 30% and 16%, respectively while the overall maturity index was captured at 0.40 (40%) falling into “BASIC” level within the stages of Kochikar model measurement. These results have highlighted the need in improving policies and infrastructures tremendously while applications and human resources can be expanded gradually which will overall increase the maturity index level.
The invention of information, communication, and computing technology (ICT) has made it possible to use automated processes to replace labor in certain ”routine” tasks, which require following exact, well-defined procedures. We study the implications of this for the labor income share as well as the allocation of labor across routine and non-routine occupations. We document a substantial decline in the routine labor income share since 1979 as well as a simultaneous rise in the the non-routine labor income share. At the same time, the ICT capital income share nearly doubled while the non-ICT capital income share remained at its historical levels. We use these trends to calibrate a neoclassical growth model, in which ICT capital and routine labor are imperfect substitutes. We further allow for exogenous changes in the production intensity of non-routine labor. Our calibration suggests that the decline in the aggregate labor income share is a result of the automation of routine tasks. However, the reallocation of labor toward non-routine occupations is due primarily to the increase in the production intensity of non-routine labor as opposed to the accumulation of ICT.
The annual IT barometer of the Finnish Information Processing Association has now been conducted for the third time. The barometer charts the importance of information technology (IT) for Finnish companies. Participating in the IT barometer this time were 176 persons in business or IT management in Finnish organisations of over 500 persons.
During the economic downturn, criticism levelled against the immediate utilisation of IT and, in particular, the operations of IT management has clearly increased, especially in business management. This increased criticism of IT and IT management likely reflects the high expectations placed on IT which have been difficult to fulfil in the poor financial situation.
Green Accounting and Firm Performance in NigeriaYogeshIJTSRD
This study examines the impact of green accounting on firm performance in Nigeria. TobinQ was use to measure the firm value. The study selected 72 manufacturing firms listed on the Nigerian Stock Exchange that disclosed green accounting information in line with GRI 4. Ex post facto research design was used and secondary data were collected from annual report of sampled firms from 2012 2019. The data were analyzed with descriptive statistics and correlation analysis while pooled ordinary least squared regression was employed to test formulated hypotheses. From the analysis it was discovered that material and energy disclosure have positive and significant effect on firm performance. Based on these findings, the study recommends that company’s should develop policy concerning materials used to produce and package company’s primary product and services during the reporting period and firms should also make their operation more sustainable by reporting on their energy consumption and energy efficiency policy being aware of it’s in becoming accountable and responsible. Okoli Pamela. C | Onuora J. K. J | Emeka- Nwokeji, N. A "Green Accounting and Firm Performance in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45057.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/45057/green-accounting-and-firm-performance-in-nigeria/okoli-pamela-c
Digital Asia – ASEAN in ascendence. Team Finland Future Watch Report, May 2016Didar Kaitasalo
In Asia, three trends are driving digitalisation: mobile commerce, business intelligence and smart infrastructures. These will have a significant short- to midterm impact on companies and customers, and ways of doing business. See how digital transformation is shaping the future business landscape in Singapore, Vietnam and Philippines. Areas covered: Fintech: New lending models, mobile payments, blockchain
A SOLUTION TO THE DILEMMA BETWEEN R&D EXPANSION AND THE PRODUCTIVITY DECLINE:...IJMIT JOURNAL
As a consequence of the two-faced nature of information and communication technology (ICT), a majority of ICT leaders have been confronting the critical problem of a dilemma between R&D expansion and productivity decline in the digital economy. However, Amazon has been able to accomplish a skyrocketing
increase in R&D and market capitalization. Finland has also accomplished balanced advancement not only of welfare but also economic resurgence. This paper attempted to elucidate the miracle of two ICT leaders. By means of a comparative empirical analysis of respective development trajectories, the sources of their success were analyzed thereby the comparative advantage and disadvantage of each respective trajectories supportive to find a practical solution to the critical problem of a dilemma were identified. The sources of both successes can be attributed to harnessing the vigor of soft innovation resources from the marketplace. However, contrary to Amazon’s complementary use, Finland has depended on substitutionary use. While this approach contributes to easy resurgence, it casts a shadow to the innovative growth in the
future. An insightful suggestion regarding balanced sustainable growth by cross learning was thus provided.
CO-EVOLUTIONARY COUPLING BETWEEN CAPTURED AND UNCAPTURED GDP CYCLES:CROSS LEA...IJMIT JOURNAL
A solution to the critical problem of a dilemma between R&D expansion and productivity decline that a
majority of information and communication technology (ICT) leaders have been confronting in the digital
economy is expected. It can be expected by a spinoff from economic functionality-seeking GDP-based coevolution cycle to supra-functionality beyond an economic value-seeking uncaptured GDP-driven coevolution cycle. However, the transformation dynamism remains a black box.
The Role of Intangibles in the Public Sector-A Preliminary Study in JapanSPINTAN
Paper by Tsutomu Miyagawa on the role of intangibles in the public sector focusing on a preliminary study in Japan. Presented in the 9th World Conference on Intellectual Capital for Communities, World Bank, Paris, June 6th and 7th 2013
NEO OPEN INNOVATION IN THE DIGITAL ECONOMY: HARNESSING SOFT INNOVATION RESOURCESIJMIT JOURNAL
Successive increases in R&D that creates new functionality are essential for global competitiveness. However, unexpectedly, as a consequence of the two-faced nature of information and communication technology (ICT), excessive R&D results in a marginal productivity decline leading to a decrease in digital
value creation. In order to overcome such a dilemma, global ICT firms have been endeavoring to transform themselves into disruptive business model. Neo open innovation that harnesses soft innovation resources may be a solution to this critical question. On the basis of an empirical analysis focusing on forefront endeavors to this dilemma by global ICT firms, this paper attempted to demonstrate the above hypothetical
view. Noteworthy findings suggestive to transforming the traditional business model into disruptive innovation that satisfies people’s demand corresponding to their shift inpreferences in the digital economy is thus provided. In addition, a new concept for R&D resources in the digital economy is postulated.
Published by the Finnish Information Processing Association, the yearly IT Barometer charts the importance of IT to Finnish organizations. In the IT Barometer, we study Finnish IT and business management’s views on how IT is utilized in their organizations, how IT produces value for their business, and what factors and competences are seen to contribute to future success.
This is the fourth IT Barometer and during these four years, we have seen dramatic changes in IT and the role of IT in Finnish companies. During these four years, we have gone through one downturn and we are now potentially entering another. During 2009, 2010 and 2011, we have monitored the effect that the general economic trend has on IT and perceptions on IT. During these four years, we also have seen the rise of consumerization, including social media services and a new class of smart phones and tablet computers. IT has also undergone a process of consumerization – new services and devices now first come to consumer markets and move from there to corporate use – oftentimes after years of delay.
CO-EVOLUTIONARY COUPLING VIA A DIGITAL-BIO ECOSYSTEM – A SUGGESTION FOR A NEW...IJMIT JOURNAL
Driven by digital solutions, the bioeconomy has taken major steps forward in recent years toward achievement of the long-lasting goal of transition from a traditional fossil economy to a circular economy. The coupling of digitalization and the bioeconomy is leading toward a digitalized bioeconomy that can satisfy a shift in people’s preferences for eco-consciousness, which in turn induces coupling of up-down stream operation in the value chain.
How to improve global competitiveness in finnish business and industry teke...Vapaa_Jakelu
Global success of Finnish business and economy requires strong home ecosystems and a strategic place in global value chains. Tekes has done and can do in the future to make Finnish companies globally competitive, meaning that the value created in Finland is captured in Finland and helps maintain a high standard of living, quality employment and social well-being.
Structural sources of a productivity decline in the digital economyIJMIT JOURNAL
While the Internet-driven digitized innovation has provided us with extraordinary services and welfare, productivity in industrialized countries has been confronted with an apparent decline, and it has raised the question of a productivity paradox. The limitations of the GDP statistics in measuring the digital economy have become an important subject.
Based on national accounting framework and utilizing the development trajectories of 500 global information and communication technology (ICT) firms,structural sources of such decline were investigated.
It was identified the two-faced nature of ICT that resulting in R&D-intensive firms falling into a vicious cycle between R&D increase and marginal productivity of ICT decline.
STRUCTURAL SOURCES OF A PRODUCTIVITY DECLINE IN THE DIGITAL ECONOMYIJMIT JOURNAL
While the Internet-driven digitized innovation has provided us with extraordinary services and welfare,
productivity in industrialized countries has been confronted with an apparent decline, and it has raised the
question of a productivity paradox. The limitations of the GDP statistics in measuring the digital economy
have become an important subject.
Based on national accounting framework and utilizing the development trajectories of 500 global
information and communication technology (ICT) firms,structural sources of such decline were investigated.
It was identified the two-faced nature of ICT that resulting in R&D-intensive firms falling into a vicious cycle
between R&D increase and marginal productivity of ICT decline.
Confronting such circumstances, R&D-intensive firms have been endeavoring to transform into disruptive
business model by harnessing the vigor of soft innovation resources. This transformation leads to
spontaneous creation of uncaptured GDP and provides insightful suggestion to overcome the limitation of the
GDP statistics in the digital economy.
MULTIMODAL COURSE DESIGN AND IMPLEMENTATION USING LEML AND LMS FOR INSTRUCTIO...IJMIT JOURNAL
Traditionally, teaching has been centered around classroom delivery. However, the onslaught of the
COVID-19 pandemic has cultivated usage of technology, teaching, and learning methodologies for course
delivery. We investigate and describe different modes of course delivery that maintain the integrity of
teaching and learning. This paper answers to the research questions: 1) What course delivery method our
academic institutions use and why? 2) How can instructors validate the guidelines of the institutions? 3)
How courses should be taught to provide student learning outcomes? Using the Learning Environment
Modeling Language (LEML), we investigate the design and implementation of courses for delivery in the
following environments: face-to-face, online synchronous, asynchronous, hybrid, and hyflex. A good
course design and implementation are key components of instructional alignment. Furthermore, we
demonstrate how to design, implement, and deliver courses in synchronous, asynchronous, and hybrid
modes and describe our proposed enhancements to LEML.
Novel R&D Capabilities as a Response to ESG Risks-Lessons From Amazon’s Fusio...IJMIT JOURNAL
Environmental, Social, and Governance (ESG) management is essential for transforming corporate
financial performance-oriented business strategies into Finance (F) + ESG optimization strategies to
achieve the Sustainable Development Goals (SDGs).
In this trend, the rise of ESG risks has divided firms into two categories. Former incorporates a growthmindset that creates a passion for learning, and urges it to improve itself by endeavoring Research and
development (R&D) -driven challenges, while the other category, characterized by risk aversion, avoids
challenging highly uncertain R&D activities and seeks more manageable endeavors.
This duality underscores the complexity of corporate R&D strategies in addressing ESG risks and
necessitates the development of novel R&D capabilities for corporate R&D transformation strategies
towards F + ESG optimization.
International Journal of Managing Information Technology (IJMIT) ** WJCI IndexedIJMIT JOURNAL
The International Journal of Managing Information Technology (IJMIT) is a quarterly open access peer-reviewed journal that publishes articles that contribute new results in all areas of the strategic application of information technology (IT) in organizations. The journal focuses on innovative ideas and best practices in using IT to advance organizations – for-profit, non-profit, and governmental. The goal of this journal is to bring together researchers and practitioners from academia, government, and industry to focus on understanding both how to use IT to support the strategy and goals of the organization and to employ IT in new ways to foster greater collaboration, communication, and information sharing both within the organization and with its stakeholders. The International Journal of Managing Information Technology seeks to establish new collaborations, new best practices, and new theories in these areas.
International Journal of Managing Information Technology (IJMIT) ** WJCI IndexedIJMIT JOURNAL
The International Journal of Managing Information Technology (IJMIT) is a quarterly open access peer-reviewed journal that publishes articles that contribute new results in all areas of the strategic application of information technology (IT) in organizations. The journal focuses on innovative ideas and best practices in using IT to advance organizations – for-profit, non-profit, and governmental. The goal of this journal is to bring together researchers and practitioners from academia, government, and industry to focus on understanding both how to use IT to support the strategy and goals of the organization and to employ IT in new ways to foster greater collaboration, communication, and information sharing both within the organization and with its stakeholders. The International Journal of Managing Information Technology seeks to establish new collaborations, new best practices, and new theories in these areas.
NOVEL R & D CAPABILITIES AS A RESPONSE TO ESG RISKS- LESSONS FROM AMAZON’S FU...IJMIT JOURNAL
Environmental, Social, and Governance (ESG) management is essential for transforming corporate
financial performance-oriented business strategies into Finance (F) + ESG optimization strategies to
achieve the Sustainable Development Goals (SDGs).
In this trend, the rise of ESG risks has divided firms into two categories. Former incorporates a growthmindset that creates a passion for learning, and urges it to improve itself by endeavoring Research and
development (R&D) -driven challenges, while the other category, characterized by risk aversion, avoids
challenging highly uncertain R&D activities and seeks more manageable endeavors.
This duality underscores the complexity of corporate R&D strategies in addressing ESG risks and
necessitates the development of novel R&D capabilities for corporate R&D transformation strategies
towards F + ESG optimization.
Building on this premise, this paper conducts an empirical analysis, utilizing reliable firms data on ESG
risk and brand value, with a focus on 100 global R&D leader firms. It analyzes R&D and actions for ESG
risk mitigation, and assesses the development of new functions that fulfill F + ESG optimization through
R&D. The analysis also highlights the significance of network externality effects, with a specific focus on
Amazon, a leading R&D company, providing insights into the direction for transforming R&D strategies
towards F + ESG optimization.
The dynamics of stakeholder engagement in F + ESG optimization are indicated with the example of
amazon's activities. Through the analysis, it became evident that Amazon's capacity encompassing growth
and scalability, specifically its ability to grow and expand, is accelerating high-level research and
development by gaining the trust of stakeholders in the "synergy through R&D-driven ESG risk
mitigation."
Finally, as examples of these initiatives, the paper discussed the Climate Pledge led by Amazon and the
transformation of Japan's management system.
A REVIEW OF STOCK TREND PREDICTION WITH COMBINATION OF EFFECTIVE MULTI TECHNI...IJMIT JOURNAL
It is important for investors to understand stock trends and market conditions before trading stocks. Both
these capabilities are very important for an investor in order to obtain maximized profit and minimized
losses. Without this capability, investors will suffer losses due to their ignorance regarding stock trends
and market conditions. Technical analysis helps to understand stock prices behavior with regards to past
trends, the signals given by indicators and the major turning points of the market price. This paper reviews
the stock trend predictions with a combination of the effective multi technical indicator strategy to increase
investment performance by taking into account the global performance and the proposed combination of
effective multi technical indicator strategy model.
INTRUSION DETECTION SYSTEM USING CUSTOMIZED RULES FOR SNORTIJMIT JOURNAL
These days the security provided by the computer systems is a big issue as it always has the threats of
cyber-attacks like IP address spoofing, Denial of Service (DOS), token impersonation, etc. The security
provided by the blue team operations tends to be costly if done in large firms as a large number of systems
need to be protected against these attacks. This leads these firms to turn to less costly security
configurations like IDS Suricata and IDS Snort. The main theme of the project is to improve the services
provided by Snort which is a tool used in creating a vague defense against cyber-attacks like DDOS
attacks which are done on both physical and network layers. These attacks in turn result in loss of
extremely important data. The rules defined in this project will result in monitoring traffic, analyzing it,
and taking appropriate action to not only stop the attack but also locate its source IP address. This whole
process uses different tools other than Snort like Wireshark, Wazuh and Splunk. The product of this will
result in not only the detection of the attack but also the source IP address of the machine on which the
attack is initiated and completed. The end product of this research will result in sets of default rules for the
Snort tool which will not only be able to provide better security than its previous versions but also be able
to provide the user with the IP address of the attacker or the person conducting the attack. The system
involves the integration of Wazuh with Snort tool in order to make it more efficient than IDS Suricata
which is another intrusion detection system capable of detecting all these types of attacks as mentioned.
Splunk is another tool used in this project which increases the firewall efficiency to pass the no. of bits to
be scanned and the no. of bits scanned successfully. Wazuh is used in this system as it is the best choice for
traffic monitoring and incident response than any other of its alternatives in the market. Since this system
is used in firms which are known to handle big amounts of data and for this purpose, we use Splunk tool as
it is very efficient in handling big amounts of data. Wireshark is used in this system in order to give the IDS
automation in its capability to capture and report the malicious packets found during the network scan. All
of this gives the IDS a capability of a low budget automated threat detection system. This paper gives
complete guidelines for authors submitting papers for the AIRCC Journals.
Artificial Intelligence (AI) has rapidly become a critical technology for businesses seeking to improve
efficiency and profitability. One area where AI is proving particularly impactful is in service operations
management, where it is used to create AI-powered service operations (AIServiceOps) that deliver highvalue services to customers. AIServiceOps involve the use of AI to automate and optimize various business
processes, such as customer service, sales, marketing, and supply chain management. The rapid
development of Artificial Intelligence has prompted many changes in the field of Information Technology
(IT) Service Operations. IT Service Operations are driven by AI, i.e., AIServiceOps. AI has empowered
new vitality and addressed many challenges in IT Service Operations. However, there is a literature gap on
the Business Value Impact of Artificial intelligence (AI) Powered IT Service Operations. It can help IT
build optimized business resilience by creating value in complex and ever-changing environments as
product organizations move faster than IT can handle. So, this research paper examines how AIServiceOps
creates business value and sustainability, basically how AIServiceOps makes the IT staff liberation from a
low-level, repetitive workout and traditional IT practices for a continuously optimized process. One of the
research objectives is to compare Traditional IT Service Operations with AIServiceOPs. This paper
provides the basis for how enterprises can evaluate AIServiceOps and consider it a digital transformation
tool. The paper presents a case study of a company that implemented AI-powered service operations
(AIServiceOps) and analyzes the resulting business outcomes. The study shows that AIServiceOps can
significantly improve service delivery, reduce response times, and increase customer satisfaction.
Furthermore, it demonstrates how AIServiceOps can deliver substantial cost savings, such as reducing
labor costs and minimizing downtime.
MEDIATING AND MODERATING FACTORS AFFECTING READINESS TO IOT APPLICATIONS: THE...IJMIT JOURNAL
Although IOT seems to be the upcoming trend, it is still in its infancy; especially in the banking industry.
There is a clear gap in literature, as only few studies identify factors affecting readiness to IOT
applications in banks in general, and almost negligible investigations on mediating and moderating
factors. Accordingly, this research aims to investigate the main factors that affect employees’ readiness to
IOT applications, while highlighting the mediating and moderating factors in the Egyptian banking sector.
The importance of Egypt stems from its high population and steady steps taken towards technology
adoption. 479 valid questionnaires were distributed over HR employees in banks. Data collected was
statistically analysed using Regression and SEM. Results showed a significant impact of ‘Security’,
‘Networking’, ‘Software Development’ and ‘Regulations’ on ‘readiness to IOT applications. Thus, the
readiness acceptance level is high‘Security’ and ‘User Intention’ were proven to mediate the relationship
between research variables and readiness to IOT applications, and only a partial moderation role was
proven for ‘Efficiency’. The study contributes to increasing literature on IOT applications in general, and
fills a gap on the Egyptian banking context in particular. Finally, it provides decision makers at banks with
useful guidelines on how to optimally promote IOT applications among employees.
EFFECTIVELY CONNECT ACQUIRED TECHNOLOGY TO INNOVATION OVER A LONG PERIODIJMIT JOURNAL
IT (Information and Communication Technology) companies are facing the dilemma of decreasing
productivity despite increasing research and development efforts. M&A (Merger and Acquisition) is being
considered as a breakthrough solution. From existing research, it has been pointed out that M&A leads to
the emergence of new innovations. Purpose of this study was to discuss the efficient ways of acquisition and
to resolve the dilemma of productivity decline by clarifying how the technology obtained through M&A
leads to the creation of new innovations. Hypothesis 1 was that the technology acquired through M&A is
utilized for innovation creation, Hypothesis 2 was that the acquired technology is utilized over a long
period of time, and Hypothesis 3 was that a long-term utilization has a positive impact on corporate
performance. The results, using sports prosthetics as a case study and using patents as a proxy variable,
confirmed all the hypotheses set. We have revealed that long-term utilization of technology obtained
through M&A is effective for creating new innovations.
International Journal of Managing Information Technology (IJMIT) ** WJCI IndexedIJMIT JOURNAL
The International Journal of Managing Information Technology (IJMIT) is a quarterly open access peer-reviewed journal that publishes articles that contribute new results in all areas of the strategic application of information technology (IT) in organizations. The journal focuses on innovative ideas and best practices in using IT to advance organizations – for-profit, non-profit, and governmental. The goal of this journal is to bring together researchers and practitioners from academia, government, and industry to focus on understanding both how to use IT to support the strategy and goals of the organization and to employ IT in new ways to foster greater collaboration, communication, and information sharing both within the organization and with its stakeholders. The International Journal of Managing Information Technology seeks to establish new collaborations, new best practices, and new theories in these areas.
Authors are solicited to contribute to the journal by submitting articles that illustrate research results, projects, surveying works and industrial experiences that describe significant advances in the areas of information technology and management
4th International Conference on Cloud, Big Data and IoT (CBIoT 2023)IJMIT JOURNAL
4th International Conference on Cloud, Big Data and IoT (CBIoT 2023) will act as a major forum for the presentation of innovative ideas, approaches, developments, and research projects in the areas of Cloud, Big Data and IoT. It will also serve to facilitate the exchange of information between researchers and industry professionals to discuss the latest issues and advancement in the area of Cloud, Big Data and IoT.
Authors are solicited to contribute to the conference by submitting articles that illustrate research results, projects, surveying works and industrial experiences that describe significant advances in Cloud, Big Data and IoT.
TRANSFORMING SERVICE OPERATIONS WITH AI: A CASE FOR BUSINESS VALUEIJMIT JOURNAL
Artificial Intelligence (AI) has rapidly become a critical technology for businesses seeking to improve
efficiency and profitability. One area where AI is proving particularly impactful is in service operations
management, where it is used to create AI-powered service operations (AIServiceOps) that deliver highvalue services to customers. AIServiceOps involve the use of AI to automate and optimize various business
processes, such as customer service, sales, marketing, and supply chain management. The rapid
development of Artificial Intelligence has prompted many changes in the field of Information Technology
(IT) Service Operations. IT Service Operations are driven by AI, i.e., AIServiceOps. AI has empowered
new vitality and addressed many challenges in IT Service Operations. However, there is a literature gap on
the Business Value Impact of Artificial intelligence (AI) Powered IT Service Operations. It can help IT
build optimized business resilience by creating value in complex and ever-changing environments as
product organizations move faster than IT can handle. So, this research paper examines how AIServiceOps
creates business value and sustainability, basically how AIServiceOps makes the IT staff liberation from a
low-level, repetitive workout and traditional IT practices for a continuously optimized process. One of the
research objectives is to compare Traditional IT Service Operations with AIServiceOPs. This paper
provides the basis for how enterprises can evaluate AIServiceOps and consider it a digital transformation
tool. The paper presents a case study of a company that implemented AI-powered service operations
(AIServiceOps) and analyzes the resulting business outcomes. The study shows that AIServiceOps can
significantly improve service delivery, reduce response times, and increase customer satisfaction.
Furthermore, it demonstrates how AIServiceOps can deliver substantial cost savings, such as reducing
labor costs and minimizing downtime.
DESIGNING A FRAMEWORK FOR ENHANCING THE ONLINE KNOWLEDGE-SHARING BEHAVIOR OF ...IJMIT JOURNAL
The main objective of this paper is to identify the factors that influence academic staff's digital knowledgesharing behaviors in Ethiopian higher education. A structural equation model was used to validate the
research framework using survey data from 210 respondents. The collected data has been analyzed using
Smart PLS software. The results of the study show that trust, self-motivation, and altruism are positively
related to attitude. Contrary to our expectations, knowledge technology negatively affects attitude.
However, reward systems and empowerment by leaders are significantly associated with knowledgesharing intentions.Knowledge-sharing intention, in turn, was significantly related to digital knowledgesharing behavior. The contributions of this study are twofold. The framework may serve as a roadmap for
future researchers and managers considering their strategy to enhance digital knowledge sharing in HEI.
The findings will benefit academic staff and university administrations.The study will also help academic
staff enhance their knowledge-sharing practices.
BUILDING RELIABLE CLOUD SYSTEMS THROUGH CHAOS ENGINEERINGIJMIT JOURNAL
Cloud computing systems need to be reliable so that they can be accessed and used for computing at any
given point in time. The complex nature of cloud systems is the motivation to conduct research in novel
ways of ensuring that cloud systems are built with reliability in mind. In building cloud systems, it is
expected that the cloud system will be able to deal with high demands and unexpected events that affect the
reliability and performance of the system.
In this paper, chaos engineering is considered a heuristic method that can be used to build reliable cloud
systems. Chaos engineering is aimed at exposing weaknesses in systems that are in production. Chaos
engineering will help identify system weaknesses and strengths when a system is exposed to unexpected
knocks and shocks while it is in production.
Chaos engineering allows system developers and administrators to get insights into how the cloud system
will behave when it is exposed to unexpected occurrences.
A REVIEW OF STOCK TREND PREDICTION WITH COMBINATION OF EFFECTIVE MULTI TECHNI...IJMIT JOURNAL
It is important for investors to understand stock trends and market conditions before trading stocks. Both
these capabilities are very important for an investor in order to obtain maximized profit and minimized
losses. Without this capability, investors will suffer losses due to their ignorance regarding stock trends
and market conditions. Technical analysis helps to understand stock prices behavior with regards to past
trends, the signals given by indicators and the major turning points of the market price. This paper reviews
the stock trend predictions with a combination of the effective multi technical indicator strategy to increase
investment performance by taking into account the global performance and the proposed combination of
effective multi technical indicator strategy model.
NETWORK MEDIA ATTENTION AND GREEN TECHNOLOGY INNOVATIONIJMIT JOURNAL
This paper will provide a novel empirical study for the relationship between network media attention and
green technology innovation and examine how network media attention can ease financing constraints. It
collected data from listed companies in China's heavy pollution industry and performed rigorous
regression analysis, in order to innovatively explore the environmental governance functions of the media.
It found that network media attention significantly promotes green technology innovation. By analyzing the
inner mechanism further, it found that network media attention can promote green innovation by easing
financing constraints. Besides, network media attention has a significant positive impact on green invention
patents while not affecting green utility model patents.
INCLUSIVE ENTREPRENEURSHIP IN HANDLING COMPETING INSTITUTIONAL LOGICS FOR DHI...IJMIT JOURNAL
Information System (IS) research advocates employing collaborative and loose coupling strategies to address contradictory issues to address diversified actors’ interests than the prescriptive and unilateral Information Technology (IT) governance mechanisms’, yet it is rarely depicting how managers employ these strategies in Health Information System (HIS) implementation, particularly in a resource-constrained setting where IS implementation activities have highly relied on multiple international organizations resources. This study explored how managers in resource-constrained settings employ collaborative IT governance mechanisms in the case of District Health Information System 2 (DHIS2) adoption with an interpretative case study approach and the institutional logic concept. The institutional logic concept was used to identify the major actors’ logics underpinning the DHIS2 adoption. The study depicted the importance of high-level officials' distance from the dominant systemic logic to consider new alternative, and to employ inclusive IT governance mechanisms which separated resource from the system that facilitated stakeholders’ collaboration in DHIS2 adoption based on their capacity and interest.
DEEP LEARNING APPROACH FOR EVENT MONITORING SYSTEMIJMIT JOURNAL
With an increasing number of extreme events and complexity, more alarms are being used to monitor
control rooms. Operators in the control rooms need to monitor and analyze these alarms to take suitable
actions to ensure the system’s stability and security. Security is the biggest concern in the modern world. It
is important to have a rigid surveillance that should guarantee protection from any sought of hazard.
Considering security, Closed Circuit TV (CCTV) cameras are being utilized for reconnaissance, but these
CCTV cameras require a person for supervision. As a human being, there can be a possibility to be tired
off in supervision at any point of time. So, we need a system to detect automatically. Thus, we came up with
a solution using YOLO V5. We have taken a data set and used robo-flow framework to enhance the existing
images into numerous variations where it will create a copy of grey scale image, a copy of its rotation and
a copy of its blurred version which will be used to get an enlarged data set. This work mainly focuses on
providing a secure environment using CCTV live footage as a source to detect the weapons. Using YOLO
algorithm, it divides an image from the video into grid system and each grid detects an object within itself
MULTIMODAL COURSE DESIGN AND IMPLEMENTATION USING LEML AND LMS FOR INSTRUCTIO...IJMIT JOURNAL
Traditionally, teaching has been centered around classroom delivery. However, the onslaught of the
COVID-19 pandemic has cultivated usage of technology, teaching, and learning methodologies for course
delivery. We investigate and describe different modes of course delivery that maintain the integrity of
teaching and learning. This paper answers to the research questions: 1) What course delivery method our
academic institutions use and why? 2) How can instructors validate the guidelines of the institutions? 3)
How courses should be taught to provide student learning outcomes? Using the Learning Environment
Modeling Language (LEML), we investigate the design and implementation of courses for delivery in the
following environments: face-to-face, online synchronous, asynchronous, hybrid, and hyflex. A good
course design and implementation are key components of instructional alignment. Furthermore, we
demonstrate how to design, implement, and deliver courses in synchronous, asynchronous, and hybrid
modes and describe our proposed enhancements to LEML.
Overview of the fundamental roles in Hydropower generation and the components involved in wider Electrical Engineering.
This paper presents the design and construction of hydroelectric dams from the hydrologist’s survey of the valley before construction, all aspects and involved disciplines, fluid dynamics, structural engineering, generation and mains frequency regulation to the very transmission of power through the network in the United Kingdom.
Author: Robbie Edward Sayers
Collaborators and co editors: Charlie Sims and Connor Healey.
(C) 2024 Robbie E. Sayers
NO1 Uk best vashikaran specialist in delhi vashikaran baba near me online vas...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
Industrial Training at Shahjalal Fertilizer Company Limited (SFCL)MdTanvirMahtab2
This presentation is about the working procedure of Shahjalal Fertilizer Company Limited (SFCL). A Govt. owned Company of Bangladesh Chemical Industries Corporation under Ministry of Industries.
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptxR&R Consult
CFD analysis is incredibly effective at solving mysteries and improving the performance of complex systems!
Here's a great example: At a large natural gas-fired power plant, where they use waste heat to generate steam and energy, they were puzzled that their boiler wasn't producing as much steam as expected.
R&R and Tetra Engineering Group Inc. were asked to solve the issue with reduced steam production.
An inspection had shown that a significant amount of hot flue gas was bypassing the boiler tubes, where the heat was supposed to be transferred.
R&R Consult conducted a CFD analysis, which revealed that 6.3% of the flue gas was bypassing the boiler tubes without transferring heat. The analysis also showed that the flue gas was instead being directed along the sides of the boiler and between the modules that were supposed to capture the heat. This was the cause of the reduced performance.
Based on our results, Tetra Engineering installed covering plates to reduce the bypass flow. This improved the boiler's performance and increased electricity production.
It is always satisfying when we can help solve complex challenges like this. Do your systems also need a check-up or optimization? Give us a call!
Work done in cooperation with James Malloy and David Moelling from Tetra Engineering.
More examples of our work https://www.r-r-consult.dk/en/cases-en/
Design and Analysis of Algorithms-DP,Backtracking,Graphs,B&B
HYBRID ROLE OF SOFT INNOVATION RESOURCES: FINLAND’S NOTABLE RESURGENCE IN THE DIGITAL ECONOMY
1. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
DOI : 10.5121/ijmit.2018.10401 1
HYBRID ROLE OF SOFT INNOVATION RESOURCES:
FINLAND’S NOTABLE RESURGENCE IN THE DIGITAL
ECONOMY
Yuji Tou1
, Chihiro Watanabe2, 3
, Leena Ilmola4
, Kuniko Moriya5,6
, Pekka Neittaanmäki7
1
Dept. of Ind. Engineering &Magm., Tokyo Institute of Technology, Tokyo, Japan
2
Faculty of Information Technology,University of Jyväskylä, Finland
3, 4
International Institute for Applied Systems Analysis (IIASA), Austria
5
Research and Statistics Department, Bank of Japan, Tokyo, Japan
6, 7
Faculty of Information Technology, University of Jyväskylä, Finland
ABSTRACT
Finland and Singapore are easy to compare, they are the same size and have similar positions as global
digital leaders. however, their performance is differing a lot. from 2006 to 2013, Singapore’s GDP growth
rate was tenfold compared to Finland. four years later, in 2017 Finland is exceeding the growth rate of
Singapore. what are the reasons for the success of Finland? An empirical analysis of the factors contributing
to GDP growth and the effects of the policy change was conducted. It was demonstrated that increase of
export did not explain growth, but shifts in capital formation did. New dynamics was revealed that was
triggered by the removal of structural impediments (hindrances) and by increasing use of soft innovation
resources. The virtuous cycle of increase of uncaptured GDP, increased multifactor productivity and growth
of tangible capital and GDP was described. An insightful suggestion for activating a hybrid role for soft
innovation resources in the digital economy was thus provided.
KEYWORDS
Digital economy, soft innovation resources, multifactor productivity, competitiveness pact, Finland and
Singapore
1. INTRODUCTION
The dramatic advancement of the Internet has generated the digital economy, which has provided
us with extraordinary services and welfare never anticipated before [1]. However, they cannot be
captured through GDP data, which measure economic values. This Internet-emerged added value
of providing people with utility and happiness, which extends beyond economic value, is defined
as uncaptured GDP [2] [3] [4].
In Finland, the popular tendency is to explain growth with growing exports. Some part of this is
true; net export of Finland has grown, but relatively little. In 2017 export’s contribution was less
than 20% of the total GDP. In analysis of the components of the GDP growth of Singapore and
Finland, one significant difference was found out; in Finland gross fixed capital (GC) was 1.49
(GDP was 2.76) but in Singapore it was only -0.42 (GDP was 2.53) [5]. The analysis published in
the previous number of this journal [5] [6] revealed that from components of GC, Finland was able
2. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
2
to increase gross tangible capital (GTC) when gross service capital (GSC) was decreasing as
demonstrated in Table 1.
Table 1. Contribution to expenditure on GDP growth in Finland and Singapore (2013–2017)
- real growth rate (% p.a).
Sources: World economic outlook database (IMF, 2017). National accounts of Finland (Statistics
Finland, 2018), National accounts of Singapore (Department of statistics Singapore, 2018).
Values in 2017 are based on IMF estimates as of Oct. 2017. Components shares are adjusted to IMF
statistics using the share of respective statistics.
This implies that another common perception should be challenged; R&D investments are
supposed to increase competitiveness and thus the growth of GDP. In the case analyzed this rule
was not applicable. Investments in the R&D and development of the stock of intellectual property
products (IPP) had decreased in Finland. (Unlike in Singapore that invested significantly in R&D).
In Finland especially companies had year after year decreased traditional R&D expenditure since
2008 [6].
In our previous studies [5] and in the most recent paper [6]it has been analyzed globalinformation
and communication technology (ICT) companies’ performance and their new digital platforms
based innovation mode, that is called usage of Soft Innovation Resources (SIRs).
While Finland and Singapore have been maintaining world digital leaders position [7], both
countries demonstrated interlaced contrast. Finland enjoyed a high level of happiness/welfare under
the stagnation while Singapore accomplished higher economic growth in the lower level of
happiness/welfare [8]. This observation reminds us a plausible view that “well-being of the Finnish
people has developed in a more positive direction than one might conclude by GDP data” [9] and
prompts us a hypothetical view that Finland has depended on un captured GDP much largely than
Singapore by spinning-off from traditional co-evolution of economic value, traditional ICT
development and GDP growth to new co-evolution of people’s preferences shifting to a supra-
functionality beyond economic value encompassing socio, cultural and emotional values,
advancement of the Interne for further functionality and increasing dependence on un captured
GDP as illustrated in Fig. 1[3].
It is claimed that use of SIRs is a novel innovation mode applied in the digitalized and ICT firms.
Authors in previous studies described this hypothetical view [4] and identified that while such
transformative circumstances in the digital economy results in productivity decline, global ICT
firms endeavor to survive by spontaneous creation of un captured GDP by harnessing the vigor of
3. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
3
SIRs [5]. SIRs consist of the Internet based (that permeates into broad ICT in the digital platform
economy [8]) resources that have been either sleeping or untapped or are results of multisided
interaction in the markets where consumer is looking for functionality beyond economic value. The
common feature of SIRs is that they are not accountable in the traditional GDP terms [8] [10].
One more finding from our previous work is important background to the study described in this
paper. It has been demonstrated that removal of structural impediments of GDP growth such as
conflict between public, employers and labor union, disparity of gender, and also increasing
discrepancy toward an aging society. Thus, spontaneous creation of un captured GDP through
effective utilization of SIRs contributes to growth by its hybrid function as illustrated in Fig. 1[5].
It was then postulated that the recent reversal trend in GDP growth of digital leaders in Finland and
Singapore could be attributed to this hybrid function, and attempted to demonstrate this
hypothetical view [6].
First it was identified that Finland’s recent GDP growth recovery could largely be attributed to its
GC to which negative contribution in Singapore as demonstrated in Table 1 [5]
Figure 1. The dynamism of hybrid role of soft innovation resources: Creation of un captured GDP and
removing of structural impediments in captured GDP growth.
Then it was identified that contrary to an increasing share in Singapore, Finland has been shifting
to less dependence on GSC (IPP, majority of which is R&D) in its GC formation. It was postulated
that this can be attributed to SIRs substitution for GSC. Furthermore, our previous findings reveal
that SIRs spilled-over to GTC and contributed to removing structural impediments of GTC’s
increase leading to GDP growth as illustrated in Fig. 2 [6]. Here, un captured GDP seems to have
taken a role of paving the path for SIRs substitution for GSC and then contribution to GTC by
spilling-over to it.
Based on these demonstrations, authors postulated a dynamism of virtuous cycle between SIRs and
un captured GDP creation through aforementioned co-evolution, at the same time removing
structural impediments in captured GDP growth [6].
4. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
4
Thus our earlier work implies that there is a dynamism of hybrid roles of SIRs: sophisticated
virtuous cycle between SIRs and uncaptured GDP creation through aforementioned co-evolution,
at the same time removing structural impediments in captured GDP growth.
Figure 2. Mechanism of SIRs removing structural impediments in GTC increase.
Source: Tou et al. (2018) [6].
However, a dynamism that enabled such a miraculous function has remained beyond the reach.This
paper attempts to elucidate inside the black-box of this function. Historically Finland depends
largely on multifactor productivity (MFP = TFP: which represents economic efficiency) [11][12]
to which own R&D, spillover technology, demand creation, and learning effect play leading role
[13]. Finland has been good at crises by transforming them into a springboard for new innovation
by substituting it for constrained resources [3].Finland also incorporates institutional elasticity that
assimilates spillover technology into its own system [4]. However, this elasticity has been long
subdued by the aftermath of the economic stagnation after the Lehman shock in 2018 [14].
Note While Finland incorporated highlevel of “firm-level technology absorption capacity and
ranked 6thin the world (out of 140 countries) in 2013, it devaluated to 10th in 2016 (The Global IT
Report, WEF).
With these understandings, an empirical analysis focusing on the interactions among factors
contributing to GDP growth particularly of MFP growth and its constitutes over the last quarter
century and the effects of the policy decisions suchas Competitiveness Pact on Finland’s resurgence
was conducted. The Pact was enacted in June 2016 aiming at reactivating nation’s indigenous
elasticity [5].
5. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
5
Note The ‘Competitiveness Pact’, a tripartite labour market agreement, was signed in June 2016
after over a year of difficult negotiations. The Pact involves a nationally and internationally
exceptional deterioration of workers’ terms and conditions. The negotiation process had disruptive
repercussions on social partner organisations and seemingly brought the traditionally centralized
collective bargaining system to an end.
https://www.eurofound.europa.eu/publications/article/2016/finland-tripartite-competitiveness-
pact-signed
How SIRs are making this happen? How the Competitiveness Pact awoke Finnish latent
institutional elasticity and activated SIRs? This paper attempts to explore inside the black-box of
this function by looking closelyat the role of MFP in growth.
An insightful suggestion for activating a hybrid role for soft innovation resources in the digital
economy was thus provided.
Section 2 analyzes inducing role of MFP. Contributors to MFP growth and GTC increase are
analyzed in Section 3. Section 4 demonstrates uncaptured GDP’s role in paving the path for
substitution. Section 5 analyzes dynamism in removing structural impediments in GTC growth.
Section 6 summarizes the noteworthy findings, policy suggestions, and future research.
2. INDUCING ROLE OF MULTIFACTOR PRODUCTIVITY
Statistics of Finland in its “Productivity Surveys” (30 Nov. 2017) [11] has analyzed contribution of
production factors to GDP growth rate over the period of 1976-2016 by decomposing contribution
of labor, capital and MFP as illustrated in Fig. 3.
Note In line with 2008SNA, it classified R&D contribution to GDP growth rate in the contribution
of capital not in MFP as traditionally included. In addition, it treated total contribution by labor,
capital and MFP as change rate of value added while GDP = Value added + taxes on products +
subsidies on products.
MFP is a measure of economic efficiency which is not explained by growth in inputs (labor and
capital). MFP growth depicts not only technological development and increased efficiency but also
the effects from improved quality of inputs, management, logistics and organization [13].
Traditionally Finland has been good at managing crises. A distinct feature of Finnish economic
growth, especially since the Second World War, can be attributed to MFP growth[11][12]. Therefore,
MFP growth rate has strong correlation with GDP growth rate in Finland as demonstrated in Table
2.
Table 2. Correlation between MFP and GDP growth rate in Finland (1994-2016).
GGR = 0.85 + 1.22 MFPGR adj. R 2
0.917 DW1.66
(4.05) (15.60)
GGR = 1.09 + 1.24 MFP*GR adj. R2
0.889 DW 1.36
(4.61)(13.29)
6. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
6
Where GGR: Real GDP growth rate, MFPGR: MFP growth rate including contribution of R&D,
and MFP*GR: MFP growth rate not including contribution of R&D.
The figures in parentheses indicate the t-statistics: all are significant at the 1% level.
Consequently, MFP growth rate highly depends on GDP growth rare as shown in Table 3.
Table 3. Correlation between GDP growth rate and MFP growth ratein Finland (1994-2016).
MPFGR = -0.55 + 0.76 GGR adj. R2
0.917 DW 1.80
(-2.95) (15.60)
The figures in parentheses indicate the t-statistics: all are significant at the 1% level
Productivity Survey’s MFP growth rate analysis remained up until 2016, based on this correlation
and utilizing IMF’s GDP growth rate estimate by 2018 (Fig. 4-1) [15], MFP growth rate by 2018
can be estimated as illustrated in Fig. 4-2. Fig. 4 illustrates this parallel path in Finland over the
period of 1975-2018.
Fig. 4 also demonstrates trend in R&D intensity (R&D expenditure per GDP) over the period of
1981-2018 (Fig. 4-3) which provides an intriguing contrast between GDP and R&D intensity
during the period of resurgence (2015-2018). R&D intensity maintained a parallel path with GDP
and changed to decline from 2010 as a consequence of GDP decrease after the Lehman shock in
2008. While GDP changed to increase from 2015, R&D intensity continued to decline. This
suggests that Finnish resurgence can be attributed to a new dynamism: economic resurgence in the
declining R&D.
GDP growth rate
-6.0
-4.0
-2.0
0.0
2.0
4.0
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
Contribution of labor
7. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
7
Figure 3. Trends in factors contributing to GDP growth rate in Finland (1976-2016) - % p.a.
Source: Productivity Surveys (Statistics of Finland, 2017) [11].
Figure 4-1. Trend in real GDP in Finland (1975-2018).
Source: IMF (2018) [15].
-4.0
-2.0
0.0
2.0
4.0
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
Contribution of capital
Contrib. of capital excl. R&D contrib.
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
Contribution of MFP
MFP (incl. R&D contrib.) MFP (not incl. R&D contrib.)
70
100
130
160
190
220
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
8. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
8
Figure 4-2. Trend in MFP in Finland (1975-2018)– Index: 1975 = 100.
Sources: 1975-2016: Productivity Surveys (Statistics of Finland, 2017) [11].
2017, 2018: Authors’ estimate based on the above and IMF (2018) [15].
Figure 4-3. Trend in R&D intensity in Finland (1981-2018).
Source: OECD (2018) [16].
Figure 4. Trends in real GDP, MFP and R&D intensity in Finland (1975-2018).
3. CONTRIBUTORS TO MFP GROWTH AND GTC INCREASE
3.1 CONTRIBUTORS TO MFP GROWTH
Previous analyses of Section 2 suggest that MFP growth, particularly its shift to upswing from 2016
should be the core contributor to Finnish economic resurgence from 2016.
As suggested in Section 1, given that this resurgence can largely be attributed to the Competitive
Pact in June 2016 that spurred SIRs substitution for GSC and spill-over to GTC, this dynamism in
MFP is analysed based on historical trends in Finnish fundamental economic structure as tabulated
in Table 4.
100
120
140
160
180
200
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
100
200
300
400
1981
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
9. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
9
Table 4. Trends in factors governing MFP in Finland (1994-2018).
Period Time
MFP*
(not incl. R&D
contrib.)
MFP
(incl. R&D
contrib.)
Real GDP
R&D
intensity
Real R&D
expenditure
Real GDP
Growth
rate
Real R&D
expenditure
Growth rate
Internet
dependence
Final
consumption
expenditure
GTC/GC
Year t
MFP*
(1975=100)
MFP
(1975 =100)
V(bil. E at
2010 prices)
RV
%
R(bil. E at
2010 prices)
GGR
%
RVGR
%
I
%
C(bil. E at
2010 prices)
K
%
1994 1 141.9 144.2 118.4 2.21 2.6 3.9 9.8 4.9 94.7 80.2
1995 2 145.2 147.7 123.4 2.20 2.7 4.2 3.8 13.9 98.9 80.6
1996 3 148.5 151.4 127.9 2.45 3.1 3.7 15.4 16.8 102.1 80.9
1997 4 153.3 156.8 135.9 2.62 3.6 6.3 13.6 19.5 105.6 80.5
1998 5 157.6 161.9 143.3 2.79 4.0 5.4 12.0 25.5 109.7 80.6
1999 6 159.9 165.4 149.7 3.06 4.6 4.4 14.5 32.3 112.9 78.3
2000 7 165.0 171.9 158.1 3.25 5.1 5.6 12.2 37.3 114.9 77.9
2001 8 166.5 174.2 162.2 3.20 5.2 2.6 1.1 43.1 118.0 77.3
2002 9 166.7 175.0 164.9 3.26 5.4 1.7 3.6 62.4 121.0 77.0
2003 10 167.6 176.4 168.2 3.30 5.6 2.0 3.4 69.2 125.1 76.2
2004 11 171.9 181.6 174.8 3.31 5.8 3.9 4.3 72.4 128.8 77.1
2005 12 173.7 183.9 179.7 3.33 6.0 2.8 3.2 74.5 132.5 77.1
2006 13 177.1 187.8 186.9 3.34 6.2 4.1 4.3 79.7 136.7 77.1
2007 14 182.8 194.3 196.6 3.35 6.6 5.2 5.4 80.8 140.6 78.0
2008 15 180.0 192.0 198.0 3.55 7.0 0.7 6.8 82.5 143.4 77.6
2009 16 167.7 179.1 181.7 3.75 6.8 -8.3 -3.1 83.7 141.3 75.9
2010 17 172.4 184.3 187.1 3.73 7.0 3.0 2.4 86.9 144.3 75.9
2011 18 173.9 185.8 191.9 3.64 7.0 2.6 0.2 88.8 147.1 77.8
2012 19 169.5 181.1 189.2 3.42 6.5 -1.4 -7.4 90.0 147.7 78.6
2013 20 168.9 180.5 187.7 3.29 6.2 -0.8 -4.6 91.6 147.7 78.3
2014 21 168.3 179.7 186.6 3.17 5.9 -0.6 -4.2 92.0 148.3 77.9
2015 22 168.0 179.1 186.8 2.90 5.4 0.1 -8.5 92.8 150.1 79.1
2016 23 169.5 180.6 190.8 2.75 5.3 2.1 -3.2 93.5 152.8 81.2
2017 24 172.0*
183.7*
196.5 2.70*
5.3 3.0 1.3 94.1 155.1 82.3*
2018 25 174.0*
186.3*
201.6 2.65*
5.3 2.6 0.6 94.7*
158.6*
83.8*
Sources: MFP: Productivity Surveys (Statistics of Finland, 2017) [11] (* are estimated by Table 4); GDP:
World Economic Outlook Database (IMF, 2018) [15]; R&D intensity: OECD Database (OECD, 2018) [16]
(*are estimated based on trends in 2014-2016); Internet dependence: World telecommunication/ICT
indicators database (ITU, 2018) [17] (*are estimated based on trends in 2014-2016); Final consumption:
National Accounts of Finland (Statistics of Finland, 2018) [18] (*are estimated based on trends in 2014-
2016); GTC/GC: National Accounts of Finland (Statistics of Finland, 2018) [18](*are estimated based on
trends in 2014-2016).
First, SIRs substitution for GSC was analyzed. As reviewed in Section 1, since SIRs consists of the
advancement of the Internet (that permeates into broad ICT in the digital platform economy) [19]
[20], and GSC is centered on R&D, equation (1) examines this substitution.
ln
𝐼
𝑅
= 𝑎 𝜀 + 𝜀𝑗𝑖 ln
𝑝 𝑗
𝑝𝑖
(1)
where I: Internet dependence, R: R&D expenditure, pi: Internet price, pj: R&D price, 𝜀𝑗𝑖: elasticity of I
substitution for R, and 𝑎 𝜀: coefficient. When 𝜀𝑗𝑖 > 1, I substitute for R [6].
10. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
10
Table 5 summarizes the result of the analysis over the period of 1995-2018 which demonstrates
statistically significant and supports the substitution hypothesis (𝜀𝑗𝑖 > 1)after the stagnation period.
Table 5. Correlation between I/R ratio and relative price in Finland (1995-2018).
ln 𝐼
𝑅
= – 2.01 + 0.63D1ln 𝑃 𝑗
𝑃𝑖
+2.17(D2+D3)ln 𝑃 𝑗
𝑃𝑖
+ 3.34D1 – 0.13D adj. R2
0.966 DW 1.25
(– 2.30) (18.12) (5.44) (3.82) (– 2.39)
D: dummy variables. D1-D3: seeTable6; D:1999,2000 = 1, others =0.
The figures in parentheses indicate the t-statistics: all are significant at the 1% level.
Second, spillover of this SIRs to GTC was analyzed by using Nadiri and Schankerman (1981) [13]
approach that depicts MFP as a function of technology knowledge stock (T), spill-over technology
(I), demand creation (C), and learning effect (𝜆) as follows:
MFP = F (T, I, C, 𝜆) = 𝐴′𝑒 𝜆𝑡
𝑇 𝛼
𝐶 𝛽
𝐼 𝛾
= 𝐴𝑒 𝜆𝑡
𝑅 𝛼
𝐶 𝛽
𝐼 𝛾
(2)
𝐴 =
𝐴′
(𝜌 + 𝑔) 𝛼
where A, A’: scale factor, 𝜆: learning coefficient, T: technology knowledge stock, R: R&D expenditure, C:
final consumption expenditure, I: Internet dependence, 𝛼, 𝛽, 𝛾: elasticity, 𝜌: rate of obsolescence of
technology, and g: R&D growth rate at the initial period.
In equation (2) technology knowledge stock is approximated as 𝑇 ≈ 𝑅
𝜌 + 𝑔⁄ in a long run, spill-over
technology is represented by the Internet as the digital economy has augmented the permeation of
the Internet into broad ICT [26], and demand creation is represented by final consumption
expenditure.
Equation (2) can be developed as follows by taking logarithm:
ln 𝑀𝐹𝑃 = ln 𝐴 + 𝜆 𝑡+ 𝛼lnR +𝛽 ln𝐶 + 𝛾 ln𝐼 (3)
Table 6 summarizes the result of the regression analysis over the period of 1994-2018 which
demonstrates statistically significant.
Table 6. Governing factors of MFP in Finland (1994-2018).
lnMFP =–43.23– 0.04t + 0.03 D1lnR– 0.25 (D2+D3)lnR +1.80 lnC
(–6.01) (–6.71) (2.75) (–2.56) (7.23)
+ 0.04D1lnI + 0.84D2lnI +8.96D3 lnI + 38.89D1 +36.87D2 + 0.02D adj. R2
0.983 DW 2.27
(1.75)*1
(1.87)*1
(6.27) 6.22) (5.78) (2.91)
D: dummy variables identifying R&D-driven economic features of respective periods as follows:
D: Dummy variables 1994-
2009
2010-
2015
2016-
2018
Features of the period
D1 1994-2009 = 1, others = 0 1 0 0 Sustainable increase in R&D intensity that supported
economic growth
D2 2010-2015 = 1, others = 0 0 1 0 R&D intensity decline in the economic stagnation
D3 2016-2018 = 1, others = 0 0 0 1 Economic resurgence after the Competitiveness Pact despite
R&D intensity decline
D: 2000, 2001, 2007, 2010, 2011 = 1, others = 0,
The figures in parentheses indicate the t-statistics: all are significant at the 1% level except *1
10%.
11. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
11
Looking at Table 6 we note that while R&D (R) and Internet-driven spillover technology (I) together
with demand (C) made a balanced contribution to MFP increase before economic stagnation (1994-
2009), this structure has substantially changed during the economic stagnation(2010-2015)and its
resurgence after the Competitiveness Pact(2016-2018)as Internet-driven
spillover technology demonstrates a significant impact on MFP increase while R&D increase
reacted negatively in this period. This is conspicuous particularly after the Competitiveness Pact in
2016.
3.2 MFP’S CONTRIBUTION TO GTC INCREASE
With an understanding of MFP’s significant contribution to GDP growth in Finland and also GTC’s
leading role in its economic recovery[10], following triangle structure can be anticipated as
illustrated in Fig. 5:
Figure 5. Triangle structure among GDP growth, MFP increase and GTC increase.
With this hypothetical view, MFP’s possible contribution to GTC increase is examined using
equation (3) that depicts MFP by its constitution.
Based on the empirical findings obtained from Table 6 and aiming at identifying the spill-over
effect stimulated by the Competitiveness Pact, the analysis is conducted by imposing coefficient
dummy variables on the spill-over effect before and after the Competitive Pact as depicted in
equation (4). Backward elimination method with 10% criteria is used for the analysis.
lnK= ln A+λt + α1D1lnR+α2(D2+ D3) lnR + βlnC+ γ1D1lnI + γ2D2lnI + γ3D3 lnI + δ1D1+ δ2 D2 (4)
where K: share of GTC out of gross capital formation; D: dummy variables (see Table 6).
Table 7 summarizes the result of the analysis over the period of 1994-2018 which
demonstrates statistically significant and support the hypothetical view that MFP increase
contributes to GTC increase.
Thus, Tables 6 and 7 demonstrate the significance of the triangle structure among GDP growth,
MFP increase and GTC increase as anticipated by Fig. 5.
Table 7. Components of MFP impacting on GTC in Finland (1994-2018).
lnK = – 10.87– 0.01t–0.11D1 lnR + 0.59 lnC
(–2.78)(–3.63)(-4.43) (3.86)
+ 1.15D2 lnI + 2.77D3 lnI +12.68D1 + 7.34D2– 0.01D adj. R2
0.922 DW 1.58
(4.90) (3.31) (3.34) (1.94)*1
(-2.65)
Backward elimination method with 10 % criteria is used.
The figures in parentheses indicate the t-statistics: significant at the 1% level except *1
10%.
12. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
12
In addition, Table 7 reveals that I(Internet-driven spillover technology) demonstrates significant
contribution to GTC increase while no significant contribution by R(R&D investment) to GTC
increase during stagnation and resurgence periods (D2 and D3). This is particularly conspicuous in
the resurgence period after the Competitiveness Pact in 2016. This supports the preceding findings
that SIRs substituted for GSC centered on R&D during the stagnation period. SIRs spilled-over to
GTC thereby contributed to GDP resurgence after the Competitiveness Pact(see Fig. 9 typical
examples).
4. UNCAPTURED GDP’S FUNCTION IN PAVING THE PATH FOR
SUBSTITUTION
The above analyses support the hypothetical view that Finnish resurgence in recent years can be
attributed to SIRs substitution for GSC centred on R&D [6] and SIRs spill-over to GTC (Table 7
and [6]) that contributed to removing structural impediments in GTC increase [5] which was the
main contributor to GDP growth (Table 1).
Such substitution and spill-over have been enabled by the support of uncaptured GDP that has
paved the path for this sophisticated function. Uncaptured GDP leverages SIRs through its co-
evolution with a shift in people’s preferences to supra-functionality beyond economic value and
advancement of the Internet induced by such a shift as illustrated in Fig. 1.
This section analyses this function.
GDP growth rate depends largely on MFP growth rate in Finland as demonstrated in Table 2.
∆𝑉
𝑉
= GGR = a + b MFPGR (5)
where: V: GDP, a and b: coefficients (similar coefficients are used in the following equations).
Integrating equation (5) with respect to time t,
ln V = a0 + at + b ln MFP (5’)
MFP is depicted as follows as reviewed earlier:
ln 𝑀𝐹𝑃 = ln 𝐴 + 𝜆 𝑡+ 𝛼lnR +𝛽 ln𝐶 + 𝛾 ln𝐼 (3)
Based on consumption function, final consumption expenditure C can be depicted as a function of
V as follows:
ln C = a*
+𝜆∗
𝑡 +b*
ln V (6)
Since SIRs depend largely on the advancement of the Internet I [6][19] and substitute for GSC
centred on R, following correlations can be depicted:
ln I = p + q ln
𝑅
𝑉
(7)
Substituting MFP in equation (5’) by equation (2) and also C and I in equation (2) by equations
(6) and (7), respectively:
ln 𝑉 = 𝑎0+ 𝑎 𝑡 + 𝑏(ln 𝐴 + 𝜆 𝑡+ 𝛼lnR +𝛽 ln𝐶 + 𝛾 ln𝐼)
13. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
13
= 𝑎0+ 𝑎 𝑡 + 𝑏[ln 𝐴 + 𝜆 𝑡+ 𝛼lnR +𝛽(𝑎∗
+ 𝜆∗
t + 𝑏∗
ln 𝑉) + 𝛾(𝑝 + 𝑞 ln
𝑅
𝑉
)]
(1- 𝑏𝛽b*
+ brq) ln V = (a0+b ln A + b𝛽a*
+ b𝛾𝑝) + (a + b𝜆+𝛽𝜆∗
) t + b(𝛼 + 𝛾𝑞)ln R
Partial differentiate by ln R
(1 − 𝑏𝛽b*
+𝑏𝛾𝑞)
𝜕 ln 𝑉
𝜕 ln 𝑅
=b (a + 𝛾𝑞) ,
𝜕 ln 𝑉
𝜕 ln 𝑅
=
𝑏
1+𝑏 (𝛾𝑞−𝛽𝑏∗)
(𝛼 + 𝛾𝑞)
Given that𝑇 ≈ 𝑅
𝜌 + 𝑔⁄ in a long run as depicted in equation (1), marginal productivity of
technology can be estimated as follows:
𝜕𝑉
𝜕𝑇
= [
𝑏(𝛼+ 𝛾𝑞)
1+𝑏 (𝛾𝑞−𝛽𝑏∗)
](𝜌 + 𝑔 )
𝑉
𝑅
(8)
Equation (8) depicts that marginal productivity of technology is governed primarily by elasticity of
SIRs to MFP (𝛾) and R&Dintensity to SIRs (q) together with management strategy. Management
strategy consists of R&D productivity (V/R) and planned obsolescence strategy (POS). POS
manages pace and speed of R&D investment (𝜌 + g) taking into account of optimal lifetime of
technology maximizing the profittability of R&D depending on its productivity [21][22].
Note Estimate of final consumption and R&D strategy
N1. Final consumption
Table N1 Correlation between final consumption expenditure and GDP in Finland(1994-2017).
lnC = 2.37 + 0.01t + 0.46 ln V-1 adj. R2
0.994 DW 1.44
(14.45) (13.36) (13.57)
The figures in parentheses indicate the t-statistics: all are significant at the 1% level.
N2. R&D strategy
Table N2 Correlation between Internet dependence and R&D intensity in Finland(1995-2018).
ln I = 3.79 + 4.17D1ln
𝑅
𝑉
– 0.21(D2+D3) ln
𝑅
𝑉
+14.58D1– 0.40D adj. R2
0.963 DW 1.16
(2.88)(16.29) (-9.58) (9.17) (-3.78)
D: dummy variables (D1: 1995-2009 = 1, others = 0; D2+ D3: 2010-2018 = 1, others = 0, D: 1999,2000=1,
others = 0).
The figures in parentheses indicate the t-statistics: all are significant at the 1% level.
On the basis of the above empirical analyses, coefficients and elasticity of substitution governing
marginal productivity of technology in Finland can be estimated as tabulated in Table 8.
14. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
14
Table 8. Coefficients and elasticity of substitution governing marginal productivity of technology in
Finland (1994-2018).
*
Estimate by 2016-2017 and #
estimate by 1995-2009.
Applying these estimated values to equation (8) trajectory of marginal productivity of technology
in Finland can be estimated. Fig. 6 illustrates a plausible estimate of this trajectory. This was based
on an assumption that dramatic change in 𝛾and q as a consequence of SIRs substitution for R&D
would be absorbed by planned obsolescence strategy that seeks the stable level of profitability over
the whole period examined (𝜌 + 𝑔 was managed to smooth correspondence with).
Fig. 6 demonstrates that Finland depended on uncaptured GDP as a consequence of the digital
economy [4] [8] and declined its marginal productivity of technology [20] which in turn activated
firms to utilize SIRs [5]. Induced SIRs played a significant role in substituting for heavy R&D
investment (Table 5) that had become critical burden when nation’s economy confronted a great
stagnation due to the Lehman shock in 2008. This substitution transformed marginal productivity
of technology with declining trend into that of growing trend from 2010. This trend further
accelerated from 2016. This can be attributed to effective assimilation of SIRs that substituted for
GSC dominated by R&D. The impact has become conspicuous particularly after 2016 due to
effective assimilation of SIRs that spilled-over to GTC (Table 7). This effective assimilation can
be attributed to the Competitiveness Pact enacted in 2016 that played a trigger role in awaking
Finnish latent sophisticated assimilation capacity leading to economic resurgence. As conclusion it
is claimed that uncaptured GDP functioned in paving the path for SIRs which effectively removed
structural impediments of GDP growth.
Figure 6. Trend in marginal productivity of technology in Finland (1994-2018)
-Uncaptured GDP function in paving the path for SIRs substitution and spillover role.
10
20
30
40
50
60
70
2010 2016
Uncaptured GDP emergence → Awake and induce SIRs SIRs substitute
for GSC (R&D)
SIRs
spill-
over
to GTC
1994 2018
Marginalproductivity
oftechnology
V/R
1994 - 2009 2010 - 2015 2016 - 2018
b ∂lnV/ ∂lnMEP MFP elasticity to GDP 1.22 1.22 1.22
b* ∂lnC/ ∂lnV GDP elasticity to consumption 0.46 0.46 0.46*
𝛼 ∂lnMFP/ ∂lnR R&D elasticity to MFP 0.03 -0.25 -0.25
𝛽 ∂lnMFP/ ∂lnC Consumption elasticity to MFP 1.80 1.80 1.80
𝛾 ∂lnMFP/ ∂ln 𝐼 SIRs elasticity to MFP 0.04 0.84 8.96
q ∂lnI/ ∂ln(R/V) R&D intensity elasticity to SIRs 4.17#
-0.21 -0.21
𝜀 ∂ln(I/R)/ ∂ln(𝑝𝑗/𝑝𝑖) Elasticity of SIRs substitution for R&D 0.63#
2.17 2.17
15. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
15
5. DYNAMISM IN REMOVING STRUCTURAL IMPEDIMENTS IN GTC
GROWTH
Analyses in the preceding sections suggest the following dynamism of SIRs in removing structural
impediments in GTC growth which contributed to resurgence of Finnish GDP growth [6] as
illustrated in Fig. 7.
Figure 7. Dynamism of soft innovation resources (SIRs) in removing structural impediments
in GTC growth in Finland.
(i) Advancement of the Internet awoke and induced SIRs (Fig. 1).
(ii) The Competitiveness Pact spurred effective utilization of SIRs (see below).
(iii) SIRs substituted for GSC (cantered by R&D) supported by uncaptured GDP (Table 6).
(iv) Trough the substitution process SIRs spilled-over and incorporated in GTC via MFP (Table 5).
(v) MFP induced GTC by removing structural impediments of its increase (Table 7).
(vi) Increased GTC contributed to GDP growth (Table 1).
(vii) GDP growth in turn increased MFP (Table 3) leading to a virtuous cycle.
(viii) In addition, GDP resurgence instilled confidence to the Competitiveness Pact.
Effective utilization of SIRs as well as dynamism of its substitution for GSC and incorporation of
spill-over SIRs in GTC depends largely on co-evolutionary acclimatization capacity of the nation
[23].
The dynamism in creating this capacity can be conceptualized as follows (Fig. 8). Activation of
this dynamism can be attributed to Finnish institutional elasticity and spurred by the Competitiveness
Pact and stimulated by economic resurgence triggered by the Competitiveness Pact.
(i) Cumulative learning cultivates the capacity of distinguishing technology spillover flows by
assessing and selecting them into (a) should learn, (b) should not learn, and (c) can not learn.
(ii)This distinguishing capacity leads to absorptive capacity to be able to treat accepted spillover
technologies homogeneous to Finland’s own technology stock.
(iii) Through co-evolutionary exercise of absorption assimilation capacity can be developed
thereby able to embody absorbed technology to whole system in production, diffusion, and
consumption.
(iv)This ability then develops to domestication thereby taming assimilated spillover technology
into the whole institutional system by activating it through convincing and empowering all
stakeholders.
16. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
16
(v)Domesticated technology/knowledge in turn further improve distinguishing capacity,
absorption, assimilation and domestication ability in a co-evolutionary way, thus co-
evolutionary acclimatization capacity can be created.
Figure 8. The concept of co-evolutionary acclimatization creation dynamism.
As stated earlier, traditionally Finland has been good at crises management. It transformed external
crises into a springboard for new innovation by substituting innovation for constrained resources
[3]. It has indigenously incorporated sophisticated institutional elasticity to activate this notable
capacity [4]. However, this elasticity depends on trust among stakeholders (business circles,
customers, and public authorities) as has been explicitly demonstrated by the contrast of success
and legal battles of Uber’s global expansion [24].
Finland’s elastic institutional systems have been long subdued by the aftermath of the global
stagnation due to the Lehman shock in 2008.
While Finland demonstrates higher trusting relationship than its ICT rival Singapore, it suffers rigid
non-flexible labor-employer relations and also the world’s most rigid wage determination as
compared in Table 9 [5]. This rigid system urged to freeze its institutional elasticity resulting in
seven long years economic stagnation.
17. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
17
Table 9. Noteworthy contrast in institutional elasticity between Finland and Singapore (2017).
Soft innovation resources Finland Singapore References
Trusting relationship
Willingness to delegate authority
Trust in teachers (2013 out of 21
countries)
4
2
17
7
The Global Competitiveness
Report 2017-2018 (WEF, 2018)
Global Teachers Status Index
(Varkey Gems Foundation, 2014)
Labor-employer relations
Cooperation in labor-employer relations
Flexibility of wage determination 22
137
2
5
The Global Competitiveness
Report 2017-2018 (WEF, 2018)
The Global Competitiveness
Report 2017-2018 (WEF, 2018)
Figures indicate world rank out of 140 countries otherwise indicated
In light of such long lasting stagnation and understanding of the significant role of trust, after years
of negotiations and strikes, Finland government convinced the country’s unions in June 2016 to
accept the reform pact (Competitiveness Pact). The objective of this Pact is to improve Finnish
companies’ price competitiveness, increase exports and employment, and accelerate economic
growth. With this objective this Pact leads to the increase of annual working hours, lower holiday
bonuses, freeze wages for a year and increase pension contributions for workers while lowering
them for employers. The government has promised to sweeten the deal with tax cuts. Prime
Minister Juha Sipila pledged that Finland would be able to reduce unit labor costs to the same level
as Sweden’s in 2017, and to that of Germany’s in three years. He also argued that greater business
competitiveness would help generate new jobs (14 June 2016). This pledge was supported by the
Governor at the Bank of Finland Erkki Liikanen in his statement on 31 March 2017 that the
Competitiveness Pact was forecasted to improve cost competitiveness considerably. The Finnish
economy posted 2.7% of GDP growth in 2017, higher than eurozone, Sweden (2.4%) and Germany
(2.5%). At the end of 2017 Oli Rehn, a board member of the Bank of Finland, reported proudly that
the mood in the country had changed in a year from entrenched pessimism to half euphoria which
reflected in people’s mood.
This historic ambitious decision in June 2016 to shift away from centralized wage-setting toward
company-level labor deals can largely be appreciated as a consequence of effective utilization of
SIRs, particularly of trust [25]. People’s non-pessimistic mood with actual economic evidences has
increased confidence to the Pact as illustrated in Fig. 9 and awaken nation’s latent ability of
sophisticated co-evolutionary acclimatization as illustrated in Fig. 8.
While the full-fledged effects of the Competitiveness Pact should be expected, hence further careful
assessment should be indispensable. Some noteworthy signals to activate SIRs in removing
structural impediments in GTC increase can be observed as illustrated in Fig. 7 and effects of SIRs
spillover has become reality as demonstrated in Fig. 9.
18. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
18
Figure 9. Effects of soft innovation resources spillover.
As a consequent of such efforts, demand-supply discrepancy has dramatically decreased [26][27]
and enable da GTC positive contribution to GDP growth. For example, machinery and equipment
has changed from long lasting negative contribution to positive contribution to GDP growth from
2016 as: -0.06% (2013), -0.04% (2014), -0.03% (2015) to 0.05% in 2016 [20][28]. Efforts for
gender balance improvement by utilizing ICT advancement have contributed to improving the
imbalance of employers demand [29]. Recent policy decisions of relaxation of car inspection laws
(May 2018) and taxi market liberalization (July 2018) accelerate effective utilization of such SIRs
as the driving force of preferences shift to supra-functionality [8] and sleeping resources [30]. These
decisions are expected to remove demand supply discrepancy toward the aging society and people’s
preferences diversification and enable on demand supply and trans generational satisfaction [31].
6. CONCLUSION
In light of a notable resurgence in Finland which transformed interlaced contrast in world digital
leaders: high welfare with low GDP growth in Finland and higher GDP growth with lower welfare
in Singapore, dynamism enabling this resurgence was analyzed.
An empirical analysis focusing on the interactions among factors contributing to GDP growth and
their constitutes over the last quarter century and also effects of the policy change such as the
Competitiveness Pact enacted in June 2016 on the resurgence was conducted.
Noteworthy findings include:
(i) Finland highly depends on MFP growth for its GDP growth.
19. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
19
(ii) MFP consists of contribution of Finland’s own R&D, spillover technology, learning effects
and final demand creation.
(iii) Finland has accomplished its GDP resurgence notwithstanding R&D decreases.
(iv) This can be attributed to soft innovation resources (SIRs) induced by advancement of the
Internet.
(v) SIRs substituted for gross service capital (GSC centered on R&D) which created uncaptured
GDP.
(vi) Through this substitution process SIRs spilled-over and incorporated in gross tangible capital
(GTC) via MFP.
(vii) Uncaptured GDP paved the path for this substitution and spillover.
(viii) MFP induced GTC by removing structural impediments impeding its growth.
(ix) Increased GTC contributed to GDP growth, and grown GDP in turn increased MFP thereby a
virtuous cycle has been constructed.
(x) This dynamism can be attributed to effective assimilation of spillover technology initiated by
SIRs.
(xi) While Finland has indigenously incorporated sophisticated institutional elasticity to transform
critical circumstances into a springboard for innovation, this elastic system has been long
subdued by the aftermath of the global simultaneous stagnation in 2008.
(xii) Contrary to high level of trust relationship, Finland suffered rigid non-flexible labor-employer
relations and also the world’s most rigid wage determination.
(xiii) This rigid system urged to freeze Finland’s own institutional elasticity resulting in seven long
years stagnation.
(xiv) The ambitious historic decision of the Competitiveness Pact in June 2016, which aimed at
overcoming such a crucial situation and shifting away from centralized wage-setting and
toward company-level labor deals, can largely be appreciated as a consequence of effective
utilization of SIRs, particularly of trust.
(xv) This Pact revitalized Finland’s latent ability of co-evolutionary acclimatization and enabled
effective utilization of SIRs leading to the above virtuous cycle for GDP resurgence.
These findings give rise to the following insightful suggestions for optimal trajectory management
in the digital economy at both national and firm levels:
(i) Further exploration and utilization of new SIRs should be continued.
(ii) Details of uncaptured GDP’s role in paving the path for substitution and spillover should be
analyzed.
(iii)Effective mechanism of SIRs substitution for GSC (IPP) should be developed.
(iv) Optimal balance between SIRs dependence and sustainable GSC should be sought.
(v) Effective spillover of SIRs to GTC and its effective assimilation should be developed.
(vi) Similar substitution mechanism in reactivation of exports and consumption should be analyzed.
New innovation mechanism as SIRs substitute for GSC centered on R&D and then spillover to
GTC for removing structural impediments for growth could be a new innovation model in the
digital economy. An insightful suggestion in overcoming a productivity paradox in the digital
economy was thus provided.
Future works should focus on further exploration of additional SIRs and their quantification.
Comparative assessment of SIRs depending on institutional systems is another priority issue.
International comparisons thereon should also be undertaken. In addition, careful monitoring of the
reversal trend should be continued. Successive assessment of the effects of the Competitiveness
Pact should also be continued.
20. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
20
ACKNOWLEDGEMENTS
The research leading to these results is the part of a project: Platform Value Now: Value capturing
in the fast emerging platform ecosystems, supported by the Strategic Research Council at the
Academy of Finland [grant number 293446].
REFERENCES
[1] Department of Broadband, Communications and the Digital Economy (DBCDE), (2009) Digital
Economy Future Directions, DBCDE, Camberra.
[2] Watanabe, C., Naveed, K. & Zhao, W., (2015a) “New Paradigm of ICT Productivity: Increasing Role
of Un-captured GDP and Growing Anger of Consumers,” Technology in Society, Vol.41, pp 21–44.
[3] Watanabe, C., Naveed, K. & Neittaanmäki, P., (2015b) ”Dependency on Un-captured GDP as a Source
of Resilience beyond Economic Value in Countries with Advanced ICT Infrastructure: Similarities and
Disparities between Finland and Singapore,” Technology in Society, Vol. 42, pp 104–122.
[4] Watanabe, C., Naveed, K., Neittaanmäki, P. & Tou, Y., (2016) ”Operationalization of Un-captured GDP:
The Innovation Stream under New Global Mega-trends,” Technology in Society, Vol. 45, 58–77.
[5] Watanabe, C., Moriya, K., Tou, Y. & Neittaanmäki, P., (2018b) ”Consequences of the Digital Economy:
Transformation of the Growth Concept,” International Journal of Managing Information Technology,
Vol. 10, No. 2, pp 21-39.
[6] Tou, Y., Moriya, K., Watanabe, C., Ilmola, L. & Neittaanmäki, P., (2018) ”Soft Innovation Resources:
Enabler for Reversal in GDP Growth in the Digital Economy,” International Journal of Managing
Information Technology, Vol. 10, No. 3, in print.
[7] World Economic Forum (WEF), (2017) The Global Information Technology Report, 2017, WEF,
Geneva.
[8] Watanabe, C., Tou, Y. & Neittaanmäki, P., (2018c) ”A New Paradox of the Digital Economy: Structural
Sources of the Limitation of GDP Statistics,” Technology in Society, in print.
[9] Ylhainen, I., (2017) Challenges of Measuring the Digital Economy.
https://www.sitra.fi/en/articles/challenges-measuring-digital-economy/
[10] McDonagh, D., Satisfying Needs beyond the Functional: The Changing Needs of the Silver Market
Consumer. Presented at the International Symposium on the Silver Market Phenomenon – Business
Opportunities and Responsibilities in the Aging Society, Tokyo, Japan.
[11] Statistics Finland, (2017) “Productivity Surveys,” Statistics Finland, Helsinki.
[12] Balcerzak, A.P. and Pietrzak, M.B., (2016) “Quality of Institutions and Total Factor Productivity in the
European Union,” Statistics in Transition, Vol. 17, No. 3, 497-514.
[13] Nadiri, M.I. and Schankerman, M.A. (1981) "The Structure of Production, Technological Change, and
the Rate of Growth of Total Factor Productivity in the U.S. Bell System. In T.G. Cowing
and R.E. Stevenson (eds.) Productivity Measurement in Regulated Industries (Economic
Theory, Econometrics, and Mathematical Economics) 219-247. Academic Press, New York.
21. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
21
[14] Milne, L., (2017) “Finland Nurses Its Economy Back to Health,” EU Economy.
https://www.ft.com/content/73d66498-e19d-11e7-a8a4-0a1e63a52f9c
[15] IMF, (2018) “World Economic Outlook Database,” IMF, Washington.
[16] OECD, (2018) “OECD Database,” OECD, Paris.
[17] International Telecommunication Union (ITU), (2018) “World Telecommunication/ICT Indicators
database, “ ITU, Geneva.
[18] Statistics Finland, (2018a) “National Accounts of Finland,” Statistics Finland, Helsinki.
[19] Naveed, K., Watanabe, C. & Neittaanmäki, P., (2018) ”The Transformative Direction of Innovation
toward an IoT-based Society: Increasing Dependency on Uncaptured GDP in Global ICT Firms,”
Technology in Society, Vol. 53, pp 23-46.
[20] Watanabe, C., Moriya, K., Tou, Y. & Neittaanmäki, P., (2018a) ”Structural Sources of a Productivity
Decline in the Digital Economy,” International Journal of Managing Information Technology, Vol. 10,
No. 1, pp 1-20.
[21] Bulow, J., (1986) “An Economic Theory of Planned Obsolescence,” Quarterly Journal of Economics,
Vol. 101, 729-749.
[22] Aladeojebi, T.K., (2013) “Planned Obsolescence,” International Journal of Scientific & Engineering
Research, Vol. 4, No. 6, 1504-1508.
[23] Chew, M., Watanabe, C. & Tou, Y., (2010) ”Technology Leapfrogging: Findings from Singapore’s
Water Industry,” Journal of Technology Management for Growing Economies, Vol. 1, No. 2, 29-47.
[24] Watanabe, C., Naveed, K., Neittaanmäki, P., Fox, B., (2017) ”Consolidated Challenge to Social Demand
for Resilient Platforms: Lessons from Uber’s Global Expansion,” Technology in Society, Vol. 48, 33–
53.
[25] Watanabe, C., Naveed, K. & Neittaanmäki, P., (2016b) ”Co-evolution between Trust in Teachers and
Higher Education toward Digitally-rich Learning Environments,” Technology in Society, Vol. 48, pp
70–96.
[26] OECD, (2017) “OECD Review of Innovation Policy: Finland Assessment and Recommendation,”
OECD, Paris.
[27] Statistics Finland, (2018c) “The Labor Market in Finland,” Statistics Finland, Helsinki.
[28] Statistics Finland, (2018d). “Statistics Finland’s PX-Web databases,” Statistics Finland, Helsinki.
[29] Watanabe, C., Naveed, K. & Neittaanmäki,P., (2017) ”ICT-driven Disruptive Innovation Nurtures
Uncaptured GDP: Harnessing Woemen’s Potential as Untapped Resources,” Technology in Society,
Vol. 51, pp 81–101.
[30] Watanabe, C., Naveed, K., Neittaanmäki, P. &Tou, Y., (2016a) ”Co-evolution of Three Mega Trends
Nature Uncaptured GDP: Uber’s Ride-sharing Revolution,” Technology in Society, Vol.46, pp 164–
185.
22. International Journal of Managing Information Technology (IJMIT) Vol.10, No.4, November 2018
22
[31] Naveed, K., Watanabe, C. & Neittaanmäki, P., (2017) ”Co-evolution between Streaming and Live
Music Leads a Way to the Sustainable Growth of Music Industry: Lessons from the US Experiences,”
Technology in Society, Vol. 50, pp 1-19.
AUTHORS
Yuji Tou graduated from Tokyo Institute of Technology, Japan, and is currently specially appointed associate
professor at Tokyo Institute of Technology, Japan (tou.yuji@gmail.com).
Chihiro Watanabe graduated from the University of Tokyo, Japan, and is currently Professor Emeritus at
the Tokyo Institute of Technology, research professor at the University of Jyväskylä, Finland, and a research
scholar at the International Institute for Applied Systems Analysis (IIASA). (watanabe.c.pqr@gmail.com).
Leena Ilmola graduated from Aalto University School of Science and Technology, Finland, and now is
currently Senior Researcher at the International Institute of Technology (IIASA), Austria (ilmola@iiasa.ac.at)
Kuniko Moriya graduated from Aoyama Gakuin University, Japan, and is currently Director of the Bank of
Japan, and a research scholar at the University of Jyväskylä, Finland (kuniko.moriya@boj.or.jp).
Pekka Neittaanmäki graduated from the University of Jyväskylä with a degree in Mathematics. He is
currently Professor of the Faculty of Information Technology, University of Jyväskylä, Finland.
(pekka.neittaanmaki@jyu.fi).