True or False
About 57% of the firms adopt the Internet, while a larger share, 85%, adopt the LAN, intranet, and/or extranet.
True
What does hypothesis 1 states?
All else being equal, the more complex the type of ICT adopted, the more likely it is to facilitate increased integration between internal firm units.
What do Internal Coordination Costs include?
- Communication Costs
- Data Transfer
- Costs related to within firm activities
Name the 3 different Internet applications for E-commerce
- LAN
- Extranet
- Intranet
We find that ICT and each of its types separately are negatively and statistically significantly correlated with changes in intra-firm trade shares.
False (positively)
What does Hypothesis 2 states?
All else being equal, the higher the degree of electronic codifiability of the production process of the MNE's industry, the more likely it is to experience increased outsourcing following ICT adoption.
What do External Coordination Costs include?
- Cost of Locating Suppliers
- Cost of Writing Contracts
- Cost of Market Procurement
Which is the simplest type of network?
Internet
The more complicated forms of ICT adoption, the more external firm activities take place.
False (internal)
Based on the data are the hypothesis true or false?
Both of them are proven to be true.
How can the adoption of ICT reduce the economic costs of internal coordination?
By improving the quality and speed of information processing and management's decision making.
How did Nestlé use ICT to optimize its global supply chain and reduce costs?
Nestlé reduced the number of external suppliers and procurement costs by up to 20%. Concurrently, Nestlé began using a new web-based system to contract with external suppliers directly.