Religion and So-called German Christians Essay

Religion continues to be one of the most influential forces in the world. It has been seen to provide great peace and harmony to believers, but it has also been the cause if not an actual reason for some of history’s greatest wars. It can be used as justification from leaders of war, can it also serve as an instrument of resolution as well? Religion has come to be a much stronger force than any material incentives. It is far better at directing positive behaviour towards social betterment than any laws or physical force. For instance, Ghandi and Martin Luther King Jr conducted non-violent protests based upon religious beliefs. Religion can also be used to help bring people together as they are more willing to work together. By contrast, places that reject religion, such as Revolutionary France, communist Russia and China, or Nazi Germany are often very brutally oppressive. However, it is not always the case. For example, Iran: a country where religion is so prevalent is equally as oppressive as these countries. Incidentally, religion can be very dangerous because it can and has been used to justify horrific acts. Crusaders not only killed many Muslims, they also massacred many Jews and Eastern Christians in the process of attempting to win control of the Holy Land. Adolf Hitler’s followers – among them the so-called German Christians – were believers in their Fuhrer. The Inquisition carried out its torture in the name of God. Religion should never be involved in politics because it can then be used as an instrument of control. However, in places where religion develops freely and people have free access to places of worship, it provides people with a sense of hope, praying serves as therapy and members of a congregation feel a sense of community and friendship. Some of the greatest works of art were created in the name of God. Furthermore, Woodrow Wilson suggested that a strong affinity exists between religious commitment and patriotism. Love of country, just like the love of God certainly inspires good deeds but not always. Furthermore, religion may have led to the creation of the world’s finest art, but it has also caused its destruction. Religion can be a source of extreme nationalism. In Christianity, Islam and Judaism, God is described as â€Å"mighty warrior, â€Å"just king† and â€Å"righteous judge.† He apparently punished the unjust, the unrighteous and the disobedient. The idea that a nation is the instrument of God’s will has led to war and the subjugation of people viewed as ungodly. Fundamentalism clouds everything. There is a need to be right and superior, which develops an ego and once we fall foul to it, we are lost. Conversely, biblical commandments are the basis of Western ethical and legal systems. It has seen to teach us tolerance for people with other beliefs and opinions. Usually believers are more peaceful, law-abiding and tolerant than the non-believers in the world. Some people need it psychologically and without it may step to extremism such as suicide or anarchy. However, some live in a delusion and in a constant state of intellectual dishonesty. Some people, who are so far devout in their own beliefs, use them to beat other beliefs and religious groups into submission. Religions like Islam justify ‘holy’ wars against the unfaithful, meaning those of other religions. This can also be seen in the violence of the crusades launched by Christians in the medieval period and by later wars between Protestant and Catholic. Religious conviction like the extremist Hindu groups against Christians and Muslims in India has paved the way for the terrorist attacks in New York City on September eleventh 2001. Religious clashes have led to some of the most heinous human behaviour in recorded history. Western states grew as a result of religion and religious philosophy. Western European and North American societies are still based on Protestant ideals of diligence, thrift and moderation. The very existence of theocratic state, proves that governments in these states are much more stable than regimes in secular countries because leaders are viewed as appointed by God. Political stability, in turn, leads to economic welfare. Despite this, Theocratic states become totalitarian regimes because they are based upon obedience to a ruler who is seen as God’s representative rather than a democratic constitution. They may be stable but they are not essentially concerned with their people’s welfare. By prioritising religious imperatives over economic development and by their intolerance of the questionable types who drive economic process states like Iran have become corrupt, authoritarian and poor. In conclusion, I believe that religion provides many opportunities and hope for those who have nothing else to turn to, it helps bring unity and sometimes peace into communities. However, I also believe that it has become a perversion of the redemptive message of Jesus, by so-called devout humans using their beliefs to ruin and destroy the lives of many others. I myself am agnostic and am very open-minded.

Care of Residents and Floor Manager Essay

Bi-Describe the terms and conditions of your contract as set out in your contract of employment or employment agreement. Answer-Turn up to work at the required times, wear the correct uniform, holiday entitlement , pay rate and confidentiality. Bii-Describe the information which needs to be shown on your pay slip/statement. Answer-Hours worked, employee number, NI insurance number, tax code, payment before deductions and payment after deductions and hourly rate. Biii-Identify two changes to personal information which you must report to your employer. Answer-Change of address or Medical condition. Biv-Describe the procedure to follow if you want to raise a grievance at work. Answer-Refer to flow chart. -See attatched. Bv-Explain the agreed ways of working with your employer in relation to the following areas. 1)Data protection: Ensure all information is stored in a secure place and no information is given out if unsure. 2)Grievance:Discuss with floor manager or home manager. )Conflict management:If i had a problem with a member of staff, for example if i didnt like the way that they were treating a resident i would go to my manager and explain my concerns, if after informing my manager the problem persists i would then go back, if my manager dismissed this as she has already talked to the staff member, this would cause conflict and i would seek help from someone above my manager(Regional Director). 4)Anti-discriminatory: Treat everyone as an individual and do no dis-respect race or culture. )Health&Safety:Keep up to date with all training and comply with all requested of me to ensure myself, collegues and residents are not at risk of harm or injury. 6)Confidentiality:Ensure all information is secured properly and dont give out any information to anyone your not sure about, consult Team Leader if unsure. 7)Whistleblowing:Identify the unethical baahaviour in questionand determine how its affecting you or the organisation in which you work. Decide whether the problem is worth reporting and if it will put yours or someone elses job at risk. Whistleblowing encourages and enables employees to raise serious concerns within the ‘setting’ rather than overlooking a problem or ‘blowing the whistle’ outside. Employees are often the first to realise that there is something seriously wrong within the setting. However, they may not express their concerns as they feel that speaking up would be disloyal to their colleagues or to the setting. Follow whisleblowing procedure. Bvi-Explain how your role contributes to the overall delivery of the service provided. Answer-I follow all policies and procedure and my job roles and responsibilities to maintain a high standard of quality care. Promote and maintain a good standard of care, I also ensure that the service users are able to practice their charter of rights, for example: Choice The right to make choices about their own lifestyle, and to excercise that choice and independence whenever possible. Dignity and Individuality The right to be shown respect and courtesy and to be treated as a unique and valued individual. Privacy and Confidentiality The right to choose to be alone, undisturbed, and free from intrusion, as far as possible, within the constraints of living with others in a nursing or residential care home; and the right to have all your personal information kept confidential. Complaints The right to comment and make known any concerns or complaints that you have about the home, or the company, without feeling under stress or threat. Bvii-Explain how you could influence the qualityof the service provided by; a)following the best practice within your work role; By keeping up to date with all training needed to carry out my work, by refering back to my job roles and responsibilities if unsure, ask floor manager or manager if im unsure of anything-this will ensure that I am carrying out a high standard of care to service users. b)not carrying out the requirements of your role; Residents/service users could be at risk, and if person centred approach isnt followed or the rights of the service users are taken away you could be putting them at risk of neglect and institutional abuse. Bviii-Describe how your own work must be influenced by National factors such as Codes of Practice, National Occupational Standards, Legislation and Government Initiatives. Answer-My work is directly impacted by all of the above every day. Codes of Practice and Occupational Standards form our mission, vision and values. Legislation dictates our level and quality of care. Government initiatives impact the people we serve. For example, a code of practice in action, and in a very general sense – may be staff supporting, but also providing the tools, for individuals to become more independent. Too much support, they would learn dependence. Tools alone without support, they may not understand how to use them or when to use them. Occupational Standards would be a general guide for each career within a given field, that expresses the foundational do’s and don’ts for each. Example, we would provide a minimum amount of service, documented and within the guidelines for the individual, while if we offered additional services that are needed and appropriate to the individual, that would be good. Laws protect for the most part. Most laws are based on safety. So legislation that offers greater protection for the people we serve, and laws that provide a clear expectation for staff – which if we follow judiciously, also protects us – are incorporated into all daily activities and decisions. That is protection for the individual. A person passing by an accident and offering help is protected from lawsuits by the Good Samaritan Law. So in these examples, both the individual, and the care-giver have laws that protect them. Government Initiatives – well, that’s a pretty general term as well which could also be interpreted in many different ways. Initiatives – I think of entitlement programs. Social Security, SSI, Welfare, WIC, HE AP, HUD, etc. These programs governmental initiatives provide additional support to people.

IT and Economic Performance: Evidence From Micro Studies

CHAPTER V: IT AND ECONOMIC PERFORMANCE: EVIDENCE FROM MICRO DATA STUDIES By B. K. Atrostic and Ron Jarmin* Micro data—that is, data on individual businesses that underlie key economic indicators—allow us to go behind published statistics and ask how IT affects businesses’ economic performance. Years ago, analyses indicated a positive relationship between IT and productivity, even when official aggregate statistics still pointed towards a â€Å"productivity paradox. Now, such analyses shed light on how varied that relationship is across businesses, and how IT makes its impacts. This chapter focuses on research about businesses based on micro data collected by the U. S. Census Bureau. We highlight the kinds of questions about the use and impact of IT that only micro data allow us to address. Micro data studies in the United States and in other OECD countries show that IT affects the productivity and growth of individual economic units. Specific estimates of the si ze of the effect vary among studies. Researchers comparing manufacturing plants in the United States and Germany, for example, find that in each country investing heavily in IT yields a productivity premium, but that the premium is higher in the United States than it is in Germany. They also find that the productivity premium varies much more for U. S. manufacturers. This greater variability is consistent with the view that the U. S. policy and institutional environments may be more conducive to experimentation by U. S. businesses. What kind of IT investments do U. S. businesses make? Census Bureau data on U. S. manufacturing establishments show that they invest in both computer networks and the kind of complex software that coordinates multiple business processes within and among establishments. About 50 percent of these plants have networks, while fewer than 10 percent have invested in this complex software. Such a wide difference between the presence of networks and * Ms Atrostic (barbara. kathryn. [email  protected] gov) is Senior Economist, and Mr. Jarmin (ron. s. [email  protected] gov) is Acting Director, Center for Economic Studies, U. S. Census Bureau. 61 DIGITAL ECONOMY 2003 complex software in manufacturing, and equally wide-ranging differences in their presence among detailed manufacturing industries, highlight the diversity of IT use among businesses. Plants with networks have higher productivity, even after controlling for many of the plant’s economic characteristics in the current and prior periods. Similar results are found in other OECD countries. Some studies suggest that businesses need to make parallel investments in worker training and revised workplace practices before IT investments yield productivity gains. Careful micro data research shows that the relationship between IT and economic performance is complex. â€Å"IT† emerges as a suite of alternatives from which businesses make different choices. Estimates of the size of the effect, and how IT makes its impact, remain hard to pinpoint. Data gaps make it hard to conduct careful analyses on the effect of IT. Continuing efforts by researchers and statistical organizations are filling some of the data gaps, but the gaps remain largest for the sectors outside manufacturing—the sectors that are the most IT-intensive. More definitive research requires that statistical agencies make producing micro data a priority. What Are Micro Data? Micro data generally contain information about many characteristics of the economic unit, such as plant employment, years in business, share of IT in costs, ways it uses IT, and its economic performance. Micro data exist for both businesses and individuals, and can be developed by private and public organizations. This chapter focuses on research using micro data about businesses that are collected by the U. S. Bureau of the Census. BENEFITS OF MICRO DATA RESEARCH Standard analyses of productivity and similar economic phenomena frequently assume that businesses are identical, at least within an industry, and therefore also respond similarly to changes in economic circumstances. However, it is easy to challenge this assumption simply by observing the variety of businesses in any industry, no matter how narrowly the industry is defined, and how diverse their responses appear to be. Case studies in specific industries repeatedly bear out this observation. Micro data allow us to assess the diversity of businesses and track behaviors such as their entry and exit into an industry. They also allow us to document changes in businesses’ performance, such as employment, sales, and productivity, and see whether those changes are uniform among industries, within industries, or among businesses of given ages, sizes, and so forth. Two decades of research using micro data reveal tremendous variety in the economic characteristics and performance of businesses at any time, and over time. 1 An excellent summary is E. Barltesman and M. Doms, â€Å"Understanding Productivity: Lessons from Longitudinal Microdata,† Journal of Economic Literature, Vol. 38 (September 2000). It reviews research conducted at the U. S. Census Bureau and gives references for reviews of micro data research conducted elsewhere. A detailed report on initial micro data research on productivity is provided in M. Baily, C. Hulten, and D. Campbell, â€Å"Productivity Dynamics in Manufacturing Plants,† Brookings Papers on Economic Activity: Microeconomics 1992. 1 62 DIGITAL ECONOMY 2003 Micro data can paint a clearer picture of how aggregate economic statistics change. They also allow researchers to apply econometric techniques that take account of the kinds of complex relationships that simply cannot be presented in tables or other aggregated formats. Comparing findings from research studies using different data sets allows us to see which estimates appear to be robust, and which ones seem to depend on the specific data we use, and on the specific equations we estimate. RESEARCH REQUIRES GOOD MICRO DATA Micro data research takes advantage of the high-quality information about individual businesses that underlies major economic indicators. The micro data sets typically are large and nationally representative, making it more likely that they capture the tremendous diversity among businesses. 2 Researchers often are able to link data at the micro level across surveys and over time. For example, consider the new information on whether businesses have computer networks, and how they use those networks that was collected in the Computer Network Use Supplement (CNUS) to the 1999 Annual Survey of Manufactures (ASM). The plant-level micro data about computer networks collected in the CNUS can be linked to information about employment, shipments, use of other inputs, etc. , collected about the same plants in the 1999 ASM and to ASMs for other years, and to data that was collected about the same plants in the 1997 Economic Census. Such exact linkages yield much richer information bases than any single supplement, survey, or census alone. When micro data can be linked, researchers also can use econometric techniques to control fo r unobserved characteristics that are specific to an individual plant or business. These techniques allow researchers to have more confidence that findings, such as the effect of IT actually are due to IT and not to related but unmeasured characteristics, such as good management or a skilled work force. The Role of Information Technologies in Business Performance Recent research using micro data generally concludes that IT and productivity are related. Indeed, micro data analyses indicated a positive relationship between IT and productivity when official aggregate statistics still pointed towards a â€Å"productivity paradox. Two recent reviews of plant- or firm-level empirical studies of information technology (including but not limited to computers) and economic performance conclude that the literature shows positive relationships between information technology and productivity. However, specific estimates of the size of the effect vary widely among studies. How IT makes its impact also remains hard to pinpoint. While micro data provide raw material for importan t analyses, they are not a panacea. Researchers must address significant challenges when using existing micro data to analyze questions about the economic performance of businesses. See Z. Griliches, â€Å"Productivity, R&D, and the Data Constraint,† American Economic Review, Vol. 84 No. 1 (March 1994); and Z. Griliches, and J. Mairesse, â€Å"Production functions: The Search for Identification,† NBER Working Paper 5067 (March 1995). 3 2 More information on these surveys is available at http://www. census. gov/eos/www/ebusiness614. htm. 63 DIGITAL ECONOMY 2003 THE ROLE OF IT IN PRODUCTIVITY—A BRIEF SURVEY OF THE LITERATURE Many recent studies use micro data to document and describe the productivity of different kinds of businesses, and to examine its sources. The simple model that suggests productivity growth occurs among all existing plants simply does not fit with what the micro data show. Instead, the micro data show that much of aggregate productivity growth comes about through a much more diversified and dynamic process. Less productive plants go out of business, relatively productive plants continue, and the new entrants that survive are more productive than either. Micro data research on the effect of IT explores how IT fits into this complex picture of business behavior. Dozens of research papers over the last decade examine various facets of the relationship between IT and productivity. Two recent reviews summarizing the current literature on IT and productivity conclude that there is an impact, although there is much variation among studies in the estimated magnitudes of that effect (Dedrick, J. , Gurbaxani, V. , and K. Kraemer, 2003, â€Å"Information Technology and Economic Performance: A Critical Review of the Empirical Evidence,† ACM Computing Surveys, Vol. 35, No. 1, March and Stiroh, K. J. 2002, â€Å"Reassessing the Impact of IT in the Production Function: A Meta-Analysis,† Federal Reserve Band of New York, November). 4 Dedrick et al. (2003) review over 50 articles published between 1985 and 2002, many of which are firm-level studies with productivity as the performance measure. They conclude that firmlevel studies show positive relationships, and that gross returns to information technology investments exceed returns to other investments. They warn against concluding that higher gross returns mean that plants are under-investing in information technology. Most studies do not adjust for the high obsolescence rate of information technology capital, which lowers net returns. Also, total investment in information technology may be understated because most studies measure only computer hardware, but not related labor or software, or costs of coinvention, such as re-engineering business processes to take advantage of the new information technology. Stiroh (2002) reviews twenty recent empirical studies of the relationship between information technology and output and productivity. The studies generally find a positive effect of information technology on output. However, the estimates differ across studies, and the studies differ in many dimensions, including time periods covered and specific estimation techniques used. Stiroh looks for predictable effects of differences in characteristics of the studies, such as time periods, level of aggregation (e. g. , industry, sector, or entire economy), and estimation techniques. He finds that much of the variation across studies in the estimates of the effect of information technology probably reflects differences in characteristics of the studies. 4 Many of those studies, including many studies discussed in this chapter, were conducted at the Center for Economic Studies (CES) at the U. S. Census Bureau. Appendix 5. A describes both CES, a research unit that conducts research and supports the needs of researchers and decision makers throughout government, academia, and business, and some of the major data sources available there for micro data research on the impact of IT. 64 DIGITAL ECONOMY 2003 Stiroh also reports the findings of additional research he conducts using a single industry-level database to estimate many of the different equations used in the studies he reviewed. His research finds that information technology matters, but that even within a single database, estimates of the magnitude of that effect depend on the particular equation that is estimated. Finally, Stiroh notes a potential for publication bias. Because theory predicts a positive relationship between IT and productivity, researchers may tend to report, and editors may tend to accept for publication, only those papers with the â€Å"right† results on the impact of IT. However, as his research demonstrates, estimates are sensitive to both the data used and the particular equation that is estimated. He concludes that information technology matters, but the wide variation in empirical estimates means that much â€Å"depends on the details of the estimation† and â€Å"one must be careful about putting too much weight on any given estimates. † The conclusion that recent studies show a positive effect of information technology stands in contrast to earlier studies, many of which found no relationship. Both Dedrick (2003) and Stiroh (2002) note that the best data available to early researchers suffered from small sample sizes, few or no small firms or plants, and lack of data on information technology investment. These data gaps may be why early micro data studies failed to find a relationship between IT and performance. CAUSE AND EFFECT: DOES USING IT MAKE BUSINESSES MORE PRODUCTIVE? The literature so far yields mixed findings on cause and effect between IT and plant-level economic performance. Early research is limited to manufacturing. The first findings in this area were that more productive plants may be more likely to adopt best practices, including new technologies, and that they are able to afford to do so. However, later research suggests that less productive plants may invest in those technologies, perhaps trying to boost their productivity. 6 Recent research expands the scope of analysis of the effect of IT in the retail sector. It examines the relationship between investments in information technology and two performance measures for retail firms, productivity and growth in the number of establishments. The research finds that, in retail, IT is closely related to productivity grow th, but not to growth in the number of establishments that retail firms operate. 5 R. H. McGuckin, M. L. Streitwieser, and M. E. Doms, â€Å"The Effect of Technology Use on Productivity Growth,† Economic Innovation and New Technology Journal, 7 (October 1998). 6 Stolarick Kevin M. , â€Å"Are Some Firms Better at IT? Differing Relationships between Productivity and IT Spending,† Center for Economic Studies Working Paper CES-WP-99-13, U. S. Census Bureau, Washington, DC (1999); and B. K. Atrostic, and S. Nguyen, â€Å"IT and Productivity in U. S. Manufacturing: Do Computer Networks Matter,† Center for Economic Studies Working Paper CES-02-01, U. S. Bureau of the Census, Washington, DC (2002). M. Doms, R. Jarmin, and S. Klimek, â€Å"IT Investment and Firm Performance in U. S. Retail Trade,† Center for Economic Studies Working Paper CES-WP-02-14, U. S. Bureau of the Census, Washington, DC (2002). 7 65 DIGITAL ECONOMY 2003 Does the Business Environment Matter? —International Comparisons Although researchers have found evidence of the effect of IT on productivity at the micro level across many countries, the effect on aggregate productivity and economic growth has varied across countries. This is true even though IT is universally available. While the United States and a few other economies enjoyed the boom of the late 90s, many European economies experienced sluggish growth. Several explanations have been put forward including differences in the policy and institutional settings across countries, measurement issues, and time lags (micro data research showed positive effects of IT in the United States before aggregate statistics). Some have hypothesized that the U. S. economy was able to make more effective use of the new general-purpose technology of IT because its regulatory and institutional environment permits firms to experiment more. An important component of the U. S. bility in this regard is the efficient reallocation of resources away from firms whose experiments in the marketplace fail, to those whose experiments succeed. The OECD’s Growth Project (Box 5. 1) study found evidence that the Schumpeterian processes of churning and creative destruction (or market selection) yield greater economic effects in t he United States than in other OECD countries. These processes affect aggregate productivity growth as lower productivity firms shrink and exit and higher productivity firms enter and grow. Is it the case that IT has had a greater impact on business performance in the United States because the U. S. policy and institutional environment is more conducive to market selection and learning? Box 5. 1. OECD International Micro Data Initiative No single country has the resources and technical expertise to independently resolve all the measurement issues and fill all the information gaps associated with measuring the impact of IT. The OECD Growth Project provided a comprehensive analysis of the impact of information and communication technology (ICT) on productivity and economic growth in several OECD countries, using aggregate, industry-level, and plant-level data. Based on that project’s success, U. S. Commerce Secretary Evans requested additional micro data research, and provided the OECD with seed money. This new project seeks to build on efforts already under way in several OECD member countries. One facet of the OECD micro data project on ICT is a series of multi-national collaborations, with a small number of countries involved in each collaboration. Each group is developing its own way of reconciling the differences in each country’s existing micro data that are important to comparative studies, such as the sectors covered, the scope of businesses included in each sector, and the specific questions asked. The OECD project also seeks explicitly to foster coordination and collaboration on e-business issues between data producers and data users in each country. Project members are from both the OECD’s Statistical Working Party of the Committee on Industry and Business Environment (largely data users focused on productivity and growth statistics) and the new Working Party on Indicators on the Information Society (largely producers of statistical indicators). 66 DIGITAL ECONOMY 2003 Recent research using micro data from the United States and Germany attempts to address this question. 8 The analysis first compares the differences between various groups (e. g. , young vs. old, or those that invest heavily in IT vs. those that do not) of manufacturing establishments within each country. These differences are then compared across the two countries. This allows the researchers to contrast the impact of IT on economic performance between the two countries. The results suggest that U. S. anufacturing establishments benefit more from investing in IT and are more likely to experiment with different ways of conducting business than their German counterparts even after controlling for several plant specific factors such as industry, age, size, and so on. Figure 5. 1 summarizes results from an analysis of the impact of changing technologies on productivity outcomes. For the analysis, businesses undergoing an episode of high investment are assumed to be actively changing the ir technology. Manufacturers in both countries were grouped according to investment intensity as defined by investment per worker. The researchers examined investment in both general and IT-specific equipment. The core comparison group had no investment. The other two groups—with investment in any equipment, and investment in IT equipment—were split into â€Å"high† and â€Å"low† investment groups at the 75th percentile of the investment intensity distributions. Plants with â€Å"high† investment intensities were those with intensities exceeding at least 75 percent of all other investing plants. These computations were done for both overall investment in equipment (excluding structures) and for IT equipment, giving a combined seven investment intensity categories. Businesses undergoing an episode of high investment intensity can be thought of as actively changing their technologies. The market will reward some of these and punish others. The crux of the analysis summarized in Figure 5. 1 is to first compare the performance of plants across the various investment intensity groups to a baseline of firms with no investment within each country (i. e. , the bars for the listed investment intensity categories in the figure represent the percent difference from the omitted zero investment category for each country). Then the researchers compared the within country differences across the United States and Germany to see in which country the reward for experimentation (as measured by high investment episodes) is highest. Panel A shows that U. S. businesses that invest heavily, both overall and in IT, are much more productive than those that invest little or none at all. The same holds true for Germany, but the productivity premium is much higher in the United States. Panel B shows that U. S. businesses that invest heavily (i. e. are experimenting with new technologies) have more varied productivity outcomes as measured by the standard deviation than do firms that invest little or not at all. This is not the case in Germany. In fact, the German data show that firms that invest intensively have less varied productivity outcomes. This is consistent with the notion that the U. S. policy and institutional environment is more conducive to market experimentation. These results should be viewed with cauti on as they relate to only two countries and there are many factors the researchers do not control for. 8 J. Haltiwanger, R. Jarmin, and T. Schank, â€Å"Productivity, Investment in ICT and Market Experimentation: Micro Evidence from Germany and the U. S. ,† Center for Economic Studies Working Paper CES-03-06, U. S. Bureau of the Census, Washington, DC (2003). 67 DIGITAL ECONOMY 2003 Figure 5. 1. Differences in Productivity Outcomes between Germany and the United States Panel A: U. S. Firms Investing Heavily in IT and Other Capital Have Higher Productivity Premiums 100% % Difference in Mean Productivity Relative to Group with No Investment U. S. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Low / 0 Germany High / 0 Low / Low Low / High High / Low High / High Investment Intensity (Equipment / IT) Panel B: U. S. Firms Investing Heavily in IT and Other Capital Experience More Varied Productivity Outcomes 50% U. S. % Difference in Standard Deviation of Productivity Relative to Group with No Investment Germany 40% 30% 20% 10% 0% -10% -20% -30% -40% Low / 0 High / 0 Low / Low Low / High High / Low High / High Investment Intensity (Equipment / IT) Note: Differences are in logs and are shown relative to a reference group of firm with zero total investment. Source: Haltiwanger, Jarmin and Schank 2003. DOES IT MATTER HOW IT IS USED? Businesses in the United States have used IT for fifty years. Originally, firms that used IT may have had advantage over competitors who did not. But today, simply investing in IT may no longer be enough. The question for economic performance is no longer whether IT is used, but how it is used. 68 DIGITAL ECONOMY 2003 Figure 5. 2. Computer Networks Were Common in U. S. Manufacturing Industries in 1999, But Sophisticated Network Software Was Not 100 90 80 70 60 Plants with Networks Employment at Plants with Networks Plants with Fully Integrated Enterprise Resource Planning Software Percent 50 40 30 20 10 0 G ts ts s s s s s o t es ry ts s al em ic d ru bb er pr od l ts ill re ts uc rie ou en al ill ts ts rie uc te pe uc cc ts N ne uc uc RI iti pm od ne ba tm od st pa uc uc et TU od od Pa la st od tiv hi od od du du pr re lla ac til uc pr to Ap pr ui – ac pr pr od m e FA C od in ce an Te x ar eq al od M W oo 32 al d an d im is al c d s 5 Ch pr in pr d – d d 2 pr y uc m uc ts d s r pr lie ni Fo er te od 31 U et te – n od M co an d – t, tio tro e Pr AN in la m al la 3 e go en go 33 til m re ra rta 31 – ec ed M m Te x le 31 ve nd 1 9 1 1 d lic el 33 e d re 32 Pl as tic s – – 3 – 32 po ra 33 ab an an bl AL nd qu ns ra ur he et br re g du ra le Tr a itu 31 m tin at D on Le ca te on rn 31 – in pu tri N 6 Fu 2 Pr N – Pe – tro Fa 2 le – 4 um Be al ic – ec 33 m 33 6 – – – 31 – Co El 7 3 4 32 4 33 33 5 33 – NAICS 3-Digit Industry Source: Atrostic, B. K. and J. Gates, 2001, â€Å"U. S. Productivity and Electronic Business Processes in Manufacturing,† CES-WP-01-11, Center for Economic Studies, U. S. Bureau of the Census, Washington, DC. New data from the 1999 Computer Network Use Supplement (CNUS) to the 1999 Annual Survey of Manufactures (ASM) are beginning to be used to model how manufacturing plants use computer networks in the United States. Respondents’ answers to questions about processes can be linked to the information the same respondents reported on regular ASM survey forms, such as the value of shipments, employment, and product class shipments. Figure 5. 2 presents researchers’ estimates of the diffusion of computer networks. The research finds that computer networks are widely diffused within manufacturing, with networks at about half of all plants. The share of employment at plants with networks is almost identical in durable and non-durable manufacturing. Use of networks varies a great deal within those sub-sectors; the share of plants with networks ranges from lows of about 30 percent to highs of about 70 percent. The CNUS also provides new information about some aspects of how plants use computer networks. Figure 5. 2 reports estimates of the diffusion of fully integrated enterprise resource planning software (FIERP); that is, the kind of software that links different kinds of applications (such as inventory, tracking, and payroll) within and across businesses. Plants in all manufacturing industries use this complex software. However, FEIRP software remains relatively rare compared to computer networks. While about half of all manufacturing plants have networks, fewer than 10 percent have this kind of software. 69 32 32 – 32 7 6 – an at ip L 5 – s DIGITAL ECONOMY 2003 Initial research finds that computer networks have a positive and significant effect on plant’s labor productivity. After accounting for multiple factors of production and plant characteristics, productivity is about five percent higher in plants with networks. When economic characteristics in prior periods and investment in computers are also accounted for, there continues to be a positive and statistically significant relationship between computer networks and U. S. manufacturing plant productivity. 10 These initial findings for the United States are consistent with findings for other countries. Recent research for Canada, the Netherlands, and the United Kingdom, for example, all find positive relationships between using computer networks and productivity. 11 Research for Japan finds that computer expenditures and computer networks both affected productivity between 1990 and 2001. In more recent years, the effects are larger, but they also vary much more among industries. 12 Some micro data research for the United States during the 1990s suggests that IT needs to be used together with worker training and revised workplace practices to yield productivity gains. These findings are based on data containing detailed information about the use of computers in the workplace. They also contain information rarely available in other sources on the employers’ management and worker training policies. 3 Research for Australia and Canada, previously cited, also finds that returns to IT are intertwined with the use of R&D, innovation, and changes in workplace practices and organization. This line of research suggests that IT is important, but that it makes its impact when accompanied by changes in other factors and practices. IS THE IMPACT OF IT THE SAME FOR ALL KINDS OF IT, EVERYWHERE? —EVIDENCE FROM STUDIES OF MARKET STRUCTURE IT was widely expected to alter the structure of markets. The direction, however, was unclear. Lower information costs might make it easier for smaller businesses to collect, analyze, and use information and so allow them to enter distant markets or compete more effectively with larger firms. At the same time, the lower information costs might make it easier for larger businesses 9 Atrostic and Nguyen (2002). 10 Atrostic and Nguyen, â€Å"The Impact Of Computer Investment And Computer Network Use On Productivity,† paper presented NBER-CRIW Conference on â€Å"Hard-to-Measure Goods and Services: Essays in Memory of Zvi Griliches,† Washington, DC (September 2003). J. Baldwin, and D. Sabourin, â€Å"Impact of the Adoption of Advanced Information and Communication Technologies on Firm Performance in the Canadian Manufacturing Sector,† Research Paper Series, 174, Analytical Studies Branch, Statistics Canada (October 2001) present findings for Canada. E. Bartlesman, G. van Leeuwen, and H. R. Nieuwenhuijsen, â€Å"Advanced Manufacturing Technology and Firm Performance in the Netherlands,† Netherlands Official Statistics, Vol. 11 (Autumn 1996) present findings for the Netherlands. C. Criscuolo and K. Waldron, â€Å"e-Commerce use and firm productivity,† Economic Trends (November 2003) present findings for the United Kingdom. K. Motohashi, â€Å"Firm level analysis of information network use and productivity in Japan,† presented at the conference on Comparative Analysis of Enterprise (micro) Data, London (September 2003). S. Black, and L. Lynch, â€Å"How to Compete: The Impact of Workplace Practices and Information Technology on Productivity,† Review of Economics and Statistics, Vol. 83 No. 3 (August 2001); and D. Neumark and P. Cappelli, â€Å"Do ‘High Performance’ Work Practices Improve Establishment-Level Outcomes? † Industrial and Labor Relations Review (July 2001). 13 12 11 70 DIGITAL ECONOMY 2003 to retain a competitive advantage. Similarly, use of the Internet might make it easier for consumers to compare prices, and so lead to a reduction in prices for products sold on-line or in â€Å"bricks and mortar† establishments. At the same time, a firm building an on-line sales-based business may incur costs that brick and mortar businesses might not, such as cost associated with having inventories available for immediate delivery anywhere in the United States (or the world). The issues are scarcely settled. In this section, selected examples from micro data research illustrate IT’s multifaceted nature and complex economic effects. Trucking A series of studies make use of public-use truck-level data from the Census’ Vehicle Inventory and Use Surveys to examine how IT has affected the trucking industry. Each of these studies indicates the importance of knowing not just that IT is used, but also the details of the IT and how it is used. These studies examine the impact of two classes of on-board computers (OBCs). Standard OBCs function as trucks’ â€Å"black boxes,† recording how drivers operate the trucks. These enable dispatchers to verify how truck drivers drive. Advanced OBCs also contain capabilities that, among other things, allow dispatchers to determine where trucks are in real time and communicate schedule changes to drivers while drivers are out on the road. These advanced capabilities help dispatchers make and implement better scheduling decisions, and help them avoid situations where trucks and drivers are idle, awaiting their next haul. One of these studies assesses OBCs’ impact on productivity by estimating how much they have increased individual trucks’ utilization rate, as measured by their loaded miles during the time they are in service. 4 It finds that advanced OBCs have increased truck utilization by 13 percent among trucks that adopt them; overall, this effect implies a three percent increase in capacity utilization industry-wide, which translates to about $16 billion in annual benefits. The vast majority of this increase comes from trucks in the for-hire, long-haul segment of the industry, and most of these re turns only began to accrue years after trucking firms first began to adopt OBCs. In contrast, the study finds no evidence that standard OBCs have led to increased truck utilization. Combined, these results indicate not just the magnitude of IT’s impact on productivity in the industry but also its nature and timing. IT adoption has led to large productivity gains due to advanced OBCs’ real-time communication capabilities, which enable trucking firms to ensure that trucks operating far from their base are on the road and loaded. These gains, however, appear to have lagged adoption by several years. The other two studies examine how OBCs have affected how the industry is organized. One study investigates how OBCs affect whether shippers use internal fleets or for-hire carriers to ship goods. 5 This study finds that the different classes of OBCs have different effects on this T. Hubbard, 2003, â€Å"Information, Decisions, and Productivity: On-Board Computers and Capacity Utilization in Trucking,† American Economic Review, September. G. Baker and T. Hubbard, â€Å"Make Versus Buy in Trucking: Asset Ownership, Job Design, and Information,† American Economic Review, Vol. 93 No. 3 (June 2003). 15 14 71 DIGITAL ECONOMY 2003 decision. The diffusion of standard OBCs has tended to increase shippers’ use of internal fleets, but the diffusion of advanced OBCs has tended to increase their use of for-hire fleets. This implies that IT-enabled improvements in monitoring drivers have led shippers to integrate more into trucking, but IT-enabled improvements in scheduling capabilities have led to more contracting-out of trucking. This systematic difference indicates that whether IT tends to lead to larger, more integrated firms or to smaller, more focused firms depends critically on the new capabilities the IT provides. The second of the two organizational studies is similar: it investigates how OBCs have affected whether drivers own the trucks they operate. 6 Traditionally, â€Å"owner-operators† have been an important part of the industry. An advantage associated with owner-operators is that they have strong incentives to drive in ways that preserve their trucks’ value; these incentives have traditionally been far weaker for â€Å"company drivers,† who do not own their trucks. This study shows that OBC diffusion has diminished the use of owner-operators. By allowing firms to monitor how drivers drive, OBCs have eliminated an important incentive advantage of owneroperators, and have led trucking firms to subcontract fewer hauls out to such individuals. Residential Real Estate The Internet vastly increases the amount of information on housing vacancies that is readily available to consumers. Previous research had shown that high costs of information and lack of access to information limited housing searches. The best information available to consumers tended to be for properties near their current location. In addition, research found that information intermediaries such as real estate agents influenced the options that consumers considered. The increased information that the Internet makes available to consumers potentially reduces or eliminates those limits. Consumers can readily learn about properties far from their current locations, and can do so relatively directly (there still may be some influence exerted in how web sites are set up, for example, and consumers may not immediately, or ever, get to the best web site for their needs). Two recent studies use micro data to assess the effect of using the Internet to search for housing. In these cases, micro data from the public-use Current Population Survey provide basic information on what kinds of consumers use the Internet to search for housing. However, the CPS does not have information about the homes that Internet users purchased. To address questions about the kinds of homes purchased, the researchers surveyed a sample of recent home purchasers in a county in North Carolina. Characteristics of buyers who used the Internet as a source of information about housing vacancies were generally similar to those of buyers who only used conventional information sources, except that Internet users were younger. The researchers conclude that using the Internet to shop for housing does not seem to effect geographic search patterns, or to lead consumers to pay lower prices for comparable homes. Although using the Internet might be expected to decrease the number of homes buyers visited, because they would have more information about the houses and neighborhoods, the studies G. Baker and T. Hubbard, â€Å"Contractibility and Asset Ownership: On-Board Computers and governance in U. S. Trucking,† http://gsbwww. uchicago. edu/fac/thomas. hubbard/research/papers/paper_424. pdf (April 2003). 16 72 DIGITAL ECONOMY 2003 instead find that homebuyers who use the Internet as an information source make personal visits to more houses. 7 The Impact of IT on Wages Do â€Å"knowledge workers† receive wage premiums because they use computers? Does the use of IT increase the demand for more-educated workers? Does the growing use of computers by workers in some sectors of the economy explain shifts in the distribution of wages? Initial micro data research answered the first question with a resounding â€Å"yes. † One early study, for example, found that the pay of workers who used computers was 10 to 15 percent higher than the pay of similar workers who did not. 8 However, more recent studies that make use of more detailed information about workers and jobs over multiple periods find that the answer is more nuanced. IT potentially affects many aspects of the performance of businesses. It also may affect the wages, and other characteristics of jobs. Asking how IT affects wages is actually asking two questions. The first question is whether jobs where workers use computers pay higher wages. If the answer is yes, the second question is why. As with IT use in businesses, determining cause and effect of IT use on wages is hard. The jobs might pay higher wages because they require high skill levels. Some IT-using jobs, such as computer programmers and systems analysts, clearly require high skill levels, as do jobs such as architects who use computer-assisted design programs. However, computers appear throughout many workplaces. Workers may use computerized diagnostic equipment and programmable logic controllers, for example, in production applications. Office and service workers may use word processors and spreadsheets, e-mail, computerized billing systems, and so forth. Such jobs might pay higher wages if using a computer makes a worker with a given skill level more productive, but they generally do not require the workers to know much about principles of programming, or system or network design. Finally, the use of IT may allow computers to substitute for low-skilled workers performing repetitive tasks. Micro data studies in the United States, Europe, and Canada all find that workers using computers at work have much higher wages than workers who do not. The difference typically is on the order of 10 to 20 percent. However, these studies all used data from a single period, and many of them lack information about other aspects of the job, the worker, and the employer. This makes it hard to determine whether the workers have higher wages because they use a computer, or because important unobserved characteristics of the employer (is it highly productive regardless of the use of computers? ) or the worker (is the worker already highly skilled before using a computer? ) may affect managers’ decisions on investing in computers and R. Palm and M. Danis, â€Å"Residential Mobility: The Impacts of Web-Based Information on the Search Process and Spatial Housing Choice Patterns,† Urban Geography, Vol. 22, No. 7 (2001); and R. Palm and M. Danis, â€Å"The Internet and Home Purchase,† Journal of Economic and Social Geography, Vol. 93, No. 5 (2002). A. Krueger, â€Å"How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–1989,† Quarterly Journal of Economics, Vol. 108 No. 1 (February 1993). 18 17 73 DIGITAL ECONOMY 2003 assigning them to which employees. A new study reviewing recent research on the impact of IT on employment, skills, and wages concludes that the story is complex. 9 Studies find that having information on plant characteristics and work practices matters. For example, a study finding that workers using computers in Germany had higher wages than workers who did not also found that a similar wage differential accrued to workers using telephones or pencils, or who worked sitting down. 20 The implication is that the wage differential really reflected the fact that workers using computers, telephones, or pencils, or who work sitting down, receive higher wages because they have higher skills. This research suggests that IT is associated with substantial wage differentials, but does not cause them. Studies for France and Canada find similar wage differentials. 21 Researchers using French and Canadian micro data also have matched sets of data on employers and workers in those countries, and have two or more years of data. Studies using these matched data all find that substantial cross-section returns to computer use fall sharply when they make use of information about changes in both the worker and employer characteristics. Estimates differ by country and study, but the final differentials are modest, 1 to 4 percent. 22 These studies also find that the relatively modest wage differential associated with computer use varies markedly across occupations and among workers with different levels of education. For example, a study for Canada finds that more highly educated workers, white-collar workers, and those adopting the computer for scientific applications receive higher than average wage premiums, while other workers do not receive wage premiums when they start using computers on the job. The reasons for such differences remain unresolved. It may be more costly to teach some groups of workers to use computers, or groups may differ in the proportion of computer training costs that they share with the employer (with lower employer shares resulting in higher wages). The researchers find that controlling for training increases the small or zero wage premiums they otherwise find for many low-skilled groups. They speculate that, if appropriate data were available to test for long-run effects, controlling for training and other worker characteristics might show positive wage differentials for most workers using computers. 3 Some detailed case studies (studies of specific businesses, usually anonymous) suggest another reason for differences in the wage differential associated with using computers at work. One M. Handel, â€Å"Implications of Information Technology for Employment, Skills, and Wages: A Review of Recent Research,† SRI International, SRI Project Number P10168, Final Report (July 2003). J. DiNardo and J. Pis chke, â€Å"The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too? † The Quarterly Journal of Economics, Vol. 112 No. 1 (February 1997). H. Entorf, M. Gollac, and F. Kramarz, â€Å"New Technologies, Wages, and Worker Selection. † Journal of Labor Economics (1999), and H. Entorf, and F. Kramarz, â€Å"Does Unmeasured Ability Explain the Higher Wages of New Technology Workers? † European Economic Review, Vol. 41 (1997); and C. Zoghi and S. Pabilonia, â€Å"Which Workers Gain from Computer Use? † Paper presented at NBER Summer Meetings (July 2003). 22 23 21 20 19 E. g. , Entorf and Kramarz 1997. C. Zoghi and S. Pabilonia 2003. 74 DIGITAL ECONOMY 2003 case study examined the effect of introducing computers into the operations of a financial organization. For some occupations, the case study found that computers substitute for the routine work that individuals previously performed, reducing the need for such workers. In other occupations, however, computers appear to take on routine tasks and free workers to perform more complex, higher skilled, problem-solving activities. 24 If IT also allows the business to alter the way it works and organize itself more productively, it may raise the skill requirements for all workers in the business, even if they do not directly use computers. Insights from the International Micro Data Initiative A wave of new literature in plant- or firm-level research on the effects of IT has been conducted in countries participating in the OECD. 25 (See box 5. 1. ) As with research using U. S. micro data, the micro data research conducted in other countries also find links between IT and productivity. Where information on computer networks is available, or other measures of how computers are used, the research again suggests that it is not just having IT, but how IT is used that effects economic performance measures such as productivity. Two kinds of studies are being undertaken. Some studies base their research on new data on IT for a single country. They make use of as much information as they can, and choose empirical techniques best suited to their data. Studies such as these contribute important insights, particularly when one country has information that other countries do not, or researchers are able to use techniques that help ensure that the measured effects indeed are due to IT. However, this strength also makes it hard to compare such estimates across countries. Studies from individual OECD countries find that IT has an impact on productivity and economic performance. Significant effects of IT on productivity are found in the service sector in Germany. 26 Recent research for France finds that one specific kind of network, the Internet, is associated with productivity gains, but other kinds of networks, which have been in use much longer, are not. 27 Canadian research finds that adopting IT is associated with growth in both productivity and market share. 8 Use of computers in Australia also is associated with productivity growth, with effects that vary across industries and are intertwined with other factors, such as the skill of a business’ work force, its organization and re-organization, and its innovativeness. 29 24 D. Autor, F. Levy and R. Murnane, â€Å"Upstairs, Downstairs: Computer-Skill Complementarity and Computer-Labor Substitution on Two Floors of a Large Bank,† Industrial & Labor Relations Review 55(3) (2002). Resea rch to date is summarized in D. Pilat, ICT and Economic Growth: Evidence from OECD Countries, Industries, and Firms (Paris: OECD, 2003). T. Hempell, â€Å"What’s Spurious, What’s Real? Measuring the Productivity Impacts of ICT at the Firm-Level,† Discussion Paper 02-42, Centre for European Economic Research (Zentrum fur Europaische Wirtschaftsforschung GmbH; ZEW, 2002), ftp://ftp. zew. de/pub/zew-docs/dp/dp0242. pdf. B. Crepon, T. Heckel, and N. Riedinger, http://www. nber. org/CRIW/papers/crepon. pdf, Paper presented at â€Å"R&D, Education, and Productivity,† NBER CRIW conference in honor of Zvi Griliches (Paris: August 2003). 8 29 27 26 25 J. Baldwin and D. Sabourin 2001. G. Gretton, J. Gali, and D. Parham, â€Å"Uptake and impacts of ICTs in the Australian economy,† paper presented at OECD, Paris, December 2002. 75 DIGITAL ECONOMY 2003 Another group of studies tries to use as many variables and analytical techniques as possible that are similar to those used by researchers in a few other countries. 30 This approach may exclude some variables and some analytical techniques, if researchers in several countries cannot use them. On the other hand, this kind of coordination makes it more likely that similar empirical findings are actually due to IT, and that differences in empirical findings are due to differences in economic conditions and other factors among countries. An example is a group of researchers conducting parallel analyses for the United States, Denmark, and Japan. 31 Preliminary findings are that IT is positively related to productivity in all three countries, but that the relationship depends on the type of IT used, the sector, and time period. Early results for Denmark show a significant correlation between several measures of the firm’s performance and use of the Internet, but not for other uses of IT. For Japan, productivity levels are consistently higher for firms using IT networks. However, growth in labor productivity varies by type of network and how the network is used, and the effect of Internet use is higher for retail trade firms than for manufacturing firms. For U. S. manufacturing plants, there is a strong relationship between use of computer networks and labor productivity. Better Micro Data Research Requires Better Micro Data Because the micro data are typically collected for other purposes, such as constructing key economic indicators, we almost always find that they lack some (often, much) of the information needed to address questions such those about the pervasiveness of IT and its effect. These gaps simply do not allow us to draw firm conclusions about the effect of IT. For example, research exploring the micro-level link between IT and economic performance may not always be able to separate the role of IT from other related but unobserved characteristics of the plant. Well-managed plants may use IT as one of many tools to achieve performance goals. If we have information about IT, but not about management practices, the research may attribute performance effects to IT that really are due to good management. Estimating plant-level relationships among computers, computer networks, and productivity also is hard to do with existing data because many of the most important concepts—what a business produces (output), and all the factors it uses to make its product (such as labor, capital, energy, etc. known as â€Å"inputs†), as well as IT itself—are difficult to define, and data based on these concepts are hard to collect. 32 Continuing research on these concepts leads to improve- For example, researchers in several countries are using the approach taken by U. S. researchers (Atrostic and Nguyen 2002), and using its findings as the benchmark against which they are comparing research findings using their own countries’ data. B . K. Atrostic, P. Boegh-Nielsen, K. Motohashi, and S. Nguyen, â€Å"Information Technology, Productivity, and Growth in Enterprises: Evidence from New International Micro Data,† L’acutalite economique (forthcoming 2004). A large literature lays out major data gaps in estimating the impact of information technology on economic performance. For example, conferences conducted by the NBER Conference on Research in Income and Wealth (CRIW) addressing capital and labor measurement over the last 20 years include D. Usher, The Measurement of Capital (NBER CRIW Volume 45 (Chicago University Press, 1980)); J. Triplett, The Measurement of Labor Cost (NBER CRIW Volume 48 (Chicago University Press, 1983)); and C. Corrado, J. Haltiwanger, and D. Sichel, Measuring Capital in the New 32 31 0 76 DIGITAL ECONOMY 2003 ments in what statistical agencies collect, but a dynamic and evolving economy continually presents new challenges. Even when concepts are well defined, it is costly for statistical agencies to collect data and for respondents to provide the requested information. As a result, some key information needed for analysis may not be collected often or at all. Examples include information such as the number of computers and computer networks that businesses have, how they use them, and how much businesses invest in computers and other IT. The divergent findings in the resulting empirical literature on the effects of IT are likely related to these data gaps, and to differences in the techniques researchers use to try to deal with them. 33 One way to improve the micro data available for research would be by better integrating aggregate economic indicators and their underlying micro data. It currently is not always easy to reconcile movements in the aggregate statistics with changes observed in the micro data. Aggregate indicators often are constructed from multiple micro data sources, and different sources of data for any concept (such as employment or payroll) may disagree. Collecting more of the data underlying aggregate statistics in ways that enrich their value as micro data, such as using common sampling frames and keeping information that allows linkage of same economic unit over time and across surveys, would improve both the micro data and our ability to understand changes in the aggregate economic indicators. Conclusion Micro data research conducted in the United States and in OECD countries shows that IT is related to economic performance and productivity. Careful research also shows that the relationships are complex. IT emerges as a multifaceted factor. The kind of IT that is used and how it is used appear to matter in many (but not all) settings, including the ownership structure of trucking markets, the relative dynamism of retailing, and the relative risk taking and innovativeness of manufacturing sectors across countries. At the same time, the use of IT alone does not appear to be enough to affect economic performance. When researchers have information about the characteristics of businesses, workers, jobs, and markets, they find that IT appears to work instead in tandem with those factors. Economy (NBER CRIW Volume 65 (Chicago University Press, forthcoming)). A series of meetings of international experts, known as the â€Å"Canberra Group,† addressed capital measurement issues during the late 1990s (http:// unstats. un. org/unsd/methods/citygroup/capitalstock. htm). An excellent manual describing how to calculate productivity devoted considerable text to issues in measuring capital can be found in P. Schreyer, Measuring Productivity: Measurement of Aggregate and Industry-Level Productivity Growth—OECD Manual (Paris: OECD 2001). Measuring intangible capital, potentially important in both IT and non-IT capital, received much attention recently (see for example B. Lev, Intangibles: Management, Measurement, and Reporting (Brookings Institution Press: 2001)). 33 See, for example, Dedrick et al. (2003); D. Pilat, 2003; B. K. Atrostic, J. Gates, and R. Jarmin, 2000, â€Å"Measuring the Electronic Economy: Current Status and Next Steps,† Working Paper CES-WP-00-10, Center for Economic Studies, U. S. Bureau of the Census, Washington DC; and J. Haltiwanger, and R. Jarmin (2000), â€Å"Measuring the Digital Economy,† in E. Byrnjolfsson and B. Kahin (eds. ), Understanding the Digital Economy (MIT Press 2000). 77 DIGITAL ECONOMY 2003 Separating out the effect of IT remains difficult because the analysis requires detailed information, and requires it for multiple periods. However, such detailed and repeated information is rare. Most business micro data contain only the information needed to calculate important economic indicators. The micro data are most sparse for the sectors outside manufacturing—the most IT-intensive sectors. More definitive research on the impact of IT requires that producing micro data sets becomes a statistical agency priority. 78 DIGITAL ECONOMY 2003 Appendix 5. A. Conducting Micro Data Research on the Impact of IT THE CENTER FOR ECONOMIC STUDIES, U. S. CENSUS BUREAU The Center for Economic Studies (CES) is a research unit of the Office of the Chief Economist, U. S. Bureau of the Census, established to encourage and support the analytic needs of researchers and decision makers throughout government, academia, and business. CES currently operates eight Research Data Centers (RDCs) throughout the United States. RDCs offer qualified researchers restricted access to confidential economic data collected by the Census Bureau in its surveys and censuses. CES and the RDCs conduct, facilitate, and support research using micro data to increase the utility and quality of Census Bureau data products. The best way for the Census Bureau to assess the quality of the data it collects, edits, and tabulates is for knowledgeable researchers to use micro records in rigorous analyses. Each micro record results from dozens of decisions about definitions, classifications, coding rocedures, processing rules, editing rules, disclosure rules, and so on. Analyses test the validity of all these decisions and uncover the data’s strengths and weaknesses. Research projects at CES and its RDCs are examining how facets of the electronic economy affect productivity, growth, business organization, and other aspects of business performance using both new data collected specifically to provide new information about IT , and existing data. Projects using existing Census Bureau micro data on businesses include McGuckin et al. 998; Dunne, Foster, Haltiwanger and Troske, 2000; Stolarick 1999; and Doms, Jarmin, and Klimek, 2002). Research making use of the new 1999 supplement to the Annual Survey of Manufactures linked to existing Census Bureau micro data include Atrostic and Gates 2001; Atrostic and Nguyen 2002; Haltiwanger, Jarmin, and Schank 2002; and Bartelsman et al. 2002. Research findings from many of these projects are discussed in this chapter. The research also helps the Census Bureau assess what current data collections can say about the electronic economy so that we can more efficiently allocate resources to any new measurement activities. More information about CES, RDCs, requirements for access to data, and examples of research produced at the RDCs is at http://www. ces. census. gov/ces. php/home. DATA SOURCES AT CES Researchers at CES and the RDCs built, and use, a longitudinal data set linking manufacturing plants over time. The data are based on surveys and economic censuses, and contain detailed data on shipments and factors used to produce them, such as materials and labor, as well as characteristics of the plant, such as whether it exports. Recent CES research broadens the range of available micro data beyond manufacturing. A new micro data set, the Longitudinal Business Database, currently contains the universe of all U. S. business establishments with paid employees from 1976 to present. It allows researchers to examine entry and exit, gross job flows, and changes in the structure of the U. S. economy. The LBD can be used alone or in conjunction with other Census Bureau surveys at the establishment 79 DIGITAL ECONOMY 2003 and firm level. In addition, micro data from surveys and censuses of the retail, wholesale, and some service sectors is now becoming available. The National Employer Survey, conducted by the Census Bureau for the National Center on the Educational Quality of the Workforce, collects detailed information about work practices, worker training, and the use of computers. Restricted access to confidential data from the survey is available to qualified researchers through the RDCs. Information about the National Employer Survey can be found at http://www. census. gov/econ/overview/mu2400. html. PUBLIC-USE DATA This chapter also refers to research conducted using two other sets of micro data collected by the Census Bureau. The Current Population Survey (CPS) is a survey of households that is collected by the Census Bureau for the Bureau of Labor Statistics. The CPS periodically collects information about people’s use of computers at work and at home. More information can be found at http://www. census. gov/population/www/socdemo/computer. html. The Truck Inventory and Use Surveys collect information about on-board trip computers and electronic vehicle management systems as part of the Census of Transportation. Information about the Census of Transportation can be found at http://www. census. gov/econ/www/tasmenu. html. 80

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Encouraging affective organisational commitment in Thai part-time employees at Thai restaurants in UK - Essay Example y on the quality of food and beverages served, the level of hospitality coupled with cosiness of the customers and corresponding general environment of the restaurant. Therefore, the prevailing case study has been appropriately chosen for carrying out research on the customer loyalty at the Thai Square restaurants (Gratton & Jones, 2010, pp234-267). The research topic is purely analytical and the corresponding case study is most appropriate for analysis of the prevailing analytical issues within Thai Square Restaurants. Analytical method mainly entails description of the customer loyalty, which encompasses diverse theories regarding the subject matter and its corresponding applicability within the context of the real life scenario (Hartley, 2004, pp323-333). The analytical method applied within the case study is flexible and supports both the qualitative and quantitative analysis. The underlying case study method fosters studying the data that has been gathered via questionnaire survey (Gratton & Jones, 2010, pp234-267). Thus, analytical reasoning in regard to the underlying research is most appropriate for the existing case study approach. Case study method is mostly employed in the assessment of diverse matters associating to the social science, human and organizational behaviour coupled with the psychological studies (Hartley, 2004, pp323-333). The method utilized within the case study is analytical and mainly entail gathering data from diverse sources utilizing techniques encompassing questionnaire method, telephonic interviews, main and individual interviews. These methods are the fundamental sources of data gathering whilst secondary sources mainly entail information within diverse books, journals and corresponding website publications (Gratton & Jones, 2010, pp234-267). Diverse approaches was utilized in the study of the collected information are mainly categorized into qualitative and quantitative analysis techniques and encompasses statistical

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Metamorphosis Franz Kafka - Essay Example ver, the much she takes care of her brother by providing him with food, making his room cozier to adapt in his transformed body as well as trying to keep his shreds of human left in him alive, shows that she is indeed of a caring character. However, her stage in life, as a young adult, demands that she engage in responsibilities such as getting her family and consequently sustaining it. By so doing, she endeavors to generate income to provide for her family. As much of these happen in Grete’s life, she slowly gives up caring for Gregor, with the excuse that she has income generating activities as her priority in order to meet the needs of her family. Dehumanization emerges when she gives up caring for her brother to chase worldly things such as money. This is the chief cause of Gregor’s death as he dies out of starvation. Gregor’s transformation is what creates conflict in the text. It elicits varied responses from those people in his life. There is alienation in the form of the distance that is created between him and them after the transformation. He feels as if in he is caged in a prison of his new body while, on the other hand, his family and friends struggle with feelings of sympathy and revulsion towards Gregor. Gregor’s death resolves the conflict caused by his transformation. The setting plays an important role in the reinforcement of the theme and characterization. Gregor’s bedroom in which he wakes up from a dream and finds himself transformed forms the boundaries of Gregor’s activities. One learns of Gregor’s character through his interaction with much of what is found in this room. Also important in the development of characterization is the entire building that houses the members of Gregor’s family. In communicating the theme of dehumanization, the author employs various literary devices that include symbolism, metaphors, foreshadowing among others. For instance, the picture of the woman in furs which Gregor clings to when things are

Business Through The Eyes of Faith Essay Example | Topics and Well Written Essays - 2000 words

Business Through The Eyes of Faith - Essay Example This is a company formed in 1987, which has over time provided critical technological services to markets, administrations, institutions, and more (Business: Is There A Christian Perspective p. 15). Management team at the company is largely Christians and in equal measure pursues Christian principles in their activities. The expression made in this case is that, business is part of Christian activity that cannot be separated from the wider role and duty of Christians. Business is a social activity and the essence for it to act morally and ethically is inevitable. Christians and the larger human body that have direct or indirect involvement in business have a duty to honor God by pursuing ethical and moral business practices at all times. People can honor and remain obedient to God when they shoe ethical and moral value of their business activities. When one honors God’s creation (the people) then the person in same measure is able to honor God. Ethics and morals are seen to be fundamental principles that define success or failure of any particular given business, although, it has to be known that an individual or a corporation can have strong ethical values and morals but still fail to achieve its objectives when it ignores multi-dimensional perspective of the business. The author of this chapter introduces the concept of ‘Law of Nature’ which he subsequently transforms into an argument based on moral laws. The author contends that Law of Nature is a creation of a human who in one way or the other tries to control or manipulates the behavior of the other human being (The Law of Human Nature 1). Laws of Nature are intended to define what is right and what is wrong, thereby categorizing the appropriate behaviors, which society can accept or not (The Law of Human Nature p.1). Although Laws of Nature provide these guidelines for appropriate behavior, they

Class learning log Research Paper Example | Topics and Well Written Essays - 750 words - 1

Class learning log - Research Paper Example The term competitive intelligence is not as old or common as marketing or finance, neither it is separable from the other operations of any organization. It signifies continuous effort of a company to maintain its position in the era of cut throat competition and bring value to its stakeholders. The two most significant learning in the Competitive Intelligence class for me has been the Intelligence Cycle and KITS (Key Intelligence Topics). Both these processes have different significance. The Intelligence cycle consists of stages of Planning, Collection, Analysis and Dissemination and an extension of the traditional competitive intelligence. At the same time, KIT is the process of identifying and prioritizing the key intelligence needs for the senior managers. Interestingly the six CI question of the beginning of the first class created much of interest. This class talked about the recognition and respect of the profession, applicability of law, disclosure of information, confidentiality of information, conflicting issues and ways to avoid conflicts of interests in fulfilling one’s duties, ethical standards and many more. This was the first experience of knowing understanding different aspect of business environment can bring an opportunity to leverage on as well as negligence can be fatal for the survival of the organization. Understanding of environment provides an opportunity to change it. Deeper is the profile and intelligence, broader is the understanding of elements of environment and easier it will be for a business professional to get clues from the environment as warning and develop strategies that can either help in preparing for unforeseen circumstances or leverage on that too. There are various terms given to competitiv e intelligence such as foresight, insight, environmental scanning, peripheral vision, competing through analytics and business

Media Economics Essay Example | Topics and Well Written Essays - 500 words

Media Economics - Essay Example The Big 6 Media Giants namely General Electric, Walt Disney, News Corp, Time Warner, Viacom and CBS are a practical example of this definition. These conglomerations not only control what we see, hear and read but also control our thoughts. They are all vertically integrated which allows them to produce and distribute media and news to their likings and manipulate our views (Shah, 2009). Media ownership and conglomeration have taken a new form with time. They are no longer attached to the purity of journalism or of best interests of the audiences. The media conglomerations are now slanted towards corporate goals and interests. In order to achieve the goals, the conglomerates are most often accused of being biased with allegations of corporate whitewashing and censorship (Bagdikian, 1997). In addition, to promote their own interests, media conglomerates favor infotainment over relevant news stories. Although the idea of media conglomeration and ownership is not a bad idea as it can create a healthy competition providing viable and valid news to the audiences. The concern is basically related to the concentration of ownership which can and is increasing the economic and political influence. According to Rifka Rosenwein, the concentration of media ownership has increased the control over expressions which has led to an aggressive competition and silencing of the news and ideas in the marketplace (Shah, 2009). According to the latest statistics, in 2009, there are only six giant conglomerates that own the US media namely the Big 6. This is eventually leading to monopolies and oligopolies which from a business perspective is not a good sign. Considering the role played by media in a prevailing democracy, reaching out to masses is of paramount importance. Many of the media conglomerates own entertainment companies such as Walt Disney where one cannot expect the company to discuss sw eatshop labor when, on the other hand, it is accused of being part of it (Shah,

Proofread recommendation Essay Example | Topics and Well Written Essays - 1000 words

Proofread recommendation - Essay Example Thus, the normal ordinary high school student who has not yet developed met cognitive skill will see Jaehyeukas one-step above analysis and he is able to be clean in the understanding of what he does. In addition, because of the high degree of concentration and patience, that Jaehyeuk has and his logical reasoning skills and mathematical problem solving ability has provided him with top grades and he has been able to maintain these grades. Because of this, Jaehyeuk would be an excellent candidate to be a college student in the University. A high level of education receive at the school at bipyeongjunhwa() region among Parkjaehyeuk students than showed that anyone else could have academic enthusiasm and sincere efforts for high academic achievement, history, and mathematics. It is important to know how to think critically, have historical context, understand historical or social phenomenon and a distinct view of history based on the national history curriculum, and have a wide range o f knowledge and a lot of dokseoryang (). Korean history, which is organized by the National History Compilation Committee Language Proficiency Test Level 2 (5/10/2010) and Class 1 (08.25.2010) has acquired mathematical conjecture about any object, and the ability to find and prove an ability to excel in math curriculum and math internal problem-solving skills and the application of the problem-solving skills is outstanding. Gyeonggi () English communication skills certification class (11/06/2009), English, Chinese English courses and courses in higher interest acquired, many Chinese in China-related books for extensive reading in many areas, including China's political, cultural and economic attention to lessons and activities have been very actively and aggressively read. We are confident that these points right after college are important in a person’s lifelong research in the field they want to show enough ability in to do well. Autonomous, adaptive, and event activities i n the first year of basic life habits are well-guarded rules of the class, and training activities (04/01/2009 ~ 04/03/2009, balwangsan () members) involved in the natural protective cleanup activities have been very important. Grade 2 states that one should always comply with school regulations and I have been working diligently to maintaining a clean environment on campus. I have been interested to learn the culture and the natural ecology of the Jeju () Island through on-site experiential learning (03/01/2010 - 04/03/2010) and I actively participate in the activities. Third grade is a time when students are educated, well mannered, and they have a young man exercise. As the order practice, Fuyuan was engaged in his career to establish his own identity as a rational thinking, exploring, and on-site learning experience (05/19/2011). One must find development activities in the first year of activities in the 'Kanji -1' water supply was excellent to know the exact sound and meaning o f Chinese characters in Sino literacy classes which I found interesting. Through a discussion of activities in Grade 2 when 'reading Hanmun () discussing wealth, the book was selected for a presentation in front of many people through the process with confidence and hope. The degi (Hwang Sok-yong)' movie 'Peppermint Candy' provided a good personal insight and dismal history to show

The Earth Energy-Balance Term Paper Example | Topics and Well Written Essays - 1000 words

The Earth Energy-Balance - Term Paper Example According to a study in the United States, more than 200 million sources of air pollutions are added into the atmosphere every year which is equal to 1760 pounds of pollutants per person. For instance Acid rain is the major source of causing air pollution because it damages lakes, streams, vegetation and wildlife. Another major issue impacting the human lives is global warming because the level of carbon dioxide has exceeded up to 40 % since the year 1860. In the recent years over the 134 years, there has been the highest amount of temperature change. Southern and northern ice caps have been warming us for centuries but what will happen if these caps had melted? Therefore, the constant disappearing of plants, use of fossil fuels is the reason which causes the greenhouse effect. My design takes the environment into consideration and brings attention towards something that is very important to all the people in the world being carelessly neglected. There are many ways through which we can restore importance by ignoring our many habits. Most Americans feel that they have mastered over the nature and environment and they have a complete faith in technology. When they face the environmental crisis like shortage of gas and oil then they believe that â€Å"science will save us† but belief on technology’s role in environmental problems is highly premature because science is not the answer to every environmental problem.

Environmental Factors Essay Example for Free

Environmental Factors Essay There are many environmental factors that affect the global and domestic marketing strategies of organizations. What is necessary is an assessment of the company’s attempts at positioning its product to meet the needs of an undisclosed market. Environmental factors always affect the domestic and international marketing performance of companies in many environments. What environmental factors do is that they shape and set targets on the entry and operational decisions of Coca Cola Limited. Established in 1886, Coca Cola owns four of the world’s top five nonalcoholic beverages, operates in over two hundred countries and serves over one point five billion consumers locally and international. The environmental factors that Coca Cola has to battle with include the level of competition, cultural attributes, consumer characteristics, political and legal concerns. These factors have an impact on both the potential local and international marketing functions of the company. One factor affecting the marketing decisions of Coca Cola is competition among alcoholic beverages. These competitive factors include pricing, advertising, production innovation and brand and trademark development and protection. Of interest to us is the fact that one of Coca Cola’s major competitors is PepsiCo. The marketing decisions of the company have to be guided strategically because it impacts on the actual sales levels of the firm. Coca Cola continues to maintain a cutting edge in the industry because it continues to uphold its hallmarked values of refresh the world, inspiring moments of optimism and creating value through making a difference. Cultural also has a part to play in the marketing decisions of Coca Cola. Of later, governments across the world have been placing pressure on beverage companies to regulate alcohol content because they affect consumer’s thinking. While Coca Cola does not have to fight up with this cultural implication, it may have to attend to means of re-establishing consumer loyalty. For example, Marketing Coca-Cola in China has been a long and trying road. Firstly opening bottling plants in Shanghai and Tianjin in 1927 and then a third plant opened in Qingdao in 1930, Coca had a fight gaining a solid marketing lead. After a 30-year absence from the country, The Coca-Cola Company re-entered China in 1979, following the re-establishment of relations between China and the United States. Coca-Cola was the first American consumer product to return to China and is doing very well today. Another environmental factor affecting Coca Cola’s development of effective marketing tools and campaigns across the world is legal requirements for entry and set up. All multinational companies are forced to abide by laws requiring high tax entries although maximum profits are to be repatriated. It is Coca Cola’s policy to comply to consumer protection laws, occupational, health and safety acts, and local statues and regulations concerning advertising, transportation, distribution and food and safety laws. Additionally, Coca Cola’s principle challenge was is water resource management which in some countries is bound by legalities. In 2004, the company was forced to take a major step in reducing the potential impact of climatic damage via the use of coolers and vending machines. So that dealing with legal implications enabled Coca Cola to adapt a marketing strategy that considers its social responsibility. The end result of that was Coca Cola, partnering with the United Nations Environment Programme and Greenpeace International as a means of finding natural refrigerants. Explain how technology impacts the organizations marketing decisions. Coca Cola decisions have been affected by the impact of technology. In an interview done by a researcher, he commented that â€Å"as industry leaders it is Coca Cola’s responsibility to invest in the research and development necessary to develop economically viable and commercially available refrigeration solutions to take us toward an HFC-free, climate-friendly future. We hope that other companies will join our commitment to sustainable refrigeration. By working together, we can continue to reduce the impact of commercial equipment on the environment. † It is obvious that Inorder for Coca Cola to remain a leader in the beverage industry there was the need to re-examine its products and production processes; its packaging, design, equipment and quality assurance. Coca Cola attempts to strike a balance between the use of modern and traditional technologies depending on the marketing initiative and project location. Interestingly, with the launch of eKOfreshment, Coca Cola used more than ten different technological options to improve its environmental performance, regulatory compliance and overall price and operational costs. The end result of using technology as a point of reference for marketing is the winning of the United States Environmental Protection Agencys Climate Protection Award for their joint efforts in promoting the development of environmentally friendly commercial refrigeration technology through the creation of the refrigerants naturally coalition. So that as Coca Cola evolves with technology its marketing habits and values change to accommodate consumer characteristics and behaviours. Of great importance to Coca Cola is their social responsibility and ethical considerations of which its management has found to be a contributing factor to the development of a strong marketing campaign globally. In analyzing its importance, we must consider the company’s priority; its marketplace, workplace, environment and community. To us, this is a key side; Coca Cola has opted to have social responsibility as a sub heading to their website. In the marketplace, they take pride in quality, marketing more than 450 brands and over 2,800 beverage products, just still living up to giving our consumers a choice of still or sparking beverages that refresh, hydrate, energize or nourish. Our ethical value is that each of those products must be of the highest quality and must meet consumers changing tastes, needs and expectations. In each of the more than 200 countries where we operate, Coca Cola is an active member of the business community, working hand in hand with local individuals, merchants and governments to improve the health and prosperity of the local economy and environment. We know that the continued health and sustainable growth of our business depends on the long-term health of the communities that surround it. After all, we need healthy consumers, communities, environments and economies for our business to thrive. So we encourage human right laws in the workplace as our business ultimately depends on the combined talents, skills, knowledge, experience and passion make Coca Cola who it is. Wherever Coca Cola operates, it seeks to get involved in the work of communities, governmental organizations and NGOs to create and support projects most relevant to them. Marketing is a critical step in the success or failure of a company. For Coca Cola, an international company operating in years of integrity and business sense, today they have stood to repeat the rewards of their actions. Together with many other partners, this company continues to forge it way to be a continued leader in the beverage industry. Reference Blythe, Jim. (2004). Canada. Financial Times Prentice Hall.

The History Of Travel Agencies

The History Of Travel Agencies Travel agencies exist mainly as intermediaries among suppliers of travel services such as carriers and hotels, and customers. Travel agencies do not deal with tangible products but with information where it is different from other distributors in many industries (Cheung Lam, 2009). As for the travel agent it is best defined as an individual who undertakes a work for another individual, who is being the principal. The principal in such an affiliation not only sets the aims of the work, such as selling tickets, however can also control the means and way in which the work is completed (Cheung Lam, 2009). Cheung Lam (2009) added that modifications in the business over the past ten years have affectedly changed the environment and significance of info in the travel industry and, subsequently, the role of travel agency. Lately, the technology advancement has brought changes in tourism industry. Why did the Internet so affectedly affect the travel industry? What impact do the changes have on travelers? (Harrell Associates, 2002). The Internet has revolutionized the method in which customers make their travel choices (Anon, 2012). Customers nowadays have several additional selections because the Internet offers providers additional chances to generate direct customer relations and allows a varied range of pricing (Harrell Associates, 2002). The Internet offers an influential atmosphere for the conception of virtual representations of tourism destinations permitting indirect experience that really exceeds the potentials of traditional travel agents (Bogdanovych, Berger, Simoff Sierra, 2005). Currently the Internet is the perfect connection among customers and dealers, over hundreds of websites, travelers have sufficient information for their travel preparation (Ortega, 2008). According to Travel Indus try Association of America (TIA) over 75 million online travelers used the Internet for their travel planning such as to look for places to stay, rental car prices, also searching for maps and driving directions, searching for airfares and schedules and other information about tourist destinations (Ortega, 2008). According to Ortega (2008), he said that the travel planning and booking on the Web are among the greatest popular online activities in best important e-commerce markets and online travel sales are rising at an explosive amount (over $115 billion this year) in the US, Europe and the Asia-Pacific regions. Therefore, because of the growing of the e-commerce in the tourism industry, the tourists have numerous selections provided by the Internet to obtain online, in the ease of their houses or offices, touristic services and products (Ortega, 2008). Furthermore, the Internet assists to locate low prices in tourist services such as air tickets and hotel rooms. In conclusion, it offers tourists a remarkable total of information to make an exclusive trip. According to Vrana (2010), she claimed that a main forte to travel agencies is the capability to offer personal information and assistance to tourists endlessly, along with consultancy service for corporations and will keep on secure if their advice-offering ability remained supported by the existence of the Internet. Even though there are many online travel services, a traditional travel agent is as far a vital part of the trip as ease is to traveling! (Will, 2012). The travel industry is comprised of over a dozen related industries: airlines, restaurants, hotels/motels, travel agencies, gift shops, auto rentals, and a host of other businesses that may not be even recognized their dependence on travel and tourism since travelers are usually indistinguishable from local customers (Cheung Lam, 2009). Will (2012) also stated that, the part of a travel agent has remained growing with the eras and currently most people are reliant on them for fulfilling most of their travel plans so tha t they can rest calmly and just relish their trip. This study aims to examine the factors involves in sustaining travel agencys operation in order to survive in this tourism industry and evaluate their performance or sales of travel agency that can affected by the uses of technology such as Internet. 1.1 RESEARCH ISSUES Tourism has become the second largest economy contributor after manufacturing. One of the factors that contributes to the boom of tourism market is the advancement of technology. Travel industry are comprises of variety related industries, such as airlines, travel agencies, restaurants, hotel/motel and more (Cheung Lam, 2009). More or less, each of the related industry will get at least a little impact from the technology advancement, notably these travel agencies. There is some research that indicates that tourism product is popular to be bought through online (Nysveen Lexhagen, 2001). Online tourism has grown rapidly as the consumer nowadays are using the advancement of technology to acquire information and also purchasing tourism products and services (Dixit, Belwal Singh, n.d). There are many reasons why consumer tends to choose Internet as one their medium in purchasing tourism product and services. One of it is Internet are giving them cost-saving convenience (Cheung Lam, 2009). Cost-saving convenience means that there are no efforts required for the consumer to spend their time and money to seek for information needed about a certain package. Some of the consumers also choosing Internet rather than looking for travel agencies because of the flexibility that Internet has to offer. The consumer are seeking flexible tourism product to suit their travel needs (Harris Duckworth, 2005). Based on their research, the consumers buying pattern recently has change rapidly to independent travel from the typical package holiday. To support this statement, they are adapting a research done by Mintel, in UK independent travel has conquered the travel market in 2004 with 55%. The other reason why consumers tend to choose Internet over travel agencies is because of online experience has greater potential in visualizing travel destinations (Bogdanovych, Berger, Simoff Sierra, n.d). They also stated that online technology offers 3D interactive tours that can deliver clearer image on the destination. Interactive videos can also be shown online without interrupting other customers. Based on a study done by Daugherty, Hairong Biocca (2005) which they wanted to get consumers reaction on the product presentation method. The two choices are indirect experience (virtual presentation), and direct experience (direct product manipulation). The results proved that, product knowledge and decision quality made by the consumer are both significantly higher when they are exposed to interactive 3D products than to static products presented in a form-based way. Despite from all the factors, travel agencies which are at stake need to survive in order to sustain their spot in the travel industry. They have to differentiate themselves more than what technology advancement has to offer. Based on the statement of research problem, we want to conduct a research on how travel agencies can sustain their operation. There are a few factors that make travel agencies can sustain themselves in tourism industry in Malaysia. These factors can determine the sales of the travel agencies because the trade travel agency community has sustained substantial losses due to the mutual effect of the growth of Internet (Cole, 2009) 1.2 STATEMENT OF RESEARCH PROBLEM Generally, in real world, an increasing competition from other channel had caused the number of traditional travel agents nearly decrease (Buhalis, 2003). The Internet is changing the industrys structure and the consumers behavior. Widely used of technology in tourism industry has affect the operation of the travel agencies in Malaysia. The usage of Internet by travelers has decreased the number of travel agencies sales in Malaysia. Besides that, Internet also has caused the high street travel agencies to close, thus creating job losses within the businesses (Anon, 2010). Many studies have looked into The Internet Travel Industry: What Consumers Should Expect and Need to Know, and Options for a Better Marketplace (Harrell Associates, 2002), Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals (Bogdanovych, Berger, Simoff Carles Sierra, n.d), Evaluating the Adoption and Use of Internet-based Marketing Information Systems to Improve Marketing Intelligence : The Case of Tourism SMEs in Jordan, AL-allak, 2010), Attitudes Towards Internet Use Among Travel Agencies In Greece (Vasiliki, Costas Savvas) and Travel Agents Fight A Losing Battle With the Internet (World Airline News, 2008). Unfortunately, there is no specific study that evaluates or observes on the factors that lead to the methods of sustaining the travel agencies operation in Malaysia regarding on the technology advancement. 1.3 RESEARCH OBJECTIVES 1) To identify the factors that capable to sustain the operation of travel agencies in Malaysia 2) To identify whether the performance or sales of travel agency are affected by the uses of technology such as Internet or not. 1.4 RESEARCH QUESTION 1) What are the factors that can sustain the operation of travel agencies in Malaysia? 2) Does the performance or sales of travel agency are affected by the uses of technology such as Internet? 1.5 CONCEPTUAL FRAMEWORK Independent variables Dependent variable Sustainability factors: à ¢Ã¢â€š ¬Ã‚ ¢ Human Touch à ¢Ã¢â€š ¬Ã‚ ¢ Negotiation Power à ¢Ã¢â€š ¬Ã‚ ¢ Interpersonal Skills à ¢Ã¢â€š ¬Ã‚ ¢ Niche Market Travel agencys operation Figure 1: Proposed framework for the study 1.6 SCOPE OF THE STUDY The scope of the study is using the travel agencies around the Klang Valley area. All the travel agencies that took part in this study offers wide-range of services and products in their company. These travel agencies have been selected according to their location that located in Kuala Lumpur and Selangor. Most of the travel agencies are located in Kuala Lumpur. 1.7 SIGNIFANCE OF THE STUDY This study will basically benefit few categories of organizations that play important key roles in the tourism industry. Firstly, the government bodies such as the Ministry of Tourism, Tourism Malaysia and travel agencies in Malaysia. Secondly, this study will benefit the educational institution especially academicians and students in the tourism line. Therefore, it is hoped that this study can act as a guide and reference in future studies. There might be some filed in this study that is not investigate thoroughly due to constraint of time and funding and therefore it is welcome for any future researcher to examine those intended field. 1.8 LIMITATIONS OF THE STUDY For this study, we were using online survey. In order to deliver the questionnaires, we need to use an email. We took the email address of travel agencies from MATTA website, MOTOUR website and also their own website, however, some of the emails are not valid. This problem leads to the difficulty in collecting the information and giving us some difficulties in processing the result. Other than that, some of travel agencies did not give cooperation to us. They were not answering the questionnaires even though we already stated that all information are confidential and only use for study purposes. Lack of the cooperation and resources limit the researchers to gain extra information to enhance the study. 1.9 SUMMARY This chapter has presented the background of the research and research problem, outlining the research objectives and questions relevant to the research topic. This chapter also covered the scope of the study together with the importance in conducting the research. CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION This study aims to discover the factors that can make the travel agencies in Malaysia sustain its operation in this tourism industry. In order to achieve the objectives of the study, literatures regarding the sustainability factors will be examine. 2.1 HUMAN TOUCH According to a professor of psychology, Dacher Keltner from a University of California, Berkeley, he says that, touch is our richest means of emotional expression. The researcher found out that, touch interconnects in ways that words cannot (Moll, 2012). In retail store settings, concisely touching customers has been shown to rise the consumers shopping times, store valuations and purchase volumes (Lynn, Le, Sherwyn, 1998). According to Jochman (2009) in his article title The Benefit of Human Touch, he said that the quantity of body contact plays an important role in peoples physical growth and mental as infants and in our happiness as an adults as shown by the scientists. Human touch has experience of working with banks, credit unions, insurers and other financial service providers to increase awareness of how service excellence can have a dramatic impact on their bottom line (Anon, 2012). A service representative asking the right questions and being sensitive to a customers needs can make all the difference between the sale of a financial product and the loss of that business to a competitor (Anon, 2012). In the years of computer-generated workplaces, where e-mail, teleconferencing and fax machines increase, something is missing that American business people need to close a deal the human touch (Seaberry, 2000). In other words, handshake and looking at each others eyes are still needed by the business people. According to James J. Green (2012) in his article, he said that the personal touch-the person-to-person touch-that you offer to your clients the one that distinguishes you. He added that talking to your peers, in person, provides you with perceptions that you cannot get electronically. Individuals play an important role in any business relationship because it is actually managed by individuals (Nguyen Nguyen, 2011). In manufacturer-distributor relationships, personal interactions talk about the communication at the individual level between distributors and manufacturers vital contact people (Ulaga, 2003). Furthermore, research has shown that personal interaction can play a critical role in distributors valuations of suppliers performance (Ulaga, 2003). As said by Kaufman (2012), automation is vital for growing and speeds up service in many industries. However, he added that when individual care or courtesy is required, customers require contact with real people. Once human energy fl ows and connects, good things can get completed and you can increase customer experience to your advantage (Kaufman, 2012). Scholars in marketing and organizational behavior are present giving increasing attention to the personal interaction among the customer and the employee on the frontline of service businesses (Mattsson, 1994). The personal interaction is recognized to be one of the important subjects in business and industrial marketing, both in terms of practice and theory (Mainela Ulkuniemi, 2012). Mainela and Ulkuniemi (2012) also stated in their journal that, personal interaction is also required to exchange social values and it may weaken the involvement of price in determining the behavior of the two parties. According to Pinnington and Scanlon (2009), business relationships are actually managed by individuals and there is extensive personal interaction in any business relationship (Pinnington Scanlon, 2009). Research has shown that a lot of companies are moving from transactional separate relations to relational ones (Nguyen Nguyen, 2011). In addition, Tho D. Nguyen, Trang T.M. Nguyen (201 1) said that, committed relationships are among the most durable because they are difficult for competitors to comprehend, to duplicate, or to relocate. Thus, scholars and practitioners have agreed that two-way relationships between buyers and sellers represent a source of competitive advantage (Nguyen Nguyen, 2011). Travel agent might look similar to a profession of the past, just like elevator operators and milkmen, however they are not merely hanging on, certain of them are successful. In actual fact, the February/March topic of Shop Smart magazine has a story on travel agents, saying that they are a lot better than online travel services (Williams, 2008). In the article title Travel agents: Hong Kongers prefer the real thing, Hong Kong travelers blame the online trend and continue to choose for humans when booking vacations (Li, 2012). Li (2012) also said that, Hong Kong is not a huge city; it is appropriate for people to make straight contact with travel agents as they are the expertise and backing that an offline travel adviser can convey additional value to the holiday. Travel agents will make sure that you will have an incredible experience on your trip. They are excited and will show their enthusiasm in helping you, their clients, have the best vacation possible (Bow, 2012). Travel profe ssionals are individually invested in seeing your trip come to be a success trip. This personal interaction with existent, live agents undermines the frequent dull experience of doing it yourself online (Bow, 2012). As soon as you book a trip or a holiday with a travel agent, you create a personal as well as a business rapport with that travel agent. If something goes incorrect, your travel agent is your personal representative who has an entrusted concern in resolving the problem to your satisfaction (Morris, 2012). According to Geoff Williams (2008), if you are afraid that you will need to change your flight or your travel plans at the last minute, a travel agent might be capable to talk to an airline directly and will save you away from those worries and stresses. Even though growing numbers of people turning to technology, specialists on both sides of the bureau are saying that there will always be a space for the human touch (The Syedney Morning Herald, 2007). Wherever travel agents remain incomparable is in their capability to offer a personal service. Naisbitt (2001) refers to it as high-touch, the antidote to high-tech. Moreover, it is becoming increasingly evident that agencies will need a high-touch high-tech strategy to satisfy the customers of the future (Naisbitt, 2001). A website cannot provide what the travel agent can offer such offering help, advice and also that personal touch to your travel planning experiences (McNally, 2007). According to the technology advisor Mary O Haver, the experience that travel agent has is part of the personal touch that travel agents can offer. Besides that, according to Hoffman (2012) who is an online travel expert and managing director of the worlds largest online travel agency, expedia.com.au, peo ple will always like to walk into a store and get personal service. He also said that, the more complex the trip, the more cooperative an experienced agent will be. He continued that, an agent can guide an inexperienced traveler over foreign travel or travel to exotic destinations. When travel in less developed tourism destination, the travel agents may have more knowledge of travel about that destination (Morris, 2012). Complicated arrangements like various destinations on one ticket or group travel might turn into difficult and an agent with experience can help (Morris, 2012). According to Olmsted (2012) in his article, between the several main advantages of high-powered agents carry to the table is individual connections and influence. If you have problems while you remain away, your travel agent is there to help you in resolving your concerns. If you make a booking with a travel agency, you are less likely to experience flight, city, or accommodation changes by the tour company, as they know the agent will be there to stand behind you (Travel Cafà © Inc, 2012). If you have at present reserved your trip but before you go to travel you want to adjust some details, your travel agency can assist you by get all the required steps complete, leaving you without the difficulty and confusion (McNally, 2007). Travel agencies take care of all travel particulars form reserving tickets to booking hotels that can give the tourist sufficient time to plan the travel (McNally, 2007). According to Donvan Lieberman (2011), the human touch that makes travel agencies different is when something goes wrong with our trip; we have someone to call or refer to solve the problem. Compared to persons who booked their accommodation or flight tickets online, there was no one for them to refer to help them resolve that situation. Secondly, according to them, travel agents are giving services by giving real information or their personal experience on the destination spots they send people to. They can also give travel tips that maybe useful where we cannot get them from online information. If a person booked online, if there is any mistakes happen during their bookings, they will have to carry the burden for themselves. But, using by the travel agents, they will do anything in order to personalize the needs and wants of their customer (Travel Cafà © Inc, 2011). Besides that, the travel agents are giving their specialized expertise that an individual does not have, or might fo rget during a trip. For example, visas, insurance, currency exchange and also custom regulation of a destination (Cole, 2009). Travel agents can help you to arrange and organize any compulsory official papers that you possibly will need in order to travel outside of the country (McNally, 2007). Rand McNally (2007) added that, travel agents know the necessary documents that you may need for your traveling such as visa and they can direct you to your local passport office too. Furthermore, travel agent can give extra services that an individual cannot get from online booking. One of the example is they have the ability to source and different travel experience and help to book hard booked restaurant (Talwar, 2011). Other than that, when you call with any problems during your trip, an online travel agency is not going to pick-up the phone but then a travel agent will remains to give you that personal care even though you are away (McNally, 2007). Building that personal relationship pro vides you the assurance that you can reliance on your agents expertise and no matter the situation, they will be around to assist you to find a resolution (Bow, 2012). Additionally, if you should have any enquiries after booking your trip, you know exactly how to contact your travel agent and can escape the uncertain FAQ section on a website (McNally, 2007). The services that serve with the human touch and worth deal will make the travel agency retain in the business. According to Geoff Williams in his article, he said that as soon as the tourism space getting bigger, you are going to have a choice in the middle of a thinking, helpful individual and a capable unfeeling internet site that does not surely care if you travel on Saturn whereas your baggage bursts into flames on Mercury. As for that, who are you going to trust? Smart Money magazine summarized the whole thing moderately well on the cover of the June 2007 edition. FORGET ONLINE! TRAVEL AGENTS GET BETTER DEALS. 2.2 NEGOTIATION POWER In general, negotiation mean bargaining process between two or more parties seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict (Business Dictionary.com). According to Fisher Ury in their book Getting to YES: Negotiating Agreement without Giving In, negotiating is a basic way in getting what you want from other people (1981). While in Oxford Dictionary, negotiation means discussion is aimed at reaching an agreement. In Women Are Getting Even (WAGE) website, they interpret negotiation as conversation between two parties in order to make an exchange. According to Rusk (2006), the meaning of negotiation is discussion intended to produce an agreement. It also can be referring as common solutions that used to make a decisions and settle down the problems (Moore, 2012), a process which is two or more parties attempt to agree on the rate of goods and services that they exchange (Robbins Judge, 2003). Conflict and negotiatio n are a fact of everyday work-life, yet it often produces anxiety (Cutts, 2012). The UK Border Agency has announced that there are still technical problems with online booking service (Kelly, 2012). This statement shows that sometimes online booking faced a problem such as lost record (Kirschbaum, 2009), security issues (Fane, 2010) and technical issues (Scoot, 2012). There are problems that faced by customer when they used online booking system. Despite the fact that all the respondents (except for one) use computers almost every day, 14% believe that booking online is not securing in general (Bogdanovych et al, 2006). Conflict happen because of these problems. Conflict happen when people did not agree with the issue, it will create a friction or tension between that individual or groups (Nahavandi, 1999). Negotiation is a process that examining the facts of situation, exposing the interest of both parties involved and bargaining to solve the conflict as many as possible (Moore, 2012). Negotiation permeates the interaction of almost everybody in the organization (Robbins Judge, 2003). According to Lucas (2008), conflict might occur because of differing perception, inadequate or poor communication and also contrary expectations. These problems often happen when dealing with customer especially in travel agency. In tourism industry, negotiation is an important process to gain a mutual agreement of something, especially for the travel agencies. It is crucial for them to confirm what their customer wants and need. Through negotiation conflict between travel agency and customer can be reduced. Negotiating through areas of conflict can often lead to win-win situations agreeable to parties, reducing ill felling and conflict (Queensland Government, 2011). Travel agents have the negotiation power because they have maximum choice to offer to their clients (Travel Cafà © Inc 2011). This means they have variety of choices that they can get from their travel suppliers and they can give us the best deal with best value of possible. Online booking lack of firsthand knowledge and rarely gives customer opportunity to speak with someone knowledgeable about service that they are booking (Morelock, 2012). The clients and travel agents can assists us to get what we need in our vacation and help us to get the best offer. Online booking allows customer to make all travel plans on the Internet means they can do it any time of the day or night at home or while theyre on their lunch break at the office (Oakley, 2012). It is true when we are doing booking online we can make a booking everywhere and anytime, where it will be more convenient to us, but we cannot negotiate the price of the tourism product that we wish to book. If we are negotiating with travel agents, we have the chance to get lower prices as possible. Price negotiation usually occurs during purchasing of materials or supplies (Francois, 2012). For example, if a travel package to Cameron Highlands costs about RM300 for two nights, the clients can negotiate to get the lower price and finally they will get the offer around RM250 only. With negotiations, both parties will receive their own benefits and it is a win-win situation (Rusk, 2006). When customer asks an agent to negotiate, means customer are essentially asking the agent to subsidize t heir vacation (Brock, 2009) but through online system, customer had no change to negotiate with an agent because the price is fixed. The Marriott International, Hilton Hotels, Sheraton Hotels Resorts and others was charged in San Francisco Federal Court on charges conspired to use their market dominance to fix the hotel prices with travel websites like Travelocity, Booking.com and Expedia, a subsidiary of Priceline.com From this case we can see that customer cannot negotiate the price because the price is fixed. The aim of the negotiations is to decide the price that is acceptable for both parties (Francois, 2012) From price negotiation process it becomes bargaining process. Negotiations commonly follow a process of positional bargaining (Cutts, 2012). Oxford Online Dictionary give two interpretation of bargaining, the first is an agreement between two or more people or groups as to what each will do for the other. The second is a thing bought or offered for sale much more cheaply than usual or expected. There are two types of negotiation which are distributive bargaining and integrative bargaining (Robbins Judge, 2003). Distributive bargaining also called claiming value, zero-sum or win-lose bargaining is a competitive strategy that is used to decide how to distribute a fixed resource such as money (Spangler, 2003). Honeyman (2012), interpret integrative bargaining as one of platform which party try to understand interests of another party, on the expectation that it will helping the opponent to create solution as responsive its own concerns. According to Tewart (2012), many times people say they dont like to negotiate (bargaining) yet, they still shop around and never pay full price. The word bargaining here does not only mean price negotiation, it is a much differentiated and broader term (Management Study Guide, 2012). Customer also can bargain to build his or her own trip with or without help from a customer care executive (Agarwal, 2012), asking whether travel agency offer travel insurance (trip Travel Responsibility Informed Protected, 2012) and a customer can seek redress under certain circumstances commonly referred as the right to repair, replacement or refund (Government of South Australia, 2011). These are things that customer can always bargain with travel agencies. The freedom for the customer is restricted when they make booking through online system. Customer cannot confirm their specific requirement when make the online booking through the hotel reservation system (Vyas, 2010). For example, when they make booking through hotel reservation system and they have something that they dont understand, there is no place for them to raise the questions. According to Lloyd, booking online doesnt have individual to deal with booking process, it leaf to customer to read and understand the complicated terms and conditions. One of the advantages of booking direct with the hotel, by phone or email, is that customer can request a specific room of the hotel and they cannot normally do that online or with an agent (Trend, 2010) According to Tewart (2012), most people act in their best interest and most people who say they dont like negotiating, actually still want to. This statement shows that customers still love to negotiate and online booking system prevent them from doing it. Negotiation is needed in order to secure the resources required for successful project completion (Evans Lindsay, 2008). Through negotiating win-win solutions with customers, it will not only give your company the best chance to succeed but will also create relation between customer and your company for future sales opportunities (Douglas, 2003). Negotiation also can increase clarity about the problem, can lead to innovative breakthroughs and new approaches, involvement in conflict can sharpen approaches to bargaining, influencing, competing and also can focus more attention on basic issues and lead to solution (Wertheim,1996). Solving problems that arise in negotiations is an integral part of collective bargaining. The first task is to recognize what is the problem that occurs and the secondly, is to decide what strategy should be taken to solve the problem (Anon, 2012). According to Goodale (2007), negotiation is one of the most important parts in business as well as one of the most interesting parts of professional purchasing