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Session Overview
PS-1.09: Technological infrastructure and technological capabilities1
Wednesday, 12/Oct/2016:
2:00pm - 3:30pm

Session Chair: Abdi Yuya Ahmad, Adama Science and Technology University
Discussant: Trina Fizzanty, Indonesian Institute of Sciences (LIPI)
Location: Palace Room (Homann)

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A Comparative Study of the Technological Capabilities of Major Shipbreaking Nations

Stuti Haldar


Shipbreaking has an inherent potential of establishing itself as a green industry. Over 80 percent of the world trade by volume is carried out by sea. The rapidly growing marine fleet commissioned to cater to the demand for international trade is sooner or later destined to the Shipbreaking Yards especially concentrated in the developing nations. Shipbreaking is the process of dismantling of marine vessels to extract reusable and recyclable equipment and materials from it. Hence it seems to be a green industry. However the low technological capabilities and lack of proper infrastructure at the Shipbreaking yards of the transition economies such as India, Bangladesh and Pakistan have raised concerns related to environmental damage and unsafe and unhealthy occupational environment prevalent here. This study analyses the current status of technological infrastructure and occupational conditions pertaining to the Shipbreaking industry in the developing world. It also offers a comparative study of the methods adopted and level of technology used by major ship recycling nations such as India, Pakistan, Turkey, Bangladesh and China. The present study concludes by offering suggestions to develop the technological competencies of this industry in the developing nations so that they might offer a sustainable ship recycling platform for the world’s decommissioned fleet in true sense of term.

Entrepreneurial Upgrading? - Exploring the Interplay between Global Finance, Knowledge Flows, and Technology-Driven Venture Creation in Kenya

Eunkyung Park1, Daniel S. Hain1, Roman Jurowetzki1,2

1Aalborg University, Department of Business and Management, IKE; 2Globelics Secretariat

In this paper, we propose a new form of upgrading that arises from global interaction, what we call entrepreneurial upgrading, to describe the local development in terms of tech-based venture creation in Nairobi, Kenya. We observe a recent phenomenon, where a growing number of local entrepreneurs with innovative products and services receive oversea funding by established western venture capitalists. The possibility for local development through global connection resembles what is often discussed as “industrial upgrading” in the global value chain (GVC) literature, but we also find that a number of aspects of new firm creation in Nairobi differ from typical cases of industrial upgrading. For example, capability building in Kenyan context is achieved through ex- perimental entrepreneurial learning, while learning in the traditional upgrading setting is characterized by incremental knowledge accumulation of existing local firms. As this phenomenon involves international early-stage equity investors, we draw on the literature on international venture capital (VC) investments and their impact on regional and national development to complement unexplained mechanisms behind this form of upgrading. After presenting the cases of new tech-based ventures that are funded by international venture capitalists in Nairobi, we extract some general findings from the cases and propose entrepreneurial upgrading as an extension of upgrading typology used in GVC literature. We discuss transnational technical communities (TTC) as one of the drivers for entrepreneurial upgrading and present some implications of this phenomenon for the development of Kenya.

Acceptance of Disruptive Technology with Network Effect: An Empirical Study in Indonesia and Germany

Eko Agus Prasetio1,2, Uwe Cantner1,3

1Friedrich-Schiller-University Jena, Germany, Germany; 2Bandung Institute of Technology; 3University of Southern Denmark, Odense, Denmark

Technology acceptance model is widely used in explaining the user acceptance of technology mainly in information system (King and He, 2006; Chuttur, 2009). While some modern technologies is understood to be disruptive, they also exhibit increasing return to adoption properties or network effect (Keller and Hüsig, 2009; Vaishnav, 2010). However, how these disruptiveness and network effect characteristics influence the acceptance of the technology is still missing in the literature. Therefore, this empirical research tries to shed a light on how technology disruptiveness and network effect play a role in the acceptance of certain technology.

We conduct a survey where respondents are confronted with six different products or technologies characterized by their disruptiveness and network effect properties. We also investigate the different degree of newness in the choice of technologies. In the category of product technologies with high network effect, we investigate the acceptance of three product technologies for long distance call, i.e. messaging-service apps, e.g., WhatsApp and Line, internet telephony, e.g. Skype and fixed telephone line. For technologies characterized with low degree of network effect, we investigate the acceptance of three different music/audio formats, i.e. music streaming, downloadable music, i.e., MP3 and compact disc or CD.

We base our research model on Technology Acceptance Model (TAM) and Theory of Planned Behavior (TPB) and incorporate network effect determinants to understand the acceptance of those different technologies. The reliability and validity of measurement model will be evaluated using confirmatory factor analysis (CFA). How disruptiveness and network effect influence perceived usefulness and perceived ease of use as the main determinants of behavioral intention to use the technology is expected to be revealed from this study. To understand the difference between developing and developed country context, we conduct web survey by distributing online questionnaire to university students in Indonesia and Germany, employ the regression and compare the results.

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