Information communication technology spending in (2008‐) economic crisis
Abstract
Purpose
The purpose of this paper is to analyze the impact of the recent (2008‐) economic crisis on information communication technology (ICT) spending. The empirical findings are discussed within a broader theoretical framework of technological trends/diffusion and economic cycles.
Design/methodology/approach
First, the paper introduces the innovation diffusion theory and theories of economic cycles. Next, it presents the analyses of the data from official statistics, international agencies and research companies. Finally, it summarizes the empirical findings within theoretical contexts.
Findings
In general, crises always reduce spending and therefore also ICT spending. However, focusing on the recent crisis, it affected the ICT market selectively and also much less than other sectors. In addition, the empirical findings indicate that after decades of fast ICT expansion (1971‐2000) we are now in the period of slower sectoral growth, which is in line with theories of super cycles, although, the authors also propose alternative explanations.
Research limitations/implications
The impact of the economic crisis on the ICT market strongly depends on countries' economic situation and development stage. Nonetheless some ICT segments that allow cost savings, greater productivity and efficiency, have been strengthened during the latest (2008‐) economic crisis, which also pinpoints the directions for further transformation of ICT.
Practical implications
Despite usually reduced budgets during the crisis, managers should put increased attention to new/alternative ICT solutions (e.g. virtualization, outsourcing, cloud computing) and lowered prices of ICT products/services to increase competitiveness. The crisis can be thus an opportunity to re‐examine the contribution of ICT to productivity, workflow efficiency and introduce new methods for better exploitation of ICT capital.
Social implications
The aim of this paper is to contribute to the understanding about the transformation of ICT in economic crises. It also demonstrates that recent crises caused another microwave within the last super cycle.
Originality/value
The paper provides empirical insight into the link between economic situation and ICT spending in past 15 years, with special attention to the changes observed during the latest (2008‐) crisis. The analysis is also put into a broader theoretical framework, where it proposes alternative explanations supported by empirical evidences.
Keywords
Citation
Rojko, K., Lesjak, D. and Vehovar, V. (2011), "Information communication technology spending in (2008‐) economic crisis", Industrial Management & Data Systems, Vol. 111 No. 3, pp. 391-409. https://doi.org/10.1108/02635571111118279
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited