Hostname: page-component-586b7cd67f-dlnhk Total loading time: 0 Render date: 2024-11-23T20:01:08.952Z Has data issue: false hasContentIssue false

THE REGIONAL CONSEQUENCES OF NEW DIGITAL INFRASTRUCTURE: CAN WELSH SMES GAIN AN EDGE FROM ACCESS AND ADOPTION OF SUPERFAST BROADBAND?

Published online by Cambridge University Press:  16 March 2021

Dylan Henderson*
Affiliation:
Welsh Economy Research Unit, Cardiff Business School, Cardiff, United Kingdom
Max Munday
Affiliation:
Welsh Economy Research Unit, Cardiff Business School, Cardiff, United Kingdom
Annette Roberts
Affiliation:
Welsh Economy Research Unit, Cardiff Business School, Cardiff, United Kingdom
*
*Corresponding author. Email: [email protected]

Abstract

Across the United Kingdom public (and private) resources have been targeted on improving broadband infrastructure. While this has served to provide new opportunities for households and firms, there has been some debate around the ability of firms to take full advantage of the opportunities that arise through this evolving infrastructure. In this respect, there has been particular debate on how far small- and medium-sized enterprises (SMEs) have taken up the challenge of effectively engaging with the resource. Drawing on the case of Wales, this paper explores the digital maturity of a sample of Welsh SMEs. The paper provides evidence of how far SMEs are successfully engaging with the new opportunities available through broadband, and develops a typology of firms according to their engagement. The paper then explores how these differences produce policy implications.

Type
Research Article
Copyright
© National Institute Economic Review 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Arvanitis, S. and Loukis, E.N. (2009), ‘Information and communication technologies, human capital, workplace organization and labour productivity: A comparative study based on firm-level data for greece and switzerland’. Information Economics and Policy, 21, 1, pp. 4361. DOI:10.1016/j.infoecopol.2008.09.002.CrossRefGoogle Scholar
Bell, J. and Loane, S. (2010), ‘‘New-wave’ global firms: Web 2.0 and SME internationalisation’. Journal of Marketing Management, 26, 3–4, pp. 213–29. DOI:10.1080/02672571003594648.CrossRefGoogle Scholar
Bharadwaj, A.S. (2000), ‘A resource-based perspective on information technology capability and firm performance: An empirical investigation’. MIS Quarterly, 24, 1, pp. 169–96. DOI:10.2307/3250983.CrossRefGoogle Scholar
Calvino, F., Criscuolo, C., Marcolin, L. and Squicciarini, M. (2018), ‘A taxonomy of digital intensive sectors’, available online at https://www.oecd-ilibrary.org/content/paper/f404736a-en (Retrieved 9 February 2021).Google Scholar
Colombo, M.G., Croce, A. and Grilli, L. (2013), ‘ICT services and small businesses’ productivity gains: An analysis of the adoption of broadband internet technology’. Information Economics and Policy, 25, 3, pp. 171–89. DOI:10.1016/j.infoecopol.2012.11.001.CrossRefGoogle Scholar
Corso, M., Martini, A., Pellegrini, L. and Paolucci, E. (2003), ‘Technological and organizational tools for knowledge management: In search of configurations’. Small Business Economics, 21, 4, pp. 397408. DOI:10.1023/a:1026123322900.CrossRefGoogle Scholar
Fornefeld, M., Delaunay, G. and Elixmann, D. (2008), ‘The impact of broadband on growth and productivity’, available online at https://op.europa.eu/en/publication-detail/-/publication/213ea118-9cc2-49ce-82a4-37d25e8e83df/language-en/format-PDF/source-114576660 (Retrieved 9 February 2021).Google Scholar
Ghandi, P., Khanna, S. and Ramaswamy, S. (2016), ‘Which industries are the most digital (and why)’? Harvard Business Review, available online at https://hbr.org/2016/04/a-chart-that-shows-which-industries-are-the-most-digital-and-why (Retrieved 9 February 2021).Google Scholar
Giotopoulos, I., Kontolaimou, A., Korra, E. and Tsakanikas, A. (2017), ‘What drives ICT adoption by SMEs? Evidence from a large-scale survey in Greece’. Journal of Business Research, 81, pp. 60–9.CrossRefGoogle Scholar
Gray, C. (2006), ‘Absorptive capacity, knowledge management and innovation in entrepreneurial small firms’. International Journal of Entrepreneurial Behavior & Research, 12, 6, pp. 345–60.CrossRefGoogle Scholar
Grubesic, T.H. and Mack, E.A. (2016), Broadband Telecommunications and Regional Development, Abingdon, UK: Routledge.Google Scholar
Gupta, S. (2018), Driving Digital Strategy: A Guide to Reimagining Your Business, Boston, MA: Harvard Business Review Press.Google Scholar
Henderson, D. (2017), ‘The transformative potential of cloud technologies for SMEs in Wales’. Cardiff Business School, available online at http://www.cardiff.ac.uk/__data/assets/pdf_file/0007/735190/Horizon-Scanning_cloud-computing-report-1_3.pdf (Retrieved 9 February 2021).Google Scholar
Henderson, D. (2020), ‘Demand-side broadband policy in the context of digital transformation: An examination of the evolution of SME digital advisory policies in Wales’. Telecommunications Policy, 44, 9, p. 102024.CrossRefGoogle Scholar
Henderson, D. and Roche, N. (2020), ‘Examining the policy mix for broadband deployment in Wales: The role of informal coordination in the last mile’. Local Economy, 35, 1, pp. 4867. DOI:10.1177/0269094219883396.CrossRefGoogle Scholar
Jung, J. and López-Bazo, E. (2020), ‘On the regional impact of broadband on productivity: The case of Brazil’. Telecommunications Policy, 44, 1, p. 101826. DOI:10.1016/j.telpol.2019.05.002.CrossRefGoogle Scholar
Kenny, R. and Kenny, C. (2011), ‘Superfast broadband: Is it really worth a subsidy?Info, 13, 4, pp. 329. DOI:10.1108/14636691111146127.CrossRefGoogle Scholar
Lehner, F. and Sundby, M.W. (2018), ‘ICT skills and competencies for SMEs: Results from a structured literature analysis on the individual level’, in Harteis, C. (ed), The Impact of Digitalization in the Workplace: An Educational View, Cham: Springer International Publishing, pp. 5569.CrossRefGoogle Scholar
Lloyds Bank. (2019), ‘UK business digital index 2019’.Google Scholar
Mack, E. and Faggian, A. (2013), ‘Productivity and broadband: The human factor’. International Regional Science Review, 36, 3, pp. 392423. DOI:10.1177/0160017612471191.CrossRefGoogle Scholar
Mack, E. and Grubesic, T. (2009a), ‘Broadband provision and firm location in Ohio: An exploratory spatial analysis’. Tijdschrift Voor Economische en Sociale Geografie, 100, 3, pp. 298315. DOI:10.1111/j.1467-9663.2008.00487.x.CrossRefGoogle Scholar
Mack, E.A. and Grubesic, T.H. (2009b), ‘Forecasting broadband provision’. Information Economics and Policy, 21, 4, pp. 297311. DOI:10.1016/j.infoecopol.2009.08.001 (Retrieved 9 February 2021).CrossRefGoogle Scholar
Malecki, E.J. and Moriset, B. (2008), The Digital Economy: Business Organization, Production Processes and Regional Developments, Abingdon, UK: Routledge.Google Scholar
Neirotti, P., Raguseo, E. and Paolucci, E. (2018), ‘How SMEs develop ICT-based capabilities in response to their environment: Past evidence and implications for the uptake of the new ICT paradigm’. Journal of Enterprise Information Management, 31, 1, pp. 1037.CrossRefGoogle Scholar
OECD. (2017), ‘OECD digital economy outlook 2017. Paris’, available online at http://dx.doi.org/10.1787/9789264276284-en.CrossRefGoogle Scholar
OECD. (2020), ‘High-speed fibre now makes up half of fixed internet in nine OECD countries’, available online at https://www.oecd.org/sti/broadband/broadband-statistics-update.htm (Retrieved 9 February 2021).Google Scholar
Ofcom. (2019), ‘Connected nations 2019’, available online at https://www.ofcom.org.uk/__data/assets/pdf_file/0023/186413/Connected-Nations-2019-UK-final.pdf (Retrieved 9 February 2021).Google Scholar
ONS. (2019), ‘E-commerce and ICT activity: 2018’. Statistical bulletin, available online at https://www.ons.gov.uk/businessindustryandtrade/itandinternetindustry/bulletins/ecommerceandictactivity/2018/pdf (Retrieved 9 February 2021).Google Scholar
Price, L., Shutt, J. and Sellick, J. (2018), ‘Supporting rural small and medium-sized enterprises to take up broadband-enabled technology: What works?Local Economy, 33, 5, pp. 515–36. DOI:10.1177/0269094218791508.CrossRefGoogle Scholar
Rogers, D.L. (2016), The Digital Transformation Playbook: Rethink Your Business for the Digital Age, London, UK: Columbia University Press.CrossRefGoogle Scholar
Ross, J.W., Beath, C.M. and Goodhue, D.L. (1996), ‘Develop long-term competitiveness through IT assets’. Sloan Management Review, 38, 1, p. 31.Google Scholar
Ross, P. and Blumenstein, M. (2013), ‘Cloud computing: The nexus of strategy and technology’. Journal of Business Strategy, 34, 4, pp. 3947. DOI:10.1108/JBS-10-2012-0061.CrossRefGoogle Scholar
Spurge, V. and Roberts, C. (2005), ‘Broadband technology: An appraisal of government policy and use by small- and medium-sized enterprises’. Journal of Property Investment & Finance, 23, 6, pp. 516–24. DOI:10.1108/14635780510626556.CrossRefGoogle Scholar
Thomas, B., Miller, C. and Simmons, G. (2015), ‘An examination of regional policy implications pertaining to SME e-business adoption in south-east Wales’. Strategic Change, 24, 5, pp. 429–46.CrossRefGoogle Scholar
Thomas, D. (2015), ‘Ofcom tells BT its rivals need better superfast broadband access’. Financial Times, available online at https://www.ft.com/content/9470bace-facc-11e4-84f3-00144feab7de.Google Scholar
Tranos, E. and Mack, E.A. (2015), ‘Broadband provision and knowledge-intensive firms: A causal relationship?Regional Studies, 50, 7, pp. 1113–26. DOI:10.1080/00343404.2014.965136.CrossRefGoogle Scholar
Zammuto, R.F., Griffith, T.L., Majchrzak, A. and Dougherty, D.J. (2007), ‘Information technology and the changing fabric of organization’. Organization Science, 18, 5, pp. 749–62.CrossRefGoogle Scholar