Chapter 4: Methodology and Development of Hypotheses
4. Methodology and development of hypotheses INTRODUCTION The resource-based view (RBV) of the firm argues that the performance of an economic entity is, inter alia, a function of the resources and skills that are in place and of those economic entity-specific characteristics which are rare and difficult to imitate or substitute. This concept is in essence based on Coase’s theory of the firm, which maintains that the firm is a combination of alliances that have linked themselves in such a way as to reduce the cost of producing goods and services for delivery to the marketplace (Coase, 1937). An enhancement of this resource-based view is that an economy can create a competitive advantage by building resources that work together to generate organizational and country-based capabilities (Bharadwaj, 2000). These capabilities permit economic entities and economies as a whole to adopt and adapt processes that enable them to realize a greater level of output from a given input or maintain their level of output from a lower quantity of input. In this chapter we will develop a set of hypotheses with the objective of conducting a systematic cross-country analysis of cyber laws in a sample of developing and emerging economies. Based on resource-based theory, the overall premise is that in addition to the physical infrastructure which explains much of the variation in basic Internet use and country e-readiness, cyber activities, especially e-commerce and e-government, also depend significantly on a supportive institutional environment such as national respect for the ‘rule of law’, the...
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