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Patterns of SMS (Text Messaging) Use Among Employees and its Correlation with Productivity and Organizational Identification

(Published in 160 Characters SMS and Mobile Messaging Association, a leading UK-based not-for-profit membership association for mobile messaging professionals, www.160characters.org; May 10, 2002)
Executive Summary

This study examined the correlation between patters of SMS use among employees and its organizational outcomes as productivity, efficiency, collaboration, and organizational identification. The frequency of SMS per day, SMS frequency exchanged with co-workers and managers, and SMS time sent are correlated to organizational outcomes. Cellphone ownership, i.e. if cellphone is issued by company or not, strongly correlates with organizational identification. Likewise, the level of an employee in the organization strongly correlates with the value attached to the SMS message.

Background of the Study

Introduction

SMS, which stands for Short Message Service, has been around since December 1992. It is part of the GSM digital mobile standard, which means that it works in many parts of the world. Using SMS, alphanumeric messages of up to 160 characters can be sent and received. Messages are sent via the operators' centers and therefore can be stored and forwarded. Low cost is one reason SMS has become very popular in the Philippines, the world's largest SMS market. But SMS thrived in many locations as well. Nokia estimates that 100 billion SMS were exchanged in 2001 (Lawson, 2001); and its doubling every six months (Veitch, 2001) but is still largely a consumer phenomenon and corporate applications are limited. At the basic level, many workers send SMS for collaboration, provide appointment reminders, and send notifications of incoming emails and faxes.

According to Mobile Lifestream (Veitch 2001), a research firm, SMS will be used for another seven years because handsets, standards and awareness are all here today. In a survey by Peramon, a software development firm, where among corporate decision makers in UK expressed their opinions on mobile technology deployment this year is actually SMS. Peramon further said that: SMS can impact the corporate "bottom line" immediately. By taking SMS seriously, businesses can drive down the cost of their mobile communication at the same time as increasing employee productivity. The firm believes that a truly effective mobile data strategy integrates all available methods of communication, including voice, email and SMS, to generate greater productivity. SMS can increase operational efficiency by dispensing with redundant costly mobile phone calls and out-of-date email messages. While most corporates tend to use voice as the primary means of business communication, SMS provides a low-cost way to keep workers in-touch (Dennis, 2001). A very strong value proposition exists in the organization setting, which will fuel a next wave of employee productivity and process improvement (Valkengoed, 2001).


Statement of Research Problem

There are nine million mobile phone service subscribers in the country, exchanging an average of 120 million text messages per day or more than 10 text messages per subscriber per day. According to the Asia Market Intelligence Survey (AMI) of office workers, one out of two Filipinos use their mobile phones to stay in touch with their office at all times; and SMS has become a popular tool for office-related matters with more than half of the office staff using it (Orani, 2002). Since a worker spends majority of his time at work, the average worker is therefore sending more than 10 text messages during working hours. With these in mind, the research problem is stated as: What is the correlation between SMS patterns of use among workers during working hours and organizational outcomes?


Statement of Research Objective

The objective of this paper is to determine the impact of SMS use on the organization, specifically the employees' perception on the effects of SMS on efficiency, productivity, and organizational identification.

Significance of the Study

The results of the research will have several implications for managers, regulatory bodies, and researchers:
· Management can maximize the utilization of mobile communication technology to increase productivity, organizational identification, and satisfaction in the workplace. This can be achieved by formulating and implementing policy measures that enhance productivity and reduce unproductive effects.
· Regulatory bodies such as the National Telecommunications Commission can set guidelines for mobile phone use that will help consumers and corporate users maximize value for their subscriptions. Such can be in the forms of tariff and SMS control, spam or junk text control, and interconnection and network quality improvements.
· Operators and service providers will have the opportunity to create and deliver services that add value to corporate users.
· Information System Managers can integrate mobile technology into the company's overall IT infrastructure and service, with collaboration with various suppliers and operators; thus, further increasing the value and use of mobile communication technology
· Cellular phone manufacturers and vendors can enhance and/or add features that contribute to user experience. Such features can contribute to productivity gains through voice-activated technology, software and hardware configurations.
· The results of the research will provide the groundwork upon which future research shall be based. Such studies may center on the organizational impact of text messaging and telework in various industries, collaborative work using mobile communication.

Scope and Limitations

This study focuses on a single trading company in the consumer goods industry which has a sales organization nationwide. The researcher had to settle for the employees' perceptions on organizational outcomes, as the quality of inter- and intra-organizational coordination among groups within the organization cannot be measured across a variety of organizational context (Stabell, 1986). As this study does not establish causality between SMS use and organizational outcomes, correlational relationships are determined instead.

The limitations of this study include the use of convenience sampling, size of groups, self-report (obtaining perceived measures for outcomes is subject to employees' perceptions of how they perform their work), and recall. In addition, the study only measures work-related communications. It may be argued that the need for non-work-related communications is an important aspect of an individual's life, in particular for those workers with higher social needs.


REVIEW OF LITERATURE

Information Technology and Organizational Outcomes

The measures of contributions to productivity and efficiency grow out of the information science literature on the performance enhancing benefits of information technology (IT). Information technologies encompass a broad array of communication media and devices which link information systems and people including voice-mail, e-mail, voice conferencing, voice conferencing, video conferencing, the internet, personal digital assistants, and other information and communications technology (e.g., Andolsen, 1999; Edwards, 1999; Alatalo et al, 2001).
As Huber (1990) argued, IT has many useful properties that can affect organizational efficiency. IT produces much efficiency in communication including the ability to communicate more easily and less expensively across time and geographic location; the ability to communicate more rapidly and with greater precision to targeted groups; and the ability to more selectively control access and participation in a communication event or network.

Dewett reviewed recent scholarly and popular literature on IT to provide a broad overview of how it impacts organizational outcomes. He described principal performance enhancing benefits of IT: information efficiencies and organizational outcomes as increased coordination among employees and increased boundary spanning. Information efficiencies are the cost and time savings that result when IT allows individual employees to perform their current tasks at a higher level, assume additional tasks and expand their roles in the organization due to advances in their ability to gather and analyze data. IT helps to increase both the amount and quality of information, which can be adequately processed. IT simply allow each individual or subunit to perform more work, cumulatively providing a gain in organizational efficiency (Dewett, 2001).

As compared to face-to-face communication, the use of electronic communication has been shown in the literature it increase the overall amount of communication in the organization (Hiltz, Johnson, & Turoff, 1986). This implies what is perhaps the most fundamental benefit resulting from IT use in organizations; the ability to link and enable employees both within and between functions and divisions whether through teleconferencing or electronic mail or SMS – and achieve information efficiencies. One of the most direct ways in which IT impacts organizational functioning is through its effects on horizontal coordination (Dewett, 2001). Increasing online interdependencies makes critical information more accessible and transparent to employees and increases incidence of problem-solving (Edmondson & Moingeon, 1998).

Computer-Mediated Communication and Productivity

Research on computer-mediated communications (CMC) also centered on productivity outcomes.
Pelz and Andrews found that frequency of contact with colleagues is positively correlated with performance levels (Perlz and Andrews, 1966). Johansen and DeGrasse, and Wilson developed questionnaires that measured productivity increases (Johansen and DeGrasse, 1978) by focusing on the kinds of changes in communication patterns that Pelz and Andrews identified as productivity-related. A prior study (Hiltz and Turoff, 1981) used some of these items to construct a factor score to measure productivity enhancement among seven groups of scientific and technical workers using EIES (the Electronic Information Exchange System) at New Jersey Institute of Technology. The best predictors of productivity increases were the number of people who "met" online, the total number of people whom a user was communicating online, and the amount of time spent online.

Measures used in earlier studies of CMCs and productivity were replicated in a study by Hiltz using multi-system with a variety of types of users. In this study, four process variables play a role in determining productive outcomes. One is the perceived value of the items contributed by the other group members. Another is time spent online, which is positively related to perceived productivity impacts for the conferencing systems (but not the mail system). A third is whether or not "mode problems" were encountered, and the fourth, is how many new people users got to know while online. The dependent variable in the study is a factor (productivity) composed mainly of perceived improvements in the quantity and quality of work, the overall usefulness of the system, and the improvements in the ease of reaching people. The study found out that even low level use of the internal mail system tended to be seen as productivity enhancing, as opposed to the results of that in conferencing system. This may be due to the limited functioning and greater simplicity of the mail system (Hiltz, 1988).

Dryer et al in their study of mobile computing systems found out that perceived productivity increases as the users became familiar with mobile devices. Participants in his collaborative work study perceived the interactions with the devices and with one another as being more productive over time (Dryer et al, 1999).

Recent findings from previous studies on mobile work (Perry et al, 2001) have demonstrated strategies through which mobile workers make use of the resources that they have available to them. To effectively make use of the time that they have while travelling, mobile workers can co-opt the resources that they find available to them; thus, contributing to work productivity. Mobile workers also needed to keep up with their ongoing background work activities, rather than working when they had complete office infrastructure. The flexibility of the mobile telephone allowed them to distribute this workload and to work in otherwise "dead time". They could also use the mobile telephone when they are away from their home base to monitor activity back in their main office; thus, maintaining a sense of community at work.

Communication and Organizational Identification

Identification is a means by which organizational members define the self in relation to the organization (Turner, 1987). Organizational identification, which provides a psychological link between workers and the organization, facilitates coordination because it leads to convergent expectations (Kogut & Zander, 1996). Identification motivates members to coordinate their efforts to achieve organizational goals by enhancing interpersonal trust and cooperation (Brewer, 1981). Organizational identification is expected to correlate with work effort, willingness to perform extra-role behaviors, and task performance (Dutton et al, 1994).

Research regarding the effects of communication on individuals' attitudes towards the organization (e.g., Huff, et al, 1989) provides a theoretical link between communication and organizational identification. Specifically, research has found that communication can affect employee attitudes that may be strongly related to organization identification. Communication can strengthen member identification because it provides organization members with an opportunity to create and share their subjective perceptions of the organization's defining features – its norms, values and culture. Recent studies on virtual employees found out that electronic communication was a critical predictor of organizational identification (Belanger,et al, 2001; Wiesenfel, et al, 1998). It was also found out that sharing information and expertise through information technology increases a person's self-esteem, identification with the organizations, respect from others, and feelings of commitment (Orr, 1989).

Instant Messaging and Collaboration

Study on instant messaging (IM) in the workplace support findings on organizational impacts on collaboration among workers. Instant messaging is a computer-based messaging system that effectively supports informal communication in the workplace. Recent empirical ethnographic work has shown the importance IM in enhancing collaboration among workers. Nardi et. al. (2001) found out that IM supports coordination, scheduling and joint problem-solving. IM also contributes to greater efficiency for tasks requiring rapid responsiveness – recipients were likely to respond more quickly in consequence. IM allowed more rapid exchanges, as it was brief, context-rich, and dyadic.


THEORETICAL FRAMEWORK

Conceptual Framework

This paper builds on Huber's (1990) suggestion that IT is a variable that can be used to enhance the quality and timeliness of organizational intelligence and decision-making, thus promoting organizational performance. (Figure 1)

Figure 1

Huber's theory treats several organizational characteristics as dependent variable with IT positioned as the dependent variable. Based on the studies on Computer-Mediated Communication (CMC), CMC is a variable that enhances productivity and organizational identification (Hiltz, 1988; Weisenfeld, 1998; Belanger, 2001), with culture and structure as moderating variables (Mantovani, 1994; Symons, 1997). (Figure 2)


Figure 2


Operational Framework

Based on the frameworks from previous research on IT and CMC, an operational framework for Mobile Communication, specifically SMS use is proposed, as mobile communication is a specific device under CMC. The moderating effects of demographics are also considered in this study. (Figure 3)

Figure 3

Hypothesis of the Study

The hypotheses of the study explore the correlational relationships between variables. The hypotheses of the study are as follows:
H1. There is strong positive correlation between the number of work-related SMS sent and received and organizational outcomes (perceived productivity, and efficiency, organizational identification and collaborative decision-making).
H2. There is strong positive correlation between the frequency of SMS exchanged among co-workers and organizational outcomes.
H3. There is strong positive correlation between the frequency of SMS exchanged by subordinates with managers and perceived organizational outcomes.
H4. There is strong positive correlation between the frequency of SMS exchanged by employees with customers and perceived organizational outcomes.
H5. There is strong negative correlation between the time of the day when SMS is exchanged and perceived organizational outcomes.

Definition of Terms

Computer-Mediated Communication (CMC) refers to human communication via computers--including computer network communication on the Internet and the World Wide Web. People interested in CMC study a range of phenomena--from the dynamics of group communication in
Usenet news articles to how people use hypertext to shape meaning.
GSM (Global System for Mobile communication) is a digital mobile telephone system that is widely used in Europe and other parts of the world. It is the most widely used of the three digital wireless telephone technologies (TDMA, GSM, and CDMA). GSM digitizes and compresses data, then sends it down a channel. GSM is the de facto wireless telephone standard in Europe. GSM has over 120 million users worldwide and is available in 120 countries, according to the GSM MoU Association. Since many GSM network operators have roaming agreements with foreign operators, users can often continue to use their mobile phones when they travel to other countries
Instant messaging is an electronic communication system that allows one to maintain a list of people that he wishes to interact with. One can send messages to any of the people in his/her list, often called a buddy list or contact list, as long as that person is online. Sending a message opens up a small window where one and his/her friend can type in messages that both of them can see.
Mobile work is carried out while a person is moving from one place to another. Traditionally mobile work covers work done at a distant site by a travelling 'field' worker. Field workers often have to travel to a client's site if the people, system or information required to perform their job can not be easily or quickly transported to their own work place. While travelling, or on reaching their destination, the field worker may need information from their work place or may need to pass information to their work place.
Short Messages Service (SMS) is a globally accepted wireless service that enables the transmission of alphanumeric messages between mobile subscribers and external systems such as electronic mail, paging, and voice-mail systems.

RESEARCH METHOD
Research Design
Various published studies of information technology, computer-mediated communication, and mobile work were reviewed, and experts in SMS technology were interviewed to gather information. An inventory of variables, measures, and hypothesis was reorganized to reflect the theoretical orientations and used to develop the variables, measures, and hypothesis for the study. Whenever possible, the actual items used to measure variables were replicated from previous studies which formed the basis of the survey questionnaire. The questionnaire was pre-tested with five employees of the researcher's company to test for clarity and comprehensibility.
The purpose of the study is to determine the correlation between the SMS usage patterns among employees of a trading firm and organizational outcomes. A sales organization was selected because there is more coordination and collaborative communication among salesmen, sales managers, and staff. The survey questionnaire was administered among the thirty-seven (37) employees who owned mobile phones and who were present at the time of the survey.
Sample and Sampling Design
The subjects of this study are the employees (managers, professionals, and staff) of a sales and distribution company engaged in various task groups within the organization. An objective measure whether the SMS technology made them more effective in realizing the goals of the organization would be desirable. However, the quality of their decision from the available information, and the quality of inter- and intra- organizational coordination among task groups cannot be measured across a variety of organizational context (Stabell, 1986). The researcher, therefore, had to settle for users' reports of their perceptions.
The population of the study includes all the fifty (50) employees of a trading firm. A sales organization was selected because of the presence of mobile work among sales staff. Purposive non-probability sampling was employed to separate mobile phone owners from the rest. Thirty-seven respondents were sampled which included managers, salesmen, and staff.
The demographic characteristics of the sample are shown in Table 1. Most of the respondents were within the age range of 26 to 35 years (35.1%), with almost equal proportion of male to female (51.4%-48.6%), and holding sales job functions (32.4%).

Method of Data Collection
A questionnaire instrument was used to collect responses from the sample. The questionnaire consisted of two parts: (1) the demographic characteristics and SMS usage patterns, and (2) perceived organizational outcomes (see Questionnaire Guide). The latter consisted of a five-level Lickert scale, with level 5 as "Strongly Agree" and level 1 as "Strongly Disagree". The perceived organizational outcomes were pre-grouped based on the questionnaires of related literature (e.g. Hitz, 1988; Belanger et al, 2001). The pre-groupings consisted of efficiency, collaborative decision-making, and organizational identification; but for purposes of preventing the respondents from predicting the intent of the questionnaires, the items were scattered in no particular grouping.
Data was collected during the sales meeting of the two departments of the trading firm in order that most of the employees of the firm were present, and that the largest possible sample size can be captured. The survey questionnaires were administered among the employees of the firm

Table 1

Method of Data Analysis
SPSS statistical software was used to analyze collected data. Bivariate correlation using Spearman coefficient was employed to correlate ordinal independent variables (SMS usage patterns) with interval dependent variables (organizational outcomes). Dependent variables with 95 percent confidence level were considered and retained for further factor analysis. Factor analysis using varimax rotation was employed to identify underlying variables that explain the pattern of correlations within the set of observed variables and to identify a number of factors that explain the variance observed among dependent variables.
RESULTS AND DISCUSSION
SMS Use Patterns
Table 2 indicates the number of responses on each questionnaire item. Majority of the respondents exchanged 11 to 15 SMS per day (29.7%), with the mean at within 10 to 11 SMS per day (mean=2.5135) which is consistent with mobile subscriber statistics. At less than 50 percent of the time, employees send work-related SMS to co-workers, managers, subordinates, and customers (54.1%, 75.7%, 48.6%, and 43.2%, respectively). Most of the employees exchange work-related SMS in the morning (55.6%), with the mean residing between morning and lunchtime (mean=1.7222). When exchanging work-related SMS, majority of the employees sends process-related SMS (48.5%); and most of them use SMS because it is cheaper than voice call (52.8%).

Organizational Outcomes
Table 3 indicates the mean and standard deviation of questionnaire items on organizational outcome. All the means of the seventeen items indicate positive responses, i.e. employees agreed that SMS has positive effects with organizational outcomes as efficiency, collaborative decision-making, and organizational identification.
Table 2

Correlates of Organizational Outcomes with SMS Use Patters
Spearman correlation coefficients were computed for the relationship between SMS use patterns and organizational outcomes, and between demographic characteristics and organizational outcomes. To facilitate comprehension of the pattern of the mass of coefficients, those which are significant to the 0.05 level were boldfaced in the display of results in Table4, giving it a graphical element; looking at it can indicate at a glance where the correlations are clustered.

Two similar SMS use patterns- Number of SMS per Day and Work-Related SMS Frequency per Day – and SMS Frequency to Co-workers are all strongly correlated to efficiency and collaborative decision-making items. It is noteworthy that SMS Frequency to Co-workers has stronger correlation with efficiency and collaborative decision-making than SMS Frequency to Managers. This may be due to the greater need for coordination and information sharing among co-workers, especially among salesmen. However, the reverse is true for correlates to organizational identification wherein SMS Frequency to Managers has a stronger correlation to organizational identification. This may mean that subordinates feel a strong sense of belonging to the company when they can openly communicate to their managers via SMS.
Two SMS use patterns-SMS frequency to customers and SMS frequency to subordinates- has weak correlations with organizational outcomes. This may mean that employees do not use SMS to communicate to their customers. The other may be due to the low sample size of managers (21.6%).
SMS Time of Day has strong correlations on specific items in the three pre-groupings. It has strong correlation with "Send faster work-related SMS", "Ease of Getting information", "SMS as Effective means of communication", and "More work coordination through SMS", i.e., there is greater perceived organizational outcomes when SMS is used in the morning.
One questionnaire item-"Use time wisely during dead times"- had no strong correlation with any of the SMS use patterns variables, and had to be dropped for further analysis because of this.
Correlates of Organizational Outcomes with Demographic Characteristics
Spearman correlation coefficients were also calculated for demographic characteristics and organizational outcomes as shown in Table 5. Cellphone ownership has strong correlations with items in the collaborative decision-making group, i.e. those employees with company-issued phones perceive greater effects on their collaborative decision-making. This may be a natural response as employees with company issued phones maximize its use for coordination. Occupation or level in the organization has only one strong correlation – with "Value and importance of work-related SMS"- which may mean that the higher the hierarchical position of the employee, the greater is the perceived value and importance received from other employees. Age and gender have weak correlations with all organizational outcomes.
Factor Analysis
Factor analysis was performed to validate the pre-groupings under organizational outcomes. A principal components factor analysis employing SPSS varimax rotation was used to reduce the items to a smaller number of underlying dimensions (Hiltz, 1988). Table 6 displays the rotated component matrix, with three factors produced. The coefficients validate that collaborative decision-making and organizational identification groups are indeed underlying factors.
Majority of the items under efficiency group validates it as a factor, with items 1,4,5, 10, and 11 explaining the factor. However, two items – "Accomplish more work through SMS" and "Increase productivity as a result of SMS"- have coefficients belonging to collaborative decision-making factor.

Table 4

CONCLUSION
The results of the study not only supports the hypotheses propounded, but also brings out new concepts. SMS use patterns among employees – frequency of SMS, SMS frequency to co-workers and managers, and SMS time of the day - correlate with organizational outcomes. However, the frequency of SMS exchanged by employees with customers has weak correlation with organizational outcomes; thusly, a reason to reject H3. What is interesting, though, is the correlation of cellphone ownership with organizational identification; and level in the organization with efficiency. As expected, age and gender has no correlation with organizational outcomes, as this is due to the widespread use of SMS as a communication medium.

RECOMMENDATIONS
It has been recognized in the telecom industry that SMS is here to stay for another five years. The results of this study reveal the potency of SMS as a medium to enhance productivity, collaboration, and organizational identification in organizations. Several recommendations are but in order to maximize the use of this communication media.
· For management
SMS can be used to maximize productivity gains from this media. Such applications as e-mail notification, group message broadcasting to field personnel and information retrieval are some of the powerful applications. A salesman, for example, can retrieve information such as stock quantity, sales targets, sales-to-date, incentive levels, and others. Sales and marketing managers, on the other hand, can utilize the broadcasting capability of SMS to send sales targets and special offers to field personnel. Top management can adopt an "open-SMS" policy wherein employees can send suggestions and worries to them, which may increase organizational belonging. An SMS use guideline may be formulated and adopted by organizations in order to adopt usage patterns that are conducive to productivity gains.
The organization may also review its cellphone issuance policy to include a larger base of employees. This can be evaluated in the light of the possible increase in job scope among certain employees that will utilize SMS communication and mobile communication in general, in their work.
· For researchers
As this is perhaps the first study ever to focus on SMS and organizational outcomes, researchers may want to determine the causality of this relationship. Pre-use and post-use of SMS in an organization may be adopted as a research approach. Similar studies may be conducted among various organizations in differing industries; or among larger groups of managers, and other field work-intensive industries.

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