Contribution of Technology and Communication to Economic Growth - Literature review Example

Title: Economic growth Name: Institutional Affiliation: Tutor: Date: This chapter introduces the review of the research study; it focuses on the past studies that have already been undertaken on the factors affecting management in the modern economy. The information in the literature review is obtained from past reference materials like magazines, newspapers articles and other published materials. This will contribute towards broadening the scope of the research study and drawing comparison on what factors were previously investigated. The research objectives explored in this paper include, to determine the contribution of technology and communication to economic growth, to investigate the impact of population growth to the economic growth, to determine the impact strategic decision making towards improving the economic growth and too investigate how technology and connectivity affects the economic growth. Contribution of technology and communication to economic growth Technology is a body of knowledge which is applied in practical ways through manufacturing, modifications and process used by humans. Communication on the other hand is the process through which purposeful information is exchanged from one person to the other in order to gain some objective. The combination of these two words means that it is the passing of scientific knowledge for the purpose of development. In the recent past, economic performance in the world has been a middling. The new economy and productivity has been attributed to a number of factors with computer technology being at the forefront with the greatest contribution. From the mechanization of the industrial revolution to the computer driven revolution in the presence economic change. In 1970s less than three percent of the total population in the worlds didn’t have the access to phones and the internet. Today, technology has advanced and more than two-thirds are able to access the internet. Technology todays is seen as the primary mechanism of A number of studies done in the past have suggested several reasons to the contribution of technology on the economy today. According to (lades & David , 2000) the surge of productivity in the united states in the nineteen nighties has been contributed by the adoption of new technologies. (oliner,stephen D & Daniel E Sichel, 2000) Concluded that, information technology has contributed to an estimate of half of increase in productivity in the United States. The pressures which have been attributed by the versatile emerging markets have stimulated an era of innovation and growth which can only be catered by introduction of technology. In The business sector, information technology accounts for over one third of the increase in the productivity. (Jorgenson, Dale W and Kevin siroh, 1999) Concluded that the united stated economic growth has increased immensely to an approximate of one percent increase per year due to information technology. For example, computer technology enhances the accuracy, speed and responsiveness of operations in the business sector increasing the efficiency hence increase in productivity. Information technology works as the facilitator of innovations (Brynjolfsson, Erik and Lorin M. Hitt, 2000). It complements the changes in all the aspects of the organization. Information technology takes into account the network externalities .for this to be effective, a large number of people and organizations make an investment in connection and integrate their data together to achieve mutual benefits. Network technologies are only exploited when information is shared rapidly, effectively and efficiently. This on the other requires literacy on technological, analytical and problem solving awareness. Information technology cannot work alone but must be accompanied by a number of factors to make it worthwhile. In order to be fully productive, information technology should be accompanied by investments of human capital especially in the technical level. Economic growth brought about by the investment in technology has worked best in the organizations that have decentralized their investments to a great flexibility and labour relations. Information contribution has been noticed in the companies that exercise vertical integration. Connectivity through mobile phones or through the internet has given rise to increase in the sharing of market information , financial services , health services to all parts of the world whether in the remote areas or in the urban areas , changing the standard of living . In the modern platform increasing the economic growth The impact of population change in the economic growth. McKinley’s claims that, without boost in productivity, a smaller workforce will mean lower consumption and constrain the rate of economic growth. Studies which have been done in the past show that, about thirty years ago, only few countries had fertility rates which were below the needed to replace the next generation. In the modern economy, about sixty percent of all the people in the world lived in such countries. For example, according to Germany’s statistical office, the population of Germany by the year 2060 will decrease by a fifth and the number of those who will be working will fall by half of those who are working now. This means that, there will be enough labour to cover the production in the economy and the demand will decrease. So how does population affect the economic growth of a country? Arguments to the impact of population to the economy vary accordance to difference economists. Economists have suggested that population dynamics on poverty, management of assets and employment (Company, 2014). According to (Allen C. Kelley & Robert M. Schmidt, 1994) during the 1980s, population growth acted as the detriment to the growth rate. The research suggested that, the relationship between depression economic performance and population growth is strongest in the developing nations of the world. This is due to the high dependency ratios which result when there is high rapid growth which in turn produces high population of children which is relative to the labor force, hence the government and families spend a lot of resources on the children than the children can return back to the economy. This is often on the modern schooling and health care. Economists therefore expect that due to the increase in household demand, then there will be increase in the government expenditure leading to a large cut in the growth of the economy. Countries in the world which are experiencing a high rate in the growth of population, which in turn have a high dependency ratios , have a lot of people in the job market who exceed the number of jobs which the economy can provide. According to the UN development programme by (Nancy Birdsall & Barbara, 1996), though the economy is able to provide jobs for the people, the number of jobs available doo not match the rapid growth of the population. According to (Allen C & Kelley,, 1996) varied high levels of fertility among the lowest income groups in developing countries, wages are downsized due to the population growth. The greater the population the more the people in the labour industry with low –skill, low-wage laborers which in turn slows down the adoption of high technical capabilities. The industrialized countries have a combination of relative income equality with technology and education which creates greater opportunity for a sustained economic growth. Strategic decision making According to Mckinsey, a major part of company’s growth is determined by the income, spending power, underlying growth and inflation. The strategies made by the management are the pivotal point on the dimension a company follows. It is imperative that the management should comprehend the world where offerings in the market vary according to the diverse environ the organizations are located. The value chain of an organization is core to the economic growth of the organization. To gain economic growth to, monitoring of trends and engaging in regular scenario-planning exercise is of essence. Competition in the market is brought about the strategies that exist in various companies. For example, in the modern market few of the mobile-phone manufacturers protected themselves against apples disruption through the emergence of the iPhone. However Samsung through differentiation managed to turn that revolution into an opportunity and rose to be the biggest competitor of the iPhone. Samsung strategized in multiple frames which included immediate tactics and improve s which it used to counteract the competitive position of iPhone. To reshape the organizations capability to compete in the today’s economic environment, technological advancement should be the major consideration (Richard Dobbs, Sree Ramaswamy, Elizabeth Stephenson & S. Patrick Viguerie, 2014). To come up with strategic decisions, managers should perform the following functions ns according to (Quinn, 2010) the first one is planning which is a way of developing specific actions which enables the organizations to achieve its goals. The second one is organizing which is about structuring the organizational tasks to go in line with the tasks implemented. The third one is the leading, whereby managers must supervise, lead and motivate the workforce. Lastly is the controlling aspect which involves the act of monitoring the taskforce in order to produce the results which are in line with the organizational objectives. Strategies to improve the economic growth can be categorized into three, strategic decisions. This are decisions which are made at the corporate level. For example, decisions to enter in the global market. The second category is the tactical decision which is made at the middle management .an example of such strategy is decisions on the expansion of a product market in the locality. The last one is operational decision, the strategy is about the daily organization operations. Technology and connectivity towards economic growth. The rate at which the technology has advanced if so dramatically accelerated, the process of exchanging the information has become more efficient as useful towards the development of the economy. Without the technology the world could be in a stand still mode since every country depend on each other for the development of the either socially or economically. This development has created a competitive environment and development of the new industry has come up to cater to for the generation of the new technology hence creating job opportunity in the country and enhance having an increase in generation of the revenue remittance in the country. The development of the industry lead to usage of the local resources that were dormant in the country which has led to the utilization of resources in the country which is a good source for revenue generation to the government. Establishment of the company also use the information necessary for them to link up in order to determine what creates a gap in the market and they can invest in or identify the competing firms information. Through the connectivity information of every firm is made available hence creation awareness of the technology knowledge and availability of innovating better technology for development in the country. Technology has developed a criteria for learning and apply their skills in development of the country. Role of this education technologically has led to reduction in labour cost since technology has replaced the manual order of work and made it easy. For instance, development of roads, if the contractors use people to level the roads, it will take a lot of time in making the job done. Machines for road constructions have made work easier and most efficient with delay at any point.in the economy it’s believed that for every successful business use of information has led to development and efficiency in its operations. Without the connectivity, information could be the difficult to understand and run competitive advantage in the industry. When people share information or can access the information, productivity always increases. this accessibility has led to reduction of cost I n a way that nobody need to move or pay to access the information he or she need to make a decision, for instance a branch manager doesn’t need to travel to their headquarters to submit their branch progress or send letter and wait for confirmation. They email their report which saves the cost on transport. This is brought about by the immediate connectivity the technology offer which has led to smooth operation of the industry and remittance of revenue made easier. Since the firm can pay their tax online without sending somebody to make the necessary payment or do the negotiation for the firm on bases of tax. Technology doesn’t only look on share market or personal profitability, but also effect on the future in terms of workers and prospects of economy of a country. The implementation of a technology has to be adopted or one is left behind still holding to traditions’ that will be out of acknowledgement at the future. The country adopts the technology to brighten the future and make the development easier since one is aware of any change of the technology For planning, technology has helped in reduction of cost by linking up countries by countries in holding meetings. This attracts organization to coordinate, overcome challenges and employ necessary policies for unity via the internet. This helps sharing of new projects, briefing on requirements, any innovation that the country doesn’t have yet. This has led to information being distributed for the interested party to be able come up with a clear reason on the matter of interest. The unity formed by the firms leads to development of efficiency in their operation which will be a benefit to the country. This has led to improvement of telecommunication at large since any one mostly shareholders get information they deserve and fill comfortable to invest with the firm due to the connectivity. Through earning their trust one is able to generate the money from the citizen which is used in development of the country while the lender is refunded in with the profit of the investment (Douglass C. North, 1996). Conclusion The population organizations are characterized by, technology and the decisions made by the management are continually changing the social and economic activities to the benefit of the country by giving a chance to the motivation of growth and reduction in poverty level in many countries. Since they have being generation of information to the student for learning and help the society at large, give research opinion for development, enable learning through provision of information for research writing which help in decision making in a company and employments are created in the process. The information from a research is made globally for manager to use in decision making. Without the technology the development of a country could be at the minimum level with a lot of under information provision and from the state a lot of resources will be undiscovered. The emerging of the upcoming of different markets in the modern world are due to the economic growth experienced in the modern world today. References Allen C & Kelley,. (1996). The Consequences of Rapid Population Growth on Human Resource Development. in The Impact of Population Growth on well being in developing countries , 67-137. Allen C. Kelley & Robert M. Schmidt. (1994). Population and Income Change:. 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(2014). Management intution for the next 50 years. McKinseys Quartely, 7. Read More