Factors Hindering Smart City Developments in Medium-Sized Cities

Máté  Szilárd Csukás; Roland  Z. Szabó

doi:10.18096/TMP.2018.01.01

Authors

Máté Szilárd Csukás Corvinus University of Budapest
Roland Z. Szabó Corvinus University of Budapest

DOI:

https://doi.org/10.18096/TMP.2018.01.01

Keywords:

smart cities, Porter’s 5 forces, ICT, sustainability, quality of life

Abstract

The global phenomena of growing urbanization and ICT technological advancements enable the digital transformation and renewal of cities embodied in the ‘Smart Cities’ concept. A myriad of conceptualized models and frameworks have been proposed by multiple stakeholders; however, an easily adaptable, widely applicable and robust smart city model is not yet available, which leaves space for yet untapped fields of research. This article attempts to explore the factors hindering SC developments for European medium-sized cities based on a sample of Hungarian medium-sized cities. The study utilizes Porter's Five Forces Framework from the field of strategic management, which is currently rather neglected in the discussion of ‘Smart Cities’. Findings show that the main barriers are ‘Knowledge gaps’, ‘Availability and Quality of Data’, ‘Vendor Lock-in’, ‘Biased Approaches’ and the ‘Lack of Standards’.

Author Biographies

Máté Szilárd Csukás, Corvinus University of Budapest

Researcher

Roland Z. Szabó, Corvinus University of Budapest

Associate Professor

References

ALBINO, V., BERARDI, U., & DANGELICO, R. M. (2015). Smart cities: Definitions, dimensions, performance, and initiatives. Journal of Urban Technology, 22(1), 1–19. https://doi.org/10.1080/10630732.2014.942092

BALATON, K., & HORTOVÁNYI, L. (eds.) (2018). Stratégiai és üzleti tervezés. “Strategic and Business Planning” Budapest: Akadémiai Kiadó. https://doi.org/10.1556/9789634541530

BALATON, K., BENEDEK, J., KOCZISZKY, G., & SOMOSI, M. (2016). Generating and Measuring Regional Social Innovation. Theory, Methodology, Practice, 12(SI), 14–25. https://doi.org/10.18096/tmp.2016.02.02

BIBRI, S. E., & KROGSTIE, J. (2017). Smart sustainable cities of the future: An extensive interdisciplinary literature review. Sustainable Cities and Society, 31, 183–212. https://doi.org/10.1016/j.scs.2017.02.016

BODA, G. (2017). To what extent is Hungary a knowledge- based economy?, Theory, Methodology, Practice 13(1), 69–84. https://doi.org/10.18096/tmp.2017.01.06

BARRIONUEVO, J.M. , BERRONE, P., RICART, J.E. (2012) Smart Cities, Sustainable Progress, IESE Insight 14, 50–57. https://doi.org/10.15581/002.ART-2152

CARAGLIU, A., DEL BO, C. & NIJKAMP, P. (2009). Smart cities in Europe, Serie Research Memoranda 0048, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

CHEN, T.M. (2010). Smart Grids, Smart Cities Need Better Networks [Editor’s Note]. IEEE Network, 24(2): 2–3. https://doi.org/10.1109/mnet.2010.5430136

CRETU, G.L. (2012). Smart Cities Design Using Event-driven Paradigm and Semantic Web. Informatica Economica, 16(4): 57–67.

DAMERI, R., & COCCHIA, A. (2013). Smart city and digital city: Twenty years of terminology evolution. X conference of the italian chapter of AIS, ITAIS 2013

GABRYS, J. (2014). Programming environments – environmentality and citizen sensing in the smart city. Environment and Planning D: Society and Space, 32, 30–48. https://doi.org/10.1068/d16812

GARCÍA, J., & SISTO, R. (2015). Smart City: ranking best masters. Retrieved May 1, 2018, from http://www.smartandcity.com/smart-city-ranking-best-masters/

GIFFINGER, R., FERTNER, C., KRAMAR, H., KALASEK, R., PICHLER-MILANOVIC, N., & MEIJERS, E. (2007). Smart Cities - Ranking of European medium-sized cities. Vienna University of Technology.

GIFFINGER, R., HAINDLMAIER, G., & KRAMAR, H. (2010). The role of rankings in growing city competition. Urban Research & Practice, 3(3), 299–312. https://doi.org/10.1080/17535069.2010.524420

GUAN, L. (2012). Smart Steps To A Battery City. Government News, 32(2): 24–27.

HALL, R. E. (2000). The vision of a smart city. In Proceedings of the 2nd International Life Extension Technology Workshop, Paris, France, September 28.

HARRISON, C., ECKMAN,B., HAMILTON, R., HARTSWICK, P., KALAGNANAM, J., PARASZCZAK, J., & WILLIAMS, P. (2010) Foundations for Smarter Cities, IBM Journal of Research and Development 54 (4) 1–16. https://doi.org/10.1147/JRD.2010.2048257

HAWKSWORTH, J., HOEHN, T., & TIWARI, A. (2009). Which are the largest city economies in the world and how might this change by 2025? PricewaterhouseCoopers UK Economic Outlook, November 2009, pp. 20-34. Retrieved from http://pwc.blogs.com/files/pwc-uk-economic-outlook-nov-09.pdf

HOLLANDS, R.G. (2008). Will the Real Smart City Please Stand Up? City: Analysis of Urban Trends, Culture, Theory, Policy, Action, 12(3): 303–320. https://doi.org/10.1080/13604810802479126

EGER J. M. (2016). This Is The Decade of Cities. Blog, April 2. HuffPost. Retrieved April 30, 2018, from https://www.huffingtonpost.com/john-m-eger/this-is-the-decade-of-cit_b_9596524.html

KITCHIN, R. (2014). The Real-time City? Big Data and Smart Urbanism, GeoJournal, 79(1): 1–14. https://doi.org/10.2139/ssrn.2289141

KOMNINOS, N. (2011) Intelligent Cities: Variable Geometries of Spatial Intelligence. Intelligent Buildings International, 3(3): 172–188. https://doi.org/10.1080/17508975.2011.579339

KOURTIT, K., and NIJKAMP, P. (2012). Smart Cities in the Innovation Age. Innovation: The European Journal of Social Science Research, 25(2): 93–95. https://doi.org/10.1080/13511610.2012.660331

KOURTIT, K., NIJKAMP, P. AND ARRIBAS, D. (2012). Smart Cities in Perspective – A Comparative European Study by Means of Self-organizing Maps. Innovation: The European Journal of Social Science Research, 25(2): 229–246. https://doi.org/10.1080/13511610.2012.660330

LAZAROIU, G. C., & ROSCIA, M. (2012). Definition methodology for the smart cities model. Energy, 47(1), 326–332. https://doi.org/10.1016/j.energy.2012.09.028

LENTNER, C. (2014). A magyar önkormányzatok adósságkonszolidációja. “Debt Consolidation of Hungarian Local Governments”. Pénzügyi Szemle, 3, 330–344.

MAHIZHNAN A. (1999). Smart Cities: The Singapore Case. Cities, 16(1): 13–18. https://doi.org/10.1016/S0264-2751(98)00050-X

MARSAL-LLACUNA,M.L., COLOMER-LLINÀS, J., MELÉNDEZ-FRIGOLA, J. (2014). Lessons in urban monitoring taken from sustainable and livable cities to better address the Smart Cities initiative, Technological Forecasting and Social Change, 90(B): 611-622 https://doi.org/10.1016/j.techfore.2014.01.012

MCNEILL, D. (2015). Global firms and smart technologies: IBM and the reduction of cities. Transactions of the Institute of British Geographers, 40(4): 562-574. https://doi.org/10.1111/tran.12098

NAGY, Z., TÓTH, G., & SZENDI, D. (2016). Opportunities for adaptation of the smart city concept – A regional approach. Theory Methodology Practice 12, 87–93. https://doi.org/10.18096/tmp.2016.02.08

NAM, T., PARDO, T.A. (2011) Conceptualizing Smart City with Dimensions of Technology, People, and Institutions, Proc. 12th Conference on Digital Government Research, College Park, MD, June 12–15., 282-291. https://doi.org/10.1145/2037556.2037602

NEIROTTI, P., DE MARCO, A., CAGLIANO, A. C., MANGANO, G., & SCORRANO, F. (2014). Current trends in Smart City initiatives: Some stylised facts. Cities, 38, 25–36. https://doi.org/10.1016/J.CITIES.2013.12.010

ORBIS RESEARCH. (2018). Global Smart Cities Market-Analysis of Growth, Trends and Forecasts (2018-2023). Mordor Intelligence, Retrieved: May 2018: http://orbisresearch.com/reports/index/global-smart-cities-market-analysis-of-growth-trends-and-forecasts-2018-2023

PORTER, M. E. (1998). Competitive strategy: techniques for analyzing industries and competitors: with a new introduction (1st Free Press ed.). New York: Free Press.

SILVA, B. N., KHAN, M., & HAN, K. (2018). Towards sustainable smart cities: A review of trends, architectures, components, and open challenges in smart cities. Sustainable Cities and Society, 38, 697–713. https://doi.org/10.1016/j.scs.2018.01.053

THITE, M. (2011). Smart Cities: Implications of Urban Planning for Human Resource Development. Human Resource Development International, 14(5): 623–631. https://doi.org/10.1080/13678868.2011.618349

THUZAR, M. (2011) Urbanization in Southeast Asia: Developing Smart Cities for the Future? In: M.J. Montesano, L. P. Onn (eds.). Regional Outlook: Southeast Asia 2011-2012, pp. 96–100. Institute of Southeast Asian Studies. https://doi.org/10.1355/9789814311694-022

UN (2015) World Urbanization Prospects: The 2014 Revision. United Nations, Department of Economic and Social Affairs, Population Division (ST/ESA/SER.A/366). https://doi.org/10.4054/DemRes.2005.12.9

UN (2018). World Urbanization Prospects: The 2018 Revision, Online Edition. United Nations, Department of Economic and Social Affairs, Population Division

WASHBURN, D., SINDHU, U., BALAOURAS, S., DINES, R.A., HAYES, N.M.& NELSON, L.E. (2010) Helping CIOs Understand “Smart City” Initiatives: Defining the Smart City, Its Drivers, and the Role of the CIO. Cambridge, MA: Forrester Research

YIN, C., XIONG, Z., CHEN, H., WANG, J., COOPER, D., & DAVID, B. (2015). A literature survey on smart cities. Science China Information Sciences, 58(10), 1–18. https://doi.org/10.1007/s11432-015-5397-4

ZYGIARIS, S. (2013) Smart City Reference Model: Assisting Planners to Conceptualize the Building of Smart City Innovation Ecosystems, Journal of the Knowledge Economy 4(2): 217–231. https://doi.org/10.1007/s13132-012-0089-4