Can the internet bridge the gap? – Internet auctions as an option to strengthen business links betwenn urban centers and peripheral regions
Lutz Trettin (RWI, Germany), Mathias Peistrup (Univ. of Appl. Science of Public Administration NRW, Germany), Paul Grunert (Leipzig University, Germany)
Abstract: With the advent of the Internet technolegy certain authors declare since 15 years that “anytime goes anything at any place”. Costumers and firms may find each other easily in a transparent market sphere within a secound. Due to this “death of the distance” it might become easy for small firms in remote areas to take more intensively part in economic activities in distant urban centers. Other authors oppose this idea and underline the importance of “being there”. The physical proximity betwenn economic actors shold be essential for economic success, since it permits the personal exchange of tacit knowledge, sensitive business related information and also social control in the course of business activities.
Representatives of both the positions refer most often to high tech industry, new media or knowledge intensive service sectors. Rarely, scholars care about small businesses which offer simple services like renovating a bathroom or repairing a washing maschine.
At this point our study starts and aims to analyze for German rural areas, how small business from traditional branches use internet based auctions with the aum to gain orders for their services. Research questions are: (1) What type of firms in which regionsgain from the internet auctions? (2) What are determinants of firm success in internet auctions? (3) What types of spatial customer-firm relation patterns evolve through internet auctions? (4) Can internet auctions substantially contribute to a better business einviroment for small firms in peripheral areas?








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