Table 1 - uploaded by Avi Goldfarb
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We provide a framework and evidence to confront two questions: Does the location of an establishment shape its adoption of different complex Internet applications even when controlling for an industry's features? If location does matter, what features in an industry shape whether Internet adoption follows a pattern consistent with the urban leaders...
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... Table 1, we show how industry characteristics and geographic location influence the rate with which industries adopted enhancement. Columns 1 through 3 show our baseline OLS estimates of Equation (3). ...
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... One of the most important of these is the provision of an advanced ICT infrastructure. With its territorial characteristics, diffusion, social, economic and geographical effects have long been considered (Billon, Ezcurra, and Lera-Lopez 2008;Duvivier et al. 2021;Forman, Goldfarb, and Greenstein 2005). In the first decade of the twenty-first century, there were sharp differences in the prevalence of ICT between countries or even internally (Billon, Marco, and Lera-Lopez 2009;Grasland and Puel 2007;Houzet 2007). ...
... Second, we can turn to the economic implications of this gap. For example, Forman and Goldfarb [29] have proposed two alternative theories of the relationship between urbanization and the spread of ICT: (1) the global village theory, according to which isolated settlements are more interested in using electronic communication channels and, therefore, will adopt them faster; (2) urban leadership theory, which, in turn, suggests that high population density creates favorable externalities in favor of earlier adoption of new technologies in cities. In order to assess the relevance of the both interpretations, we also looked at the share of the urban population in the region as an additional social moderator. ...
The paper discusses interregional differentiation in the distribution of electronic purchases among the population in Russia. The empirical base of the study is open regional data collected by statistical agencies and authorized government agencies, which were studied using panel regression methods. The aim of the work is to find out what factors are primarily responsible for the interregional spread in the level of online channel use in consumer retail purchases. The study focuses on regional drivers and barriers for the spread of e-commerce. The results show that shares of users of stationary computers and smartphones, as well as gross regional product per capita are the main positive factors, and lack of trust in e-commerce channels is the main obstacle, whereas Internet infrastructure, age structure, educational level, urbanization, aggregated regional preferences for personal purchases and physical availability of retail trade outlets were found to be irrelevant.
... As we reflected on IoT, its potential, and its implications for IS research, we were struck by how the genesis of IoT can be traced back to several constructs that have been actively studied in prior IS research. For example, some IS concepts relevant to IoT include ubiquitous computing, web of things, industrial Internet, physical Internet, smart cities, pervasive Internet, connected environments, situated computing, wireless sensor networks, among several others (Forman, Goldfarb, & Greenstein, 2005;Gholami, Watson, Molla, Hasan, & Bjørn-Andersen, 2016;Kohli & Grover, 2008;Lyytinen & Yoo, 2002b, 2002aMarch, Hevner, & Ram, 2000;McCullough, 2004;Wolcott, Press, McHenry, Goodman, & Foster, 2001;Yoo, Henfridsson, & Lyytinen, 2010). ...
The Internet of Things (IoT) is emerging as an integrated set of digital innovations with the potential to unleash unprecedented opportunities as well as to create significant challenges from both technological and societal perspectives. The emergence of IoT heralds a new dimension of a digital era with impact and influence that are not yet fully clear. This signals the opening of valuable opportunities for scholarly inquiries, particularly for information systems (IS) scholars. We posit that, as the IS discipline sits at the intersection of technical, business, and social applications of IT, which are also the essential dimensions of the impact of IoT, IS scholars are well positioned to understand and contribute to advancing research on this new topic and associated phenomena. This paper outlines the distinctive attributes of IoT and their implications for existing traditions of IS research. It further highlights some illustrative research perspectives from which IoT can be studied by IS scholars. We highlight a research agenda for IS in two different ways: first, by suggesting four categories of implications on IS research: (1) introduction of the physio-digital continuum; (2) multi-level exploration of IS; (3) composite affordances; and (4) heterogeneity; and second, by introducing four thematic impact domains: (1) impact on organizations; (2) impact on technology; (3) impact on individuals; and (4) impact on society.
... Social capital can also accrue through geographic proximity to other organizations, enabling knowledge spillovers, because colocated organizations are easily "connected" to each other through frequent social interactions, observations, and communications (e.g., Forman et al. 2005aForman et al. , 2005b. Also, the pooled labor market and informal social interactions between employees of different organizations enhance the connections between the colocated organizations. ...
... In the existing literature, many scholars have focused on R&D and new technology ( [7] Audretsch and Feldman, 1996; [8] Bertscheck and Fryges, 2002; [9] Chang and Oxley, 2009). Some scholars have examined the relationship between internet intensity and urbanization economics ( [10][11][12] Forman et al. (2005a, b, c), [13] Goldfarb and Prince (2008), [14] Baptista and Swann (1998)), as well as a link between computers and productivity ( [15] Atrostic and Nguyen, 2005). However, there has been little research undertaken on the relationship between internet intensity and industrial penetration. ...
... For traditional industries, such as (15) The effect of degree of industrial concentration (HH I j ) in terms of whether manufacturers will use the internet is different across 2-digit industries. In terms of traditional industries, such as (11) Textiles Mills, (15) Pulp, Paper and Paper Products, (23) Non-metallic Mineral Products, (32) Furniture, technology-intensive industries, such as (29) Machinery and Equipment, and basic industries, such as (22) Plastic Products, when the degree of industrial concentration increases, manufacturers will be more inclined to use the internet. On the contrary, in the case of traditional industries, such as (08) Food, (12) Wearing Apparel and Clothing Accessories, (13) Leather, Fur and Related Products, and basic industries, such as (25) Fabricated Metal Products, when the degree of industrial concentration decreases, manufacturers will be more likely to use the internet. ...
This paper is the first to investigate the effect of industrial penetration (geographic concentration of industries) and internet intensity (the proportion of enterprises that uses the internet) for Taiwan manufacturing firms, and analyses whether the relationships are substitutes or complements. The sample observations are based on a unique set of data, namely 153,081 manufacturing plants, and covers 26 two-digit industry categories and 358 geographical townships in Taiwan. The Heckman sample selection model is used to accommodate sample selectivity for unobservable data for firms that use the internet. The empirical results from Heckman’s two-stage estimation show that: (1) a higher degree of industrial penetration will not affect the probability that firms will use the internet, but it will affect the total expenditure on internet intensity; (2) for two-digit SIC (Standard Industrial Classification) industries, industrial penetration generally decreases the total expenditure on internet intensity; and, (3) industrial penetration and internet intensity are substitutes.
... 'Digital divide' is defined by the OECD as the "gap between individuals, households, businesses and geographic areas at different socio-economic levels with regard both to their opportunities to access ICT and to their use of the Internet for a wide variety of activities" (OECD, 2001). Accordingly, this phenomenon was addressed at three levels: individual (Akhter, 2003;Rice & Katz, 2003), which refers to the gap between people; organizational (Forman et al., 2005;Riggins & Mukhopadhyay, 1994), which refers to the gap between companies; and global (Chinn & Fairlie, 2007;Dasgupta et al., 2005), which refers to the gap between countries. In addition, the International Telecommunications Union (ITU) refers to this gap as a multidimensional concept made up of three inequalities: access, which refers to the difficulty in having networks and computers; intensity of use, which refers to the time people use the Internet; and skills, which refers to the ability to use the Internet or lack thereof (ITU, 2013). ...
The Internet has become a catalyst of the global economy. Developing countries are lagging behind developed countries due to unequal access to the Internet and other information and communication technologies (ICTs). Governments are challenged to establish adequate strategies to reduce this gap and achieve the inclusion of their citizens. In this context, developing countries could leverage on adequate Internet-gap-reduction strategies to boost economic growth and development. The present study attempts to make an analysis of the Internet-related policies adopted by Chile, which is a leading country in South America; and by South Korea, which is a leading country in the world. We gathered data from secondary sources related to the process of digitalization in both countries. The collected data was processed and a PEST (political, economic, social, and technological) analysis was conducted for Peru to determine which actions can be taken to bridge the Internet digital divide in this country. The results shed light on the complexity of this phenomenon, which depends not only on access, but also on intensity of use and skills. Implications for policy makers are discussed.
... Community size indicates whether an organization is located in an urban or rural area (Kimberly and Evanisko 1981;Mohr 1969). The urban leadership hypothesis (Forman et al. 2005) suggests that urban organizations will be more likely to be able adopt technological innovations, based on a well-developed Internet infrastructure that includes broadband access. Alternatively, Internet providers have been less willing to lay down the infrastructure to support broadband connections in rural settings with low population densities. ...
... While some studies have begun to unravel the link between ICTs and urban spatial structure (Sohn et al. 2002), there is a tremendous amount of uncertainty about the impact of broadband on regional economies. Not only are broadband data difficult to obtain, but the distribution of this infrastructure is highly uneven (Moss and Townsend 2000;Gorman 2002;National Broadband Map 2011), as is the adoption of ICTs by firms (Karshenas and Stoneman 1993;Sadowski et al. 2002;Forman et al. 2005aForman et al. , 2005b. ...
... Studies show industry level variations in the use of these technologies (Forman et al. 2005a) as well as differential adoption rates related to business size (Karshenas and Stoneman 1993; Gibbs and Tanner 1997;Forman 2005). Adoption studies also suggest business impacts may be related to the standardization of activities within firms (Atkinson 1998;McCann and Shefer 2004;Mudambi 2008) and their reliance on face-to-face contacts (Gaspar and Glaeser 1998;Moss 1998;Leamer and Storper 2001;Steinfield 2004). ...
... Adoption studies also suggest business impacts may be related to the standardization of activities within firms (Atkinson 1998;McCann and Shefer 2004;Mudambi 2008) and their reliance on face-to-face contacts (Gaspar and Glaeser 1998;Moss 1998;Leamer and Storper 2001;Steinfield 2004). Although a few studies provide clues as to the industries that most readily adopt these technologies (Forman et al. 2005a); our knowledge about business use of Internet-related technologies remains scant. ...
Abstract This study evaluates the relationship between the spatial distribution of broadband providers and the presence of knowledge intensive firm clusters in US counties. Results highlight this relationship is heterogeneous and localized. In some places, broadband appears to be an essential link that enables knowledge firms to strategically locate in lower cost counties and in close proximity to major knowledge centres. In other places, the availability of broadband Internet connections are unable the negative externalities associated with locations in more remote areas of the country. From a policy perspective, this suggests that broadband should be viewed as a key component, but not the only component, of comprehensive local economic development plans.
... Another extension to this study that would add further insight about broadbandrelated productivity improvement is a breakdown of productivity impacts by people working in different industries to see if broadband increases productivity in some industries more so than others. Several studies have noted an uneven adoption of dial-up Internet connections across industries (Forman, Goldfarb, and Greenstein 2005), and this uneven adoption may likely impact productivity levels in these industries. ...
While the productivity paradox has been largely resolved, debate persists about the impacts of information and communications technologies on productivity, particularly as regards broadband Internet connections. To date, the bulk of the literature has not addressed the impacts of broadband provision on regional variations in productivity. This study develops a series of spatial econometric models that examine the link between broadband provision and productivity for US counties. The models developed not only consider the link between productivity and broadband provision, but they also evaluate the variability in broadband impacts that are related to the quality of human capital stock within counties. The results of the models are evidence of skill-based technological change and suggest that in general, broadband has a positive impact on productivity only in locales with high levels of human capital and/or highly skilled occupations.
... In terms of industry specific impacts, the results of a Hackler (2003) study examining linkages between high-tech industry growth and telecommunications capacity imply that the quality of telecommunications in cities may impact their ability to attract businesses in specific sectors. Several other studies examining adoption of dial-up Internet connections also reveal some important industry variations in adoption propensity (Forman et al., 2003;Forman, Goldfarb, & Greenstein, 2005a, 2005b, 2005c. These variations in adoption rates are likely related to four key industry characteristics: history of ICT use, labor cost, industry growth, and geographic proximity (Forman et al., 2005b). ...
In addition to highlighting improvements in the availability and speed of broadband as a national priority, the National Broadband Plan also includes several recommendations for improving access and use of broadband by small businesses. The plan also recommends economic development officials include broadband in their local development strategies. While these are certainly import goals, more research is needed to evaluate how broadband impacts the regional business environment, and regional capacity to retain and attract businesses in particular industries. In order to further our understanding about the linkages between broadband and businesses, and the ability of places to retain and attract businesses in particular industries, this study will develop and estimate econometric models to better understand the linkages between broadband and firms in the knowledge intensive sector. Specifically, 54 metropolitan area specific models will be developed to examine regional variations in the linkages between broadband and firms in the knowledge intensive sector in 2004. Model results highlight the importance of broadband to knowledge firms in all but five metropolitan areas across the U.S. They also reveal variations in the impact of broadband on knowledge firm presence related to metropolitan area size and industrial legacy.
