The Geography of Internet Adoption by Independent Retailers in the Netherlands

Abstract

So far, the literature on Internet adoption by retailers has paid little attention to spatial variables. Using data on approximately 12 000 independent retailers, we investigate the geographical diffusion of Internet strategies in the Netherlands. In particular, we examine to what extent Internet adoption differs among shopping centers, cities, and regions, while accounting for organizational variables. Results suggest that independent retailers at city and village centers are more likely to adopt information-only and online sales strategies than independents located at shopping centers at the bottom of the retail hierarchy. Furthermore, independent retailers in large(r) cities have a higher probability of adopting the Internet than their counterparts in small(er) cities. On the regional level, the likelihood of Internet adoption is higher for independent retailers in core regions than for independents in the periphery. Thus, geography seems to matter for Internet adoption by independent retailers.

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