Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264973 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
ifh Working Paper No. 37/2022
Publisher: 
Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), Göttingen
Abstract: 
Regarding the spatial impact of digitalization, the concern is often expressed that rural areas and the companies located there are disadvantaged by a digital divide compared to urban regions. Against this background, this paper explores the role of the urban/rural location of a small firm in the use of digital communication and information technologies (ICT). With the help of a cluster analysis approach, different modes of digitalization in the German small enterprise sector are identified. According to this, four groups of small firms can be distinguished in accordance to the maturity level concept of digital transformation: non-digital firms, digital beginners, platform-oriented firms and digital manufacturers. From a spatial perspective, it can be seen that the members of the platform-oriented group are relatively often located in urban regions, whereas the digital manufacturers are relatively often found in rural areas. These findings are interpreted as an indication that small firms at least partially consciously assign themselves to one of these digitalization modes, depending on which business model is most effective in the respective (urban or rural) business environment. By contrast, whether a small firm has not yet done anything in terms of digitalization or is only at the beginning of the digital transformation process does not significantly depend on the location of the company. The paper concludes with implications for policy and research.
Subjects: 
Digitalization
Rural regions
Digital divide
Urban-rural typology
SMEs
JEL: 
D22
O33
R11
R12
Document Type: 
Working Paper

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