Information technology and a new business geography: Functional activities and communication behavior as basis for location decisions

This dissertation examines the use of information and communication technologies by high-tech and business service companies in North Carolina. While there is no direct link between the use of information technologies and location decisions, this dissertation shows how business activities and characteristics influence communication behavior and the use of communication technologies. The existing literature frequently assumes a simple causal relationship between technology and local behavior, whereas this dissertation argues that in fact there are several dimensions that need to taken into consideration. The theoretical framework reflects the complexity of the relationship between information technology, communication, and location. The conceptual model hypothesizes that the nature of the product or service provided, the degree of customization, and the type of activity carried out at the location of the establishment have an impact on the use of information and communication technologies. Depending on the combination of the three factors, businesses use the same technologies either as a complement or a substitute for face-to-face communication.{09}While the first category of businesses could potentially become more footloose and flexible in their location decisions, the latter group will—even in the digital economy—remain more place-dependent. The empirical part of this dissertation presents results from a survey of 220 businesses in North Carolina that support the hypotheses developed in the framework. The results clearly indicate that different types of businesses use information and communication technologies in different ways.