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Is distance dead in the digital age? firm digitalization and spatial knowledge acquisition

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  • Wang, Shuai
  • Zhuang, Delin
  • Huang, Xin
  • Li, Yao

Abstract

Digitalization has reshaped the dynamics of knowledge spillovers, raising the debate on whether “distance is dead” in the digital era. This paper explores the impact of digitalization on firms’ knowledge acquisition from both local and non-local sources. The findings reveal that digitalization enhances both local and non-local spillovers, with a more pronounced effect on non-local spillovers, thus reducing the gap between them and promoting a trend toward convergence. However, local spillovers continue to dominate, underscoring the enduring significance of geographical proximity. The impact of digitalization varies by firm type and regional context, with small, privately-owned firms benefiting more from external knowledge pools, especially in areas with limited local knowledge resources. Furthermore, not all dimensions of digitalization contribute equally to knowledge spillovers, with digital management and business activities showing the most substantial effects. These findings offer valuable insights for digitalization strategies and industrial cluster policies.

Suggested Citation

  • Wang, Shuai & Zhuang, Delin & Huang, Xin & Li, Yao, 2026. "Is distance dead in the digital age? firm digitalization and spatial knowledge acquisition," Journal of Business Research, Elsevier, vol. 210(C).
    • Handle: RePEc:eee:jbrese:v:210:y:2026:i:c:s0148296326001244
    DOI: 10.1016/j.jbusres.2026.116090
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