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Business Use of the Internet in Australia

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  • Joanne Loundes

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper provides summary statistics of Internet usage by Australian businesses using several data sources. Aggregate statistics are provided from the Australian Bureau of Statistics (ABS) Business Use of Information Technology. More detailed information on firm characteristics and Internet usage are provided from the Melbourne Institute Business Survey, conducted by the Melbourne Institute of Applied Economic and Social Research. Despite being a relatively new phenomenon, the academic research to date has already generated some general observations. The first of these is that Internet use is only beneficial to the organisation if it is incorporated into an overall strategy. Evidence from the Melbourne Institute Business Survey shows organisations that were strong in at least one competitive strategy (that is, operational excellence, customer intimacy or product leadership) were more likely to use particular features of the Internet than the rest of the sample. The academic research also indicates that there are significant differences in Internet adoption depending on the type of industry the organisation operates in. Again, the Melbourne Institute Business Survey shows that Internet usage does indeed vary across industries, with manufacturers more likely to use the Internet for the co-ordination of delivery arrangements, whereas the service industries are more likely to use the Internet for customer self-service and personnel benefits.

Suggested Citation

  • Joanne Loundes, 2002. "Business Use of the Internet in Australia," Melbourne Institute Working Paper Series wp2002n20, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2002n20
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2002n20.pdf
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    References listed on IDEAS

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    1. Gertner, Robert H & Stillman, Robert S, 2001. "Vertical Integration and Internet Strategies in the Apparel Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 417-440, December.
    2. Sadowski, B. M. & Maitland, C. & van Dongen, J., 2002. "Strategic use of the Internet by small- and medium-sized companies: an exploratory study," Information Economics and Policy, Elsevier, vol. 14(1), pages 75-93, March.
    3. Robert H. Gertner & Robert S. Stillman, 2001. "Vertical Integration and Internet Strategies in the Apparel Industry," NBER Chapters,in: E-commerce, pages 417-440 National Bureau of Economic Research, Inc.
    4. Andrew J. Schlauch & Steven Laposa, 2001. "E-Tailing and Internet-Related Real Estate Cost Savings: A Comparative Analysis of E-tailers and Retailers," Journal of Real Estate Research, American Real Estate Society, vol. 21(1/2), pages 43-54.
    5. Robert E. Litan & Alice M. Rivlin, 2001. "Projecting the Economic Impact of the Internet," American Economic Review, American Economic Association, vol. 91(2), pages 313-317, May.
    6. Martin Kenney & James Curry, 1999. "e-commerce: implications for firm strategy and industry Configuration," Industry and Innovation, Taylor & Francis Journals, vol. 6(2), pages 131-151.
    7. Dirk Pilat & Frank C. Lee, 2001. "Productivity Growth in ICT-producing and ICT-using Industries: A Source of Growth Differentials in the OECD?," OECD Science, Technology and Industry Working Papers 2001/4, OECD Publishing.
    8. Cheng, Chun Hung & Cheung, Waiman & Chang, Man Kit, 2002. "The use of the Internet in Hong Kong: Manufacturing vs. service," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 33-45, January.
    9. Patricia M. Danzon & Grant D. H. Maclaine, 1994. "Health Care Reform," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(2), pages 81-88.
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    Cited by:

    1. Joanne Loundes, 2002. "Cost Focussed Firms and Internet Usage," Melbourne Institute Working Paper Series wp2002n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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