Understanding slow Internet adoption: ‘infomediation’ in ship-broking markets

Debate on the impact of the Internet on socioeconomic and business environments has been dominated by technological determinist perspectives, narrowing the range of discourse around the implications of these new technologies. One important and neglected dimension is the impact on market relationships. Technological determinism suggests that the transactional efficiencies associated with the new medium should have a major impact on market structures. If that argument is correct, the case should be stronger in broking markets where information exchange, information mediation and communication flows are paramount. However, an examination of various broking markets reveals significant differences in the implications of this technological innovation. Drawing upon participant observation research conducted in 1998–99 in the shipbroking market, the paper explores the limitations of the technological determinist perspective and puts forward a model to explore the changing nature and dynamics of market relationships generated by information flows via the Internet. Application of the model helps to locate the reasons for slow adoption of the Internet in ship-broking markets.

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