Home-Based Internet Businesses as Drivers of Variety

22 Pages Posted: 22 Oct 2008

See all articles by Janet Grace Sayers

Janet Grace Sayers

Massey University- Department of Management and International Business

Marco van Gelderen

Massey University

Caroline Keen

affiliation not provided to SSRN

Date Written: 2007

Abstract

The paper shows how and why Home-Based Internet Businesses are drivers of variety. This paper argues, by means of five theoretical perspectives, that because of the variety HBIBs generate, they contribute to the economy over and above their direct and indirect contributions in terms of revenue and employment. A multiple case study approach is employed studying the best practices of eight HBIBs. It is found that HBIBs generate variety because of the unique way in which they operate, and because of the reasons why they are started. How HBIBs operate can be captured in the acronym SMILES: Speed, Multiple income, Inexpensive, LEan, and Smart. They are founded (amongst other motives) for reasons of autonomy, freedom and independence. Both aspects - the how and why - of HBIBs are conducive to the creation of variety as they facilitate trial-and-error commercialization of authentic ideas. Five theoretical perspectives posit that variety is important for the industry and the economy: evolutionary theory, strategic management, organic urban planning, opportunity recognition, and the knowledge economy. The findings are discussed in the context of each perspective.

Keywords: Home-based business, Home-based Internet business, Micro-business, Variety, Diversity, Entrepreneurship

JEL Classification: M13

Suggested Citation

Sayers, Janet Grace and Gelderen, Marco van and Keen, Caroline, Home-Based Internet Businesses as Drivers of Variety (2007). Massey U. College of Business Research Paper No. 5, Available at SSRN: https://ssrn.com/abstract=1287860 or http://dx.doi.org/10.2139/ssrn.1287860

Janet Grace Sayers

Massey University- Department of Management and International Business ( email )

Albany Campus
Auckland
New Zealand

Marco van Gelderen (Contact Author)

Massey University ( email )

College of Business, School of Management
Albany Campus
Auckland
New Zealand

Caroline Keen

affiliation not provided to SSRN ( email )

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