The Internet's Effect on Business Organization: Bane or Boon for Developing Asia?


Dieter Ernst

Asia Pacific Issues, No. 48


Honolulu: East-West Center

Publication Date: January 2001
Binding: paper
Pages: 8
Free Download: PDF


Because of the speed, flexibility, and efficiency that it offers, the Internet has become the means for conducting growing numbers of transactions between suppliers and large international corporations. In this way, the Internet has opened new markets to developing Asia and has accelerated the diffusion of knowledge throughout the region. It thus creates unprecedented opportunities for developing Asian countries because it can remove barriers to their full participation in the new global economy. But the Internet can also exacerbate current inequalities. Access to the Internet is an issue, as is Asia's dependence on foreign information infrastructures. Weak knowledge bases mean developing Asian countries lack the sophisticated management system they will need to become equal players. To address such challenges and take advantage of the benefits the Internet offers, particularly knowledge diffusion, Asian governments and companies must make fundamental changes in their policies and in the way they do business.