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The Internet GalaxyReflections on the Internet, Business, and Society$
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Manuel Castells

Print publication date: 2002

Print ISBN-13: 9780199255771

Published to Oxford Scholarship Online: September 2011

DOI: 10.1093/acprof:oso/9780199255771.001.0001

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e-Business and the New Economy

e-Business and the New Economy

(p.64) Chapter 3 e-Business and the New Economy
The Internet Galaxy

Manuel Castells

Oxford University Press

This chapter defines e-Business as any business activity whose performance of the key operations of management, financing innovation, production, distribution, sales, employee relations, and customer relations predominantly takes place by or on the Internet or other networks of computer networks regardless of the kind of connection between the virtual and the physical dimensions of the firm. It evaluates the transformation of the practice of the firm, the relationship between the Internet and capital markets, the role of work and flexible employment practices in the networking business model, and the specificity of innovation in the economy, at the source of labour productivity growth. It also proposes some hypotheses regarding the characteristics of the new business cycle and of potential crises, prompted by a sharp downturn in the value of technology stocks in financial markets, based on the observation of the period from March 2000 to March 2001.

Keywords:   e-Business, Internet, computer networks, firm, capital markets, flexible employment, labour productivity, customer relations, new business cycle, networking business model

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