Abstract

The development of digital platforms is a central part of the digitization of customer relationship management affecting societies and firms alike. In recent years, a number of platforms have been established which play an increasingly important role for firms of the German craft sector and which require adaption by craft firms due to their relevance in this sector. However, there is little research on digital platforms in the craft sector - a research gap addressed by this study. We analyze craft firms' usage patterns of the platforms MyHammer and ProvenExpert. We analyze the regional determinants of platform usage, the duration of registrations and the role of firms' ratings. On a regional level, we find a strong 'digital divide', meaning differences in the usage intensity between rural and urban firms and customers, which is traced back to different informational and reputational mechanisms in urban and rural communities. In the case of MyHammer, the duration of registration is highly influenced by negative ratings, which often lead to the respective firms leaving the platform. Looking at ProvenExpert, the acquisition of positive ratings is a central function of the platform. Consequently, the average ratings of firms on both platforms are almost exclusively positive. Thus, the ratings have a strong informational function for customers and the small segment of craft firms present on the platforms. This leads to a positive selection of firms on the platforms; however, no comprehensive information on the firms of a specific region or craft sector can be obtained via the platforms. Overall, the study formulates policy implications of the results regarding the prospects of adaption to the increasing role of internet platforms for craft firms.

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