%0 Journal Article %J Technology Innovation Management Review %D 2014 %T Electronic Word-of-Mouth Communication for Local Service Providers %A Nora Schütze %K agent-based simulation %K electronic word-of-mouth %K local service provider %K threshold model %X Word-of-mouth communication is a valuable means of marketing for small, local service providers. Face-to-face transmission is most prevalent, but electronic word-of-mouth is on the rise. Through the results of an agent-based simulation, this article shows that the penetration of word-of-mouth for a small service provider, who is locally restricted due to the inseparability of production and consumption, could benefit less from a growth in word-of-mouth connections than a larger service provider. Only if the added electronic connections are mainly local, small and larger service providers have similar effects on the penetration of word-of-mouth. The article includes a discussion of how small service providers could react to this threat. %B Technology Innovation Management Review %I Talent First Network %C Ottawa %V 4 %P 35-42 %8 04/2014 %G eng %U http://timreview.ca/article/783 %N 4 %1 Cottbus University of Technology Nora Schütze is a PhD student at Cottbus University of Technology, Germany. Her current research focuses on e-commerce and the network formation phase of small service providers. In addition to her research, she works as a management consultant to help clients change mindsets and behaviours. She has also studied sociology and political science at the University of Mannheim, Germany. %R http://doi.org/10.22215/timreview/783