IT diffusion in developing countries

Abstract

here is widespread belief among international agencies and development specialists in the potential value of information technology (IT) to support economic and human development [11,12]. Some question whether IT alone can have a major impact on the standard of living in developing countries, but most see it offering access to vital information and services such as weather forecasting, commodity prices, health care, and education. However, a significant digital divide exists between richer and poorer countries in the use of IT and the availability of complementary assets such as telecommunications networks and skilled IT professionals. This gap has led to a public debate about what can be done to promote greater IT use so that developing countries can achieve the types of benefits already being enjoyed in the industrialized world. Policymakers need to recognize that developing economies have different drivers for IT investment than their wealthier brethren.

Strategic Value of IT in Private Sector Organizations in a Developing Country: Oman

“…Also, it was noted by Shih et al (2008) that the productivity and economic growth in developed countries in general and the United States in particular is derived by investment in information technology. However, it is not a significant driver in developing countries.…”

“…They found a negative correlation between IT investment and interest rates, but positive and significant correlation between telecommunications infrastructure, investment, and openness to trade. Also, Shih et al (2008) discussed the need for implementing information technology effectively in developing countries in order to support economic and human development. Their results concluded that wealth is the most significant factor influencing IT investment.…”

Understanding IT Business Value Creation and Evaluation in Least Developed Economies

“…This IT resource will have immediate effect on organizations' business processes. This is possible because acquired IT resources will be mature and well-tested in competitive markets (Shih et al, 2008). As with developed countries, investment in IT in LDEs is a strategic necessity, but in LDE's, per se, it can also be a source of their business value.…”

“…The gap in access to IT resources is large across the developing countries (Walsham et al, 2007, Walsham, 2010. This disparity is increasingly becoming evident as fast growth in large emerging markets like Brazil, China, and India mask slower development elsewhere (Shih et al, 2008). This disparity is also evident within some developing economies where certain sectors of the population are deprived of access to the IT resources (Walsham, 2010).…”

“…Organizations can only leverage this new environment if they also update their related resources to achieve the best fit between their introduced technology and their business processes. Consideration of human resources and other related factors is essential to maximize the benefits of IT resources in this environment (Shih et al, 2008). This includes recruitment, training and retaining IT staff, and a proactive end user training program.…”