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Roztocki, N. y Weistroffer, H.R. (2009). Research trends in information and
communications technology in developing, emerging and transition economies.Annals of
the Collegium of Economic Analysis, 20 pp. 113-127.
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Roczniki Kolegium Analiz EkonomicznychZeszyt 20/2009
NARCYZ ROZTOCKI
HEINZ ROLAND WEISTROFFER
Research Trends in Information
and Communications Technology in Developing,
Emerging and Transition Economies
AbstractInformation and communications technology (ICT) is the principal enabler for global con-
nectedness and the flattening of the global market place. Although ICT in emerging economiesis critical for local firms to maintain competitiveness and is a driving force for economic de-velopment, the mainstream information systems research remains focused on ICT issues re-lated to a small number of highly developed countries. In contrast, only relatively little re-search is being reported that specifically addresses the issues that arise from employing ICT in
developing, emerging and transition economies. In this paper, we try to identify the trends and
shortcomings in the current research by reviewing thirty papers in this topic area that havebeen published in recent proceedings of the Americas Conference on Information Systems(AMCIS). Based on this review, existing gaps and new research opportunities are discussed.
Introduction
The World Bank classifies countries and territories into low income, lower middle
income, upper middle income, and high-income economies, based on gross national
income (GNI) per capita. All but the high-income economies (above $11,906 in 2008)
are considered developing economies (World Bank 2007). These developing econo-
mies, in 2006, represented about 84% of the world population, but less than 23%
of the world GNI (World Development Report 2008).
Developing economies, ranging from low income, through lower middle income,
to upper middle income, are a diverse group with some of them well on their way to
catching up with the highly developed world, but others making only very slow
progress. The subgroup of developing economies labeled as emerging market econo-
mies, a term generally attributed to van Agtmael (1984), consists of countries or re-
gions with low absolute, but fast growing, per capita income, and with administrations
that are sincerely dedicated to economic liberalization (Arnold and Quelch 1998).
Countries that previously had communist style, centrally planned economies, and have
recently moved or are in the process of moving to free market systems, are termed
transition (ortransitional) economies (Roztocki and Weistroffer 2008b). Most transi-
tion economies can also be classified as emerging economies.
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Research Trends in Information and Communications Technology 115
different priorities and acted in a different way from what is typical in free market
economies. For example, making a profit was considered less important than satisfy-
ing basic consumer needs and providing employment for the populace. There was little
incentive to improve efficiency (Roztocki and Weistroffer 2008a; Roztocki and Weis-
troffer 2008b), and many enterprises were fully dependent on state allocation
of needed resources to maintain operations (Kornai 1986). This dependency on stateguidance and the neglect of market forces led to a managerial approach often characte-
rized by indecisiveness, as the executives of state owned operations carefully avoided
any decisions or actions that might be perceived negatively by the authorities (Aharoni
1981).
Although information and communication technology (ICT) is used extensively in
developing, emerging, and transition economies, published research dealing with ICT
specifically in these "new" economies is clearly underrepresented in the mainstream
information systems literature. The bulk of published work still focuses on observa-
tions from developed countries.
Thus, the objective of this paper is three-fold. First, by discussing some differ-
ences in the use of ICT in developing, emerging and transition economies as compared
to mature, developed economies, we try to point out the importance of research on
ICT specifically focused on these less developed economies. Second, based on a sys-
tematic review of thirty papers published in the proceedings of the Americas Confe-
rence on Information Systems (AMCIS), we assess the current state of research in this
area, and the directions in which this research is advancing. Third, based on this as-
sessment and the identified research trends, we aim to uncover research gaps, which
may guide potential authors in their future research endeavors. Though we realize that
AMCIS is only one of many outlets for research in this topic area, we think that AM-
CIS proceedings may offer a fairly representative reflection of current research trends.
Much academic work is presented at conferences and published in proceedings beforeit reaches academic journals, and AMCIS seems to have the right balance between
inclusiveness and selectivity so that important new research directions are not prec-
luded, while at the same time distraction by trivial or insubstantial material is avoided.
Information and Communication Technology
in Developing Economies
Sustained economic development requires a well-developed infrastructure and
a substantial number of high-value-added industries. Thus in developing economies,
ICT is often regarded as an enabler and catalyst for successfully shifting away from
economic dependency on low-value-added industry sectors, such as agriculture andraw materials extraction. ICT as a communication and collaboration-enabling tool may
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116 Narcyz Roztocki, Heinz Roland Weistroffer
be used to compensate for the scarcity of other resources. However, many of the les-
sons and much of the experience from developed countries, and the business models
and strategic tools developed in that context, are of limited validity and offer inade-
quate applicability in developing economies.
As an example, measuring the progress of ICT implementation by looking at the
portion of the population owning computers with individual Internet access may bereasonable in developed economies, but this is generally not a good gauge in devel-
oping countries (Roztocki, Weistroffer, Monar and Nasirin 2007). Even though there
may be only moderate individual ownership of ICT, many people in developing econ-
omies have access to the Internet through workplace, family, neighbors, Internet cafes,
public libraries, educational institutions, etc.
By the same token, business models proven successful in developed economies
may not transfer readily to developing economies. Rather, new and innovative models,
attuned to the social and business environment in developing countries are needed. An
example of a successful business model in a developing economy has been phone
sharing. GrameenPhone in Bangladesh sold more than 100,000 mobile phones to so-
called phone ladies who provide airtime to members of the community for a modest
fee (Qureshi, Keen and Kamal 2007). This kind of sharing of technology, not likely to
be profitable in developed countries, provides some additional advantages, aside from
saving cost. As much of the population in rural areas of developing countries is un-
skilled in the use of modern technology, sharing such technology provides not only
access to the technology itself, but also user support for the technology.
The strategic objectives for ICT investments in developing economies are also
often different from objectives in developed countries. Rather than using technology
as a substitute for expensive human labor (Bingi, Leff, Shipchandler and Rao 2000), in
developing economies where labor costs are relatively low but capital is in short
supply, technology may be applied to compensate for an otherwise poor infrastructureand the associated disadvantages in the global market place. Moreover, in emerging
economies ICT is used to support the development of new products and services for
a rapidly growing customer base. In contrast, in developed, mature economies where
the economic growth is rather modest, ICT is primarily used for improvement of
existing products and services and to manage the existing customers more efficiently.
Overall, though the use of ICT in developed and in developing countries differs
substantially, ICT plays a critical role in business growth in developing economies.
While local firms may use ICT to improve business effectiveness by compensating for
the shortage of other resources, international corporations expanding into developing
markets may use ICT to maintain effective links to their headquarters located in de-
veloped economies. In summary, it may be reasonably expected that the external busi-
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Research Trends in Information and Communications Technology 117
ness environment in developing, emerging and transition economies substantially af-
fects ICT adoption and use, as depicted in Figure 2.
Figure 1. Differences in ICT Use
Figure 2. Environment Impact on ICT
The general importance of ICT to development and the inapplicability of many re-
search results and models obtained in developed economies for developing economies
means that there is tremendous opportunity for research dealing with ICT specifically
in developing economies. The flattening of the world (Friedman 2005) due to ICT
facilitated globalization also should call for increased academic attention to develop-
ing markets in the field of ICT research. So far, however, and in spite of Walsham and
Sahays (2006) conclusion that ICT research in developing countries has matured in
recent years, most mainstream ICT research still concentrates on applications in de-
veloped economies. Thus, relatively little ICT research directly related to developing
economies has been reported in the major information systems journals.
ICT
Use
Replace human labor
Improve
products/services
Compensate for lack ofinfrastructure
Develop new products/services
Developed
Economies
Developing
Economies
Laws and RegulationsGovernment ControlInfrastructureWorkforce CharacteristicsManagement StyleCustomer Characteristics
Economic Conditions
Business Environment Adoption and DiffusionStrategyPlanning and DesignImplementationServicesManagementSecurityEconomicsImpact on Organizationsand SocietySourcing
ICT Issues
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118 Narcyz Roztocki, Heinz Roland Weistroffer
Avgerou (2008) provides a fairly comprehensive review and interpretation of the
existing literature on ICT in developing countries, pointing out a distinctive research
agenda that has been formed in these studies. Avgerou points out that two focus areas
of the literature on ICT in developing countries are ICT as a strategic resource for ma-
croeconomic development and the contribution of ICT to improving social services
and institutions. Our objective here is not a comprehensive literature review nor todevelop any new theory, but rather we look specifically at the issues and recent trends
reported at the Americas Conference on Information Systems (AMCIS), where for
several years now there have been tracks concentrating particularly on ICT in devel-
oping, emerging, and transition economies. In this paper we provide an overview of
past contributions presented at AMCIS, with the purpose of identifying current re-
search streams and trends, and uncovering gaps in the current research and opportuni-
ties for future research. Our assertion is that research trends evidenced at AMCIS are
likely indicative of the more general research trends.
Research Papers on Ict in Developing, Emerging
and Transition Economies at Amcis
Our overview is based on thirty papers presented in AMCIS mini-tracks focusing
on ICT in developing and emerging economies in the years 2004-2009, as listed in
Table 1.
Table 1. List of the papers reviewed
Author(s) Focus of Investigation Country Source of Data
(Bagchi, Putnam and
Tang 2004)
ICT investments across countries with
differences in ICT infrastructure levels
multiple (49
countries)
World Bank WDI
database
(Ding 2004)
international joint venture formation
in companies from developedand emerging economies China case studies
(Roztocki, Pick andNavarrete 2004)
ICT Investments in developingcountries (mini-track introduction)
not specified not applicable
(Roztocki andWeistroffer 2004b)
using activity based costing for
evaluating ICT investments inemerging economies
not specified not applicable
(Roztocki andWeistroffer 2005)
framework for evaluating ICTinvestments in emerging economies
not specified not applicable
(Wenger, Dhillon and
Caldeira 2005)
ERP implementation and its effect on
shift of powerPortugal case studies
(Brown and
Gunawardena 2006)educational-based ICT projects
Laos, SriLanka,
Vietnam
case studies
(Chevers and Duggan
2006)
software process maturity and
discipline Jamaica limited survey
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Research Trends in Information and Communications Technology 119
(Johnston, Mugandaand Theys 2006)
chief information officers South Africa survey
(Laosethakul, Oswald
and Boulton 2006)
critical success factors for e-
commerceThailand case studies
(Nasirin, Morar, Birks,Zainuddin, Choo and
Wafa 2006)
outsourcing Malaysia survey
(Negash 2006) investments in telecommunicationmultiple (87
countries)
WorldTelecommunicationIndicator database
(Rupino da Cunha and
Videira 2006)
using balanced scorecard for
evaluating ICT investments inemerging economies
Portugal case studies
(Soja 2006)ICT implementation in emerging
economiesPoland survey
(Suri and Hara 2006)community information capacity
building through ICTIndia case studies
(Bharati 2007) software services/industries Indiaonline directoriesand websites
(Gunawardena and
Brown 2007)
educational-based ICT projects
Laos, Sri
Lanka,
Vietnam
case studies
(Niwe, Mbarika,
Samake andNiyitegeka 2007)
global diffusion on the Internet Uganda case studies
(Roztocki et al. 2007)research on and in developing andemerging economies (mini-track
introduction)
not specified not applicable
(Soper 2007)ICT impacts on democracy,corruption, and E-government
acceptance
multiple (50countries)
World Bank WDIdatabase
(Thompson and Brown2007)
diffusion of ICT and national ICTstrategy
Jamaica case studies
(Al-Jabri 2008) end user adoption of ERP systems Saudi Arabia survey
(Prasad and Heales
2008)
ICT and business value in a global
economy Fiji survey
(Soja 2008)enterprise system implementation in
emerging economiesPoland survey
(Whitaker, Melville,
Plice and Dedrick2008)
Internet business practices / use of
Internet for competitive advantage
multiple (10
countries)
survey and case
studies
(Ghosh 2009) diffusion of ICT and digital divide not specified survey
(Kamal and Qureshi2009)
classification of countries based ontheir ICT capacity, skills and growthrates
multiple (182countries)
InternationalTelecommunicationUnion (ITU)
(Moreno Jr. andGomes 2009)
adoption of an open source WebServices development platform
Brazil action-research
(Soja 2009)motivations for enterprise system
adoptionPoland survey
(Talwar and Back2009)
differences in implementing ERP India case studies
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120 Narcyz Roztocki, Heinz Roland Weistroffer
Seven of the papers focus on economics of ICT, one of the categories listed in
Figure 2. Bagchi et al. (2004) compared ICT investment growth between countries at
varying levels of ICT maturity using World Bank data. Ding (2004) looked at joint
venture formation of companies from China, a transition economy, and from devel-
oped countries. Roztocki and Weistroffer (2004b) proposed using activity-based cost-
ing for evaluating ICT investments in emerging economies. This work was expandedin a later paper Roztocki and Weistroffer (2005) that added fuzzy logic and multi-
criteria decision making to the proposed framework. Rupino da Cunha and Videira
(2006) examined the implementation and use of balanced scorecard for ICT
investment evaluation in a Portuguese company. And Negash (2006) researched
investments in telecommunications using the World Telecommunication Indicator
database. Yet another study in the economics of ICT category looked at the effect of
ICT and business value in Fiji (Prasad and Heales 2008).
Seven papers are in the ICT adoption and diffusion category from Figure 2, in-
cluding software process maturity and diffusion of ICT in Jamaica (Chevers and Dug-
gan 2006; Thompson and Brown 2007), global diffusion on the Internet in Uganda
(Niwe et al. 2007), and critical success factors for e-commerce diffusion in Thailand
(Laosethakul et al. 2006). One study investigated ICT adoption in the context of the
digital divide (Ghosh 2009). Using action research at a small Brazilian software com-
pany, one paper (Moreno and Gomes 2009) examined critical success factors for
adoption of an open-source Web services development platform. Another paper (Soja
2009) looked at motivations for enterprise system adoptions in Poland.
Six papers deal with ICT implementations in emerging economies, another cate-
gory listed in Figure 2. Two studies (Soja 2006; Soja 2008), using a survey of ICT
practitioners, looked at key challenges in enterprise system implementation in Poland,
and a study by Al-Jabri (2008) examined the effects of end-user perceptions and ex-
pectations on enterprise resource planning (ERP) system adoption in Saudi Arabia.One study compared ERP implementations in India and in Western Europe (Talwar
and Back 2009). Still other papers looked at educational-based ICT projects in east
Asia (Brown and Gunawardena 2006; Gunawardena and Brown 2007), with the objec-
tive of identifying key factors necessary for a successful technology implementation
project management in emerging economies.
Two studies can be categorized as ICT impact on organizations and society. One
study (Wenger et al. 2005) investigated the shift in power as a consequence of ERP
implementation in a medium-size, privately owned real estate management firm in
Portugal. Another study in this category Soper (2007) researched ICT impacts on de-
mocracy, corruption, and E-government acceptance.
One study looked at community information capacity building through ICT in In-dia (Suri and Hara 2006) and proposed a framework for designing and deploying ICT
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Research Trends in Information and Communications Technology 121
in developing countries. Thus this paper could be assigned to the ICT planning and
design category.
A study in the ICT management category, looking at issues concerning chief in-
formation officers (CIOs) in South Africa (Johnston et al. 2006), reported that some of
the biggest concerns of CIOs in South Africa are related to security and control.
Further topics investigated include outsourcing in Malaysia (Nasirin et al. 2006),in the ICT sourcing category, software services in India (Bharati 2007), in the ICT
services category, and Internet business practices across multiple developing countries
(Whitaker et al. 2008), in the ICT strategy category. One paper classified a set of 182
countries according to ICT capacity, skills, and growth rates (Kamal and Qureshi
2009). The two remaining papers were introductions and overviews of other papers,
presented in the respective mini-tracks.
Findings and Implications
The analysis of the reviewed papers confirms several previously reported obser-
vations, while revealing some additional particulars that call for further attention. Forexample, the specific topics of investigation, the most frequently used research metho-
dologies, and the most common sources of data indicate that there may be a lack of
support for research requiring more expensive resources (Roztocki et al. 2004). Case
studies, which may be more cost efficient than other approaches, particularly if they
accompany paid consulting work, seem to be the most prevalent research methods by
researchers in developing, emerging, and transition economies (Roztocki et al. 2007).
However, the use of surveys appears to be on the rise, perhaps indicating an increase
in research funding.
Moreover, our analysis indicates that the research is broadly dispersed with re-
spect to research topics as well as the contexts in which they have been studied. How-
ever, twenty of the 28 papers (not including the overview papers), i.e. about 70%, fo-
cus on only three topic areas: ICT adoption and diffusion, ICT implementation, and
economics of ICT. Perhaps these areas are considered by IS researchers to be particu-
larly sensitive to the specific business and regulatory environment in developing and
emerging economies. Also, these may be the areas of most urgent relevancy to practi-
tioners when playing catch-up with developed markets.
In addition, in many emerging economies, capital is scarce, and consequently
these economies are dependent on foreign investments. Often, bank loans in local cur-
rencies are subject to high interest rates, while loans in major foreign currencies, such
as Dollars or Euros, are risky because of unpredictable exchange rates. For these rea-
sons, large investments in ICT may present a challenge for many local companies.Thus, one of the major characteristics of typical developing countries, thin capital
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122 Narcyz Roztocki, Heinz Roland Weistroffer
markets and shortage of capital, seems to be mirrored in the topics of investigations
published at AMCIS.
Above and beyond the research issues that may be related to the shortage of capi-
tal, two other characteristics of typical developing countries, weak infrastructures and
a shortage of skilled labor, are recurrently discussed in the examined papers.
In contrast, several topic areas seem to not be very investigated, indicating muchpotential for future research. For example, there seems to be little research on ICT
strategy in developing economies, or how ICT may be leveraged to gain competitive
advantage in global markets. Only one paper in our sample (Whitaker et al. 2008) ex-
amined this aspect. Also concerns of ICT security unique to developing economies
appear to be under-examined, with only one paper in our sample dealing with this is-
sue (Johnston et al. 2006). This paper indicates increasing awareness of ICT security
needs in South Africa, an emerging economy. As ICT use matures in developing and
emerging economies, these areas are likely to increase in importance.
Specifically in emerging economies, the role of the middle class would seem an
important topic that is missing in the examined papers. Members of an emerging mid-
dle class, as they try to catch up with the lifestyles common in developed countries,
are often champions for modern ICT implementations. Regarding specifically ICT in
transition economies, three papers investigated enterprise system implementation in
Poland (Soja 2006; Soja 2008; Soja 2009), one paper looked at joint venture formation
in Chinese companies (Ding 2004), and four others included some of the transition
economies in multiple country contexts (Bagchi et al. 2004; Kamal and Qureshi 2009;
Negash 2006; Soper 2007). But research dealing directly with the unique problems
that accompany ICT implementation in transition economies seems to be sparse and
fragmented.
Moreover, many of the papers in our sample seem to stand in isolation, and are not
well integrated with the existing literature, and most papers reference primarily main-stream research conducted in developed economies. When examining the references
sections, surprisingly few citations were about ICT use reported from the country or
region of interest. Accordingly, it is not always articulated in the papers how the ex-
ternal business and regulatory environment in developing, emerging and transitional
economies affects various ICT issues, as depicted in Figure 2. Furthermore, many au-
thors have difficulties to identify and articulate how their results contrast published
results reported from developed economies, and to provide reasonable explanations for
such discrepancies. Often, too much space is dedicated to reporting facts, which may
be obtained from other sources, and accordingly less space committed to research
synthesis and the systematic development of generalizable knowledge. More focus
should be directed to identifying and better understanding the specific impediments
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Research Trends in Information and Communications Technology 123
present in developing, emerging, and transition economies to effective ICT use, and
ways to overcome these.
Limitations and Final Remarks
In this paper, we present an assessment of research trends in ICT in developing,emerging, and transition economies, based on a systematic review of thirty papers
published in AMCIS proceedings. Although the number of papers reviewed is rela-
tively small and thus presents some limitation on the validity of the conclusions
drawn, our study provides some, if imperfect, indication of what is being done and
where future research should be directed. Thus we believe that our paper makes an
important contribution in providing a foundation and ideas for future projects and the-
reby helping interested researchers focus their attention to areas particularly in need of
investigation.
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* * *
Trendy badawcze w technologii informacyjnej i komunikacyjnej
w gospodarkach rozwijajcych si, wschodzcych oraz w okresie transformacji
Streszczenie
Technologia informacyjna i komunikacyjna (Information and communications technology:ICT) jest jednym z gwnych czynnikw umoliwiajcych wspprac midzynarodow orazwzrost konkurencyjnoci na wiatowych rynkach. Pomimo e w gospodarkach wschodzcychICT jest dla przedsibiorstw bardzo wanym zasobem wykorzystywanym w celu zwikszaniakonkurencyjnoci oraz stanowi wan si napdzajc rozwj ekonomiczny, to jednak gwnynurt bada w dziedzinie systemw informacyjnych koncentruje si na zagadnieniach dotycz-
cych ICT w nielicznej grupie krajw wysokorozwinitych. Natomiast niewiele bada nauko-
wych powicono tematyce zastosowania ICT w gospodarkach rozwijajcych si, wschodz-cych oraz znajdujcych si w okresie transformacji. W artykule dokonano prby identyfikacjitrendw i niedostatkw w tej grupie bada na podstawie przegldu trzydziestu artykuw opu-blikowanych w ostatnich latach w materiaach konferencji naukowej Americas Conference onInformation Systems (AMCIS). Na podstawie dokonanego przegldu literatury artyku omawiaistniejce w badaniach luki tematyczne oraz wynikajce z tego moliwoci nowych kierunkw
bada naukowych.
Keywords: Developing countries, emerging economies, transitional economies, research
trends, information and communications technology.
Authors:
Narcyz Roztocki, State University of New York at New Paltz,
e-mail: [email protected]
Heinz Roland Weistroffer, Virginia Commonwealth University,
e-mail: [email protected]