The Digital Divide: Current and Future Research Directions - MISRC ...
The Digital Divide: Current and Future Research Directions - MISRC ... The Digital Divide: Current and Future Research Directions - MISRC ...
elative to their trading partners or competitors. For example, a decrease in the competitiveness of minority-owned businesses might lead to less diversity in the business community. Also, systematic variation in organizational access to ICT by geographic location might cause certain regions of the country to lag behind economically. Given our discussion in the previous section, if we are to create information-based resources that provide content and goods relevant to a wide user base, then diversity in the online business community ought to be an important objective. 4.2 Overview of Research on the Organizational Digital Divide In this portion of the paper, we will investigate the variation in organizational ICT adoption and usage along three dimensions: the role of firm size, importance of promotion by the owner or manager, and the importance of geographic location. Referring to our conceptual framework, this research is relatively less informed by sociology, public policy and technical design perspectives, and instead uses diffusion of innovations and economics as the primary theoretical lens. Further, while there is some research using measurement and case study methods, the primary research methodology at the organizational level is the use of surveys to understand organization adoption, along with econometrics and analytical models to develop economic theory of ICT adoption and usage. This research is summarized in Table 2. Similar to Table 1, for each study we identify the scope of the analysis (years and the subjects examined), along with the methodology, and key findings. Small firms have typically lagged behind larger firms in the adoption of ICT. During the mainframe era of computing, small firms had virtually no opportunity to make use of computing technology, except through the use of service bureaus, which was expensive. In a study aimed specifically at small businesses, Cheney [1983] conducted structured interviews via a questionnaire to 30 firms to measure and understand the difficulties they had in implementing their first computer system. The results indicate that implementation problems were based on poor software design, hardware problems, and difficulties in the implementation process ⎯ problems that would be accentuated for smaller businesses with limited resources. 26
Table 2. Summary of Research on the Digital Divide at the Organizational Level Topics/ Scope Papers Role of Firm Size Years Subjects Methodology Key Findings Cheney [1983] Early 30 small firms that Structured First systems implementation suffered 1980s recently implement- interviews from hardware and software ed their first system problems. Farhoomand and 1984 Small firms Questionnaire Difficulties in adopting PCs included Hrycyk [1985] technical expertise, conversion problems, and training users. Cragg and King 1988 Six small Case study Difficulties in adopting ICT included [1993] manufacturing firms limited financial resources, technical expertise, and training users. Iacovou et al. 1993 Seven small Case study Factors that influence adoption of [1995] companies IOSs by small firms: external implementing EDI pressure, organizational readiness, perceived benefits. Riggins et al. N/A Buyers initiating Analytical Buyers may subsidize supplier [1994] IOSs with trading modeling adoption, but asymmetric information partners results in the initiator not getting its first-best value from the IOS. Riggins and 1993 Buyers initiating Case study and Suppliers’ IOS implementations Mukhopadhyay IOSs with trading survey of impact value buyers’ gain. Buyers [1994] partners suppliers may need to subsidize both adoption and use. Promotion by Top Management Leonard-Barton 1986 93 salespeople of a Telephone survey Certain types of employees require and Deschamps computer higher managerial involvement if they [1988] manufacturer are to adopt and use ICT. Jarvenpaa and 1988 Top managers from Mailed survey CEO involvement more important Ives [1991] 57 companies than CEO participation in organizational IT adoption. Purvis et al. 2000 176 managers Mailed Top management must champion [2001] implementing and questionnaire technology within existing knowledge promoting CASE tools survey structures and work processes. Sharma and 1975 - Organizations Meta-analysis of Managerial support is especially Yetton [2003] 1995 implementing various 22 prior studies critical for new systems that involve systems many users and many interactions. Geographic Location Azari and Pick 1997, 164 U.S. counties Cross-sectional Technical sophistication influenced [2005] 2001 study by size of professional and services workforce, household income, federal grants, education, and demographic ethnicity. Forman, et al. 1998 - Firm-level data of Cross-sectional When controlling for industry [2003a; 2003b; 2000 Internet adoption and study affiliation, rural companies make 2004; 2005a; use better use of the Internet for basic 2005b] functions, but urban-based companies make better use of more advanced features. 27
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Table 2. Summary of <strong>Research</strong> on the <strong>Digital</strong> <strong>Divide</strong> at the Organizational Level<br />
Topics/<br />
Scope<br />
Papers<br />
Role of Firm Size<br />
Years Subjects Methodology<br />
Key Findings<br />
Cheney [1983] Early 30 small firms that Structured First systems implementation suffered<br />
1980s recently implement- interviews from hardware <strong>and</strong> software<br />
ed their first system<br />
problems.<br />
Farhoom<strong>and</strong> <strong>and</strong> 1984 Small firms Questionnaire Difficulties in adopting PCs included<br />
Hrycyk [1985]<br />
technical expertise, conversion<br />
problems, <strong>and</strong> training users.<br />
Cragg <strong>and</strong> King 1988 Six small<br />
Case study Difficulties in adopting ICT included<br />
[1993]<br />
manufacturing firms<br />
limited financial resources, technical<br />
expertise, <strong>and</strong> training users.<br />
Iacovou et al. 1993 Seven small<br />
Case study Factors that influence adoption of<br />
[1995]<br />
companies<br />
IOSs by small firms: external<br />
implementing EDI<br />
pressure, organizational readiness,<br />
perceived benefits.<br />
Riggins et al. N/A Buyers initiating Analytical Buyers may subsidize supplier<br />
[1994]<br />
IOSs with trading modeling adoption, but asymmetric information<br />
partners<br />
results in the initiator not getting its<br />
first-best value from the IOS.<br />
Riggins <strong>and</strong> 1993 Buyers initiating Case study <strong>and</strong> Suppliers’ IOS implementations<br />
Mukhopadhyay<br />
IOSs with trading survey of impact value buyers’ gain. Buyers<br />
[1994]<br />
partners<br />
suppliers<br />
may need to subsidize both adoption<br />
<strong>and</strong> use.<br />
Promotion by Top Management<br />
Leonard-Barton 1986 93 salespeople of a Telephone survey Certain types of employees require<br />
<strong>and</strong> Deschamps<br />
computer<br />
higher managerial involvement if they<br />
[1988]<br />
manufacturer<br />
are to adopt <strong>and</strong> use ICT.<br />
Jarvenpaa <strong>and</strong> 1988 Top managers from Mailed survey CEO involvement more important<br />
Ives [1991]<br />
57 companies<br />
than CEO participation in<br />
organizational IT adoption.<br />
Purvis et al. 2000 176 managers Mailed<br />
Top management must champion<br />
[2001]<br />
implementing <strong>and</strong> questionnaire technology within existing knowledge<br />
promoting CASE<br />
tools<br />
survey<br />
structures <strong>and</strong> work processes.<br />
Sharma <strong>and</strong> 1975 - Organizations Meta-analysis of Managerial support is especially<br />
Yetton [2003] 1995 implementing various 22 prior studies critical for new systems that involve<br />
systems<br />
many users <strong>and</strong> many interactions.<br />
Geographic Location<br />
Azari <strong>and</strong> Pick 1997, 164 U.S. counties Cross-sectional Technical sophistication influenced<br />
[2005]<br />
2001<br />
study<br />
by size of professional <strong>and</strong> services<br />
workforce, household income, federal<br />
grants, education, <strong>and</strong> demographic<br />
ethnicity.<br />
Forman, et al. 1998 - Firm-level data of Cross-sectional When controlling for industry<br />
[2003a; 2003b; 2000 Internet adoption <strong>and</strong> study<br />
affiliation, rural companies make<br />
2004; 2005a;<br />
use<br />
better use of the Internet for basic<br />
2005b]<br />
functions, but urban-based companies<br />
make better use of more advanced<br />
features.<br />
27
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