Firms in Underdeveloped Countries that Adopt Information Communication Technology (ICT) do not Always Improve Their Competitiveness: An Empirical Investigation

This study develops a research model to analyze the outcome of ICT adoption by firms in underdeveloped countries. Based on the theoretical framework of the knowledge based view (KBV) and management information systems literature. This paper proposes a model where a firm’s success when adopting ICT depends mainly on it’s network relationship and assimilation capacity and the characteristics of the particular ICT being adopted. The outcome of the ICT adoption is gauged using the balanced scorecard concept by measuring the firm improvements in: price, products, business processes, and research ability. In the empirical section, this research will use structural equation modeling with data collected from manufacturing firms to conduct tests of the hypotheses developed in the model. The results would have important managerial and policy implications for firms in underdeveloped countries. The model will help managers to adopt ICT with the comprehensive picture of benefits and risks of their choices.