Information Security as a Determinant of Nation'S Networked Readiness: a Country Level Analysis

In a digital era where Information and Communication Technologies (ICT) play a pivotal role in driving forward the competitiveness of nations, it is imperative to understand the factors influencing the successful diffusion and deployment of this resource. ICT has become a global resource influencing the competitiveness of not only companies, but also nations. Previous research discussed the factors influencing ICT effectiveness and networked readiness; nevertheless, the impact of a country’s secure communications, competitiveness, and ICT laws on global IT effectiveness has yet to be addressed. Using country-level data generated by World Bank, World Economic Forum, and UNDP, this study uses SEM and examines the impact that IT characteristics, laws, and secure communications have on the networked readiness level of countries. The impact of the various factors on a country’s establishment of secure communication lines is examined. Further analysis is also done using multigroup level analysis to assess differences between country groups, regarding the impact of these different factors on networked readiness. A holistic model comprising technological, institutional, and economic factors is developed and tested, emphasizing secure communication and laws related to IT security and privacy protection. Findings are reported, implications are discussed, and recommendations for future research are presented.