bridging the digital divide in microeconomies: us virigin islands new research agenda

04/19/23 DeLone: E-Development 1

Bridging the Digital Divide in Bridging the Digital Divide in Microeconomies: US Virigin IslandsMicroeconomies: US Virigin Islands

New Research AgendaNew Research Agenda

William DeLoneWilliam DeLoneIT Research SeminarIT Research Seminar

September 17, 2003September 17, 2003


DeLone Success Research• DeLone & McLean Success Model

• Impacts/Net Benefits– Individual level– Firm level– Market level– Country Level **


Brief History of IS• Back office automation• Decision Support• Competitive Advantage – AA, Walmart,• Productivity Paradox• Information economy

– “wealth is information applied to work to create value.” (Wriston)


IT & GNP (Dedrick,Gurbaxani & Kraemer, 2003)


IT Has Hit the Big TimeResearch Challenge: Expand our horizons

as IT researchers to high impact research such as industry, market and country level research


IT Research & Social Responsibility

• The potential of the Global Digital Divide

• What about the Small Fries (Small country economies/micro-economies)? Dewan & Kraemer 1998, 2000 => Bad News

• DeLone 1982 Small business computer use

• DeLone 2002 Small country IT use


Digital Divide

Katharine Fierro (Peru)

Victor Orantes (Guatemala)

2001


Fighting the Digital Divide• “Everyone, everywhere, should be

enabled to participate in, and no one should be excluded from, the benefits of the global information society” IT charter of G-8 summit


Four Main Challenges• Reduce the poverty levels

• Stop the brain drain

• Lack of educational opportunities

• Lack of political will


How can we address those issues?

• Competition– Friendly regulatory environment– Liberalization of trade in every aspect in order

to promote economic growth– Government participation in playing a

subsidiary role in providing in infrastructure and education for the poorest


Anticipated Outcomes• Direct foreign investment will come to the

area

• Income levels will raise

• It will lessen the brain drain

• Finally it will help to bridge the gap between developed and developing countries


Implications for Caribbean Economies?


New Paradigms• Wealth created via intellectual assets

• Geographical constraints removed

• Natural resources not required

• Knowledge workers in demand


Digital Divide & Microeconomies• Poor Economies of Scale

• Lack of Economic Resources

• Poor telecommunications Infrastructure

• Limited Educational Opportunities

• Limited Intellectual Capital


E-Development

Economic growth via the information-based businesses or

e-businesses


E-DevelopmentCompetitive Factors

• Telecommunications Infrastructure• Trained Workforce• Business Incentives• Business Climate (Time is money)• Business Infrastructure• Political Stability• Government, Industry, Labor, Education


E-Development Obstacles• Organizational legacy

• Administrative heritage

• Political will


Crossing the Digital Divide

The Role of Leadership


IT, Productivity & Mediating Variables

• IT + Organizational Capital => Firm Productivity (Brynjolfsson & Hitt, 2000; Bresnahan et al. 2002)


IT, Productivity & Mediating Variables

• IT + Institutional Capital => Economic Productivity ??


The Virgin Islands Case

UVI

Technology Park

SWOT Analysis


Virgin Islands - Strengths• United States legal jurisdiction

• Tax benefits

• Access to high bandwidth

• Business friendly University = decision-making speed

• Near shore location


Virgin Islands - Weaknesses• Lack of IT support infrastructure

• Lack of IT-skilled workforce

• High cost of living

• Lack of private-public sector partnership


UVI Technology Park Mission

• To create a technology sector in the Virgin Islands by attracting and developing new knowledge-based businesses that will spur economic development, create jobs for local residents and generate revenues for the financial support for the University.


Goals and Objectives• Promote technology-based economic

development• Broaden research and teaching capabilities• Collaborate with corporate partners in the

creation and commercialization of new technologies and applications

• Provide an integrated response to job creation and job training.


Examples of Park Tenants

• Web hosting companies• E-commerce companies• Telecommunications companies• Software Application Companies• Data Centers/Call Centers• E-customer service operations• Knowledge-based companies• High Tech research and development


Key Benefits• Business Investment/New business creation • Increased employment/High Paying Jobs• Revenues for Government and UVI• Diversified economy/Boost to Tourism• “Brain Gain”• Adjunct faculty/Learning laboratories• Environmentally Friendly development


Where are We Today• Board of Trustees approval secured• Legislation (Act 6502) signed into law• Kogod Field Study• Development site identified on St. Croix• Park Corporation Board Appointed• Strategic partner for world-class e-commerce

hosting • Local & Federal Financial Support


Key Actions Going Forward• Telecommunications connectivity• Procure development funding• Site development• Create Park Corporation organization• Alliances with more strategic partners• Create VI Technology Education Center

(VITec)


Park Success Factors• Educational Leadership• Single source of tenant services => UVI &

Government collaboration • Tax incentives for high-tech tenants in the Park.• Professional Management of Park as a profit-

making enterprise.• Reliable cost-effective broadband connectivity

and power.


Park Success Factors (cont’d)• An integration strategy that links training

and workforce development with job creation.


Research QuestionCan investments in Information Technology

aided by complimentary institutional capital investments improve the economic performance of Micro-economies?


Research Model (Dedrick,Gurbaxani & Kraemer, 2003


Help!• Citations

• Models

• Methods – Case studies, econometrics,

• Measures


Barbados 2000 - Strengths Unifying culture, nationalism Social partnership for economic reform Government stability International Business Companies Act

granting favorable corporate tax (1 to 2.5%) Double taxation agreement with Canada Barbados Investment & Development

Corporation (BIDC) –


Barbados 2000 - Strengths Welcoming business climate Business infrastructure – quality office space,

reliable telecommunications and power. Highly literate population; easily trainable

workforce Relatively cheap high tech workforce Workforce availability Near shore operation (travel access, time zone

advantage)


Barbados 2000 - Weaknesses Cost of telecommunications Lack of workforce trained in IT skills Local business environment/services Slow processing of business transactions by

government Non proactive private sector Lack of local entrepreneurship Lack of economic statistics


Barbados 2000 - Opportunities• Software Development

• Business Information Services


Barbados 2000 - Threats• Competing countries

– Bermuda– Dominican Republic

• Government inability to act quickly

bridging the digital divide in microeconomies: us virigin islands new research agenda

Documents