Impact of high-speed broadband on innovation in rural firms

Abstract

Innovation has emerged as a critical area in the information technology (IT) for development literature. In particular, there has been on an increased focus on innovation through high-speed broadband on rural businesses. However, unlike existing studies that have predominantly explored the role of telecentres, this research responds to growing calls to focus on the under-researched area of the impact of broadband on rural firms in boosting their innovation capabilities. Consequently, this study contributes to theory development by extending the capability approach from the predominant individual focus to the organizational level by incorporating dynamic capability models to explore development within broader systems. Specifically, it integrates the impact of relevant factors including IT competence and digital options on agility and competitive actions, which in turn influence innovation and overall firm performance. The study is useful to policy-makers in allocating IT investments and evaluating the subsequent impact in their innovation endeavors.