Understanding Global Digital Inequality: The Impact of Government, Investment in Business and Technology, and Socioeconomic Factors on Technology Utilization

This paper presents a model of governmental, investment, social, and economic factors that influence technological utilization for 110 countries. Structural equation modeling is applied to conceptualize and test the model. This model uses latent and observable variables and the application tests the hypothesis that technology use can be accounted for in a multidimensional model composed of four factors: Government Support/Legal Framework/Openness, Investment in Business and Technology, Socioeconomic Level, and Technology Utilization. Findings indicate a critical pathway of influences between the factors of government support/legal framework/openness, socio-economic level, and technology utilization. The results are important because they model complex path relationships between factors identified in the literature, but not previously available for SEM analysis. The paper suggests policy steps for national governments of developed and developing nations especially for policies stressing investment in ICT, strengthening of R and D, societal openness, a strong legal system, prioritization of ICT, and betterment of education.