Factors that inhibit economic development in the information and communications technology industry at the regional level

Abstract

PurposeExploratory research to extend and refine a computer‐based interview tool to help determine the factors that companies in the information and communications technology (ICT) industry consider obstacles in regards to their economic development environment within a localized region.Design/methodology/approachA computer‐based process was employed in telephone interviews to solicit and record responses from executives in ICT‐related companies for the 210 cases that are included in this study.FindingsSeveral obstacles to economic development were identified, and factor analysis was employed to refine the data into a few broad areas of concern.Research limitations/implicationsThis is a snapshot of attitudes within the ICT industry at this point in time. Another study in the future will try to determine if there is a correlation between the presence of obstacles identified in this study and the rate of growth of the ICT industry. Additional research will be required to determine if the factors developed through factor analysis can be related to any underlying causal factors.Practical implicationsData and findings were provided to community leaders involved in economic development. Comparisons within a particular region and between regions can provide guidance for developmental activities.Originality/valueThis research seeks to identify and assist in minimizing obstacles to economic development within the ICT industry for any local region. While this study was conducted in a limited region of the US, it can be applied to any region in the world. Applicability to underdeveloped countries would probably require consideration of other possible obstacles such as lack of capital, infrastructure constraints, speed of services, language, and a general lack of modernization.