Socio‐economic determinants of broadband adoption

Date29 May 2007
Pages654-671
Published date29 May 2007
DOIhttps://doi.org/10.1108/02635570710750417
AuthorYogesh K. Dwivedi,Banita Lal
Subject MatterEconomics,Information & knowledge management,Management science & operations
Socio-economic determinants
of broadband adoption
Yogesh K. Dwivedi
School of Business and Economics, Swansea University,
Swansea, UK, and
Banita Lal
Department of Business and Management,
University of Bedfordshire, Luton, UK
Abstract
Purpose – As innovative forms of information and communication technologies (ICTs) such as
broadband internet are being adopted, the equitable distribution of ICTs has become an issue of
concern. These apprehensions are being attributed to social exclusion that could arise due to the
limited internet use among citizens with lower incomes or educational levels. This research aims to
examine the impact of socio-economic determinants, such as age, gender, education, income and
occupation, on the adoption of broadband.
Design/methodology/approach A survey research approach was employed to achieve the
overall aim of this research. The empirical data of the socio-economic variables was collected
employing a postal survey in the UK.
Findings – The findings of this research suggest that in terms of broadband adoption, except for
gender, all the other socio-economic variables, including age, education, occupation and income,
significantly helped to explain differences between the adopters and non-adopters of broadband.
Practical implications The implications of the findings are discussed in the context of promoting
the adoption of emerging technologies such as broadband to parts of the population that have limited
access to the internet and ICTs in general.
Originality/value The primary value of this paper lies in extending the understanding of
broadband adopters and non-adopters according to their socio-economic attributes. This has been
achieved by synthesising the previous literature on a number of socio-economic variables (such as age,
gender, education, income and occupation) and also by empirically examining their effects on
broadband adoption.
Keywords Broadband networks,Digital computers, Socio-economic regions, Residential areas,
United Kingdom
Paper type Research paper
Introduction
Novel forms of information and communication technologies (ICTs) such as broadband
are being implemented and adopted; however, the equitable distribution of such ICTs
has become an issue of concern. These apprehensions are being attributed to social
exclusions that could arise due to inequitable dissemination which, in turn, may lead to
citizens with lower incomes or educational levels not having access to information
technology (IT). In effect, this can result in a digital divide. Most research on the digital
divide focuses upon recording the presence or absence, closure or widening of gaps in
access and usage (Mason and Hacker, 2003). Whilst the earlier forms of research were
generalised and determined whether the digital divide occurred or not, more recent
research has begun to utilise theories to understand the issues. For instance, Mason
The current issue and full text archive of this journal is available at
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IMDS
107,5
654
Industrial Management & Data
Systems
Vol. 107 No. 5, 2007
pp. 654-671
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570710750417
and Hacker (2003) utilised Roger’s diffusion theory, the adaptive structuration theory
and network society to understand the digital divide.
This research takes a different perspective by examining the role of socio-economic
characteristics of citizens as a way of examining the phenomenon of the digital divide.
Information systems (IS) researchers have utilised socio-economic characteristics to
study various issues including the adoption and usage of technology within
organisations (Gefen and Straub, 1997; Venkatesh and Morris, 2000; Venkatesh et al.,
2003) and society (Harris et al., 1996). Socio-economic characteristics are also
predominantly applied to study the phenomenon of the digital divide caused by the
heterogeneous adoption and usage of ICT (Panteli et al., 1999; Stanton, 2004).
Currently, the adoption of broadband is an issue of immense interest. However, the
issues regarding the adoption and usage of broadband (BSG Briefing Paper, 2004),
which in turn affects the management of it, are of significant concern to the current
global environment. Early studies on socio-demographics suggest that variables such
as income, educational attainment and the current employment status of the residential
(household) consumers have a positive correlation to the internet access rates; howev er,
the age of a consumer has a negative correlation (Anderson et al., 2002). Other findings
from previous studies represent the socio-demographic trend of innovators, wh ich may
or may not represent the early and late adopters (Gardyn, 2000). Furthermore, Stanton
(2004) recommends that an inquiry that addresses the access question and the
demographics suggesting the usefulness of observations of any changes in the
likelihood of socio-economic groups is pertinent. Therefore, the aim of this research is
to conduct an empirical examination to determine the impact of socio-economic
attributes such as age, gender, education, occupation and income upon the adoptio n of
broadband.
The paper begins with of a theoretical justification for the underlying
socio-economic variables and formulating hypotheses. Section three provides a brief
discussion of the utilised research method. The findings are then presented and
discussed in subsequent sections. Finally, the implications of this research for the
broadband market are provided in the concluding section.
Theoretical background
Mason and Hacker (2003) undertook a normative review of the various communication
theories applied to understand the digital divide. The utilised theories were: Roger’s
diffusion of innovation theory (Rogers, 1995), the adaptive structuration theory and
network society. From Roger’s theory it was learnt that as innovative forms of
technology emerge, they are not adopted “en masse” (Rogers, 1995). Rather, as the
popularity and personal resources of the adopters increase, the innovation is adopted.
From the adaptive structuration theory it is important to determine the knowledg e that
IT can function as a key resource in important processes of social interaction within the
network society systems. Thus, those with access to technology have the ability to
influence changes in social structures that will in turn disadvantage those who are
offline. Tichenor et al. (1970) suggested that knowledge regarding the usage of adopted
technologies is greater for those with higher socio-economic status and who are already
well informed (Mason and Hacker, 2003). The aforementioned communication theories
reviewed by Mason and Hacker (2003) suggest that there are a number of
Socio-economic
determinants
655

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