The Institution ICT Economic Development Nexus: Two Cases

ICT projects and institutions in developing countries superimpose in a complex interaction. The acceptance of an ICT project by various stakeholders and the contribution to economic development are functions of such interaction. In general, a successful implementation of an ICT project undertaken in a developing country requires significant institutional adjustments. Drawing upon institutional theories, this paper investigates how regulative, normative and cognitive institutions in developing countries influence the ICT-economic development nexus. We use a multiple case study research design. The findings of this paper suggests that the root causes of success or failure of ICT projects are nature of institutional components such as sanctioning and monitoring power, social norms and cognitive programs of stakeholders. We have examined interrelationships among orientation of an ICT project (economic elite centered vs. socially disadvantaged group centered); the nature of institutions and institutional adjustments associated with the project; diffusion pattern of the technology and resulting contribution to development.