A divide quantified—exploring the relationship between ICT infrastructure diffusion and income inequality

• Published in: Journal of Electronic Business & Digital Economics
• Main Authors: Kocsis, David, Xiong, Jason
• Format: Article in Journal/Newspaper
• Language: English
• Published: Emerald 2022
• Subjects: Iceland
• Online Access: http://dx.doi.org/10.1108/jebde-09-2022-0033; https://www.emerald.com/insight/content/doi/10.1108/JEBDE-09-2022-0033/full/xml; https://www.emerald.com/insight/content/doi/10.1108/JEBDE-09-2022-0033/full/html

Purpose Information and communication technology (ICT) has the potential to address and reduce income inequality. However, since 1980, income inequality in the United States has caused concerns for researchers, policymakers and the public. Entrepreneurs and managers can take advantage of information technologies, while those in the middle and the bottom see fewer benefits. Meanwhile, countries such as Iceland are more capable of using ICT infrastructure to reduce income inequality, which contributes to the well-being of its citizens. This research study explores the relationship between infrastructure diffusion and income inequality through Rogers’s diffusion of innovations theory. Design/methodology/approach To answer the research questions, the author assessed the data through a series of regression analyses using SPSS. The authors used Power BI software to chart the relationships between ICT infrastructure diffusion and income inequality by country and in the United States by state and region. Findings The results show diffusion of innovations theory’s tenets do not necessarily hold, because a significant negative relationship exists between infrastructure diffusion and income inequality, especially in countries with emerging economies. In the United States, this relationship significantly differs by region. Originality/value This research contributes to research by expanding economic and sociology work to the IS domain, while providing conflicting evidence for diffusion of innovations theory. The research also provides suggestions for practice, such as more focused ICT infrastructure investments and regulations.