Cross-country differences in ICT adoption: A consequence of Culture?

The diffusion of information and communication technology (ICT) has witnessed a surge in recent years. The rate of adoption across countries diverges considerably regardless of the income levels. In this paper, we attempt to explain the differences in ICT adoption rates across countries by using Hofstede's cultural framework. The effect of culture on ICT adoption is explored by applying two different measures of ICT adoption, namely the average share of ICT spending in GDP across 42 countries, and per capita computer across 49 countries. The results suggest that the national culture and the ICT adoption rate of a country are closely related. It appears that most of the Hofstede dimensions are important in influencing ICT adoption, thereby confirming our hypotheses. In particular, the power distance and the uncertainty avoidance dimensions seem to be the most important ones. These results are robust in both datasets, even after controlling for levels of education and income.