A Management Model of ICT Adoption in Latvia

This paper describes and analyzes the validity of a managerial model for ICT adoption. The proposed model of ICT adoption decision has two components: an objective component (largely from an economic understanding) and a managerial component (from firm level factors). The factors in both components were considered at firm level. The analysis and confirmation come from a survey of 500 businesses in Latvia in 2008. Confirmation of the theoretical model was accomplished using Ordered Logistical Regression analysis. Analyses results revealed that the dimensions of perceived benefits (top line growth and efficiency gains), technology absorption capacity (employees openness to change, commitment to learning and overcoming obstacles), and cultural factors (general shift towards more collaboration, and cluster effects) mediate the adoption of ICTs and were incorporated into the confirmed model. The primary work is supplemented by a survey in 2011 that confirms that ICT use has not changed significantly in Latvia since the beginning of the financial crisis in 2008. This second, 41 item Likert scale survey was of middle and senior managers of firms from a cross-section of industry sectors and sizes operating in Latvia, between the years of 2008-2010. The results were analysed primarily by an Item Response Theory model and confirmed that ICT use in Latvia has not changed since 2008. The model developed has value for policy makers in determining policies that are likely to encourage ICT adoption and for managers trying to understand what tools could best lead to positive adoption decisions.