{"title":"Promoting the adoption of digital technology: Strategic policy insights from a network effects model","authors":"Khuong Vu , Ibrahim Kholilul Rohman , Erik Bohlin","doi":"10.1016/j.telpol.2024.102852","DOIUrl":null,"url":null,"abstract":"<div><div>This paper examines a dynamic model of digital adoption by firms, incorporating network effects and highlighting the crucial role of government intervention to avoid a low stable equilibrium. The paper presents a strategic policy framework for promoting digital adoption effectively, offering three key insights for policy efforts targeting SMEs.</div><div>First, there is a risk of ending up at a stable low equilibrium rate of digital adoption despite an initial surge in interest. Sustaining momentum beyond initial promotion efforts is essential. Second, it is critical to make a significant push when the digital adoption rate is approaching critical mass. This tipping point enables continuous, self-sustaining expansion. Third, understanding technology adoption cycles and allocating resources effectively is crucial. Once the adoption rate passes the critical threshold, further adoption occurs without promotional interventions. Resources should then be reallocated to foster the adoption of new technologies or applications, ensuring optimal use of limited resources to drive ongoing innovation and progress.</div><div>The study also reveals that countries with a larger population of SMEs, due to either a large population or strong entrepreneurial environment, may find it relatively easier to promote digital adoption in this sector.</div></div>","PeriodicalId":22290,"journal":{"name":"Telecommunications Policy","volume":"48 10","pages":"Article 102852"},"PeriodicalIF":5.9000,"publicationDate":"2024-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Telecommunications Policy","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0308596124001496","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"COMMUNICATION","Score":null,"Total":0}
引用次数: 0
Abstract
This paper examines a dynamic model of digital adoption by firms, incorporating network effects and highlighting the crucial role of government intervention to avoid a low stable equilibrium. The paper presents a strategic policy framework for promoting digital adoption effectively, offering three key insights for policy efforts targeting SMEs.
First, there is a risk of ending up at a stable low equilibrium rate of digital adoption despite an initial surge in interest. Sustaining momentum beyond initial promotion efforts is essential. Second, it is critical to make a significant push when the digital adoption rate is approaching critical mass. This tipping point enables continuous, self-sustaining expansion. Third, understanding technology adoption cycles and allocating resources effectively is crucial. Once the adoption rate passes the critical threshold, further adoption occurs without promotional interventions. Resources should then be reallocated to foster the adoption of new technologies or applications, ensuring optimal use of limited resources to drive ongoing innovation and progress.
The study also reveals that countries with a larger population of SMEs, due to either a large population or strong entrepreneurial environment, may find it relatively easier to promote digital adoption in this sector.
期刊介绍:
Telecommunications Policy is concerned with the impact of digitalization in the economy and society. The journal is multidisciplinary, encompassing conceptual, theoretical and empirical studies, quantitative as well as qualitative. The scope includes policy, regulation, and governance; big data, artificial intelligence and data science; new and traditional sectors encompassing new media and the platform economy; management, entrepreneurship, innovation and use. Contributions may explore these topics at national, regional and international levels, including issues confronting both developed and developing countries. The papers accepted by the journal meet high standards of analytical rigor and policy relevance.