DIGITAL DIVIDE IN MALAYSIA:
EXAMINING THE ISSUES OF INCOME, WORKPLACE AND GEOGRAPHICAL DIFFERENCE IN DIFFUSING ICT
TO THE MASS PUBLIC
所得、職場環境、地域格差がマレーシアにおける情報格差(デジタルディバイド) および情報通信技術の普及に与える影響に関する研究
February, 2005
Tengku Mohamed Faziharudean bin Dato’ Tengku Feissal
ABSTRACT
Digital Divide in Malaysia: Examining the Issues of Income, Workplace and Geographical Difference in Diffusing ICT to the Mass Public
Digital divide, the gap between those who have access to Information and Communication Technology (ICT) and those who do not, has become a major concern for Malaysia, as well as for many other developing countries, because it will further marginalize certain segments within the population, preventing them from benefiting from this technology. The existence of digital divide within the population can be easily found, with differences according to age, education, gender, geographical areas, income and workplace, creating social inequalities based on the individual's ability and use of ICT applications. From the economic perspective, digital divide will erode the nation's ability to compete with other countries that have superior ICT-based human resources and technical “know-how”, as most “value-added” products and services require the knowledge and use of ICT applications. Therefore, the use of ICT by the mass population is an imperative for the nation to achieve a knowledge-based society, leading to prosperity
This research is centered on the issue of digital divide. The analytical framework explores and examines, from the users’ perspectives (the demand-side), factors that encourage the diffusion of ICT to the mass population. The focus has been upon how differences between geographical areas, income and workplace influence the individual in the use of ICT. These three dimensions are perceived to be the major influences upon the diffusion of ICT to the mass population. By using case studies and literature reviews, these three dimensions are proven empirically to have a significant effect contribution to the diffusion of ICT. Recommendations are also given based on the findings from the case studies on how to close the digital gap. This dissertation concludes by proposing sound public policy and programs, both in public or private sectors that are needed to overcome the digital divide, and suggesting future research that should be carried out at the macro level.
The dissertation is divided into eight (8) chapters:
Chapter 1: Introduction
This chapter introduces the issues covered in this research. It includes an overview of the research, research questions and the significance of the study, the theoretical and operational framework for this research, and the scope and organization of the research.
Chapter 2: Literature Review
This chapter reviews the existing literature on diffusion of ICT, geographical effects on technology diffusion, and the issue of digital divide. The general principles and theories that are related to the diffusion of ICT and digital divide, as well as the previous studies that have been carried out in other countries related to these issues are the main focus of this chapter.
Chapter 3: Overview of ICT Diffusion and Digital Divide in Malaysia
This chapter reviews the current status of ICT diffusion and the issue of digital divide in Malaysia. It includes an analysis of the secondary data available that supports the assumption of the existence of digital divide in the country. It also explains the involvement of the government through ICT programs planned and implemented to bridge the digital divide among the population. Finally, this chapter reviews some issues of digital divide and the perspectives of bridging the digital divide in Malaysia.
Chapter 4: Methodology
This chapter explains the research methodology adopted, and includes the research design, modeling and analysis approaches used in this research. The hypotheses for the whole program of research are also presented in this chapter.
Chapter 5: Factors that Influence the Diffusion of ICT to the Mass Population and a Comparison of Urban-Rural Differences in the Pattern of Diffusion This chapter examines the factors that encourage the mass population to use ICT. It emphasizes the dimension of the differences in geographical area. The chapter presents a case study into diffusion of ICT by investigating how senior High School students in Kelantan, Malaysia use the Internet. The case study also investigates whether there exist a digital divide between urban and rural teenagers.
Chapter 6: Factors in the Workplace that Influence the Diffusion of ICT
This chapter examines the issue of workplace (specifically the nature of job), in influencing the population to use ICT. A case study is presented, using the core urban service sector working population in Kuala Lumpur as the sample. The case study investigates how income factor, geographical effect and nature of job are influencing the urban working population to use ICT. The possible existence of a competency-based digital divide was investigated in the case study presented in this chapter.
Chapter 7: Role of Income in the Diffusion of ICT in Urban and Rural Areas
This chapter focuses on how income influences the diffusion of ICT to the mass population, specifically between the urban and rural population. The chapter presents a case study on how urban and rural population perceived the value of using ICT by indicating their Willingness to Pay (WTP) for the service. The samples were from the public servants in Kelantan.
Chapter 8: Conclusion
This chapter gives a summary of the results from analysis of the three case studies and literature survey, and provides concluding remarks based on the findings. The achievements of this research are also highlighted in this chapter and recommendations for future research in this area are also proposed.
ACKNOWLEDGEMENTS
In the name of God, the most gracious and the most merciful. I thank Allah for giving me this opportunity to fulfill one of my goals, and thank him for giving me the courage and endurance to overcome this challenge in completing this manuscript.
First of all, I wish to express my profound appreciation to my dissertation advisor, Professor Hitoshi Mitomo. This manuscript would not have been possible without his continuous guidance and encouragement. His patience and kindness in supporting my research is highly appreciated and invaluable to me.
I also wish to thank the other members of my dissertation committees; Professor Urano, Professor Obi, Professor Kitamura, Professor Higuchi and Professor Tajiri for their valuable comments, advices and support that helped to improve this manuscript.
Also, I would like to extend my deep gratitude to Dr Michael Huw Daniel for his unlimited valuable time in editing this manuscript and kindly making an effort on commenting on it, even within a short notice.
As this dissertation was completed with the assistance of many kinds of people and organizations, I would also like to take this opportunity to thank all the people that have contributed towards completing this dissertation, especially the doctorate students in my seminar, and those who assisted and participated in the questionnaires back home.
Special thanks go to my family back in Malaysia. Their love and support have been the source for this scholar undertaking. They are always special to me and motivated me to pursue my goal in completing this research.
Finally, I would like to dedicate this valuable work in memory of my late grandfather, Haji Nik Jaafar bin Wan Awang who passed away 2 years ago. Watching him struggling to read a book or Quran when he was also battling cancer with bad eyesight has given me the courage and inspiration to complete this endeavor. He has made me realized the importance of learning and knowledge as a continuous process in life.
LIST OF ACRONYMS AND ABBREVIATIONS
ASEAN : Association of Southeast Asian Nations CVM : Contingent Valuation Method
EPU : Economic Planning Unit, Malaysia KEPU : Kelantan State Economic Planning Unit GFI : Goodness of Fit Index
GITR : Global Information and Technology Report GPT : General Purpose Technologies
ICT : Information and Communication Technology IT : Information Technology
ISIS : Institute of Strategic and International Studies Malaysia ISP : Internet Service Provider
ITU : International Telecommunication Unions
MECM : Ministry of Energy, Communications and Multimedia, Malaysia MOE : Ministry of Education
MSC : Multimedia Super-corridor
NITC : National Information and Technology Council, Malaysia NITF : National Information and Technology Framework, Malaysia NOAA : National Oceanic and Atmospheric Administration, USA
NTIA : National Telecommunications Information Administration, USA OECD : Organization for Economic Co-operation and Development PC : Personal Computer
RM : Ringgit Malaysia
RMSEA : Root Mean Square Error of Approximation SEM : Structural Equation Modeling
S&E : Science and Engineering TLI : Tucker Lewis Index USA : United States of America USP : Universal Service Provision WTP : Willingness to Pay
TABLE OF CONTENTS
Page
TITLE……… i
ABSTRACT……….. ii
ACKNOWLEDGEMENTS……….... iv
LIST OF ACRONYMS AND ABBREVIATIONS……… v
TABLE OF CONTENTS………. vi
LIST OF FIGURES………. ix
LIST OF TABLES……… xi
CHAPTER: 1. INTRODUCTION………. 1
1.1 Overview……… 1
1.2 Research Objectives………. 4
1.3 Research Questions……….…. 4
1.4 Significance of Research……….. 6
1.5 Overall Research Methodology……… 7
1.6 Organization of Study………... 8
2. LITERATURE REVIEW………. 10
2.1 Introduction………. 10
2.2 Diffusion of ICT………... 11
2.3 Digital Divide……….. 16
2.4 Research Approach………. 19
3. OVERVIEW OF ICT DIFFUSION AND OF DIGITAL DIVIDE IN MALAYSIA……….. 23
3.1 Brief Background………. 23
3.2 Diffusion of ICT in Malaysia……… 24
3.3 ICT Diffusion Status in Comparison with Other Countries………….... 26
Page
3.4 Evidence of the Existence of Digital Divide………... 29
3.5 ICT Programs that have been Planned and Implemented………... 33
3.6 Issues Raised and Perspectives to Bridge the Digital Divide in Malaysia……… 36
4. METHODOLOGY………. 43
4.1 Introduction……….. 43
4.2 Research Design……… 44
4.3 Method of Data Collections and Analysis……….. 52
4.4 Hypotheses……… 57
5. FACTORS THAT INFLUENCE THE DIFFUSION OF ICT TO THE MASS POPULATION AND A COMPARISON OF URBAN-RURAL DIFFERENCES IN THE PATTERN OF DIFFUSION………... 60
5.1 Introduction………... 60
5.2 ICT Diffusion to the Mass Population……… 61
5.3 Factors that Influence the Mass Population to Use ICT……….……….... 62
5.4 Case Study 1: The Factors that Influence the Senior High School Students to Use Internet………. 65
5.5 Conclusion………. 79
6. FACTORS IN THE WORKPLACE THAT INFLUENCE THE DIFFUSION OF ICT………. 81
6.1 Introduction……… 81
6.2 Role of Workplace in ICT Diffusion……… 81
6.3 Factors that Influence the Working Population to Use ICT……….. .. 82
6.4 Case Study 2: How Nature of Jobs Influences the Use of ICT……….. .. 84
6.5 Implication and Conclusion……….. 97
Page
7. ROLE OF INCOME IN THE DIFFUSION OF ICT
IN URBAN-RURAL AREAS……… 99
7.1 Introduction………. 99
7.2 Role of Income and the Comparison for the Diffusion of ICT among Urban-Rural Population…..……….. 100
7.3 Methodology for Analysis………... 101
7.4 Case Study 3: The Value of Using the Internet to the Urban and Rural Populations……….. 103
7.5 Discussion and Conclusion….……..………... 117
8. CONCLUSION………... 119
8.1 Summary and Interpretation of Overall Research Result……….. 119
8.2 Overall Conclusion………... 120
8.3 Recommendations……….... 121
8.4 Limitations of the Research………. 123
8.5 Future Research……… 124
8.6 Concluding Remarks……… 125
APPENDICES: Appendix I: Operation and Technical Definitions………. 127
Appendix II: Questionnaire for Case Study 1………... 129
Appendix III: Questionnaire for Case Study 2……… 136
Appendix IV: Questionnaire for Case Study 3……… 141
REFERENCES………... 145
LIST OF ACADEMIC ACHIEVEMENTS………. 152
LIST OF FIGURES
Figure Page
1.1 Overall Research Framework……… 7
3.1 Location Map of Malaysia………. 23
3.2 ICT Products and Services Penetration Rate in Malaysia (1998-2003)……… 26
3.3 Teledensity between Urban-Rural Areas……… 30
3.4 Disposable Income Spent on Internet Usage Based by States (Year 2000) ……….. 33
3.5 Malaysia Approach to Bridge Digital Divide: People First and Addressing People’s Need………... 34
4.1 Research Framework……….. 48
4.2 Operational Framework………. 51
4.3 Example of a Structural Equation Modeling Path Diagram……….. 53
5.1 Model of the Relationship among Variables that Influences the Use of ICT… ……….... 64
5.2 Location Map of Peninsular Malaysia and Kelantan………... 65
5.3 Distribution of the Respondents Parent’s Income……… 71
5.4 Locations Where the Respondents Frequently Used the Internet……… 72
5.5 Number of Hours per Week the Respondents were Using the Internet……… 73
5.6 Percentage of the Respondents Who Have Attended ICT Classes……….. 74
Figure Page 5.7 SEM for Factors that Encourage the Respondents Usage
of Internet……….. 76 6.1 Model of Relationship among Variables
that Influences the Use of ICT……… 83
6.2 Respondents’ ICT Ability………. 88 6.3 Respondents’ Type of Occupation……… 88 6.4 Monthly Income……… 89 6.5 SEM for Factors that Influence the Urban Working Population in
Service Sector in Kuala Lumpur to Use ICT………... 92 6.6 The Usage of Advanced ICT at Work
with Respect to Monthly Income……….. 96 7.1 Flow-Chart of the Questionnaire Asking the Willingness to Pay
for having Internet Access………. ……… 105 7.2 Percentage of Frequency of using the Internet between the
Urban and Rural Respondents………. 109 7.3 Percentage of the Respondents Perception of the
Importance of Internet………. 110 7.4 Distribution of Income between the Urban and Rural Respondents…………... 111 7.5 Frequency of using the Internet versus Income
in Urban-Rural Area……… 115
LIST OF TABLES
Table Page 2.1 Comparison of the Characteristics between Early Adopters and
Early Majority in Adopting New Technology……… 13 3.1 ASEAN-6: Information Technology Indicators (2003)………... 26 3.2 ASEAN-6: E-Commerce Readiness Assessment………... 29 3.3 Investment in Telecommunication in Malaysia between
Largest City-Other Cities (1993 and 1998) ………….……….. 31 3.4 Household Income and Internet Subscribers in States
in Malaysia (Year 2000)………... 32 5.1 ICT Literacy Rates in Urban and Rural Area ……… 69 5.2 Respondents Father’s Literacy, Parent’s Income and
Ownership of PC ………..………. 70 5.3 Telephone Connections and Cyber Café in Survey Location………. 71 5.4 Rank of the Factors the Respondents Indicate Need to Improve
the School Internet Services………. 72 5.5 Rank of the Type of Internet Applications
Frequently Used ………... 73 5.6 Respondents Ranking of the Most Frequently Used
Alternative Services………. 75 6.1 Basic Characteristics of the Sample………. 86 6.2 ICT Applications Used at Work……….. 94 6.3 Frequency Usage of Advance ICT at the Workplace
with Respect to Type of Occupation ……….. 95 6.4 Frequency of Usage of Different ICT Applications at the
Workplace with Respect to Type of Occupation………. 95
Table Page
7.1 WTP Bidding Prices……….. 107 7.2 Descriptive Analysis of Selected Variables/Items……… 108 7.3 Percentage of Initial Bidding “Yes” Vote for Internet Access at Home…….. 112 7.4 Percentage of Initial Bidding “Yes” Vote for Internet
Access at Residential Community Center………. 112 7.5 Mean and Median Willingness to Pay for Internet Access……… 113
CHAPTER 1 INTRODUCTION
1.1 OVERVIEW
Digital divide, the gap between those with the access to Information and Communication Technology (ICT) and those who do not, has become a major concern for Malaysia, as well as for many other developing countries, because it will further marginalize certain segments within the population, preventing them from benefiting from this technology. Evidence for the existence of digital divide within the population can easily be found, with differences according to age, education, gender, geographical location, income and type of work. Those who are most likely to be marginalized include the older generation, less educated segments of the population, women, rural populations, lower income groups, and those who work in labor intensive environments. These divide has created social inequalities based on the individual’s ability and competence to use ICT applications. From the economic perspective, digital divide will erode the nation’s ability to compete against other countries with better educated human resources, as most
“value-added” products and services require the understanding and use of ICT applications. Without addressing the issue and finding a solution to reduce the digital gap, socio-economic related problems that will threaten the stability of the nation socially, economical and politically might be created (ISIS, 2002). Therefore, the use of ICT by the mass population is an imperative if the nation is to become a prosperous, knowledge- based society.
This research investigates the issue of digital divide in Malaysia. The analytical framework explores the divide from a user (i.e. demand-side) perspective and considers the factors that encourage the diffusion of ICT to the mass population. The focus is upon how the dimensions of geographical, income and workplace differences influence the individual to use ICT. These three dimensions, which are perceived to be the major influences upon the diffusion of ICT, are described below:-
(1) Geographical differences, specifically the difference between the urban and rural population, is the primary area of interest in this study, given that Malaysia has a very large rural population, and that the rural area is still lacking in terms of physical telecommunication infrastructures and relevant ICT content when compared to the urban population. Geographical differences, without any intervention from the authority, will only allow the urban population to benefit from ICT diffusion to the exclusion of the rural population who will remain facing inequality in access and content.
(2) Income dimension, in term of affordability of access to use ICT (both in urban and rural areas), is perceived to present an obstacle for low-income earners to use ICT because of the high access cost. The income dimension influences the diffusion of ICT because low income earners - a large percentage of the country's population - are less
likely to use ICT than high income earners. Digital divide could therefore become a major issue as a consequence of inequality in income.
(3) Workplace dimension also influences the diffusion of ICT because Malaysia has almost full employment, with an unemployment rate of 3.1% (2000 data, MSQ, 2002), and people spend much of their time in the workplace. The worker’s nature of job, whether he or she uses ICT applications in the workplace, and what type of ICT applications he or she uses, affects the overall pattern of ICT usage. There is a tendency for certain groups of workers to acquire superior skills in using ICT which can, in turn, lead to a digital gap based on competency in using ICT. Therefore, digital divide that is based on competence when using ICT will exist in Malaysian society as a consequence of inequalities of access to and use of ICT at the workplace.
These three dimensions are also interrelated, especially when analyzed using a cause- effect relationship. For example, the rural population is typically less affluent than the urban population, and is less likely to use advanced ICT applications in its daily work.
The approach adopted for this program of research is to examine the pattern of ICT diffusion in Malaysia through questionnaire surveys and case studies. A micro-level approach is used so that the cause-effect relationship between the three dimensions of geographical areas, income and workplace could clearly be identified since the use of a macro-level approach might have produced ambiguous results. The frequency and the complexity of using the applications are used as the proxy measure of the “diffusion of ICT”. The findings from the surveys are analyzed both empirically and descriptively.
The primary objective of this research has been to derive a policy or action plan based on the three dimensions that would be able to reduce the digital divide in the Malaysian population.
The factors that encourage the mass population to use ICT are investigated first. The objective is to identify those factors specifically related to the three dimensions of the research interest which have a significant positive influence on the mass population in its use of ICT. Also, the research investigates the patterns of diffusion of ICT that have taken place between the urban and rural populations.
The organization of the surveys conducted in the three case studies is presented below:-
The first case study is used to gauge, through a questionnaire survey, the use of the Internet by senior High School students in urban and rural schools. Among the research sub-objectives are to be able to recognize the significance and the types of relationships that exist between factors, such as “parent factor” - a proxy to leadership, ICT training/formal education, accessibility of the Internet and competition from other applications that might discourage students from using the Internet. The cause-effect relationships of the perceived factors are analyzed by Structural Equation Modeling
(SEM). The findings from this case study are used as the basis for further investigation of workplace, income factors and the urban-rural differences in relation to the diffusion of ICT.
This first case study reveals the significant influence of the “parent factor”, the proxy for leadership and income on ICT usage. It also proved descriptively the existence of the digital divide that is based on geographical differences. The research proceeds with a second case study that investigates the role of workplace in influencing the diffusion of ICT because the relative factor of leadership and income factors are closely related to the working population and the workplace. The survey sampled the service sector working population in the core urban area of Kuala Lumpur, where accessibility of the physical ICT infrastructure is not an issue. The objective of this study is to find out what are the significant factors in the workplace that influence the use of ICT. The cause-effect relationship between the factors (variables) is also analyzed by SEM. The findings from this case study are then compared to the findings from the first case study relating to how income affects the use of ICT in the mass population. A subsidiary objective of this study is to investigate competency-based digital divide in the working population - the so- called “second level digital divide” (Hargittai, E., 2002). Therefore, the factor “nature of work” is further analyzed to examine the pattern of ICT diffusion that has taken place at the workplace based on the type of work tasks.
After analyzing the effect of the workplace in the diffusion process and its relationship with income, the research proceeds to investigate the role of income in the diffusion of ICT to the urban and rural populations. The objectives are to examine (a) how the urban and rural populations perceive the importance of using ICT, and (b) how income is affecting both urban and rural populations in their use of ICT. It is important to know whether there is a major difference in the perception of ICT use between the urban and rural populations because any such difference could then be taken into consideration when future programs and action plans are designed so that they are tailored to suit the target population's needs. A case study is also used for this part of the research. The samples are employees from the public sector in both urban and rural areas (thus extending the urban-rural comparison of Case Study 1). The Contingent Valuation Method (CVM) is used in the analysis, and the respondents indicated their Willingness to Pay (WTP) for access to and use of the Internet. The subsidiary objectives for this study are (a) to compare the monetary value placed on using ICT by both urban and rural populations, and (b) to determine how income is differentially affecting the use of ICT in the rural and urban areas.
The final section of this dissertation presents:-
(1) An overall conclusion derived from the three case studies and from the literature survey.
(2) Recommendations for policy and action plans to reduce the digital divide in Malaysia or other developing countries with similar background as Malaysia (such as
other ASEAN countries) based on differences in geographical area, income and the workplace.
(3) Proposals for future research into the diffusion of ICT to the mass population in order to reduce the digital divide.
(4) Social implications that could directly derived from the research.
1.2 RESEARCH OBJECTIVES
The objectives of this research are:-
(1) To explore and examine from the users’ perspective, or the demand-side, factors that influence the diffusion of ICT to the mass population, and further to investigate those factors that directly or indirectly encouraging the mass population to use ICT, to gain an understanding of its cause-effect relationship in the diffusion process.
(2) To examine at the micro level how the differences associated with the dimensions of geographical areas, income and workplace are influencing individuals to use ICT – that is the differences is based on the urban and rural areas, level of monthly income earned by the individual, and the different nature of job in the workplace. Then, the research is to prove empirically, using a statistical approach, the significance of the three dimensions in influencing the use of ICT in the mass population.
(3) To propose sound public policies and programs to be implemented that could address the problem of digital divide in Malaysia based on the dimensions of geographical difference, income and workplace.
1.3 RESEARCH QUESTIONS
Given that (a) the pattern of ICT diffusion follows an “S-shaped” curve over time (Everett, R., 1995), and (b) the agglomeration effect theory predicts that the urban area will be the center for any technological change to take place (Capella, R. 2000), it follows that the rural areas are expected to be the last locations to adopt ICT. Similar scenarios will prevail to those who can not afford the technology or are from a low-income background, and for those in workplaces that do not require them to use ICT applications in their daily work. Since the adoption of new technology, specifically using ICT applications should benefit the population either socially or economically (Pippa, N. 2001;
Servon, L. 2002), it is important that the mass population, irrespective of geographical, income and workplace differences, has an equal access to the technology and is able to use it. A widening inequality between those who have acquired the technology and skills and those who have not could undermine the social and political stability of the nation (ISIS, 2003). Hence, there is a need to find a way to encourage the mass population to use ICT applications.
The research addresses the following questions:
(1) What are the factors that will encourage the mass population to use ICT?
(2) What kind of inter-relationship exists between the dimensions of income, workplace and geographical differences that influence the use of ICT?
It is important for this research to be able to determine the relationships between the three dimensions and their contribution to the diffusion of ICT, as the factors contributing to the digital divide are interrelated. An understanding of the cause-effect relationships can be used as a guide in the preparation of a comprehensive plan to diffuse the technology across the three dimensions concerned.
(3) Does digital divide exist between the urban and rural areas in Malaysia, as well as between different in income and workplace groups within the population? To what extent has the problem of digital divide affected the different segments of the Malaysian population?
By proving statistically that a digital divide exists between urban and rural Malaysia, as well as between different income and workplace groups, reliable evidence will have been produced that digital divide is a “real” issue within Malaysian society. This research goes one step further by investigating the extent of digital divide, since this makes it possible to explain the degree of differences in digital gap among various segments of the population. As a consequence of addressing this research question, specific actions plan can be formulated and applied to the different segments of the population in order to reduce the digital gap.
(4) Are there any differences in how the urban and rural populations are “valuing”
the importance of ICT?
This research question, by asking about the “value” placed on using ICT by both the urban and rural populations, allows comparisons to be made on the differences in perception of the importance of ICT applications by the urban and rural population.
(5) How is the working population responding to the use of ICT in their daily lives?
Furthermore, in what way is the nature of job affecting the pattern of ICT usage by the working population?
This research question is intended to examine the level, frequency and types of ICT used in the workplace and to give a better understanding of what motivates the workforce to use ICT. By examining the role of nature of job, this research can determine whether skill or competence in using ICT has a significant impact on the mass population in its use of ICT.
1.4 SIGNIFICANCE OF RESEARCH
Although much research has been conducted on the issues of digital divide and ICT diffusion, almost all of it has been carried out in developed nations, mostly in the USA and Europe, and has been predicated upon the specific issues that these nations faced.
Therefore, not all findings from such research are applicable in producing guidelines to be adopted by developing countries. The people of Malaysia, with its large rural population, multiple ethnicities, and cultural values which are different from those of Western countries, might have different perceptions of, and motivations to use, ICT applications. For example, the urban and rural demographic profiles between USA and Malaysia are dissimilar; in Malaysia the rural population is relatively poorer than the urban population, whereas the opposite is the case in the USA. There is also less evidence of the existence of digital divide in the inner city in Malaysia than in the USA (NTIA, 1995; Norris, P. 2001; Servon, L., 2002). Hence, this research attempts to examine the factors that influence the mass population to use ICT in order to produce primary and insight findings on the pattern of ICT diffusion in Malaysia. This research is significant in that, being based on the experiences of a developing country, comparison can be made between its findings and previous findings from developed nations.
Digital divide based on geographical, income and workplace differences has been observed to exist within the Malaysian population. This is supported by (a) secondary data that shows how certain Malaysian states have higher Internet subscription rates than others and (b) comparison of teledensity rates in the urban and rural populations (NITC, 2000). Teledensity is defined as the number of main telephone lines per 100 people (ITU, 2002). Previous research on this subject in Malaysia has also descriptively shown the existence of a digital gap within Malaysia population (Rahmah, H. 1999). However, empirical analysis was not used in the previous research, so it was unable to show the cause-effect relationship between the variables concerned and the use of ICT. The methodology used in this research emphasizes the use of empirical analysis to establish the pattern of ICT usage, specifically considering the three dimensions of geographical difference, income and workplace. By using Structural Equation Modeling (SEM), the cause-effect relationships among the variables concerned and the use of ICT can be clearly identified. The use of the Contingent Valuation Method (CVM) through a stated Willingness to Pay (WTP) allows a monetary value to be produced that is statistically significant and can be used to compare the value placed on ICT by both urban and rural populations. Empirical analysis and the findings have produced a more reliable result than could be produced using only secondary data sources and literature survey. This research is therefore believed to contribute to the overall understanding of ICT diffusion in developing countries.
As previously stated, this research investigates the diffusion of ICT from the demand- side perspective. The significance of this approach is that it allows subsequent policies and action plans to reduce the digital gap to be proposed based on the cause-effect relationships that have been derived from the data analyses reflecting what the consumers believe they need. By taking into account the case study findings, the mass population
can be expected to respond positively to such policies and action plans. This is in line with the diffusion theory that recognizes the ultimate decision to use a new technology will be based on the value placed on it by the end users themselves (Rogers, E., 1995).
1.5 OVERALL RESEARCH METHODOLOGY
The high level, overall research framework is shown in Figure 1.1.
Figure 1.1: Overall Research Framework
As shown in Figure 1.1, this research emphasizes investigation of:-
(1) What are the factors that are influencing end users to use ICT? This research is using the user perspective as the initial step to examine the dimension of geographical difference, income and workplace roles in diffusion of ICT in Malaysia.
(2) What are the patterns of diffusion that has taken place in Malaysia involving the participation of the mass population? The research framework is intended to examine the existence of digital divide among the mass public.
The methodology to investigate the diffusion of ICT and the existence of digital divide is primarily based on data analysis using statistical and empirical techniques.
Therefore, there is a need for primary data collection, as well as for secondary data.
Finally, recommendations on what kind of policy and action plans Malaysia can adopt to bridge the digital divide can be proposed based on the data collected, analyzed and evaluated in this research.
(The detailed research framework for this dissertation is presented in Chapter 4.)
Users-perspective Proposed solutions
Diffusion of ICT:
- Factors that influence?
- Pattern?
Statistical and empirical analysis of the dimensions of geographical area, income and workplace
Methodology for data analysis
Recommendations on policy and action plan to reduce digital divide
1.6 ORGANIZATION OF STUDY
The remaining chapters of this dissertation are organized as follows:- Chapter 2: Literature Review
This chapter reviews the existing literature on: diffusion of ICT, geographical effects on technology diffusion, and the issue of digital divide. The general principles and theories that are related to the diffusion of ICT and digital divide, as well as previous, related studies are the main focus of this chapter.
Chapter 3: Overview of ICT Diffusion and Digital Divide in Malaysia
This chapter reviews the current status of ICT diffusion and the issue of digital divide in Malaysia. It includes analysis of the secondary data available that supports the assumption of the existence of digital divide in the country. It also explains the involvement of the government through ICT programs, both planned and implemented, to bridge the digital divide among the population. Finally, this chapter reviews the issues raised and perspectives of digital divide in Malaysia.
Chapter 4: Methodology
This chapter explains the research methodology adopted and includes the research design, modeling and analysis approaches used. The hypotheses for the program of research are also presented in this chapter.
Chapter 5: Factors that Influence the Diffusion of ICT to the Mass Population and a Comparison of Urban-Rural Differences in the Pattern of Diffusion This chapter examines the factors that encourage the mass population to use ICT. It emphasizes the dimension of the differences in geographical area. The chapter presents a case study into diffusion of ICT which investigates how senior High School students in Kelantan, Malaysia are using the Internet. Then, the case study also investigates if there is an existence of a digital divide between urban and rural teenagers in that state.
Chapter 6: Factors in the Workplace that Influence the Diffusion of ICT
This chapter examines the issue of workplace, specifically "nature of job", in influencing the population to use ICT. A case study is presented which used the core urban service sector working population in Kuala Lumpur as its sample. The case study investigates how income factor, geographical effect and nature of job are influencing the urban working population to use ICT. The existence of the competency-based digital divide is also investigated through the case study.
Chapter 7: Role of Income in the Diffusion of ICT at the Urban and Rural Areas This chapter focuses on how income influences the diffusion of ICT to the mass population. Its case study looks at differences in attitude between the urban and rural population in their perceptions of the importance of using ICT. The samples are from the public servants in Kelantan.
Chapter 8: Conclusion
This chapter gives a summary of the result of analysis from the three case studies and literature survey, and provides concluding remarks based on the findings. The achievements of this research are also highlighted in this chapter. Recommendations for future research to be conducted on this subject are also proposed.
Appendices
There are four appendices for this dissertation. Appendix I contain a list of operational and technical terms used in this thesis and their definitions. The remaining Appendices II, III and IV contain the questionnaires from Case Studies 1, 2 and 3 respectively.
CHAPTER 2 LITERATURE REVIEW
2.1 INTRODUCTION
With its almost limitless applications, ICT has revolutionized communication and information processing globally. ICT has affected every aspect of human life, from the economy and medicine to social interactions; its use is a growing influence on everyday life. The perceived positive “added value” in human development that is achievable by using ICT applications has encouraged many governments globally to place a high priority on its diffusion to the mass population. It is their hope that with high rates of ICT diffusion (that is, more of the mass public in various backgrounds using ICT applications) there will be a reduction in the digital divide among the country’s population.
Not only is ICT diffusion of interest to government, many academicians have also been involved in investigating the characteristics of ICT that have made it stand out from other new technology products and services that have been diffused and adopted by the mass population, such as, (1)The ICT products and services have been adopted at a very much faster rate in by the mass population (in many countries) as compared to other technology products, such as television or radio, which have taken few decades for those products to be adopted by the mass population (even in advanced technologies countries), (2) The unique feature of ICT products or services that they can be re-use by others without depleting in values, as opposed to other economic goods and services.
Considering the importance of ICT, researchers are also interested to investigate the issues related to ICT diffusion, such as the digital divide, so that the mass population is able to participate in the “digital age”, without marginalizing certain groups of people within the population.
Numerous studies in recent years have been conducted on the subject of ICT diffusion, but they were mainly based on the experiences of developed countries and the issues that these nations have been facing. These issues might not share the same cultural or insight characteristics that are directly applicable in producing policy or development guidelines to be adopted by the developing countries; only the general principles and theories from the previous studies can be adopted for these countries. The literature survey for this research has therefore reviewed the theoretical principles of previous studies and the universal issues that they have raised from those studies which are relevant to developing countries such as Malaysia.
This chapter is divided into three sections, the two main issues that have been the focus of this research; the diffusion of ICT and digital divide, and also the methodology aspects of literature.
The first section (Diffusion of ICT) considers the definition of diffusion of innovation, characteristics and other related theories on the diffusion process as well as its implications.
The second section (Digital Divide) reviews previous studies on the issue of digital divide and examines their theoretical implications.
The third section (Research Approach) explains the methodology literature of this research, based on the previous studies on diffusion of ICT and digital divide, as well as on the telecommunication methodology that have been used in this research.
2.2 DIFFUSION OF ICT 2.2.1 Definition of Diffusion
Diffusion is defined as the process by which an innovation is communicated through certain channels over time among members of a social system (Rogers, E., 1995).
According to Rogers, four main elements are present in the diffusion process. These elements are:-
(1) Innovation – the innovation itself as ideas, practices or objects that is perceived as new by an individual or other unit of adoption.
(2) Communication channels – the means by which messages about the innovation are passed from one individual to another.
(3) Time – the time dimension is involved in of diffusion. Rogers considered three time factors:-
(i) Innovation Decision Process Theory – that states that there are five distinct stages for diffusion, namely; (a) knowledge, (b) persuasion, (c) decision, (d) implementation, and (e) confirmation. The “knowledge”
and “persuasion” stages in the case of ICT can be accelerated by the involvement of public and private sectors in informing and providing hard/soft info-structure for the mass public to use ICT. The
“confirmation” stage involves the individual or groups own experienced in using ICT. The end users will either reject or continue using ICT if they perceived the quality and relevancy of the technology to be of sufficient benefit to them.
(ii) Individual Innovativeness Theory - that states that those individuals who are predisposed to being innovative will adopt a new technology earlier than those who are less predisposed.
(iii) Rate of Adoption – the innovations are diffused over time in a pattern resembles an “S-shaped” curve. It theorizes that an innovation goes through a period of slow, gradual growth before experiencing a period of relatively dramatic and rapid growth.
(4) Social system – a set of interrelated units that are engaged in joint problem solving to accomplish a common goal.
The diffusion process in new technology products have two distinct characteristics, which are:-
(1) The diffusion process is time consuming - it takes a significant period for any new technology to reach the mass public.
(2) There are the wide variations in the rates of acceptance of different innovations.
(Rosenberg, N., 1972; Rogers, E., 1995)
2.2.2 Adoption of Technology Products and Services
There are three important ways in which the adoption of interactive communications ICT differs from that of previous innovations (Rogers, E., 1986):-
(1) A critical mass of adopters is needed to convince the “mainstream”
tutors/management of the technology’s efficacy.
(2) Regular and frequent use is necessary to ensure success of the diffusion effort.
(3) Internet technology is a tool that can be applied in different ways and for different purposes and as such is part of a dynamic process system that can evolve through change, modification and reinvention by individual adopters.
A high rate of adoption for ICT at the "early adopters" and "early majority" stages is important because it is during these stages that a “critical mass” can be achieved. The success of ICT diffusion at these two stages will allow the diffusion process to continue to the remaining stages of diffusion, "late majority" and "laggards".
The comparison of the typical characteristics of “early adopters” and “early majority”
is shown in Table 2.1. There is a significant difference in term of how the “early adopters” and “early majority” adopt to the new technology, even though both groups are in the first 50% of users taking up a technology.
Table 2.1: Comparison of the Characteristics between Early Adopters Early Majority in Adopting New Technology
Early Adopters Early Majority
Technology focused Not technically focused
Proponents of revolutionary change Proponents of evolutionary change
Visionary users Pragmatic users
Project oriented Process oriented
Willing to take risks Averse to taking risk
Willing to experiment Look for proven applications Individually self-sufficient May require support
Tend to communicate horizontally (focus across discipline)
Tend to communicate vertically (focused within a discipline)
Source: Adapted from Geohegan, 1994, from V.H., Carl Jr.
http://tlc.nlm.gov/resources/publications/sourcebook/adoptiondiffusion.html
There are two leading models that explain the dispersion in adoption times using two different mechanisms (Hall, B. et al, 2003). These are:-
(1) Adopter heterogeneity which assumes that different individuals place different values on the innovation. “S-curve” adoption will be generated when:-
(i) The distribution of values placed on the new product by potential adopters is normal or approximately normal.
(ii) The cost of the new product is constant or declines monotonically over time.
(iii) Individuals adopt when the value they place on the product is greater than its cost.
(2) Adopter learning which posits that consumers can have identical tastes and the cost for the new technology can be constant over time, but not all consumers are informed about the new technology at the same time. By learning about the new technology from other people (such as neighbors or friends) or other media, more people will adopt the new technology over time, leading to an increased rate of adoption. Eventually, the market becomes saturated, and the rate decrease again, thus generating an “S-shaped” diffusion curve.
Considering that the diffusion of ICT is theoretically thought to be a slow process that follows an “S-shaped” curve of dispersion over time and also the dominant role of core urban areas for new technology to initially diffuse as opposed to the rural areas, there is an argument whether there is a need to intervene to accelerate the rate of its diffusion to the mass population or to let the natural process of ICT diffusion to take its course. It is predicted that the early adopters will be the elite urban population with higher income, and that ICT will naturally diffuse to the broader population, including the rural population, at a later stage when the technology itself has become more familiar and common for the mass population (Compaine, B., 2000). Therefore, there is no need to act
precipitately on the issue of digital divide; let the market settle the issue as what have been advocated by Compaine. It is also been argued that being latecomers to ICT development is not a necessarily a disadvantage at all, as such tardiness might create a
“window of opportunity” for the latecomers to “leap-frog” into a new technological phase, and the Internet can be spread efficiently with less government intervention directly in the diffusion process (Sidorenko, A. et al., 2001). This could bring higher economic growth to the nation when the technology became sufficiently affordable to replace previously dominant technologies.
On the other hand, the diffusion theory predicts that without successful state intervention (and if the spread of the Internet follows the trajectory established by many previous technologies), the initial adoption of Internet can be expected to exacerbate existing social divisions, at least in the early to middle stages of the “S-shaped” diffusion curve - and perhaps in long term as well if the new technology produces substantial productivity gains and continuing access barriers (Norris, P., 2001). This argument shows how important state intervention is to ensure the diffusion process to spread out evenly to the population, with minimalist exclusion. The continuous diffusion of ICT will eventually be able to reduce the problem of digital divide among the population (Servon, L., 1002).
2.2.3 Perceived Attributes Theory
The “Perceived Attributes Theory” (Rogers, E., 1995) states that potential adopters judge an innovation based on their perception in regard to five attributes of the innovation.
These attributes are:-
(1) Trialability – the innovation products or services can be tried on a limited basis before adoption.
(2) Observability – they offers observable results.
(3) Relative Advantage – they have an advantage relative as compared to other, competing technologies.
(4) Complexity – they are not overly complex.
(5) Compatibility – the innovation or technology is compatible with existing practices and values.
Even though the ultimate decision for the diffusion is made by the demand side, the benefits and the cost can be influenced by the suppliers of the new technology (Hall, B. et al, 2003). From the demand-side or consumer point of view, the benefits are the increased utility of the new product (good), such benefit evaluation may take into account such non-economic factors as the skill level of the individual or worker in the working environment, commitment by the consumer and network effect (Rosenberg N., 1972).
ICTs have been classified as general purpose technologies (GPTs) that can be used in a large number of sectors, leading to dramatic changes in their modes of operation (Helpman, 1998; Sidonrenko, A. et al., 2001). The essential features of GPTs include:
their initial scope for improvement; variety of users and potential applications in other sectors of the economy; and strong complementarities with other technologies. The GPTs also shares common characteristics, as they begin with limited number of users. But, as the technologies diffuse throughout the economy, they evolve into much more complex technologies, with dramatic increases in efficiency (Lipsey, R., from Drysdale, P., 2001).
Therefore, ICTs are essential for coordination of all economic activities (Sidonrenko, A.
et al., 2001).
From the supply point of view, Lipsey in its article also argued that the expectation that there will be productivity bonuses accompanying with the introduction of GPT may be unfounded because:-
(1) Although new technology will be instituted whenever it promises to be profitable, there is no guarantee that each new GPT will have a larger (or even the same) effect on profit or productivity than the ones that preceded it. Integrated programs or changes will be the key to its success, but it will evolve and progress might be a slow.
(2) Neoclassical growth model cannot distinguish in interpreting what is going on between changes in technology and the facilitating structure and productivity that are used.
(3) Without further GPT invented to provide new research programs, the number of derivative technological development would eventually diminish.
(4) When GPT is introduced, there are reasons why it may slow the growth of productivity below average over its lifetime, as GPT need time to evolve, and for changes to be made.
It is predicted that technology change drives long-term growth. Technological advance not only raises income, but also transform the population's lives through the invention of other innovative products or services. In the long term, it will transform the people's standards of living, their social and political ways of life, and their value systems (Lipsey, R. from Drysdale, P., 2004). Therefore, it is important that every nation that adopted new technology, such as ICT, to target for a long-term goal for socio-economic prosperity, as the motivation to invest and encourage the diffusion of ICT to their population. They must expect that the benefit might not be visible in the short-term period, but should be realized in the long-term.
2.2.4 Geographical Differences Affecting the Diffusion Process
The issue of geographical differences has always been the center of reference on how diffusion of technology is taking place. The spatial adoption potential theory predicts that technological developments follow a filtering down process from the urban hierarchy
(core area) to the peripheral area (Capella, R., 1994). The agglomeration effect theory also agrees on how the adoption of a new technology is taking place: the core areas will be the center for further growth, including with improved or adopting to new technology.
On the other hand, the peripheral or rural areas will be late in experiencing the changes.
Forces that influencing the agglomeration can be divided into two: “centripetal forces”
(those based on linkages, thick market, knowledge spillovers and other pure external economies); and “centrifugal forces” (based on immobile factors such as land rent/commuting, congestion and other pure diseconomies) (Fujita, M. et al, 1999).
Previous studies has also confirmed that the rural populations are more likely to be reluctant to adopt new technology products/services that their urban counterparts who are more willing to be “trendsetters” (Feldman, M., 2001). To encourage the diffusion of ICT at the initial stages, it is argued that a “top-down” public policy is more appropriate, specifically in the telecommunications sector implementing “information highways”
between metropolitan areas. A “bottom-up” development policy, focusing on network development in local areas, is at risk of generating a development model with few possible inter-linkages among “island of networks” and thus a percentage risk of failure in its local characteristics. On the other hand, the “top-down” approach could generate cumulative adoption processes. Geographical asymmetry need to be addressed in order to be efficient. Public policies should encourage the development of computer networks in areas with high potential demand density, for example in central region, where mechanism such as network externalities could generate positive cumulative effects and where critical mass could be achieved in shorter time (Capello, R. et al, from Nijkamp, P., 1994).
Based on the regional science researchers’ point of view, as mentioned above, the rural population will be left out from participating actively in the diffusion process of ICT at the early adopter or early majority stages. This also implies that there is going to be a diffusion gap between the urban and rural population as they adopt ICT applications, because the rate of adoption favors the urban population. This scenario is one of the challenges for the public policy in its effort to reduce the digital divide between the urban and rural population.
2.3 DIGITAL DIVIDE
Digital divide is defined by the Organization of Economic Cooperation Development (OECD) as the gap between individuals, households, businesses and geographical areas with regards to their opportunities to access ICTs and their use of the Internet for a wide variety of activities (OECD, 2001). According to Wilson., the digital divide refers to an inequality of access, distribution and use of ICT between two or more populations (Wilson III, E., 2004).
2.3.1 General Dimensions of the Divide
Digital divide generally exists along the following dimensions, based on observation of which segment of the population globally are online (Norris, P., 2001):-
(1) Income: an OECD study in France, Japan and the USA confirmed the substantial disparity in the availability of personal computers in the home for different levels of household income, with the gap between the lowest and highest income groups widening from 1995-1998.
(2) Occupation: professional and managerial groups are more likely to use Internet, and their companies are more likely to provide them with training in ICT. Those seeking job are more marginalized than those who have a job, proving that Internet access is important for the spread of Internet.
(3) Education: can be expected to improve the general capacity for analytical reasoning and information filtering, which helps cope with the flow of information available online, as well as strengthening numeracy, literacy, English-language and keyboard skills. In Europe those with a college education are seven times more likely to be online than those who left school at fifteen years old.
(4) Gender: There is a wide range of evidence suggesting that women are less likely to use computers because of early experiences within the classroom, reflecting long- standing gender differences in attitude towards science and technology, and towards the typical contents of computer games and websites for children. The position of women as caregivers in the home also plays a major role.
(5) Generation: perhaps the most significant factor for the future diffusion of Internet, but yet the most taken for granted in policy circles. The older generation tends to be reluctant to use the new technology, and this group of people is expected to be marginalized from using ICT in the future.
All the listed dimensions are interrelated. The inter-relation is most notable when comparing income and education; these are positively correlated. Typically, those who acquired higher education will earn a higher income.
2.3.2 Accessibility to ICT
Accessibility to ICT is the main causes of digital divide, as those who do not have access to ICT are not be able to use it. However, it is argued that even amongst those with access to ICT, there are many who cannot fully benefiting in the information society because their skills allow them only to perform low-order tasks using ICT applications (Servon, L., 2002) as opposed to using high-order tasks that is more “meaningful” and will give “added-value” in the process of becoming knowledge-society. Evidence from the Philippines indicates that youngsters are using the Internet in cyber café only for gaming (Lallana, E. in Drysdale, P., 2001), instead of using it for “enlightenment” in
enriching their knowledge. In the year 2000, the Global Knowledge Partnership, in its meeting in Kuala Lumpur, redefined access to include (Servon, L., 2002):-
(1) Physical access to ICT – access to a computer and to the Internet. Physical access is usually measured through the distribution of ICT devices per capita or through the density of enabling infrastructures, such as the land lines per thousand (Wilson, E., 2004).
(2) Training – education in ICT, or proportion of the people that are ICT literate.
(3) Content - local content must be able to meet the needs and demand of disfranchised groups, and the content must also be created by these groups and address the issues of culture and language related to these group.
(4) Access to decision-making process – there is access to the process by which the telecommunications decisions are made.
Some of the factors that explain the persistence of digital divide are:-
(1) Market forces (cost factor). PC and Internet access is still expensive and unaffordable for many people.
(2) Unequal investment in infrastructure – for example, suburban districts and cities still get a higher priority in upgrading telecommunication infrastructure than the rural and the inner city areas.
(3) Discrimination – for example according to race or physical disability.
(4) Culture and content – the culture of the producer of the programs shapes the medium.
The availability of physical access is arguably not enough, as it gives a passive connotation to using ICT. Participation and engagement is a more appropriate concept for access to ICT, as full access in a knowledge-based society requires full engagement by its citizens. Demographic access to consumer that includes every demographic characters of the society is also important in shaping access to ICT. The most determinative features are: income, education, age, gender, and urban-rural location (Wilson III, E., 2004), similar to what has been mentioned in section 2.3.1.
Based on the dynamic nature of digital divide in society, the predictions for the alternative trends of future inequality differ. Optimists hypothesize that developing countries’ relative ICT status will converge with rich or developed countries. Therefore, digital divide issue shrinking with time. Pessimists, in contrast, believe digital divide will grow worse, no matter what is done. For example, the argument that competitive advantage between the developed nations and developing nations is so large, that it is impossible for the late adopters to catch up, significantly reducing the digital divide
(Ferreira, F., 1999; Wilson III, E., 2004). It has also argued that the institutional, cultural and economic impediments to informatization are so great that poorer countries and communities will be permanently blocked from catching up with advanced countries (Wilson III, E., 2004). Structuralists, on the other hand, believe that ICT outcomes are more contingent. ICT will not transform society, as when ICTs are introduced into the social system, the resulting diffusion pattern will follow already prevalent patterns of economic and political distributions of power. Therefore, it is the society that transforms ICT. Once in place, ICTs become available to be used as a tool or resource by any group that can seize them. The result distribution outcome depends upon the material and social conditions, and upon the balances of power and influence within the system (Wilson III, E., 2004).
2.3.3 Rationale for Closing the Digital Gap
The same arguments in favour of accelerating the diffusion of ICT address the need to bridge the digital gap. The rationale for closing the digital gap is summarized as follows:- (1) Economic rationale – the impact of ICT on the economy is significant, and this impact is expected to grow in the future. In the USA alone information technology companies' sales of about US$ 800 billion in year 2000, contributed about 10% of the country's GDP (NTIA, 2002). The global economic shift from manufacturing towards services and information-related industries, as is happening in Malaysia, is the reason why it is important to bridge the digital gap among the country's population.
(2) Sociopolitical rationale – information is a public good to which everyone in the society should have access. ICT is an important tool to strengthen the social networks and participation in low income communities. A group that shares common interests, but not necessarily share physical proximity, can also be brought together through ICT applications (Servon, L., 2002). Without having to intervene in the digital divide, the technology gap reinforces the existing patterns of social exclusion of communities.
The above rationales predicate that, for a country like Malaysia that is dependent economically on the global market, and with its multi-ethnics background, the need to bridge the digital gap among the population is most urgent.
2.4 RESEARCH APPROACH
2.4.1 Method of Study
This research is to study on the diffusion of ICT and the issue of digital divide that is based on three dimensions of geographical differences, income and workplace. As this research emphasized on the social-economic aspect of telecommunication network, the research should be conducted based on social science methodology. A social science research will be based on defining variables, looking for the association between them and to understand the cause and effect of the variables to one another (Bernard, R., 2000).
By using quantitative and empirical approach, it indicates that the information, knowledge and understanding are gathered through experience and direct data collection (Black, T., 1999). The usage of conceptual definitions, that is the abstraction in words that facilitate understanding of the variables; and operational definitions, consists of a set of instructions on how to measure a variable that have been conceptually defined, will give an understanding on the variables that is investigated (Bernard, R., 2000). As the nature of investigating the human behavior is difficult to provide accurate result, the use of sound operational variables that are also measurable are very important in this research.
2.4.2 Data Collections
By using social science research, these research need to gather primary and/or secondary data that could be used to prove the working hypotheses. There is a need to refer and examine previous studies on the similar subject of ICT diffusion and digital divide, which could be used as a reference in this research for how data were gathered and collected. Among the previous studies that have been conducted related to the issue of ICT diffusion and digital divide were:-
(1) NTIA Reports that were conducted by the USA Government. These reports were using both secondary data and questionnaire surveys to investigate the situation on digital divide in the USA. The issues raised in the reports also changes from year to year when the reports were issued, showing the dynamic nature of the issue of digital divide (Servon, L., 2002). The ever changing issue that is related to digital divide must be closely paid into intention, as the current issue might improve in the following year, and not becoming an issue anymore. For example, in the first NTIA report, the issue of digital divide between the urban and rural Americans was the main issue that required immediate action by the government. However, the recent NTIA report indicated that the digital divide between urban and rural Americans was closing down, and other issues have appeared (NTIA, 2002).
(2) Multimedia Malaysia: Internet Case Study, by ITU, was based on secondary data and interviewed. The dimensions researched, such as geographical differences or workplace effect was limited due to the dependence on limited secondary data in the study. However, the findings have discovered the existence of the digital divide problems within the Malaysian society that might slow-down the diffusion process, as a consequence of the inequality for telecommunication access in the rural area and affordability to use ICT (ITU, 2002).
Based on the two examples above on digital divide and ICT diffusion, it is observed that the issue of digital divide must not be treated as a static issue, and the dynamic nature of the issue must be expected when this research is to proceed further.
Another observation from the study on the diffusion of ICT and digital divide in Malaysia is that dependency for secondary data would not be able to give insight information of the variables concern to be studied, as data availability in developing countries, such as Malaysia is still limited. For example, the data to measure the level of
