Ali Asghar Anvary Rostamy - Associate Professor, Tarbiat Modares University (TMU), Tehran Iran.

This paper aims at offering an empirically based insight into IT diffusion drivers in developed and developing countries. For this purpose, a new conceptual model provided and tested empirically. The model investigates the correlations between five different factors with IT diffusion in developed and developing countries. Using data from 34 developed and 209 developing countries in 2008, we applied simple and stepwise regression methods and compared the results for developed and developing countries. We found that Trade Related Knowledge Spillovers (TRKS) has significant correlation with IT diffusion in both developed and developing countries. Moreover, we found a significant correlation between Resource to Make Investment (RMI) and IT diffusion for developing countries but not for developed countries. The results imply that the greater openness and international trade can significantly improve IT diffusion in both developed and developing countries through knowledge spillovers. Moreover, financial resource plays a key role in accelerating IT diffusion in developing countries. The conceptual framework and the results can aid decision makers to improve greater IT diffusion in such a way that developing countries can advantage of what already being enjoyed in the developed world. The results promote decision makers’ insights about the IT diffusion drivers in developed and developing countries.

IT diffusion drivers, Developing countries, Developed counties, Trade related knowledge spillovers.