Connections between Use of Communication Technologies and the Success of Rural Businesses: Analytical Essay

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This study explores the connections between the use of communication technologies (ICT), the advantages that an organization receives from membership in a rural industry cluster, and the success of rural businesses. A study of 333 companies located in northern Lower Michigan showed a strong association between (a) ICT adoption and business cluster gains, (b) ICT adoption and self-reported business success, and (c) the business cluster profits and the business success. While analysis suggests that these partnerships may be industry-specific, results suggest that rural enterprises ' implementation of ICT may have implications for the region's social capital and business success and may help reduce the digital divide faced in rural communities.

The analysis shows that company characteristics were associated with business success and were significant predictors of business success independent of the sector of SMEs. Also, more productive businesses appeared to have more staff, have more business income beyond their region, and have more funding sources. Initially, all three ICT indicators shown to be associated with business success and the resulting multiple regression; only a significant factor was the importance placed on the successful use of ICT. This analysis indicates that predictors such as ICT capacity readiness and ICT dependency on the workforce could be related to business success through the importance placed on the successful use of ICT. Additionally, it observed that cluster membership has significant advantages for rural SMEs ' overall success.

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This study found a significant relationship between ICT and cluster benefits; however, the essence of this relationship should explore in future research. ICT use may improve the benefits of cluster membership, but the reverse is just as possible. It may be that the now clustered companies are more likely to use ICT to communicate with each other. Future research should, therefore, concentrate on identifying the causality in that relationship. Suggest time-series tests or trials check these relationships. Finally, both the strength of the cluster and the advantages the business receives from the cluster forecast the performance of ICT companies. Reasonably, because of the nature of their business, ICT firms are more likely to be linked to networks. What the findings indicate is that how effective they are will affect the degree to which ICT companies directly linked to business networks.

This research adds to the current perception of business success predictors for rural SMEs by exploring the use of ICT and advantages resulting from business cluster membership. Three of the results, in particular, stand out for their ability to guide policymaking. One, the powers of the cluster found to forecast business success. The received wisdom about the benefits of membership in business clusters should be a key consideration for policymakers and community leaders looking to grow enterprises in rural communities. Persuading agricultural companies to form a band together and building clustering opportunities are approaches that politicians should follow fruitfully.

The significance rural businesses put on the use of ICT in their business processes was a powerful indicator of business success. Business owners who have modern computer systems and workers with computer literacy have appeared to achieve better business success. It should remember that the other indicators, such as ICT capacity and reliance on ICT, did not meaningfully forecast business success. The mixed results about ICT's role in business success indicate that further analysis of this relationship is required. In the absence of information on the specific role's ICT can play, pure network growth is undoubtedly inadequate to boost the economic health of companies.

What our research suggests, however, is that the convergence between ICTs and business clusters could be an essential area to explore. Online tools linking rural businesses can produce the cluster benefits found in our analysis, as well as prior studies. Fourth, decision-makers need to be attentive to the sector they deal with in their efforts to improve the economic health of rural enterprises. Although ICT use in the ICT industry did not predict business success, this does not mean that ICT is not significant. We assume the statistical non-significance of the use of ICT for this sector stems from the fact that there is little differentiation within the industry between businesses. Of course, ICT businesses will rely heavily on ICT for their business processes. The value that business owners put on ICT use in their business processes predicted their economic success for the wood products and metalworking industries.

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Connections between Use of Communication Technologies and the Success of Rural Businesses: Analytical Essay. (2022, July 14). Edubirdie. Retrieved July 15, 2024, from
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