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Rural smartness: Its determinants and impacts on rural economic welfare

Author

Listed:
  • Iqbal Yulizar Mukti

    (University of Twente)

  • Jörg Henseler

    (University of Twente
    Universidade Nova de Lisboa)

  • Adina Aldea

    (University of Twente)

  • Rajesri Govindaraju

    (Insitut Teknologi Bandung)

  • Maria E. Iacob

    (University of Twente)

Abstract

Solving urbanization problems, especially in developing countries, solely through the adoption of smartness in urban areas is insufficient as urbanization is mostly driven by the wide urban-rural economic gap. To narrow this gap, the adoption of smartness needs to be extended into rural areas. However, studies in that direction are still lacking. Therefore, we developed a theoretical model that explains the determinants of rural smartness and its subsequent consequences on rural economic welfare. We validated the model with survey data from 179 villages in West Java Province, Indonesia. The results suggest that rural smartness is determined by the interplay of organizational, environmental, and technological readiness, and has a strong positive impact on innovativeness which, in turn, improves the competitiveness of the rural business ecosystem. This model can serve as a reference for further studies of rural smartness and as the foundation for the design of information platforms supporting it.

Suggested Citation

  • Iqbal Yulizar Mukti & Jörg Henseler & Adina Aldea & Rajesri Govindaraju & Maria E. Iacob, 2022. "Rural smartness: Its determinants and impacts on rural economic welfare," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(4), pages 1943-1970, December.
    • Handle: RePEc:spr:elmark:v:32:y:2022:i:4:d:10.1007_s12525-022-00526-2
    DOI: 10.1007/s12525-022-00526-2
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    References listed on IDEAS

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    More about this item

    Keywords

    urbanisation; urban smartness; rural smartness; rural development; economic welfare; partial least square;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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