Edinburgh Napier University

  According to the United Nations Development Program, Information and Communication Technology (ICT) has a significant impact on the reduction of poverty in developing countries. In addition, a number of studies emphasise the positive developmental impact of ICT. However, to realise the positive influence and impact of ICT in developing countries – first ICT has to be diffused in these countries. This study is an attempt to shed light on the factors that affect the diffusion of ICT with particular reference to the hotel sector and associated businesses in Addis Ababa, Ethiopia. Exploratory design methodology is used to inform the research process. The research aim is to investigate the role of ICT in reducing poverty in Ethiopia, a developing country with 38.7% of the population below the poverty line. The data indicated that ICT’s diffusion is very limited, hence its impact on reducing poverty is also limited, and furthermore, existing diffusion theories do not explain why the diffusion is very low. The research design includes iterating from data to analysis and then to findings and back to data collection and repeating the processes again to explain the findings using existing theories, or generate new theory that explains the phenomenon. This design method provides a mechanism to refine ideas, vary or change data collection, and help with analysis and theory formulation. Furthermore, the shortcoming of existing diffusion theories to explain the diffusion of ICT leads to the formulation of a new theoretical framework based on Rogers’ diffusion theory. The proposed new framework acknowledges the role of the characteristics and social grouping of the individual adopter in the adoption processes, however the framework emphasises that the context on the ground (the Political, Economic,Social, Technological, Environmental and Legal [PESTEL] factors) plays a crucial role in the diffusion of ICT. Both qualitative and quantitative methods are used to collect data. In the first phase,17 interviews were conducted with hotel managers/owners who had adopted some level of ICT in their businesses. In the second phase, survey questionnaires were used to gather both qualitative and quantitative data from 125 hotel managers/owners and 36 tour operators. Data collection is continuing. The data indicates that PESTEL factors influence the diffusion of ICT; for example, the tax exemption introduced by the government for new hoteliers has a positive impact, while the fact that the only telecom provider in the country is government owned has a negative impact