Digital transformation in rural settings: Unlocking opportunities for sustainable economic growth and community empowerment

https://doi.org/10.35912/joste.v5i2.2278
Published: Jul 12, 2024

Abstract:

Purpose: This study explores the potential of digital transformation in rural settings and its role in unlocking opportunities for sustainable economic growth and community empowerment.

Method: This study employed a mixed-methods approach that included both qualitative and quantitative research methods. In-depth interviews were conducted with key stakeholders from rural communities, government agencies, and technology experts to gain insights into the current state of digital transformation in rural settings. A survey was also administered to assess their digital literacy levels and attitudes towards digital technologies.

Results: The study revealed that the adoption of digital technologies can enhance access to information, improve connectivity, and create new economic opportunities for rural communities. It also demonstrates that digital transformation initiatives can empower community members by providing them with the skills and resources necessary to participate in the digital economy. Furthermore, this study identifies several key success factors for implementing digital transformation in rural areas, including infrastructure development, capacity building, and collaboration between stakeholders.

Limitations: This study acknowledges certain limitations, such as the focus on a specific geographic area and potential for response bias in the survey. Further research is needed to explore the generalizability of the findings and to examine the long-term impacts of digital transformation in rural settings.

Contributions: This study contributes to understanding the potential benefits of digital transformation in rural settings for sustainable economic growth and community empowerment. These findings provide insights for policymakers, community leaders, and technology providers in designing and implementing effective strategies for digital inclusion and rural development.

Keywords:
1. Digital Transformation
2. Rural Settings
3. Sustainable Economic Growth
4. Community Empowerment
5. Digital Inclusion
Authors:
1 . Asep Kosasih
Sekolah Tinggi Ilmu Komputer Politeknik Cirebon, Indonesia
2 . Eman Sulaiman
Sekolah Tinggi Ilmu Ekonomi Cirebon, Indonesia
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How to Cite
Kosasih, A., & Sulaiman, E. (2024). Digital transformation in rural settings: Unlocking opportunities for sustainable economic growth and community empowerment. Journal of Sustainable Tourism and Entrepreneurship, 5(2), 129–143. https://doi.org/10.35912/joste.v5i2.2278
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Issue & Section
Vol. 5 No. 2 (2024): January
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Alkureishi, M. A., Choo, Z.-Y., Rahman, A., Ho, K., Benning-Shorb, J., Lenti, G., . . . Lee, W. W. (2021). Digitally disconnected: qualitative study of patient perspectives on the digital divide and potential solutions. JMIR human factors, 8(4), e33364.

    Amornkitvikai, Y., Tham, S. Y., & Tangpoolcharoen, J. (2021). Barriers and factors affecting E-commerce utilization of Thai small and medium-sized enterprises in food and beverage and retail services. Global business review, 09721509211036294.

    Appelbaum, S. H. (1997). Socio?technical systems theory: an intervention strategy for organizational development. Management decision, 35(6), 452-463.

    Barmuta, K. A., Akhmetshin, E. M., Andryushchenko, I. Y., Tagibova, A. A., Meshkova, G. V., & Zekiy, A. O. (2020). Problems of business processes transformation in the context of building digital economy. Entrepreneurship and sustainability issues, 8(1), 945.

    Bhattarai, M. K. (2021). Information and communication technology scenario of Nepal: Assessing policy environment and challenges. Nepal Public Policy Review, 1, 201-211.

    Blaschke, L. M. (2021). The dynamic mix of heutagogy and technology: Preparing learners for lifelong learning. British Journal of Educational Technology, 52(4), 1629-1645.

    Bowen, R., & Morris, W. (2019). The digital divide: Implications for agribusiness and entrepreneurship. Lessons from Wales. Journal of Rural Studies, 72, 75-84.

    Castro, P., Rodrigues, J. P., & Teixeira, J. G. (2020). Understanding FinTech ecosystem evolution through service innovation and socio-technical system perspective. Paper presented at the Exploring Service Science: 10th International Conference, IESS 2020, Porto, Portugal, February 5–7, 2020, Proceedings 10.

    Cetindamar, D., Abedin, B., & Shirahada, K. (2021). The role of employees in digital transformation: a preliminary study on how employees’ digital literacy impacts use of digital technologies. IEEE Transactions on Engineering Management.

    Costa, J., & Castro, R. (2021). SMEs must go online—E-commerce as an escape hatch for resilience and survivability. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3043-3062.

    Davydov, S., Logunova, O., Maltseva, D., Sharikov, A., & Zadorin, I. (2020). Digital literacy concepts and measurement. Internet in Russia: A Study of the Runet and Its Impact on Social Life, 103-120.

    Deja, M., Rak, D., & Bell, B. (2021). Digital transformation readiness: perspectives on academia and library outcomes in information literacy. The Journal of Academic Librarianship, 47(5), 102403.

    Di Napoli, I., Dolce, P., & Arcidiacono, C. (2019). Community trust: A social indicator related to community engagement. Social indicators research, 145, 551-579.

    Dutta, G., Kumar, R., Sindhwani, R., & Singh, R. K. (2020). Digital transformation priorities of India’s discrete manufacturing SMEs–a conceptual study in perspective of Industry 4.0. Competitiveness Review: An International Business Journal, 30(3), 289-314.

    ElMassah, S., & Mohieldin, M. (2020). Digital transformation and localizing the sustainable development goals (SDGs). Ecological Economics, 169, 106490.

    Gebre, T., & Gebremedhin, B. (2019). The mutual benefits of promoting rural-urban interdependence through linked ecosystem services. Global ecology and conservation, 20, e00707.

    Ghozali, I., & Latan, H. (2015). Partial least squares konsep, teknik dan aplikasi menggunakan program smartpls 3.0 untuk penelitian empiris. Semarang: Badan Penerbit UNDIP.

    Gu, D., Khan, S., Khan, I. U., & Khan, S. U. (2019). Understanding mobile tourism shopping in Pakistan: An integrating framework of innovation diffusion theory and technology acceptance model. Mobile Information Systems.

    Hanushek, E. A., & Woessmann, L. (2020). Education, knowledge capital, and economic growth. The economics of education, 171-182.

    Hrustek, L. (2020). Sustainability driven by agriculture through digital transformation. Sustainability, 12(20), 8596.

    Khan, S. A. R., Zhang, Y., Kumar, A., Zavadskas, E., & Streimikiene, D. (2020). Measuring the impact of renewable energy, public health expenditure, logistics, and environmental performance on sustainable economic growth. Sustainable development, 28(4), 833-843.

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    Kraus, S., Palmer, C., Kailer, N., Kallinger, F. L., & Spitzer, J. (2019). Digital entrepreneurship: A research agenda on new business models for the twenty-first century. International Journal of Entrepreneurial Behavior & Research, 25(2), 353-375.

    Kraus, S., Schiavone, F., Pluzhnikova, A., & Invernizzi, A. C. (2021). Digital transformation in healthcare: Analyzing the current state-of-research. Journal of Business Research, 123, 557-567.

    Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66.

    Ledwith, M. (2020). Community development: A critical approach: Policy Press.

    Lemke, C. (2002). enGauge 21st Century Skills: Digital Literacies for a Digital Age.

    Lewis, W. A. (2013). Theory of economic growth: Routledge.

    Linaza, M. T., Posada, J., Bund, J., Eisert, P., Quartulli, M., Döllner, J., . . . Moysiadis, T. (2021). Data-driven artificial intelligence applications for sustainable precision agriculture. Agronomy, 11(6), 1227.

    Mabrouki, M. (2022). Patent, education, human capital, and economic growth in Scandinavian countries: A dynamic panel CS-ARDL analysis. Journal of the Knowledge Economy, 1-16.

    Maclure, L. (2023). Augmentations to the asset-based community development model to target power systems. Community Development, 54(1), 4-17.

    Marginson, S. (2019). Limitations of human capital theory. Studies in higher education, 44(2), 287-301.

    Marshall, A., Dezuanni, M., Burgess, J., Thomas, J., & Wilson, C. K. (2020). Australian farmers left behind in the digital economy–Insights from the Australian Digital Inclusion Index. Journal of Rural Studies, 80, 195-210.

    Mergel, I., Edelmann, N., & Haug, N. (2019). Defining digital transformation: Results from expert interviews. Government information quarterly, 36(4), 101385.

    Neumeyer, X., Santos, S. C., & Morris, M. H. (2020). Overcoming barriers to technology adoption when fostering entrepreneurship among the poor: The role of technology and digital literacy. IEEE Transactions on Engineering Management, 68(6), 1605-1618.

    Nikou, S., & Aavakare, M. (2021). An assessment of the interplay between literacy and digital Technology in Higher Education. Education and Information Technologies, 26(4), 3893-3915.

    Ollerenshaw, A., Corbett, J., & Thompson, H. (2021). Increasing the digital literacy skills of regional SMEs through high-speed broadband access. Small Enterprise Research, 28(2), 115-133.

    Park, S., Freeman, J., & Middleton, C. (2019). Intersections between connectivity and digital inclusion in rural communities. Communication Research and Practice, 5(2), 139-155.

    Pick, J., & Sarkar, A. (2016). Theories of the digital divide: Critical comparison. Paper presented at the 2016 49th Hawaii International Conference on System Sciences (HICSS).

    Radovanovi?, D., Holst, C., Belur, S. B., Srivastava, R., Houngbonon, G. V., Le Quentrec, E., . . . Noll, J. (2020). Digital literacy key performance indicators for sustainable development. Social Inclusion, 8(2), 151-167.

    Razmjoo, A., Østergaard, P. A., Denai, M., Nezhad, M. M., & Mirjalili, S. (2021). Effective policies to overcome barriers in the development of smart cities. Energy Research & Social Science, 79, 102175.

    Reddick, C. G., Enriquez, R., Harris, R. J., & Sharma, B. (2020). Determinants of broadband access and affordability: An analysis of a community survey on the digital divide. Cities, 106, 102904.

    Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. SmartPLS GmbH. Bönningstedt, Germany.

    Rogelj, V., Salaj, A. T., & Bogataj, D. (2021). Digital transformation of community health and social services for ageing cohorts. IFAC-PapersOnLine, 54(13), 756-761.

    Rosca, E., Tate, W. L., Bals, L., Huang, F., & Ciulli, F. (2022). Coordinating multi-level collective action: how intermediaries and digital governance can help supply chains tackle grand challenges. International Journal of Operations & Production Management, 42(12), 1937-1968.

    Rowan, N. J., & Casey, O. (2021). Empower Eco multiactor HUB: A triple helix ‘academia-industry-authority’approach to creating and sharing potentially disruptive tools for addressing novel and emerging new Green Deal opportunities under a United Nations Sustainable Development Goals framework. Current Opinion in Environmental Science & Health, 21, 100254.

    Sanders, I. T. (1958). Theories of Community Development. Rural Sociology, 23(1), 1.

    Tchamyou, V. S., Asongu, S. A., & Odhiambo, N. M. (2019). The role of ICT in modulating the effect of education and lifelong learning on income inequality and economic growth in Africa. African Development Review, 31(3), 261-274.

    Ulas, D. (2019). Digital Transformation Process and SMEs. Procedia computer science, 158, 662-671. doi:https://doi.org/10.1016/j.procs.2019.09.101

    van Dijk, J. A. G. M. (2013). A theory of the digital divide The digital divide: the internet and social inequality in international perspective (pp. 29-51): Routledge.

    Wani, T. A., & Ali, S. (2015). Innovation diffusion theory. Journal of general management research, 3(2), 101-118.

    Wardana, L. W., Indrawati, A., Maula, F. I., Mahendra, A. M., Fatihin, M. K., Rahma, A., . . . Narmaditya, B. S. (2023). Do digital literacy and business sustainability matter for creative economy? The role of entrepreneurial attitude. Heliyon, 9(1).

    Yu, G., & Zhou, X. (2021). The influence and countermeasures of digital economy on cultivating new driving force of high-quality economic development in Henan Province under the background of" double circulation". Annals of Operations Research, 1-22.

    Zimmer, W. K., & Matthews, S. D. (2022). A virtual coaching model of professional development to increase teachers' digital learning competencies. Teaching and Teacher Education, 109, 103544.

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  2. Alkureishi, M. A., Choo, Z.-Y., Rahman, A., Ho, K., Benning-Shorb, J., Lenti, G., . . . Lee, W. W. (2021). Digitally disconnected: qualitative study of patient perspectives on the digital divide and potential solutions. JMIR human factors, 8(4), e33364.
  3. Amornkitvikai, Y., Tham, S. Y., & Tangpoolcharoen, J. (2021). Barriers and factors affecting E-commerce utilization of Thai small and medium-sized enterprises in food and beverage and retail services. Global business review, 09721509211036294.
  4. Appelbaum, S. H. (1997). Socio?technical systems theory: an intervention strategy for organizational development. Management decision, 35(6), 452-463.
  5. Barmuta, K. A., Akhmetshin, E. M., Andryushchenko, I. Y., Tagibova, A. A., Meshkova, G. V., & Zekiy, A. O. (2020). Problems of business processes transformation in the context of building digital economy. Entrepreneurship and sustainability issues, 8(1), 945.
  6. Bhattarai, M. K. (2021). Information and communication technology scenario of Nepal: Assessing policy environment and challenges. Nepal Public Policy Review, 1, 201-211.
  7. Blaschke, L. M. (2021). The dynamic mix of heutagogy and technology: Preparing learners for lifelong learning. British Journal of Educational Technology, 52(4), 1629-1645.
  8. Bowen, R., & Morris, W. (2019). The digital divide: Implications for agribusiness and entrepreneurship. Lessons from Wales. Journal of Rural Studies, 72, 75-84.
  9. Castro, P., Rodrigues, J. P., & Teixeira, J. G. (2020). Understanding FinTech ecosystem evolution through service innovation and socio-technical system perspective. Paper presented at the Exploring Service Science: 10th International Conference, IESS 2020, Porto, Portugal, February 5–7, 2020, Proceedings 10.
  10. Cetindamar, D., Abedin, B., & Shirahada, K. (2021). The role of employees in digital transformation: a preliminary study on how employees’ digital literacy impacts use of digital technologies. IEEE Transactions on Engineering Management.
  11. Costa, J., & Castro, R. (2021). SMEs must go online—E-commerce as an escape hatch for resilience and survivability. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3043-3062.
  12. Davydov, S., Logunova, O., Maltseva, D., Sharikov, A., & Zadorin, I. (2020). Digital literacy concepts and measurement. Internet in Russia: A Study of the Runet and Its Impact on Social Life, 103-120.
  13. Deja, M., Rak, D., & Bell, B. (2021). Digital transformation readiness: perspectives on academia and library outcomes in information literacy. The Journal of Academic Librarianship, 47(5), 102403.
  14. Di Napoli, I., Dolce, P., & Arcidiacono, C. (2019). Community trust: A social indicator related to community engagement. Social indicators research, 145, 551-579.
  15. Dutta, G., Kumar, R., Sindhwani, R., & Singh, R. K. (2020). Digital transformation priorities of India’s discrete manufacturing SMEs–a conceptual study in perspective of Industry 4.0. Competitiveness Review: An International Business Journal, 30(3), 289-314.
  16. ElMassah, S., & Mohieldin, M. (2020). Digital transformation and localizing the sustainable development goals (SDGs). Ecological Economics, 169, 106490.
  17. Gebre, T., & Gebremedhin, B. (2019). The mutual benefits of promoting rural-urban interdependence through linked ecosystem services. Global ecology and conservation, 20, e00707.
  18. Ghozali, I., & Latan, H. (2015). Partial least squares konsep, teknik dan aplikasi menggunakan program smartpls 3.0 untuk penelitian empiris. Semarang: Badan Penerbit UNDIP.
  19. Gu, D., Khan, S., Khan, I. U., & Khan, S. U. (2019). Understanding mobile tourism shopping in Pakistan: An integrating framework of innovation diffusion theory and technology acceptance model. Mobile Information Systems.
  20. Hanushek, E. A., & Woessmann, L. (2020). Education, knowledge capital, and economic growth. The economics of education, 171-182.
  21. Hrustek, L. (2020). Sustainability driven by agriculture through digital transformation. Sustainability, 12(20), 8596.
  22. Khan, S. A. R., Zhang, Y., Kumar, A., Zavadskas, E., & Streimikiene, D. (2020). Measuring the impact of renewable energy, public health expenditure, logistics, and environmental performance on sustainable economic growth. Sustainable development, 28(4), 833-843.
  23. Kraus, S., Jones, P., Kailer, N., Weinmann, A., Chaparro-Banegas, N., & Roig-Tierno, N. (2021). Digital transformation: An overview of the current state of the art of research. Sage Open, 11(3), 21582440211047576.
  24. Kraus, S., Palmer, C., Kailer, N., Kallinger, F. L., & Spitzer, J. (2019). Digital entrepreneurship: A research agenda on new business models for the twenty-first century. International Journal of Entrepreneurial Behavior & Research, 25(2), 353-375.
  25. Kraus, S., Schiavone, F., Pluzhnikova, A., & Invernizzi, A. C. (2021). Digital transformation in healthcare: Analyzing the current state-of-research. Journal of Business Research, 123, 557-567.
  26. Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66.
  27. Ledwith, M. (2020). Community development: A critical approach: Policy Press.
  28. Lemke, C. (2002). enGauge 21st Century Skills: Digital Literacies for a Digital Age.
  29. Lewis, W. A. (2013). Theory of economic growth: Routledge.
  30. Linaza, M. T., Posada, J., Bund, J., Eisert, P., Quartulli, M., Döllner, J., . . . Moysiadis, T. (2021). Data-driven artificial intelligence applications for sustainable precision agriculture. Agronomy, 11(6), 1227.
  31. Mabrouki, M. (2022). Patent, education, human capital, and economic growth in Scandinavian countries: A dynamic panel CS-ARDL analysis. Journal of the Knowledge Economy, 1-16.
  32. Maclure, L. (2023). Augmentations to the asset-based community development model to target power systems. Community Development, 54(1), 4-17.
  33. Marginson, S. (2019). Limitations of human capital theory. Studies in higher education, 44(2), 287-301.
  34. Marshall, A., Dezuanni, M., Burgess, J., Thomas, J., & Wilson, C. K. (2020). Australian farmers left behind in the digital economy–Insights from the Australian Digital Inclusion Index. Journal of Rural Studies, 80, 195-210.
  35. Mergel, I., Edelmann, N., & Haug, N. (2019). Defining digital transformation: Results from expert interviews. Government information quarterly, 36(4), 101385.
  36. Neumeyer, X., Santos, S. C., & Morris, M. H. (2020). Overcoming barriers to technology adoption when fostering entrepreneurship among the poor: The role of technology and digital literacy. IEEE Transactions on Engineering Management, 68(6), 1605-1618.
  37. Nikou, S., & Aavakare, M. (2021). An assessment of the interplay between literacy and digital Technology in Higher Education. Education and Information Technologies, 26(4), 3893-3915.
  38. Ollerenshaw, A., Corbett, J., & Thompson, H. (2021). Increasing the digital literacy skills of regional SMEs through high-speed broadband access. Small Enterprise Research, 28(2), 115-133.
  39. Park, S., Freeman, J., & Middleton, C. (2019). Intersections between connectivity and digital inclusion in rural communities. Communication Research and Practice, 5(2), 139-155.
  40. Pick, J., & Sarkar, A. (2016). Theories of the digital divide: Critical comparison. Paper presented at the 2016 49th Hawaii International Conference on System Sciences (HICSS).
  41. Radovanovi?, D., Holst, C., Belur, S. B., Srivastava, R., Houngbonon, G. V., Le Quentrec, E., . . . Noll, J. (2020). Digital literacy key performance indicators for sustainable development. Social Inclusion, 8(2), 151-167.
  42. Razmjoo, A., Østergaard, P. A., Denai, M., Nezhad, M. M., & Mirjalili, S. (2021). Effective policies to overcome barriers in the development of smart cities. Energy Research & Social Science, 79, 102175.
  43. Reddick, C. G., Enriquez, R., Harris, R. J., & Sharma, B. (2020). Determinants of broadband access and affordability: An analysis of a community survey on the digital divide. Cities, 106, 102904.
  44. Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. SmartPLS GmbH. Bönningstedt, Germany.
  45. Rogelj, V., Salaj, A. T., & Bogataj, D. (2021). Digital transformation of community health and social services for ageing cohorts. IFAC-PapersOnLine, 54(13), 756-761.
  46. Rosca, E., Tate, W. L., Bals, L., Huang, F., & Ciulli, F. (2022). Coordinating multi-level collective action: how intermediaries and digital governance can help supply chains tackle grand challenges. International Journal of Operations & Production Management, 42(12), 1937-1968.
  47. Rowan, N. J., & Casey, O. (2021). Empower Eco multiactor HUB: A triple helix ‘academia-industry-authority’approach to creating and sharing potentially disruptive tools for addressing novel and emerging new Green Deal opportunities under a United Nations Sustainable Development Goals framework. Current Opinion in Environmental Science & Health, 21, 100254.
  48. Sanders, I. T. (1958). Theories of Community Development. Rural Sociology, 23(1), 1.
  49. Tchamyou, V. S., Asongu, S. A., & Odhiambo, N. M. (2019). The role of ICT in modulating the effect of education and lifelong learning on income inequality and economic growth in Africa. African Development Review, 31(3), 261-274.
  50. Ulas, D. (2019). Digital Transformation Process and SMEs. Procedia computer science, 158, 662-671. doi:https://doi.org/10.1016/j.procs.2019.09.101
  51. van Dijk, J. A. G. M. (2013). A theory of the digital divide The digital divide: the internet and social inequality in international perspective (pp. 29-51): Routledge.
  52. Wani, T. A., & Ali, S. (2015). Innovation diffusion theory. Journal of general management research, 3(2), 101-118.
  53. Wardana, L. W., Indrawati, A., Maula, F. I., Mahendra, A. M., Fatihin, M. K., Rahma, A., . . . Narmaditya, B. S. (2023). Do digital literacy and business sustainability matter for creative economy? The role of entrepreneurial attitude. Heliyon, 9(1).
  54. Yu, G., & Zhou, X. (2021). The influence and countermeasures of digital economy on cultivating new driving force of high-quality economic development in Henan Province under the background of" double circulation". Annals of Operations Research, 1-22.
  55. Zimmer, W. K., & Matthews, S. D. (2022). A virtual coaching model of professional development to increase teachers' digital learning competencies. Teaching and Teacher Education, 109, 103544.