I an Examination of the Relationships Between the Transfer of Information
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An examination of the relationships between the transfer of information and communications technologies and capacity building towards sustainable development of small and medium enterprises : A focus on Rwanda and Tanzania George S. L. Mulamula A thesis submitted in partial fulfillment of the requirements for the degree Philosophiae Doctor in the Department of Engineering and Technology Management Faculty of Engineering, the Built Environment and Information Technology University of Pretoria December 2016 i Declaration I declare that the thesis, which I hereby submit for the degree Philosophiae Doctor (Technology Management) at the University of Pretoria, is my own and has not been previously submitted by me for a degree at another University --------------------------- George S. Mulamula ii Abstract George S. L. Mulamula Promoter: Prof. Joe Amadi-Echendu Department: Department of Engineering and Technology Management University: University of Pretoria Degree: Philosophiae Doctor (Technology Management) In the modern era, it is widely acknowledged that information and communication technologies have become foundational to every aspect of human endeavor and well-being. The policies of private and public sector organizations, and more so of governments of sovereign states, emphasize the deployment and utilization of information and communication technologies in virtually all forms of business activities. Comparatively, there is consensus that economic and social development of countries can be highly dependent on small and medium enterprises. A broader question arises as to how information and communication technologies can be combined with small and medium enterprises to accelerate sustainable development, especially in nations classified as least developing countries. This research provides some empirical evidence on the extent of the triangular correlation between the transfer of information and communication technologies, capacity building of small and medium enterprises for sustainable development in the least developed country context. The study provides useful insights for policy making with regards to leveraging small and medium enterprises plus information and communication technologies towards stimulating and accelerating sustainable development of least developed countries. Keywords: information and communication technology, capacity building, sustainable development, small and medium enterprises, least developing countries. iii Acknowledgements The author hereby acknowledges the extensive contributions of the following individuals, organizations and institutions: First and foremost I thank my wife and children, for their patience, tolerance and support as I went about doing my PhD programme. I thank the Institutions in Rwanda and Tanzania who agreed and allowed their staff and students to participate in the survey that was conducted for this thesis. I also thank my friends and colleagues, who took time to give me some pointers after reading parts of my thesis. Special thanks to Dr Strato Mosha, Dr. Flora Tibazarwa, Denise Umuhoza and Makange Mramba for their support. Last but not least and most important I thank my supervisor and study promoter Professor Joe Amadi-Echendu and Ms. Marlene Mulder (Administration support) as they provided guidance to me in doing this PhD programme. Along the same line, I thank the Head and staff of the Graduate School of Technology Management, and the Faculty of Engineering, Built Environment and Information Technology, for granting me the opportunity to pursue my PhD programme at the University of Pretoria. iv Table of Contents Chapter 1 - Introduction 1 1.1 Technology and Industrialization 1 1.2 ICTs and Globalization 2 1.3 Developmental Classifications of Countries 3 1.4 The Digital Divide 5 1.5 ICTs and strategy of leapfrogging 6 1.6 ICTs for development 7 1.7 SME growth and typology of barriers to growth 8 1.8 Problem statement and research question 9 1.9 Research objectives and limitations 10 1.10 Structure of the thesis report 10 Chapter 2 - Literature study 11 2.1 A review on ICT trends, with a focus on the ubiquity of ICTs 13 2.2 A discourse on technology transfer issues 17 2.3 A discourse on sustainability and the 2015 sustainable development goals 23 2.4 A discourse on capacity building, especially ‘human capacity index’ 26 2.5 A general discourse on LDC SME development 30 2.6 Analysis of Literature 34 Chapter 3 - Case studies of countries with recent histories on ICT-enabled development 36 3.1 ICT sector overview in Africa 36 3.1.1 Access to broadband in Africa 36 3.1.2 Policy and regulatory development in Africa 40 3.1.3 Skills development in Africa 42 3.1.4 Technology incubation hubs 42 3.2 Case study of two East African LDCs: Rwanda and Tanzania 43 3.2.1 The information communication technology sector in Rwanda 46 3.2.1.1 ICT vision of Rwanda 49 3.2.1.2 ICT infrastructure 52 3.2.1.3 Technology in the workforce 53 3.2.1.4 ICT as an enabler 54 3.2.1.5 Regulatory environment 55 3.2.1.6 Environmental challenges 56 3.2.1.7 Understanding of the Rwandan SMEs 57 3.2.2 The information communication technology sector in Tanzania 60 3.2.2.1 ICT vision of Tanzania 63 3.2.2.2 ICT infrastructure 66 3.2.2.3 Technology in the workforce 67 3.2.2.4 ICT as an enabler 68 3.2.2.5 Regulatory environment 68 3.2.2.6 Environmental challenges 69 3.2.2.7 Understanding of the Tanzanian SMEs 70 3.3 Synopsis of three country case studies that used ICT for development 72 3.3.1 Case review - South Korea 72 3.3.2 Case review – India 74 3.3.3 Case review – Kenya 75 Chapter 4 - Conceptual model of research 78 v 4.1 Research hypothesis 79 4.2 Research methodology 81 4.2.1 The Delphi study 81 4.2.2 Delphi study shortcomings 82 4.2.3 The methodology for the research 83 Chapter 5 - Data collection 86 5.1 First Delphi survey 86 5.2 Second Delphi survey 89 5.3 Third Delphi survey with SMEs 98 5.4 Correlation with SPSS 100 5.4.1 Testing for reliability using SPSS 102 5.4.2 Testing for normality 104 5.4.3 Understanding the Shapiro-Wilk Sig values 105 5.4.4 Using skewness and kurtosis statistics to interpret normality 106 5.5.5 Graph analysis: histograms and scatter (Q-Q) plots for the factors 107 5.5.6 Correlation analysis 115 Chapter 6 - Data analysis 118 6.1 Presentation and analysis of Delphi study results 118 6.2 Significance of case studies 120 6.3 Significance of Delphi study correlation analysis 121 6.4 Overall significance of results 122 Chapter 7 – Implications of study for Rwanda and Tanzania and conclusion 125 7.1 Implication of information communication technology transfer on capacity building 126 7.2 Implication of information communication technology transfer on sustainable development 127 7.3 Implication of incubation and information communication technology transfer on small and medium enterprise development 128 7.4 Implication of information communication technology transfer on policy affecting SMEs 130 7.5 Conclusions 131 7.6 Areas for further study 133 List of References Appendix Sample Questionnaire vi List of Figures Figure 1: Map of least development countries Figure 2: Change in technology penetration between 1995 and 2015 Figure 3: Some studies on ICT and economic perfomance Figure 4: Technology rate of change Figure 5: Technology growth expectations with time Figure 6: The ITT model Figure 7: Comparison of ICT uptake in Africa, Developing Countries and the World Figure 8: Global Fixed (Wired) Broadband Subscription per 100 Inhabitants Figure 9: Active Mobile Broadband Subscriptions per 100 Inhabitants Figure 10: Daily internet us increases from 2007 to 2012 Figure 11: Map of Rwanda Figure 12: Rwanda Development Finance Figure 13: Rwanda Trade Performance Figure 14: Rwanda Development Indicators Figure 15: The NICI Framework Figure 16: The limiting factors of ICT adoption Figure 17: SME Operators by sector Figure 18: Map of Tanzania Figure 19: Tanzania Development Finance Figure 20: Tanzania Trade Performance Figure 21: Tanzania Development Indicators Figure 22: Subscription and teledensity Figure 23: Facilitators and challenges of ICT for development in Tanzania Figure 24: Tanzanian SME Support Landscape Figure 25: Success Factors of ICT Korea Figure 26: Three round Delphi process Figure 27: Relationship between Capacity Building, Technology Transfer and Sustainable Development factors Figure 28a: CB1 Training of End Users of Technology Figure 28b: CB2 Incentives for New Technologies Figure 28c: CB3 User Needs Figure 28d: CB4 Applying Know-how Figure 28e: TT1 Technology Incubators for SMEs Figure 28f: TT2 Conducive Policies & Regulations affecting SMEs Figure 28g: TT3 Having On-site Expert & Assistance Support with Tech Transfer to SMEs Figure 28h: TT4 Knowledge of Opportunities by SMEs Figure 28i: TT5 Commercialization of SME Tech Products Figure 28j: SD1 Adaptation of Technology to Local Environment Figure 28k: SD2 Innovative culture in SME Community Figure 28l: SD3 Availability of Skilled Workforce Figure 28m: SD4 Technology loans for SMEs in Innovation working Ideas & Innovation Figure 28n: SD5 Patent protection Figure 29: Seven Guiding Principles for Capital vii List of Tables Table 1: Transmission Channels from ICT to Growth Table 2: Human Capital Index 2015 rankings of LDCs in Sub-Sahara Africa Table 3: ICT Sector Development in Africa Table 4: Mobile money use in East Africa Table 5: SME Categories in Rwanda Table 6: SME Categories in Tanzania Table 7.1: Technology Transfer Factors Table 7.2: Sustainable Development Factors Table 7.3: Capacity Building Factors Table 8.1: