Designing a Model for Using Information and Communication Technologies in the Rural Economy

مجله اقتصاد و توسعه کشاورزی

Article 4, Volume 32, Issue 4 - Serial Number 42, January 2019, Pages 325-332   

Document Type: Research Article

DOI: 10.22067/jead2.v32i4.70799

Authors

R. Mohammadi; F. Lashgarara^* ; M. Omidi Najafabadi

Science and Research Branch, Islamic Azad University, Tehran

Abstract

Introduction: Villages and villagers have a major role in dynamics of the country's economy, such as contributing to economic growth, controlling inflation, increasing employment rate and providing a suitable basis for agricultural, industrial and livestock products as well as environmental protection. So, rural development is one of the prerequisites for national development. On the other hand, one of the most important aspects of rural development is its economic dimension. Today, improving rural economy is one of the major goals in national planning. In this regard, it is necessary to recognize the capabilities and potentials of each region. In the current era, ICTs with their multiple capabilities, can be one of the greatest opportunities for improving the rural economy.
The research is carried out in Garmsar city. In this city, there are some shortcomings in marketing, distribution of products and employment chances which result in increasing rural population's migration. Most of these problems are caused by  lack of awareness of market information (such as customer requirements, sales prices, packaging and grading, lack of identification of relevant markets, inappropriate distribution and etc.), lack of skills for commencing new jobs, lack of familiarity with the new production, weakness in research and in general lack of attention to the factors affecting the rural economy which are directly and indirectly originated from lack of information and communication. Therefore, the study of rural economics is inevitable because it will increase its efficiency and effectiveness and ultimately accelerate national development. This study aims to identify the role of ICTs in rural economics. In this regard, the following objectives were formulated:

assessing and identifying the state of rural economy in the city
investigating the capabilities of ICTs in rural economies
Examining the relationship between the capabilities of ICTs and the rural economy.

Materials and Methods: Methods of analysis used in this study involve a combination of descriptive and quantitative research methods. Descriptive statistics and structural equation modeling (SEM) are used for data analysis. Dependent variable of current study is the rural marketing environment and independent variables are ICT capabilities in four sectors including financial, behavioral, notification and technical. The study hypotheses are examined by studying the relationships between mentioned variables and their direct and indirect effects using SEM analysis. Following data extraction, descriptive statistics and SEM analysis are conducted using the SPSS20 and AMOS20 software, respectively. The research method involves a causal-comparative approach. The statistical populations consist of rural cooperative members working in the field of rural marketing who apply ICTs in their activities. Due to the limited population size, the sample was equal to the population and a census method was used (N=n=140). The main tool used for data collection is a five-part questionnaire designed using PEST analysis in the 5-point-Likert scale format. The content and face validity are established by a panel of experts comprising faculty members and specialists in rural marketing. A pilot study is conducted with 30 experts for determining the questionnaire’s reliability, which is obtained using ordinal theta coefficients. The reliability is verified for each section of the questionnaire: the theta coefficients been estimated between 86% and 90%, indicating an acceptable level of reliability.
Results and Discussion: Based on the obtained information, more respondents (42.5%) believe that the rural economy is fairly desirable, as well, 36.2% of respondents believe that ICT capabilities play a significant role in the rural economy. Using the exploratory factor analysis, ICT capabilities are grouped into four main financial, technical, behavioral, and informational groups. As a result, ICT capabilities have a significant positive effect on rural economy. Among them, financial capabilities with the highest estimate (0.84) has the most accomplishment on dependent variable (rural economy). To evaluate the suitability and fit of the model, the goodness-of-fit measures are used, and according to the obtained criteria, the model provides appropriate fitting to data.
Conclusion: Today, governments have widely recognized the role of ICTs in economic development and many countries are implementing ICTs as a key factor to improve the economic environment. This study shows how ICT capabilities would facilitate the improvement of the rural economy and livelihood of rural communities. ICTs help quantitative and qualitative improvement of products with the possibility of selling direct and online, requirement for brokers to be reduced, opening the commercial doors and increasing sales and income of the villagers. Finally, it can be stated that ICTs are the basis for improving the rural economy.

Keywords

Information and communication technologies (ICTs); ICT capabilities. rural economy

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