IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v18y2026i6p2868-d1893261.html

Institutional Conditions for Digital Innovation and Transformation: A Contingent Framework for Smart Technology Adoption in Developing Nations

Author

Listed:
  • Ibrahim Ejdayid Ajbarah Mansour

    (Libyan Centre for Engineering Research and Information Technology, Bani Walid P.O. Box 38645, Libya)

  • Abdelhamid Bouchachia

    (Department of Computing and Informatics, Bournemouth University, Talbot Campus, Poole BH12 5BB, UK)

Abstract

This paper addresses the persistent failure of major digital investments to achieve sustained smart technology adoption in developing countries, limiting productivity and business growth. Although existing research identifies institutional weaknesses as a central barrier, it provides limited guidance on how progress can occur within such constraints. To address this gap, the Institutional Framework for Smart Technology Adoption (IFSTA), pronounced Eye-f-sta, is developed as a contingent institutional framework linking digital transformation theory with practical assessment tools. IFSTA argues that adoption success depends not on technology alone, but on strategic alignment with specific institutional contexts. The framework is built around three core pillars, governance architecture, socio-technical infrastructure, and adaptive capacity, and explains how their interactions generate differentiated adoption outcomes across five institutional contexts. Localization is conceptualized as a cross-cutting mediating mechanism through which governance arrangements, standards, platforms, and capabilities are adapted to domestic realities, shaping both current performance and future transformation potential. Three questions guide the analysis: how institutional contexts moderate the impact of infrastructure investment; what complementarities and compensatory mechanisms enable progress under institutional constraints; and how digital investments can be sequenced according to institutional starting points. To operationalize this logic, the Performance–Knowledge Index (PKI) is introduced as a context-sensitive diagnostic tool that identifies binding constraints and supports sequenced intervention design. The study contributes a contingent institutional model, a methodological bridge between diagnosis and implementation, and a structured, actionable framework for advancing sustainable digital adoption in developing economies.

Suggested Citation

  • Ibrahim Ejdayid Ajbarah Mansour & Abdelhamid Bouchachia, 2026. "Institutional Conditions for Digital Innovation and Transformation: A Contingent Framework for Smart Technology Adoption in Developing Nations," Sustainability, MDPI, vol. 18(6), pages 1-20, March.
  • Handle: RePEc:gam:jsusta:v:18:y:2026:i:6:p:2868-:d:1893261
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/18/6/2868/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/18/6/2868/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:18:y:2026:i:6:p:2868-:d:1893261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.