Cultural Dimensions and ICT4D Adoption: Implications for Financial Performance in South Asian Family Businesses

This study investigates the relationship between cultural dimensions, ICT4D readiness, and financial performance of family-owned firms across six South Asian countries—Pakistan, India, Bangladesh, Nepal, Sri Lanka, and the Maldives—during 2019–2024. Using hierarchical linear modeling (HLM) and multi-level regression analysis, we demonstrate that national culture systematically influences ICT adoption: a 10-point increase in Power Distance (PDI) is associated with a 0.05 reduction in ICT readiness (IDI), while a 10-point increase in Long-Term Orientation (LTO) enhances IDI by 0.06. At the firm level, ICT readiness emerges as a strong predictor of financial outcomes, with a one-unit increase in IDI linked to 7–8% higher revenue growth and a 3–5 percentage-point improvement in profit margins. Mediation and moderation analyses further reveal that governance professionalization and next-generation leadership amplify ICT benefits, while rural contexts significantly reduce realized gains unless complemented by participatory training and infrastructure. The findings have important implications for policy and practice. They highlight the necessity of embedding ICT4D initiatives within cultural and institutional contexts, strengthening governance systems in family firms, and providing targeted support to rural enterprises. By aligning these strategies with the Sustainable Development Goals (SDGs)—particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 10 (Reduced Inequalities), SDG 16 (Peace, Justice, and Strong Institutions), and SDG 17 (Partnerships for the Goals)—South Asian economies can leverage ICT to promote inclusive, sustainable growth. This research contributes to the literature by integrating cultural, technological, and governance dimensions into a unified framework, offering evidence-based guidance for policymakers, managers, and development actors seeking to harness ICT for long-term competitiveness and social development.