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98 Carleen F. Maitland and Johannes M. Bauer
is expected, based on the role of communication networks in the diffu-
sion process, that a country more highly integrated in the global econ-
omy through trade will more quickly adopt this innovation.
The second broad category of variables is infrastructure. Vari-
ables in the infrastructure category reflect the nature of the
telecommunications infrastructure but also represent the commu-
nication structure between countries. The telecommunications in-
frastructure of a nation facilitates international communication
which in turn drives diffusion. The centrality of a nation in the
global communication network is expected to influence its adoption
time as the advantages of the innovation will be spread through in-
ternational communication channels (Allen 1988; Rogers 1995; Va-
lente 1995). The second variable expected to explain Internet
diffusion is teledensity, a measure of the number of telephone lines
per capita. As previously mentioned, access to a local telecommuni-
cation network, particularly in developing countries, as essential to
the continued growth of the Internet (Blumenthal 1997). Access is
however a necessary but not a sufficient condition for Internet dif-
fusion. The price of access will also play a role in determining the
relative advantage of the medium. Paltridge (1996) showed that a
strong relationship exists between competitive telecommunication
markets, price of both local and leased access, and Internet diffu-
sion for the OECD countries. He states, “on average, the penetra-
tion of Internet hosts is five times higher in competitive than
monopoly markets” (Paltridge 1996, 26). The lack of available band-
width and high cost of leased lines have been cited as one factor re-
sponsible for the slow expansion of the Internet by a Japanese ISP
(Hahne 1997).
The final variable in the infrastructure section represents a
country’s orientation toward using network peripherals, such as
modems or fax machines. This reflects use of the telecommunica-
tions network as a data network. These innovations create greater
compatibility through previous experience.
As stated earlier, this model consists of three categories, the
last of which is culture. Culture is seldom considered in quantita-
tive analyses of diffusion at the global level, although some notable
exceptions have appeared in the area of marketing (see Parker 1994
for a review). Results of one study, that of DeKimpe, Parker, and
Sarvary (1997), suggest the cultural variables should match the in-
novation being studied. Thus, in this study both general cultural
variables and those specifically related to the Internet will be used.