Technological Adoption in Emerging Economies: Insights from Latin America and the Caribbean with a Focus on Low-Income Consumers

Abstract

This chapter delves into the dynamics of technological adoption in emerging economies, specifically focusing on Latin America and the Caribbean region. Understanding technical adoption patterns and drivers is crucial for researchers and practitioners promoting inclusive development. While previous studies have explored technological adoption in these regions, there is a need for a deeper examination of low-income consumers, who represent a significant segment of the population. Uncovering insights into their behavior and decision-making processes can illuminate the challenges and opportunities for bridging the digital divide. Drawing on a rich body of empirical evidence, this chapter investigates the factors influencing the adoption of technologies, such as mobile phones, internet access, and digital services, among low-income consumers in Latin America and the Caribbean. In addition, it explores the role of affordability, infrastructure, digital literacy, social networks, and cultural factors in shaping adoption patterns. The findings provide valuable insights for policymakers, businesses, and organizations seeking to enhance technological adoption and digital inclusion in emerging economies, ultimately fostering sustainable economic growth and social development.

1. Introduction

In recent years, the rapid advancement of technology has emerged as a crucial factor in shaping the economies of various regions, particularly in emerging markets. This chapter delves into the realm of technological adoption in emerging economies, specifically focusing on Latin America and the Caribbean, shedding light on the experiences of low-income consumers. While technology undeniably holds immense potential as a catalyst for poverty alleviation and overall development in these nations, it still needs concerted public and private efforts. Moreover, digital transformation should include the most marginalized sectors of society in digital transformation, particularly in the areas that bear the most significant vulnerabilities: education and healthcare, and access. Only by fostering collaboration and targeted initiatives can we ensure that technology becomes an empowering force, uplifting the lives of those who need it the most.

While technology can potentially drive economic and social development, the lack of resources and limited adoption among its intended beneficiaries can perpetuate underdevelopment and exacerbate these countries’ crises. In the present era, where technological advancements are reshaping industries and cities worldwide, the absence of access to and utilization of technology further deepens the existing disparities. The divide between those who can harness the power of technology to enhance their lives and those who are left behind widens, intensifying the cycle of poverty and exclusion. This chapter delves into the intricate dynamics of technological adoption in emerging economies, shedding light on the challenges faced by low-income consumers in Latin America and the Caribbean. By understanding the complex interplay between technology, socio-economic factors, and adoption rates, we can unravel the complexities and pave the way for inclusive and sustainable technological development in these regions.

2. Technological development in emerging economies

Digital transformation has substantially changed the dynamics of modern life [1]. The impact of the arrival and expansion of technology is currently evident in all industrial sectors and, consequently, in people’s lives. According to Internet World Stats (2022), the growth of the Internet between 2000 and 2023 globally has been 1392% of new users, implying that more people and organizations have used the different resources developed on various platforms to carry out a large part of their daily activities [2]. This growth is the product of the increase in Internet penetration, which currently stands at 70% of the world’s population. Despite this surprising figure, this growth trend has not been symmetrical for all countries because when analyzing this information by region, there are evident inequalities between the availability and use of the service. Developed economies, such as North America and Europe, dominate penetration, while Asia and Africa have the lowest Internet service availability and use (see Figure 1).

Figure 1.

Global Internet penetration rate based on percentage of total population 2023 [2].

In the case of emerging economies, these inequalities are also evident within each region, specifically in the Americas. America has 80.5% penetration with a share of 10% of total global users. However, this share presents apparent inequalities at the sub-regional level. North (94%), South (85%), and Central (78%) America are above-average penetration, while the Caribbean (67%) has significant differences concerning the other regions of the Americas.

The pandemic made a notable contribution to promoting the use of technology in the face of the mobility restrictions imposed by the countries. According to the available data, this digital transformation is occurring asymmetrically or unevenly in emergent economies. Adoption of advanced digital technologies, such as 5G mobile networks, the Internet of Things, artificial intelligence, and robotics, among others, is transforming consumption, business, and production models, ushering in a new era in which we are transitioning from a hyperconnected society to a digitized world on the economic and social levels. According to Report, this new paradigm implies the coexistence of the traditional economy’s organizational, productive, and governance modalities with the latest models emerging from digital transformation [3].

Finally, the Economic Commission for Latin America and the Caribbean (ECLAC) [3] assures that technological transformation presents challenges. That can help industrial development, especially in small and medium-sized enterprises in emerging economies and Latin America. This impact of technology extends to all industrial sectors and affects people’s daily lives. Despite this, Latin America still faces challenges in investing in digital infrastructure to ensure universal coverage and access to high-speed broadband. Digital transformation has also enabled the generation of new business models and has been fundamental in defining new growth and social and economic development paradigms. Increasing digital accessibility is due to network infrastructure deployment, the widespread use of smartphones, and access to information, social networks, and audiovisual entertainment.

2.1 Digital inequality in emerging economies

Emerging economies often experience digital divides due to several factors: lack of technological infrastructure, digital skills shortages, lack of technological investment, corruption, conflicts, and poverty. These factors can negatively affect access to and adoption of digital technologies, resulting in a digital divide between developed and emerging countries. According to the World Economic Forum’s 2021(FEM), [4], less developed countries face a significant digital deficit compared to more advanced countries regarding Internet access and ICT use. The report also notes that the digital divide had widened due to the COVID-19 pandemic even before the problem existed, which was helpful. However, as a result, many emerging countries have experienced disruptions in education, trade, and the economy due to a lack of access to the Internet and digital technologies. For example, a study of the digital divide in Latin America and the Caribbean conducted by the IDB in 2021 found that 32% of the population did not have access to the Internet in the region and that there was a large gap between connectivity in urban and rural areas. In addition, the study found that the need for Internet access limits opportunities for education, employment, and citizen participation in the region [5]. The availability and accessibility of the Internet are closely linked to infrastructure, which has facilitated industrial development driven by technological advancements such as big data, artificial intelligence, and the Internet, transforming economic growth’s speed and method.

The digital economy has emerged as a critical component of modern economies; however, its uneven development across the globe has led to a digital divide that further exacerbates economic disparities. According to Cai et al. [6], digital infrastructure is crucial to the digital economy and trade. Studies show that the diffusion of Internet technology significantly impacts the growth of e-commerce in several European countries. The quality and quantity of telecommunications infrastructure are also essential factors; when lands are affected, it can impact the trade of goods. The role of government and the importance of ICT infrastructure is crucial in the growth of the digital economy in different countries, as Di et al. [7] emphasized, also underscore the significance of innovation capacity and population in economic development. Due to their late embrace of digital technologies, low-income countries have seen rapid dispersion of Internet technology and broadband connectivity. On the other hand, technology spreads slowly in high-income countries because of their more advanced Internet infrastructure.

Digital data is taking on a strategic role as a source of economic, social, and environmental value creation in this ecosystem. The process of consolidating a new interconnected digital system is in full swing, combining models from both worlds to create complex ecosystems in organizational, institutional, and regulatory adaptation, constantly advancing along with technological advancements, and potentially enhancing well-being, productivity, and ecological sustainability in a variety of areas including society, production, and government. It comprises three dimensions: the connected economy, the digital economy, and the digitized economy. The connected economy involves expanding digital infrastructure, massifying access devices, and increasing people’s connection to machines through the Internet of Things.

On the other hand, the digital economy refers to economic production based on business models enabled by digital technologies, which promote the generation and collection of data to offer new value propositions in the supply of goods and services in various economic sectors. In summary, the digital divide in emerging economies is due to multiple factors. Its solution involves investment in technological infrastructure, education, and digital skills, as well as public policies encouraging the adoption of digital technologies and poverty reduction [8].

2.2 Why focus on emerging economies?

Accelerated economic growth and government policies favoring economic liberalization and adopting a free-market system are the hallmarks of a rising economy. In contrast, there has yet to be a consensus on defining an emerging economy, although widespread agreement should identify its member nations for their rapid economic development. Nevertheless, detailed criteria for identifying an emerging economy’s economic growth rate and other economic factors remain to be determined [9].

One of the significant challenges facing the region is the adoption of digital technologies in the production process. Although there are no significant gaps in fundamental indicators, such as Internet access and use of electronic banking by companies, compared with OECD member countries, these differences are more evident in hands, such as Internet use in the supply chain and sales through digital channels.

According to Digital 2023 [10], in January 2023, there were 353.3 million internet users in Latin America, representing a decrease over the previous year. There were also 312.4 million social network users, representing 71% of the region’s population. Regarding de- vice usage, the report shows that smartphones are the most widely used device in the area, with a penetration rate of 68%; according to recent data, laptops take second place in usage. Interestingly, smartwatches and bracelets have experienced a significant increase in usage. Additionally, the majority of users use mobile links to access the Internet. However, there is a substantial difference in connectivity between the urban and rural populations, with 71% and 37%, respectively, having access to connectivity options, according to the report [5]. It is essential to remember that these are only some general indicators and that the situation in each country may vary.

Adopting digital technologies in production poses a significant challenge for the region. While there are no major gaps in fundamental indicators like Internet access and electronic banking usage in companies, there are noticeable differences in areas such as Internet use in the supply chain and sales through digital channels compared to OECD member countries. Smartphones are the most used device in the region, with a 64% penetration rate, followed by laptops at 34%. There has also been a 39% increase in the use of intelligent devices like smartwatches and bracelets. The report also reveals that mobile devices are the most popular means of accessing the Internet, with 66% of users doing so through their mobile devices. However, there is a significant disparity in connectivity between urban and rural populations, with 71% and 37%, respectively, having access to connectivity options, according to a report titled “Bridging the digital divide in Latin America and the Caribbean” by IICA, the IDB, and Microsoft in 2021. It is important to note that these indicators are general and that individual countries’ situations may vary.

2.3 Accelerating development: Unlocking the potential of emerging economies

The advent of digitalization can enhance people’s well-being by improving their quality of life, income, and working conditions. This shift has opened access to information and digital goods, which can minimize travel times, reduce costs, and promote social inclusion. Furthermore, it can create job opportunities, encourage entrepreneurship, and enable individuals to maintain a healthy work-life balance. Entertainment and social networking can also contribute positively to one’s well-being. Moreover, the digitized economy provides the opportunity to consume intelligent and personalized products that cater to individual preferences, encourage sustainable consumption practices, and reward environmentally friendly choices based on data related to the product’s environmental footprint.

Current economic and social conditions, including the fourth industrial era driven by the digital revolution, climate change, the pandemic, and geopolitical tensions, have led to the implementation of renewed and ambitious, productive development policies. These policies are essential to improve competitiveness, increase participation in technological activities and improve the quality of employment and wages. However, these policies must consider the need for environmental sustainability and social cohesion rather than replicating traditional industrial development strategies. Effective development policies in the digital era must address data flows and consider cybersecurity and international data governance. In addition, it is essential to foster the creation of integrated and focused digital ecosystems in strategic sectors, especially those that are innovation-intensive and export-oriented, that play a crucial role in supply chains and creating value networks while contributing to employment, productivity, and sustainability. The establishment of such digital ecosystems requires the backing of technological endeavors.

3. Low-income consumers

The category of low-income consumers is vast. It defines the members of the socioeconomic group with limited incomes [11]. Most of the population in emerging economies consists of this group. Despite the magnitude of this group, there has yet to be a consensus regarding who constitutes low-income consumers. Moreover, the definition of low-income consumers is frequently contingent on the official definition of poverty, which varies by country and political criterion. In addition to these differences, low-income refers to those with insufficient financial resources to meet their basic requirements and limited access to essential public services [12].

Consumers in these emerging markets have significantly less money to spend on goods and services than consumers in developed countries [13, 14]. Further, these emerging markets are characterized by corruption, illiteracy, inflation, poor infrastructure, and red tape [15, 16]. These phenomena, unfortunately, worsened during the pandemic.

Accordingly, Correa et al. [11]state that low-income consumers are vulnerable and highly susceptible to adverse conditions. This vulnerability results from demographic, economic, psychological, and social factors [17, 18]. Consumers at the bottom of the pyramid tend to have fewer payment methods, and a smaller fraction of them own a bank account relative to high-income consumers. Therefore, low-income consumers are constrained by spending and the type and variety of payment methods available [19].

However, according to [20], despite the limited purchasing power of the Bottom of Pyramid (BoP), this group’s overall spending has a significant impact on the global economy, with an estimated 5 billion USD in purchasing power parity [21]. Given this impact, the BoP market represents a tremendous business opportunity in developing nations since it has been underserved for many years, even though this market segment contains many consumers who aspire to spend in the same product categories as higher-income consumers [22].

Furthermore, Blocker et al. [23] state that, similar to affluent market contexts, education, age, and gender affect product adoption in disadvantaged environments [24]. Even within a limited income range, income can affect consumption experiences for new products. Some shoppers can explore, while others focus on survival [25]. Malnourishment and other biophysical factors can dramatically affect vulnerability [26]. Illiteracy and numeracy also have drawbacks [27]. In particular, the inability to digest package information, deconstruct persuasive messages, or tally up cash at the register can reduce consumption [28]. Impoverished living increases cognitive load and buffer [23], reducing contextual sensitivity and impairing decision-making [29, 30, 31].

These five aspects frame low-income customers’ consumption and openness to new products. These deficits show how low-income customers are constantly stressed and anxious in the marketplace [23, 28, 32], suggesting that businesses should focus on building trust and relationships with low-income consumers, providing them with value-added services, and using social media and mobile technology to reach them [23].

According to Roy et al. [33], understanding the purchase behavior of low-income consumers is crucial for developing effective marketing strategies to increase sales and profits. The study finds that low-income consumers prioritize price, quality, and convenience when purchasing. Therefore, businesses should focus on building trust and relationships with low-income consumers, providing value-added services, and using social media and mobile technology to reach them. The study also highlights the importance of understanding low-income consumers’ cultural and social context and tailoring marketing strategies accordingly.

Moreover, Pels and Sheth [34] conclude that serving low-income consumers in emerging markets requires a different approach to business models than serving high-income consumers. The paper proposes a conceptual framework, a 2x2 matrix, to help businesses understand the needs and preferences of low-income consumers and design appropriate business models. The report also highlights the importance of understanding the social context dynamics and marketing environment approaches that moderate or counter some of the limits of poverty, making adopting new products possible. In addition, the paper emphasizes the need for innovation and strategic responses to enter low-income markets successfully. Finally, the report provides guidelines for future exploration of the business-to-business research domain and highlights the importance of global branding management in a rapidly changing environment.

Building on the market orientation literature, [22] identify a distinct firm capability, i.e., their base of the pyramid orientation (BOPO), that allows firms to create and capture opportunities in emerging markets. Moreover, they argue that BOPO enables firms to serve consumers’ needs better and mitigate the risks and costs associated with emerging markets, consequently enhancing firm performance. All in all, this literature suggests that firms operating in emerging markets are more likely to succeed when they understand the consumers’ needs and the challenges associated with these markets and take appropriate actions to address them.

However, despite BOP’s theorized and observed importance in improving firms’ success [22, 35], we need a more comprehensive understanding of how BOP affects firm outcomes. Moreover, research has yet to adequately address the assumed tensions between the firms’ strategies to meet consumer needs in emerging markets and their environmental implications. Indeed, Arnold and Williams [36] state that firms may inadvertently harm themselves by degrading the natural environment in their desire to serve consumers in emerging markets.

Furthermore, more recent trends in literature have focused on new models to address the needs of low-income consumers. Tesfaye and Fougere [37] conclude that frugal innovation, which focuses on co-creation with the informal economy to create low-cost, quality goods and services for the poor, has been hijacked and co-opted in a hegemonic project that leverages powerful ambiguous signifiers, with co-creation acting as an empty signifier. The paper argues that frugal innovation has been transformed into a tool for corporate interests rather than empowering low-income people. The authors call for a critical examination of frugal innovation and its co-option power and for a reclamation of the concept for its original purpose of creating more inclusive markets and contributing to socio-economic development.

Finally, Blocker et al. [23] studied consumer self-confidence among low-income consumers. The study finds that self-confidence affects consumers’ information search and share intention and significantly affects product expertise. The paper also highlights the importance of self-awareness and self-efficacy in acceptance of disability, better health, and an active lifestyle. Additionally, the article discusses the moderating role of self-confidence and risk acceptance on the relationship between perceived risk and intention to use Internet banking, concluding that research must look beyond the effects of low income on price sensitivity to provide sustainable business models and educational strategies for emerging markets.

In conclusion, the current literature presents the challenges and opportunities of serving low-income consumers in emerging markets. The definition of low-income consumers varies by country and political criterion. However, it generally refers to those with limited financial resources to meet their basic requirements and limited access to essential public services. Consumers in emerging markets have significantly less money to spend on goods and services than consumers in developed countries and are vulnerable and highly susceptible to adverse conditions. However, despite the limited purchasing power of the Bottom of Pyramid (BOP), this group’s overall spending significantly impacts the global economy. Therefore, inclusive businesses targeting low-income consumers face the challenge of designing business models that provide genuinely beneficial products and services at affordable prices.

Finally, the evidence suggests that firms operating in emerging markets are more likely to succeed when they understand the consumers’ needs and the challenges associated with these markets and take appropriate actions to address them, highlighting the importance of consumer self-confidence in product acceptance among low-income consumers, which affects the information search and share intention of consumers, and significantly affects product expertise.

4. Technology adoption

The emergence of novel technologies promotes the development of human social civilization [38]. Therefore, the impact of technological transformation has been prominent and multi-dimensional. From a business perspective, the opportunities for innovation are endless in developing products and services adapting to customers’ needs, given that technology can optimize any point in the value chain in any industry. Changes in the offerings, more market-like forms of production and distribution, delivery service, payment methods, and communication channels are just some possible transformations [39, 40]. From the customer’s perspective, technology can also contribute at any stage of their purchasing decision process, offering the possibility of having everything in an accessible, fast, and adaptable manner to any segment profile. Based on this background, the benefits in terms of productivity, efficiency, competitiveness, and growth for private and public organizations globally by technological evolution are unquestionable [41].

However, as pointed out, the scenario is quite different in emerging markets, especially for these countries’ most vulnerable sectors. Moreover, new technologies have demonstrated that more than they are needed to generate well-being in the lives of individuals and organizations because many innovations are not widely available and used as expected. This suggests that, despite digital innovations being a global phenomenon, their impact must still be globally equitable. The reasons for explaining these inequalities in terms of development are diverse; however, from the end-user outlook, adoption has become a hot issue in understanding how to promote a symmetrical impact [38]. Technology adoption refers to the stage in which technology is selected for use by individuals and organizations [42]. The study of this process has a long-standing research tradition. Still, it was not until the introduction of Rogers’ Diffusion of Innovations Theory (DOI) that it gained widespread use and recognition in the academic field [43].

According to Rogers, diffusion can be defined as the process by which an innovation is communicated through various channels over time among individuals in a social system. Invention, on the other hand, refers to an idea, practice, or object perceived as new by an individual or other unit of adoption. Rogers developed DOI based on five elements - innovation, communication channels, time, and social system - that can be identified in all research on diffusion, and a process of Innovation Decision divided into several stages, which individuals or organizations must overcome to achieve the final degree of adoption of an innovation [44].

Since its introduction, this model has been embraced by various fields and disciplines to understand how individuals and organizations adopt innovations. Due to its prominence and versatility, the application of this model in understanding technological innovations has been extensive, leading to the emergence of specific models and theories that attempt to address the technology use and acceptance process.

4.1 Models of technology adoption

The Technology Acceptance Model (TAM) by [45] was the first theoretical approach for understanding technology acceptance, focusing on predicting user disposition and use of new technology. TAM is an adaptation of the Theory of Reasoned Action (TRA), which is part of the assumption that a person’s reaction and perception of something will determine that person’s attitude and behavior. TAM was grounded in the proposition that the acceptance and use of technology can be explained by an individual’s internal cognitive constructs, including beliefs, attitudes, and intentions.

Five primary constructs form the basis of the Technology Acceptance Model: (a) Perceived Usefulness (PU), (b) Perceived Ease of Use (PEOU), (c) Attitude (Att), (d) Behavioral Intention to Use (BI), and (e) Actual Usage (AU) (see Figure 2). PU refers to a user’s perception of the subjective probability that the use of technology will help improve their performance when using an information system. Alternatively, PEOU refers to the individual’s appreciation that mastering a particular technology involves the least possible effort.

Figure 2.

Technology acceptance model [45].

Following TAM, PEOU, and PU are beliefs that directly and indirectly affect attitude or disposition, while PU also directly affects PEOU. Yoon [46] proposed a direct causal relationship between Attitudes, Perceived Usefulness, and Intention, where Intention is the primary determinant of behavior. Many researchers’ empirical studies have replicated and tested the model under different conditions for TAM’s extended variables as general measures by explicitly including IT acceptance variables, such as extrinsic and intrinsic motivators.

A significant number of researches have confirmed that perceived usefulness (PU) and perceived ease of use (PEOU) may be influenced by user-related external variables, such as user experience [47], customer satisfaction [48], motivation [49], self-efficacy [50], and demographic factors [51]. Similarly, technology-related variables, such as system quality [52], interface design [53], and compatibility [54], among other factors, may also influence the prediction of behavioral intention. Venkatesh and Davis [55] subsequently introduced a revised version of the Technology Acceptance Model (TAM), known as TAM2, which omitted the construct of attitude towards use and incorporated additional variables such as experience and subjective norm in which recognizes the role of social influence and intrinsic variables in the process. However, the fundamental principles of the model remained intact. TAM2 was tested using longitudinal data collected regarding four different systems at four organizations considering voluntary usage and involving mandatory usage. The findings of this model extension have generated significant practical implications. Mandatory, compliance-based strategies for introducing new systems demonstrate diminishing effectiveness over time compared to harnessing social influence to facilitate positive shifts in perceived usefulness. Therefore, exploring feasible alternatives to usage mandates that capitalize on social information is recommended. For instance, they are developing and evaluating methods that enhance the credibility of social data to encourage internalization or the creation of communication campaigns that elevate the perceived prestige linked to system utilization to foster identification.

Over a decade, the proliferation of research on TAM and TAM2 has led to confusion among researchers, as they often found themselves compelled to pick and choose features from a wide array of competing models. In response to this confusion and to integrate the literature on technology acceptance, [56] developed a unified model that proposes an alternative approach to user and innovation acceptance: The Unified Theory of Acceptance and Use of Technology (UTAUT) [57].

UTAUT consists of four core constructs: (a) performance expectancy (PE), (b) effort expectancy (EE), (c) social influence (SI), and (d) facilitating conditions (FC), applied to determine behavioral intention (BI), which in turn, predicts usage behavior (UB) [58]. PE refers to the level consumers perceive technology to provide benefits in performing specific activities. EE is defined as the degree of ease associated with consumers’ utilization of technology. SI (Social Influence) represents the extent to which consumers perceive those influential individuals (e.g., family and friends) to believe they should adopt a particular technology. Finally, FC refers to “consumers’ perceptions of the resources and support available to perform a behavior.

The UTAUT proposes that these fundamental constructs (PE, EE, SI, and FC) directly influence behavioral intention and behavior. Furthermore, these constructs are moderated by gender, age, experience, and voluntariness of use [56, 58]. In 2012 [58] proposed and tested UTAUT-2, new constructs, specifically Hedonic motivation (HM), Price Value (PV), and Habit (HB). HM refers to the positive emotion of individual immediate satisfaction, PV refers to the return on investment that the consumer is aware of, and Habit refers to “the degree to which the consumer automatically performs actions with technology (see Figure 3).

Figure 3.

A unified extended theory of acceptance and use of technology (UTAUT2) [56].

Since their inception, UTAUT and UTAT-2 have emerged as widely utilized theoretical frameworks in technology adoption and diffusion research. However, despite its prominence, the scientific literature on this concept also reveals disparities in study contexts and samples.

In a literature review conducted by [57], 10 years after the initial development of the UTAUT model, an examination of UTAUT research conducted from 2004 to June 2011 was performed. This review was based on a search in ISI Web of Knowledge and Google Scholar, yielding 174 usable research papers. The analysis revealed that the model had been applied to address various purposes and in diverse contexts, incorporating additional constructs. However, despite the model’s popularity, the analysis indicated that the scientific production surrounding the model was concentrated in the United States (25%) and Asia (26%) for primary data collection. Approximately 47% of the research was dispersed among developed economies, predominantly in Europe. Additionally, the study found that only around 20% of the studies were conducted in emerging economies. Regarding the systems used in UTAUT studies, the review established 52%.

Lastly, the review revealed that performance expectancy and social influence emerged as the strongest predictors of behavioral intention in the literature examined. A subsequent study by [59] also confirmed the predictive power of PE and SI and the central role of individuals’ attitudes or dispositions. However, although the contribution of these constructs may vary according to the context, user profile, or platform under study, the evidence generally supports their contribution to the acceptance of a new system. Regarding the weight of the variables, a post-review study established that UTAUT explains approximately 70% of the variation in behavioral intention, surpassing previous models [60]. The result is that essential variables in adopting a new system are the expectation of potential users to benefit from the technology and the influence of those surrounding the user who urges its adoption.

4.2 Adoption of new technologies in emerging economies?

The extensive use of DOI, TAM, and UTAUT models in the literature on technology adoption is widely accepted [61]. In addition, these investigations have allowed us to ascertain that cultural variability can influence individual behavior, explaining the gaps in technology usage and acceptance across different cultures [62, 63].

However, one factor contributing to deepening this disparity is the asymmetry of scientific contribution in emerging economies, as most research, except India, has been conducted in developed or developing economies. A clear example of this is the meta-analysis conducted by [64] on the drivers of digital transformation adoption, which revealed that out of 88 evaluated articles representing a total of 34,485 samples studied in 33 countries, 51% of the samples came from India (22%), United States (13%), Germany (8%), and China (8%). The remaining samples were distributed across 29 countries, predominantly in Europe. The reduced participation of specific research from emerging economies is a common factor in studies reviewing the topic.

This situation is even more acute in the case of Latin America and the Caribbean (LAC), despite representing 64% of the Americas and 9% of the world population [2]. Only some studies have dealt with these contexts. Considering that over 60 million people could benefit from fostering digital adoption initiatives in this region [65], several authors who have found evidence supporting cultural differences have emphasized the importance of focusing on understanding this area [20, 63, 66]. Additionally, not only is the regional evidence for Latin America and the Caribbean scarce, but also studies focusing on the most representative sector in emerging economies, low-income consumers. Although the figures may vary by nation, approximately 32% of the population lives in poverty or extreme poverty, while 39% has medium income levels [67].

On the other hand, the proliferation of digital transformation in diverse industries and sectors has resulted in a growing body of research on technological adoption. However, instead of emphasizing the profile of potential users, these studies predominantly concentrate on platform usage to generalize model findings. This trend is evident in research endeavors that assess various areas such as digital payment [68, 69], mobile apps [70, 71]; e-commerce [72, 73], free and open-source software [74], on-demand service platforms [75, 76], artificial intelligence [77, 78], social media [79, 80] virtual reality [81, 82], Business Intelligence and Analytics [83], among others.

Despite the diversity of sectors in which a wide range of technologies can intervene to contribute to the development of emerging economies, health and education constitute key pillars due to their direct impact on a country’s economic growth. Research in these sectors was significantly boosted by the COVID-19 crisis enabling substantial progress in utilizing technology-mediated services in various formats and platforms.

Given the high occurrence of chronic diseases in Latin America and the Caribbean, implementing telemedicine and technology-based educational pro- grams for health prevention could have significant positive impacts. The latest data from the Global Burden of Disease study (2019) reveals that conditions such as diabetes, hypertension, obesity, respiratory diseases, and mental health disorders, which account for eight out of 10 premature deaths worldwide, are more prevalent in low- and middle-income countries, including those in Latin America [84, 85].

The evidence in the case of the healthcare sector in emerging economies in Latin America indicates that, although mobile telemedicine options have significantly expanded, allowing these services to reach rural areas and vulnerable populations, they remain a privilege adopted by a minority group of people. In Latin America, mainly due to vast distances, telemedical consultations could improve access to healthcare for populations residing in remote areas far from major medical centers. The Pan American Health Organization/World Health Organization (PAHO/WHO) supports with over 900 virtual rooms remote communication through its Virtual Collaboration program, which provides training on various virtual communication methods and collaborates with those in need of utilizing these tools to disseminate health knowledge where it is most needed. The increasing digitization and availability of telemedicine services in countries like Chile and Argentina present a significant opportunity for Latin America and the Caribbean to export these services across borders, including to neighboring countries. However, there are several challenges that the region must address to seize this opportunity. To deepen the knowledge of these barriers, the Integration and Trade Sector of the Inter-American Development Bank [86] has led a study on International Telemedicine in Latin America, which explores the motivations, uses, results, strategies, and policies that lead to a diagnosis of the sector in the region. This report includes an extensive literature review, an online survey with 1443 healthcare professionals from 19 countries, and in-depth interviews with 29 telemedicine experts.

The report’s findings demonstrate a positive correlation between the utilization of international telemedicine and the productivity and efficiency of healthcare professionals. For instance, statistical analysis corroborates that 49% of survey participants reported enhancing their professional skills linked directly to cross-border telemedicine services. Moreover, international telemedicine is associated with improved outcomes for national health systems. Statistical analysis confirms that 43% of respondents connect it to a reduction in social health inequalities, 42% perceive an enhancement in the provision of national health services, and 40% recognize improvements in their countries’ overall health status. Nevertheless, the survey reveals that despite these benefits, only 17% of healthcare professionals utilize international telemedicine systems. However, a slightly higher proportion (20%) intend to start using them.

Additionally, there are slight variations in these percentages across different countries in the region. Nevertheless, the potential in terms of volume and impact is enormous. It is projected that by the year 2025, the estimated value of the telemedicine market in Latin America will grow 120%, increasing its value from US$ 1570 million in 2020 to US$ 3480 million in 5 years [87]. As more services and products shift towards digital platforms, telemedicine has emerged as a continuously growing trend, closely linked to the increasing internet penetration rates. However, the fundamental challenge lies in the adoption and acceptance of these services by the healthcare system for their delivery and by users for their utilization.

The education landscape bears many similarities to the healthcare sector in emerging economies. LAC has approximately 193 million children and adolescents of school age, encompassing early childhood, primary, and lower secondary education. However, 14 million are not enrolled, and 15.6 million attend school while facing failures and signs of inequality, manifesting in two or more years of lag in grade-age alignment or educational delay [88]. Children in Latin America and the Caribbean experienced some of the most prolonged and consistent school closures due to COVID-19 worldwide. On average, since the pandemic’s beginning, students in the region have lost, either partially or entirely, two-thirds of in-person school days, resulting in an estimated loss of 1.5 years of learning [89]. The pandemic and economic needs have excluded over 3 million school-aged children from education in the past 3 years [90]. Exclusively considering primary and secondary education, according to data from the World Bank and the United Nations Children’s Fund (UNICEF), 15 million children and adolescents are out of school, equivalent to a country’s population in a country like Ecuador.

In addition to the conditions of poverty that impede access to education, it is estimated that there are 8 million children with disabilities, of which approximately 30% do not attend school due to a lack of physical and technological infrastructure that can accommodate them. This situation exposes them to a high risk of complete dropout from the education system [88]. The primary factors driving online learning are enhancing access to education, training, and the quality of learning, reducing costs, and improving education’s cost-effectiveness [91]. Implementing e-learning tools could play a pivotal role in closing these gaps by promoting inclusion and expanding the reach of the education system, particularly for those residing in rural areas. However, beyond the technical requirements, the adoption of e-learning by children and members of the education system remains the next barrier to overcome in harnessing the power of online education. As illustrated, substantial improvements in the education system could be achieved with the widespread availability of Internet access.

Regarding previous research in a literature review on the acceptance of online learning conducted by [92] and an analysis of 14 research studies published between 2005 and 2021 that utilized integration of the TAM model allowed for the conclusion that Course Information, Perceived Usefulness, Attitude, System Quality, User Satisfaction, Perceived Ease of Use, and Academic Performance are the crucial drivers for the acceptance and continued usage of online learning systems. However, the study highlights limitations in the included research, particularly the generalizability of the results, as the studies were conducted on samples from specific countries, none of which encompassed the more vulnerable sectors of Latin America or the Caribbean.

The review emphasizes limitations and suggestions derived from the examined research, highlighting the need for future studies to be conducted in diverse contexts and with varied populations. Additionally, it underscores the importance of undertaking longitudinal studies that account for individual factors to comprehensively understand how this process unfolds. Such research endeavors will provide a broader perspective and shed light on the dynamic nature of technology adoption and its implications. By exploring different contexts and incorporating longitudinal approaches, researchers can delve deeper into the complexities of technology acceptance and uncover valuable insights that contribute to advancing knowledge in this field. Furthermore, a limitation of this review is that it needs to specify how the reported findings may vary according to the level of education. Considering that individual factors influence adoption, it is reasonable to expect differences across various educational levels. Exploring these variations can provide valuable insights into the nuances of technology adoption and its relationship with educational attainment. Future research should consider incorporating analyses examining individual factors’ differential impact on adoption within different educational contexts. Addressing this aspect, a more comprehensive understanding of technology adoption’s complexities concerning academic levels can be achieved.

The analysis of over 100 articles on eLearning Acceptance and Adoption Challenges in Higher Education, retrieved from significant databases between 2012 and 2022, reveals similar findings. The predominant use of TAM and ITAU models, integrated with other variables and models, highlights the impact of perceived usefulness and perceived efficacy on adopting new technologies. However, more literature must specifically address vulnerable sectors in emerging economies [1]. The authors suggest undertaking studies aimed at identifying potential resolutions to these challenges.

5. Digital challenges in emerging economies: How to benefit the low-income consumers?

Thus far, scientific literature aligns with the theoretical frameworks employed to study technological adoption. Although the impact of these model variables may vary depending on the study context, user profiles, and platform under investigation, there is ample evidence to infer the relevance of the factors influencing the acceptance and usage of new technologies. However, the disparities in the digital transformation’s impact between emerging and developed economies prompt crucial reflections on the future research agenda to generate a more significant effect on the most disadvantaged sectors within emerging economies.

Bringing well-being to the poorest sectors of Latin America and the Caribbean through technology is not a solitary endeavor; it requires the collaborative efforts of both the public and private sectors. The success of such initiatives largely depends on building an ecosystem that provides the necessary infrastructure and accessible services to meet the needs of this population. Work collaboratively to establish complementary commitments and investments for the most precarious sectors, such as health and education, especially to promote inclusive digital learning, prioritizing marginalized groups.

Universities and their researchers play a crucial role in achieving the synergies necessary to take technology adoption to another level in underserved populations. Historically, they have fostered dialog between the government and the private sector. The new digital economy has shown that geographical borders are no longer an obstacle, and the main benefit of new technologies lies in generating cross-border solutions. In this regard, Latin America has an advantage since Spanish is the predominant language in almost all countries, unlike Europe and other regions. However, the disadvantages in health and education and the limitations in human, economic, and technical resources are a shared challenge in the area.

It is imperative that academic research, as highlighted by existing literature reviews, transitions towards a more collaborative model that focuses on cross-cultural, longitudinal investigations, mainly targeting groups whose findings can translate into significant social impact. By adopting this approach, researchers can better understand the complexities and dynamics of technological adoption in diverse contexts, identify patterns and trends over time, and uncover insights that contribute to developing effective strategies for promoting and maximizing the social benefits of technology adoption in emerging economies.

Moreover, future research opportunities and implications must transcend the limitations section of publications and serve as a foundation for practical actions that contribute to the region’s progress. This requires aligning the research agenda on technological adoption with regional strategic plans for digital development, aiming to generate knowledge with practical implications. Significantly, emphasizing the synergy and collaboration between academia and strategic plans also enhances the sustainability of research by facilitating re-source mobilization for universities. By forging these connections, universities can secure the necessary funding and support to sustain their research endeavors, ultimately fostering long-term progress and positive societal impact in technological use in the low-income sector.

Finally, based on the recommendations of [1, 3, 5, 88, 90, 93] the following proposals are put forth to contribute to a more digital and inclusive region. These proposals draw from the collective knowledge and expertise of these organizations and scholarly sources, aiming to address the challenges and opportunities in technological adoption in Low- income consumers within emerging economies. In addition, these proposals aim to foster a comprehensive approach encompassing policy frameworks, infrastructure development, capacity-building initiatives, and inclusive digital literacy programs by synthesizing insights from diverse stakeholders. Through these concerted efforts, the vision of a digitally empowered and inclusive region can be realized, fostering sustainable development and equitable access to the benefits of technology for all.

6. Conclusions

This chapter has highlighted several key aspects of promoting technological adoption in emerging economies. First, by fostering collaborative mechanisms and strengthening existing alliances, it is crucial to facilitate the development of public policies, research, and implementation of digitalization projects across countries. Second, establishing governance structures that integrate various stakeholders and stages of the digital strategy development journey is essential. Third, delegating responsibilities to exist entities or creating new instances that coordinate the required processes and actions for regional digitalization in different sectors is necessary.

Moreover, establishing a clear framework for the training, management, and compensation of healthcare and education professionals is vital. Finally, standardizing practices for those responsible for bridging the gap in medical care and educational services in underserved sectors is crucial, ensuring a consistent approach and guidelines.

Coordinated regulation, registration, and monitoring of education and health- care services across different countries are also crucial. This requires establishing legal clarity and compatible rules across borders. Additionally, facilitating the international standardization of professional licenses can overcome licensing barriers when professionals and beneficiaries are in different countries. Finally, creating a global registry that enables a recognition of healthcare and education professionals from a specific country at a regional level can be a solution.

Furthermore, incentive measures to ensure security and privacy when dealing with international patient and student data are imperative. Countries should reach agreements to regulate privacy administration, confidentiality, and data protection. These actions are crucial for promoting the interoperability of information technology systems among nations, enabling data sharing and exchange of essential knowledge required for international healthcare and education services.

The involvement of academic communities in these initiatives is essential to increase knowledge and enhance the adoption and satisfaction with technology-mediated healthcare and education services. In addition, engaging the private sector through fiscal policies and financing mechanisms that incentivize investment in healthcare and education is vital for advancing proposals in these areas. Emerging economies can realize the full potential of technological adoption and generate positive social impact by embracing these recommendations and working collaboratively. However, doing so requires a comprehensive strategy integrating research efforts, policy agendas, and practical implications, resulting in a digitally empowered and more inclusive region.

Acknowledgments

The authors are deeply thankful for the collaborative efforts and support received from both the Finance and Marketing Laboratory at Universidad de los Andes School of Management and the colleagues involved, as their contributions have played a vital role in the successful completion of this book chapter.

Conflict of interest

The authors declare no conflict of interest.

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