Factors contributing to IT industry success in developing countries: the case of Thailand

A stream of research exists that explores a country's information technology (IT) industry success. The theoretical model used in these studies is primarily focused on small developed countries. We contend that the factors that contribute to IT industry success in developing countries are likely to differ somewhat from those that play a role in small developed countries. Research to date on IT industry success has neglected developing countries. This study therefore presents an alternative IT industry success model for developing countries. It adapts Ein-dor, Myers, and Raman's (1997) model in developing such a conceptual model. The adapted framework is then applied in a study of IT industry in a developing country - Thailand. We found IT-related foreign direct investment to be vital to IT industry success in Thailand. Unlike findings from earlier studies on small developed countries, geographical location and to a lesser extent government investment promotion policies are also important to IT industry success in a developing country. These findings support the view that there are differences in the factors that affect IT industry success in developed and developing countries. Implications for research and practice are discussed. © 2005 Wiley Periodicals, Inc