Promoting ICT adoption in rural entrepreneurship: more neighbourhood effect or more institutional incentives?-Empirical evidence from China

Although digital village projects have been vigorously promoted in China in recent years, the application rate of information and communication technology (ICT) is still low, while the ways in which governmental technology promotion turns into endogenous initiatives and the impact of informal institutions remains unclear. This study found that the neighbourhood effect, rather than institutional incentives, is decisive for ICT adoption. Perceived well-being benefit was found to be an indispensable internal driver for ICT adoption, whereas government incentives varied across industries, producing a variety of impacts. The findings of this study provide practical insights into the effective promotion of ICT adoption, suggesting that government and community forces should be integrated, and that both cognitive and affective psychological drivers should be considered.