Accelerat ing t he world's research.

The impact of e-readiness in the

development of knowledge society; a
case study of Albania
Ermelinda Tolica
Review of Applied Socio Economic Research

Cite this paper Downloaded from Academia.edu 

Get the citation in MLA, APA, or Chicago styles

Related papers Download a PDF Pack of t he best relat ed papers 

 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 116
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

The impact of e-readiness in the development of knowledge society; a

case study of Albania

Dafina Nazaj1+, Klodiana Gorica 2++ 2and Ermelinda Kordha 3

1, 2
University of Tirana Department of Marketing, Albania
3+++
University of Vlora “Ismail Qemali” , Albania

Abstract. Information Society emphasizes amount of information available and accessible.

It emphasizes technology (ICT). Knowledge Societies are identified as societies where information is used
and applied in various fields for learning and development.
Knowledge society deals with technology which now offers many more possibilities for sharing, archiving,
retrieving, combining and generating new knowledge. In a society where information and knowledge are of
vital importance for the purpose of development, the role of ICT is growing. So, ICTs play the role of an
enabler of development.
All these developments have incited various world institutions in pursuing and examining the development of
information and communications technology (ICT) in different world economies, and evaluated and ranked
their relative digital progress. The last attempt is to gauge the extent to which ICT and selected ICT-enabled
services are being used, given that it is the use of technology which ultimately contributes to the overall
economic progress of a country. The notion of preparation lent itself to the term “e-readiness”.
The aim of this paper is to study the e-readiness in Albania and to show how the situation has affected in
different aspects of Information and knowledge society. Different secondary data from international sources
and reports are used to make time comparisons for measuring the progress in our country.
E-readiness has generally been defined as the extent of readiness in accessing network infrastructures and
technologies. It can also be seen as the degree to which a society is prepared to participate in the digital
economy with the underlying concept that digital economy can help to build a better society. Regardless of
a country’s level of development, e-readiness is assessed by determining the relative standing of its society
and its economy in the areas that are most critical for its participation to the networked world.
If we see the economic situation in Albania, we can understand the need to embrace the development of ICT
is very important and it is clearly stated in the strategy constructed by the Albanian government. It could also
help with lower employment levels in the country and generally low performance in some sectors of the
economy, which can make good conditions not only for building but also for implementing the ICT strategy.

Keywords: e-readiness, Knowledge Society, ICT, strategy.

JEL Codes: O21, O32, M15

1 
PhD student, University of Tirana, corresponding author, e-mail address: dafinanazaj@yahoo.it
2 ++
Associate professor, Department of Marketing
3+++ Associate professor, Department of Business Administration, e-mail address: e_tolica@yahoo.com , ermes.k@gmail.com .
 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 117
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

1. Introduction
Information Society emphasizes the amount of information available and accessible.
It emphasizes technology (ICT). Knowledge Societies are identified as societies where information is used
and applied in various fields for learning and development.
Knowledge society deals with technology which now offers many more possibilities for sharing,
archiving, retrieving, combining and generating new knowledge. In a society where information and
knowledge are of vital importance for the purpose of development, the role of ICT is growing. So, ICTs play
the role of an enabler of development in several respects, cross-sector productivity and economic growth,
specific social development goals and political participation and good governance, taking the society in the
phase of Information society.
All these developments have incited various world institutions in pursuing and examining the
development of information and communications technology (ICT) in different world economies, and
evaluated and ranked their relative digital progress. They have measured not only the availability and
adoption of ICT (or “connectivity”) in different countries, but also the development of the social, cultural
and economic building blocks necessary for its effective use.
The notion of preparation lent itself to the term “e-readiness”, a concept which is explained in the
literature review. There is a gap in studies about e-readiness inside the country, but data collection at the
international level will show us about the development and level of e-readiness in Albania.

2. Methodology
Methodology of this study relies on secondary data about Network Readiness Index, which is an index
accepted internationally, about the e-readiness of a country, including the readiness of business, of
individuals and the level of usage, as well as the access aspect of technology and networks. The study brings
some new insight due to the comparison of the data according to two extremes: most developed country and
similar group of countries at the international level.

Literature review
The pace of change and technological evolution has accelerated greatly over the last decades, with
unequivocally positive transformations for societies, companies, and individuals. It is remarkable not only
how dramatically the technologies in everyday use have changed, but also how easily society as a whole has
adopted these innovations. ICT has provided the foundation for the huge leaps that we have witnessed in the
last few decades. Its impact can be grouped into at least three distinct categories: economic, business, and
social. The three are interrelated, in the sense that what happens in each is both cause and consequence of
what happens in the others.

3. E-readiness and the impact in the knowledge economy

Every month, over 40m. individuals become mobile-phone users, for example, and the phones
themselves are increasingly powerful data devices. The Internet—now a ubiquitous platform for commerce,
entertainment and communication—has generated a thriving industry. Global monthly Internet traffic in
2010 is two-thirds higher than one year ago, according to Cisco, a network equipment provider. The capacity
 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 118
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

of the world’s international optical fiber cables—which carry all this traffic—doubles every 18 months,
based on estimates by Telegraphy, a telecommunications research firm. This demand is being driven by
increasingly sophisticated usage of Internet-enabled services: video accounts for more than 50% of global
Internet traffic today, and the data generated by Facebook, a social networking site, is estimated to surpass
that of all the world’s e-mails [1].
E-readiness has generally been defined as the extent of readiness in accessing network
infrastructures and technologies. It can also be seen as the degree to which a society is prepared to
participate in the digital economy with the underlying concept that the digital economy can help to
build a better society. Regardless of a country’s level of development, e-readiness is assessed by
determining the relative standing of its society and its economy in the areas that are most critical for its
participation to the networked world. So, the term e-readiness is used here to denote the degree to which a
given society, social group or organization is aware of, has adjusted to and is prepared to use the new
information and communication technologies. It is important to assess it in terms of defining and
implementing the national development strategy. The aim is to develop awareness of the challenges and
comparative advantages and deficits and to encourage development of the capacity to tackle them and to
exploit the new possibilities.
E-Readiness is about readiness in human capacities, political leadership, institutional frameworks,
supportive policies, complimentary regulations, business environment, investment opportunities, and public-
private partnerships in technologies. A review of recent experiences in the developing world shows that the
countries which are the most successful in creating a favorable climate for the use of ICT, are those that
make it a priority. Their determination to participate in the digital world is reflected by rapidly focused
actions supported by superior planning and sustained by dynamic public-private partnerships. All these
factors play their own corresponding roles in all countries, even in different ways. The underlying concepts
on the above issues are the mutually complimentary issues of e-economy and e-society.
The use of Information Technology, has impacted not only the use and spread of information in the
society, but also the development of stages of the society as Information society and knowledge society. In
fact the information society is one of the components of the knowledge society – not surprisingly, since
information is one of the components of knowledge, sometimes defined as organized information, sometimes
as the ability to utilize information effectively [4] . Information Society has been defined as “a society that
makes extensive use of information networks and information technology, produces large quantities of
information and communication goods and services, and has diversified content industry” [6]. It is widely
recognized that the mere creation of an Information Society as defined above is not sufficient to address
human development issues on a global scale. Acquisition and dissemination of knowledge is a fundamental
requisite for human progress and is essential to empower the underprivileged sections of our society [8].
A knowledge society should be able to integrate all its members and to promote new forms of solidarity
involving both present and future generations. Nobody should be excluded from knowledge societies, where
knowledge is a public good, available to each and every individual [9]. ICT have made it possible that
information and knowledge have affected all layers of society.
The Knowledge Index or KI is an economic indicator prepared by the World Bank Institute to measure a
country’s ability to generate, adopt and diffuse knowledge. Methodologically, the KI is the simple average of
the normalized performance scores of a country or region on the key variables in three Knowledge Economy
pillars - education and human resources, the innovation system and information and communication
technology (ICT).
 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 119
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

The 4 pillars of the Knowledge Society framework are:

 An economic and institutional regime to provide incentives for the efficient use of existing and
new knowledge and the flourishing of entrepreneurship;

 An educated and skilled population to create, share, and use knowledge well;

 An efficient innovation system of firms, research centers, universities, consultants and other
organizations to tap into the growing stock of global knowledge, assimilate and adapt it to local
needs, and create new technology;

 Information and communications technology to facilitate the effective creation, dissemination,

and processing of information.

As shown in the section below, these pillars also intercept with the measurement of e-readiness, in the
process of building the right policies for an information and knowledge society.

4. E-readiness assessment
The basic infrastructure as well as the related services are object of the first assessments of the e-
readiness in different countries. Another reason is that receiving information requires information producers
(e.g. data services and consulting), information disseminators, physical infrastructures to convey
information, equipment (e.g. PCs and monitors) to display it, literacy of recipients to read/understand it and
ultimate application of the information to productive activities [7].
E-readiness assessments can therefore be seen to serve as a useful starting point for developing countries.
Conducting e-readiness assessments within countries is extremely worthwhile as the process can facilitate
and fuel concrete planning, and can therefore foster positive changes for the country [1]. The assessments
provide a firm base upon which to build a planning process, which in itself is an integral step in making
sound policy and investment decisions [3].
This e-readiness model is comprehensive in that, although infrastructure and connectivity are at the start
of the e-readiness process, it clearly gives an equal importance to other factors, not linked to technology.
There are different approaches to e- readiness assessment. Whichever approach the country adopts, it
shall be implemented systematically and used consistently in time. That is the only way it can produce useful
results.

5. E-readiness measurement
Another trend in the new economy and Information Society is Hyper-connectivity. Integration and
internetworking is another important driver of the new digital economy [2].Over the past decade, the world
has become increasingly “hyper-connected.” We live in an environment where the Internet and its associated
services are accessible and immediate, where people and businesses can communicate with each other
instantly, and where machines are equally interconnected with each other. The exponential growth of mobile
devices, big data, and social media are all drivers of this process of hyper-connectivity. Consequently, we are
beginning to see fundamental transformations in society. Hyper-connectivity is redefining relationships
 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 120
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

between individuals, consumers and enterprises, and citizens and the state. It is introducing new
opportunities to increase productivity and well-being by redefining the way business is done, generating new
products and services, and improving the way public services are delivered. However, hyper-connectivity
can also bring about new challenges and risks in terms of security, cybercrime, privacy, the flow of personal
data, individual rights, and access to information.
Traditional organizations and industry infrastructures are also facing challenges as industries converge.
This will inevitably have consequences for policy and regulation because regulators will have to mediate the
blurring lines between sectors and industries, and will be obligated to oversee more facets of each interaction
in a pervasive way. For example, in terms of security and surveillance, hyper-connectivity is transforming
the way people, objects, and even animals are being monitored. Experts also predict it will have an impact on
inventory, transport and fleet management, wireless payments, navigation tools, and so on. The impact of
ICT on different facets of life and work is growing. In this context, the way we monitor, measure, and
benchmark the deployment and impacts of ICT must evolve to take into account the rapid changes and
consequences of living in a hyper-connected world.

6. E-readiness, the Albanian case

If we see the economic situation in Albania, we can understand that the need to embrace the
development of ICT is very important and it is clearly stated in the strategy constructed by the Albanian
government. Also, it could help about lower employment levels in the country and generally low
performance in some sectors of the economy, which can make good conditions not only for building but also
for implementing the ICT strategy.
The vision for this strategy is:
The progress of Albania towards a knowledge based society through a sustainable development that
would lead to a society where all citizens benefit from the communications and information technologies
with the aim of increasing the level of knowledge, effectiveness and transparency in the public
administration.
As we can see, the vision of Albanian strategy is based upon the principles of building an information
society, because the human factor is an important asset. ICT is underpinning technology for all reforms
proposed by Albanian government.
In a situation when most of the world has achieved “e-readiness” to some extent, Albania is also trying to
do its best in this regard, compared with other SEE countries. But let us learn how some of these
measurements mentioned before apply in Albania to reflect ICT development.
The overall assessment is not very encouraging but it is hard to measure the exact level of e-readiness in
Albania, especially changes and trends in the last few years, so the country has to refer to existing external
assessments that have provided clear picture, only in the late years. The economist Intelligence Unit has
published annual e-readiness rankings of the world’s largest economies since 2000. It carries out its own
assessment of e-readiness that serves as a useful tool for those developing countries included in the rankings
that do not have their models for e-readiness assessments, offering them data at no cost. Most recently, the
rankings of 2012 include the values for 142 countries. The methodology of this system is continuously
updated so as to keep on with the constantly changing nature of digital environment, ensuring that the
rankings continually remain relevant in today’s world [5].
 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 121
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

As a result of these changes, the last assessments of the EIU 2012, describe a comprehensive review
process of the Network Readiness Index (NRI) framework that has been undertaken guided by a process of
high-level consultations with academic experts, policymakers, and representatives of the ICT industry [5].
The results of this new framework are serving for our measurement and analyses.
Figure 1 below shows the measurement of NRI for Albania in 2011, 2012 according to EIU, detailed in
the subindexes that show the different aspects of the readiness to be part of a networked world. The figures
show improvements in rankings in all subindexes, but the most improved is the readiness subindex, in
ranking and in values. The difference between the figures in the two years is also the change in the NRI sub
indexes, where in 2012 the Impact subindex is added as an important aspect of the measurement for the
economies of the world.

2011 2012
NRI Rank Score Rank Score
Environment sub index 95 3.5 82 3.7
Readiness sub index 89 4 65 4.78
Usage subindex 79 3.2 62 3.66
Impact subindex 0 0 72 3.4
NRI 87 3.56 68 3.89
Table 1 NRIin Albania according to sub-indexes 2011-2012
Source: Global Information Technology Report [10]

4,5
4
3,5 2007
3 2008
2,5
2009
2
2010
1,5
2011
1
0,5 2012

0
1

Fig. 1 The growth of NRI in Albania

On the other hand, Table 2 shows the figures for 2012, where there is a reorganization of the subindexes
and the elements taken into consideration in each of them. The highest values of all the subindexes are those
of skills, or individual readiness, while the lowest values that contribute to NRI score are business, usage,
economic impact and political and regulatory environment.
 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 122
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

Market Political and

environm regulatory Infrastructure Individual Business Government Individual Business Government
Networked readiness Index ent environment environment readiness readiness readiness usage usage usage
Country/Economy Rank Score Score Score Score Score Score Score Score Score Score
Albania 87 3.56 3.9 3.8 2.8 4.8 3.2 4.1 3.5 2.8 3.2

Sweden 1 5.6 5.4 6.2 6.1 5.4 5.7 5.3 6.4 4.9 4.9
Upper middle
income — 3.7 4 3.9 3.4 4.8 3.9 3.9 3.5 3 3.4
Europe & Central
Asia — 3.6 3.8 3.6 3.4 4.9 3.6 3.7 3.5 2.8 3.2

Fig. 2: The readiness of Albania for knowledge society, comparison with different country gorups

7. Conclusions and future research

E-readiness is one of the main concepts accompanying the new stages of society development in the ICT
era. New technologies have impacted the lives of people, governments, businesses and whole countries. But
the new stages of society developments, information society and knowledge society, have different
characteristics in developed and developing countries. In the latter ones, the measurements of progress of e-
readiness becomes more important because the impact on the planning process for benefiting from
knowledge society development.
The readiness of Albanian Society is most related with the people skills needed to use ICTs. Individuals
are in fact not only using ICTs but also benefitting from their use in their personal, social and work
environment. On the other hand, the political and regulatory environment has not done the maximum efforts
for regulations especially in some of the aspects of ICT sector related with property rights, research and
development etc.
Future research will focus more on the conditions of developing countries in general for developing the
information and knowledge society. Comparisons between developing countries may lead in identifying the
differences that impact in the level of ICT development and e-readiness of the countries, as preconditions for
development of knowledge society.

8. References
[1] Bridges, E-ready for what? E-readiness in developing countries. Current status and Prospects Toward the
Millennium Development Goals, 2005.

[2] Bui, T.X., Sankaran, S. and Sebastian, I.M. ‘A framework for measuring national e-readiness’, Int. J. Electronic
Business, 2003 , 1 (1) pp.3-22.
[3] CID (2006) Readiness for the networked world – a guide for developing countries, http://www.readinessguide.com
[4] EF 2003, European Foundation for the Improvement of Living and Working Conditions, Handbook of knowledge
society foresight.
[5] EIU 2005, E-readiness rankings, a White paper from the Economist Intelligence Unit,
http://a330.g.akamai.net/7/330/2540/20050415244011/graphics.eiu.com/files/ad_pdfs/2005Ereadiness_rRAnking_
WP.pdf.
[6] Jeskanen-Sundstr m, H. , ICT Statistics at the new Millennium – Developing Official Statistics – Measuring the
Diffusion of ICT and its Impact. IAOS Satellite Meeting on Statistics for the Information Society 2001: Tokyo,
2001.
 ISSN: 2247-6172;
ISSN-L: 2247-6172
Review of Applied Socio- Economic Research
(Volume 8, Issue 2/2014), pp. 123
URL: http://www.reaser.eu
e-mail: editors@reaser.eu

[7] Lichtenberg, F., The output contributions of computer equipment and personnel: A firm-level analysis. Economics
of Innovation and New Technology, 1995, 3 (4), pp 201-217.
[8] UNESCO Institute for Statistics 2003, Measuring and monitoring the information and knowledge societies: A
statistical challenge, UNESCO Publications for the World Summit on the Information Society.
[9] UNESCO 2005, Towards knowledge societies, UNESCO WORLD REPORT 2005.
[10] WEF 2013, Global Information Technology Report, World Economic Forum.