Bridging Contextual Conditions and the Digital Divide

Despite a growing body of research on digital transformations much of the literature remains fragmented and provides limited insight into how contextual conditions shape digital transformation processes. Integrating studies on contextual conditions with research on digital transformation, this paper develops an organizing framework that delineates the dual and differential effects of digital technologies specifically, digital dividends and digital deficits. This further illuminates the environmental conditions under which contextual factors facilitate or impede digital transformation efforts. By conceptualizing contextual conditions (i.e., WEIRD versus non-WEIRD contexts) alongside the dynamics of digital development (i.e., digital inclusion versus digital exclusion), we identify several interconnected and transformative research themes: the urban–rural digital divide, the affordability gap, the gender digital divide, digital globalization, and the decline of legacy industries. Collectively, these themes inform a research agenda designed to bridge theory and practice. The paper concludes by discussing practical implications and outlining directions for future research.