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Information technology can play a strategic role at micro as well as at macro — organizational and national‐levels. Developed countries have extensively benefitted from this technology at both levels. Can developing countries duplicate this experience with the technology and thereby foster healthy economic environment within their boundaries and strengthen their abilities to compete in the global markets? This paper addresses this issue. The paper evaluates the prevalent applications of information technology in developing countries, deliberates the potential of the technology, and presents a framework for realizing this potential. The framework proposes strategies to assure smooth and accelerated diffusion of technology in organizations. Importantly, the framework points out the factors, unique to developing countries, that must be addressed in technology planning and implementation. Ignoring these factors may result in failed systems and continued technological disadvantage.

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