Interplay between Digital Connectivity and Smart Services in PEST Environment: Developing a Conceptual Framework

Abstract

Background: Smart services have the potential to accelerate economic growth through enhanced citizen engagement and innovation. However, their adoption in developing economies is constrained by uneven digital connectivity and broader macro-environmental challenges. Objective: This study examines how Political, Economic, Social, and Technological (PEST) factors influence digital connectivity and smart service performance in emerging markets. Methods: A structured qualitative review of peer-reviewed literature and international policy documents was conducted. PEST and SWOT (Strengths, Weaknesses, Opportunities, Threats) analyses were systematically employed to identify and categorize key determinants, supporting the development of testable hypotheses. Results: The analysis indicates that non-technological determinants, including affordability, governance quality, digital skills, investment capacity, cybersecurity, and device accessibility, play a more influential role than technological infrastructure alone in enabling inclusive smart service outcomes. A conceptual framework and three testable hypotheses are proposed to explain the relationships among PEST factors, digital connectivity, and smart service performance. Conclusion: The findings provide a strong foundation for future quantitative validation and offer practical insights for policymakers and service providers seeking to strengthen digital connectivity and smart service ecosystems.