DIGITAL CAPITAL, SOCIAL INEQUALITY, AND TECHNOLOGICAL EXCLUSION IN RURAL COMMUNITIES OF PAKISTAN

Abstract

Digital transformation has become a key driver of socioeconomic development; however, unequal access to digital technologies and digital competencies continues to reinforce social disparities, particularly in rural communities of developing countries. This study examined the relationships among digital capital, social inequality, and technological exclusion in rural communities of Pakistan. Guided by Digital Capital Theory, the study investigated how digital capital influences technological exclusion directly and indirectly through social inequality. A quantitative, cross-sectional research design was employed, and data were collected from rural residents using a structured questionnaire. The collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the measurement and structural models. The findings revealed that digital capital had a significant negative effect on both social inequality and technological exclusion, while social inequality significantly increased technological exclusion. Furthermore, social inequality partially mediated the relationship between digital capital and technological exclusion, indicating that greater access to digital resources and stronger digital competencies reduce technological exclusion by improving socioeconomic opportunities. The study contributes to the literature by providing an integrated framework linking digital capital with social inequality and technological exclusion in the context of rural Pakistan. The findings offer important theoretical, practical, and policy implications for promoting digital inclusion through investments in broadband infrastructure, affordable internet access, digital literacy, and inclusive digital governance. Strengthening digital capital is essential for narrowing the rural digital divide and supporting sustainable socioeconomic development in Pakistan.