Handbook of Research on E-Government Readiness for Information and Service Exchange:
Utilizing Progressive Information Communication Technologies Hakikur Rahman Institute of Computer Management & Science, Bangladesh
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Advances in Electronic Government Research Series ISBN: Pending
Editor-in-Chief: Mehdi Khosrow-Pour, D.B.A. E-Government Research: Policy and Management
Donald Norris; University of Maryland Baltimore County, USA
IGI Publishing • copyright 2007 • 300+ pp • H/C (ISBN: 978-1-59904-913-7) • US $99.95 (our price)
Virtual technology is increasingly prevalent in all spheres of daily life, including infiltration into governmental policies, processes, infrastructures, and frameworks. EGovernment Research: Policy and Management provides scholars and practitioners with a critical mass of research on the integration, management, implications, and application of e-government. Covering such issues as e-government adoption and diffusion; social and performance issues of e-government; and information security, privacy, and policy, this book is an essential resource to any library collection.
Current Issues and Trends in E-Government Research Donald Norris; University of Maryland Baltimore County
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As emerging trends and research threads surface in the area of e-government, academicians, practitioners, and students face the challenge of keeping up-to-date with new and innovative practices. Current Issues and Trends in E-Government Research provides a complete synopsis of the latest technologies in information policy, security, privacy, and access, as well as the best practices in e-government applications and measurement. Current Issues and Trends in E-Government Research presents the most current issues in e-government hardware and software technology, adoption and diffusion, planning and management, and philosophy.
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Editorial Advisory Board Derya Altunbas, Canakkale Onsekiz Mart University, Turkey Angela-Jo Medina, ConcienciAcción org, USA Martin A. Schell, New York University, USA Dean Steer, University of Tasmania, Australia Ken Stevens, Memorial University of Newfoundland, Canada Kam Hou VAT, University of Macau, Macau
List of Reviewers Jae Young Lee, The London School of Economics and Political Science, UK Martin Schell, IEAB Member of EGRISE, USA Penelope Markellou, University of Patras, Greece Lech Zacher, Kozminski University, Poland Stefan Richter, Institute for Software Systems in Business, Environment, and Administration, Germany Jo-An Christiansen, Athabasca University, Canada M. Moni, NIC, India Alex Molodtsov, Greece Ernani Marques, University of São Paulo, Brazil Johanna Awotwi, AQ Solutions Ghana LTD, Ghana Lalitsen Sharma, Lecturer Jammu University, India Aadya Shukla, Oxford University Computing Laboratory, UK Bernhard Seliger, Hanns Seidel Foundation Essen Area, Germany Peter Demediuk, Victoria University, Australia Helena Pereira da Silva, Universidade de Aveiro, Portugal Lidia Oliveira, Universidade Federal da Bahia, Brazil Mindy Lassila, Indian and Northern Affairs, Canada Sam Lanfranco, York University, Canada Jaro Berce, University of Ljubljana, Slovenia Jorge Marx Gómez, Universität Oldenburg, Germany Peter Cissek, Universität Oldenburg, Germany Carl von Ossietzky, University Oldenburg, Germany Vasiliki Moumtzi, ALTEC S.A., Greece Adamantios Koumpis, ALTEC S.A., Greece Geraldine Ryan, University College Cork, Ireland Bernadette Power, University College Cork, Ireland
Majed Ayyad, NextLevel Technology Systems Jerusalem St, Al-Bireh, Palestine Driss Kettani, Alakhawayn University in Ifrane, Morocco Rima Charbaji, American University of Beirut, Lebanon Karim Rebeiz, American University of Beirut, Lebanon Yusuf Sidani, American University of Beirut, Lebanon Somesh.K.Mathur, RIS, Ministry of External Affairs, Government of India, India Kam Hou VAT, University of Macau, Macau Mahesh Raisinghani, Texas Womens University, USA Abdul Raufu Ambali, University Technology MARA (UiTM), Malaysia
List of Contributors
Ambali, Abdul Raufu / University Technology MARA (UiTM), Malaysia ....................................... 465 Ayyad, Majed / Nextlevel Technology Systems, Palestine ................................................................. 189 Berce, Jaro / University of Ljubljana, Slovenia ................................................................................. 335 Charbaji, Rima / American University of Beirut, Lebanon .............................................................. 354 Christiansen, Jo-An / Athabasca University, Canada ...................................................................... 271 Cissek, Peter / University of Magdeburg, Germany .......................................................................... 155 da Silva, Helena Pereira / Federal University of Bahia, Brazil ......................................................... 21 da Silva, Lídia de Jesus Oliveira Loureiro / University of Aveiro, Portugal .................................... 21 Demediuk, Peter / Victoria University, Australia .............................................................................. 258 El Mahdi, Asmae / Al Akhawayn University, Morocco ..................................................................... 435 Gomez, Jorge Marx / University of Oldenburg, Germany ............................................................... 155 Hou Vat, Kam / University of Macau, Macau ..................................................................................... 48 Kettani, Driss / Al Akhawayn University, Morocco ........................................................................... 435 Koumpis, Adamantios / ALTEC S. A. Thessaloniki, Greece............................................................. 395 Kovačić, Zlatko J. / The Open Polytechnic of New Zealand, New Zealand ....................................... 87 Kuhn, Norbert / Institute for Software Systems in Business, Environment, and Administration, Germany ......................................................................................................... 169 Lanfranco, Sam / York University, Canada....................................................................................... 335 Lassila, Mindy Anneli / Indian and Northern Affairs Canada, Canada ........................................... 137 Lee, Jae Yong / The London School of Economics and Political Science, UK...................................... 1 Markellos, Konstantinos / University of Patras, Greece.................................................................. 239 Markellou, Penelope / University of Patras, Greece ........................................................................ 239 Marques, Elon / University of Dallas, USA ...................................................................................... 324 Mathur, Somesh K. / IIT Kanpur, India ............................................................................................ 105 Moulin, Bernard / Laval University, Canada ................................................................................... 435 Moumtzi, Vasiliki / ALTEC S. A. Thessaloniki, Greece .................................................................... 395 Naumann, Stefan / Institute for Software Systems in Business, Environment, and Administration, Germany ........................................................................................................ 169 Power, Bernadette / University College Cork, Ireland ..................................................................... 409 Rahman, Hakikur / Institute of Computer Management & Science, Bangladesh .................... 209, 295 Raisinghani, Mahesh / Texas Women’s University, USA ................................................................... 324 Rebeiz, Karim / American University of Beirut, Lebanon ................................................................ 354
Richter, Stefan / Institute for Software Systems in Business, Environment, and Administration, Germany ........................................................................................................ 169 Ryan, Geraldine / University College Cork, Ireland......................................................................... 409 Schmidt, Michael / Institute for Software Systems in Business, Environment, and Administration, Germany ......................................................................................................... 169 Seliger, Bernhard / University Witten/Herdecke, Germany .............................................................. 381 Sidani, Yusuf / American University of Beirut, Lebanon................................................................... 354 Solli, Rolf / Goteborg University, Sweden .......................................................................................... 258 Stergianeli, Eirini / University of Patras, Greece ............................................................................. 239 Yang, Jiaqin / Georgia College & State University, USA.................................................................. 480 Zacher, Lech W. / Kozminski University, Poland ................................................................................ 70 Zampou, Eleni / University of Patras, Greece .................................................................................. 239
Table of Contents
Foreword ............................................................................................................................................ xix Preface ................................................................................................................................................. xx Acknowledgment .............................................................................................................................. xxx
Section 1 Research and Learning Chapter 1 The Development of E-Government Capabilities: Framework for Government ................................... 1 Jae Yong Lee, The London School of Economics and Political Science, UK Chapter 2 Digital Inclusion and Electronic Government: Looking for Convergence in the Decade 1997-2008 ................................................................................................................................ 21 Helena Pereira da Silva, Federal University of Bahia, Brazil Lídia de Jesus Oliveira Loureiro da Silva, University of Aveiro, Portugal Chapter 3 The E-Governance Concerns in Information System Design for Effective E-Government Performance Improvement.................................................................................................................... 48 Kam Hou Vat, University of Macau, Macau Chapter 4 Sociocultural Context of E-Government Readiness: Selected Problems ............................................. 70 Lech W. Zacher, Kozminski University, Poland Chapter 5 National Culture and E-Government Readiness ................................................................................... 87 Zlatko J. Kovačić, The Open Polytechnic of New Zealand, New Zealand Chapter 6 Financial Analysis of the ICT Industry: A Regulatory Perspective .................................................... 105 Somesh K. Mathur, IIT Kanpur, India
Section 2 Tools and Techniques Chapter 7 The Promise and Potential of Streaming Media Technology ............................................................. 137 Mindy Anneli Lassila, Indian and Northern Affairs Canada, Canada Chapter 8 Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems ........... 155 Peter Cissek, University of Magdeburg, Germany Jorge Marx Gomez, University of Oldenburg, Germany Chapter 9 Enhancing Accessibility to E-Government Processes ........................................................................ 169 Stefan Richter, Institute for Software Systems in Business, Environment, and Administration, Germany Norbert Kuhn, Institute for Software Systems in Business, Environment, and Administration, Germany Stefan Naumann, Institute for Software Systems in Business, Environment, and Administration, Germany Michael Schmidt, Institute for Software Systems in Business, Environment, and Administration, Germany Chapter 10 Patterns for Designing E-Government Programs ............................................................................... 189 Majed Ayyad, Nextlevel Technology Systems, Palestine Chapter 11 Collaborative Learning: An Effective Tool to Empower Communities.............................................. 209 Hakikur Rahman, Institute of Computer Management & Science, Bangladesh
Section 3 Applications and Services Chapter 12 Knowledge Management for E-Government Applications and Services ........................................... 239 Penelope Markellou, University of Patras, Greece Konstantinos Markellos, University of Patras, Greece Eirini Stergianeli, University of Patras, Greece Eleni Zampou, University of Patras, Greece
Chapter 13 E-Participation: Informing and Transforming Local Government Decision Making ......................... 258 Peter Demediuk, Victoria University, Australia Rolf Solli, Goteborg University, Sweden Chapter 14 E-Democracy ...................................................................................................................................... 271 Jo-An Christiansen, Athabasca University, Canada Chapter 15 Local E-Government Management: A Wider Window of E-Governance .......................................... 295 Hakikur Rahman, Institute of Computer Management & Science, Bangladesh Chapter 16 E-Business Perspectives through Social Networks............................................................................. 324 Mahesh Raisinghani, Texas Women’s University, USA Elon Marques, University of Dallas, USA
Section 4 Case Studies Chapter 17 eGovernance: ICT and the Essential Roles of Knowledge Management and Learning Organization Behavior for Good Governance .................................................................................... 335 Jaro Berce, University of Ljubljana, Slovenia Sam Lanfranco, York University, Canada Chapter 18 Antecedents and Consequences of the Risk Taking Behavior of Mobile Commerce Adoption in Lebanon .......................................................................................................................................... 354 Rima Charbaji, American University of Beirut, Lebanon Karim Rebeiz, American University of Beirut, Lebanon Yusuf Sidani, American University of Beirut, Lebanon Chapter 19 E-Government in a Federal State: The Case of the Introduction of E-Government in Germany in the Early 2000s ............................................................................................................................... 381 Bernhard Seliger, University Witten/Herdecke, Germany
Chapter 20 The Challenge of Bringing User and Development Communities Together ...................................... 395 Adamantios Koumpis, ALTEC S. A. Thessaloniki, Greece Vasiliki Moumtzi, ALTEC S. A. Thessaloniki, Greece Chapter 21 Does the Technological Sophistication of a Firm Influence an Owner-Mangers Choice of Exit Mode............................................................................................................................................ 409 Geraldine Ryan, University College Cork, Ireland Bernadette Power, University College Cork, Ireland Chapter 22 Toward a Roadmap to E-Government for a Better Governance ......................................................... 435 Driss Kettani, Al Akhawayn University, Morocco Bernard Moulin, Laval University, Canada Asmae El Mahdi, Al Akhawayn University, Morocco Chapter 23 Determinants of E-Government Satisfaction: The Case Study of E-Procurement ............................. 465 Abdul Raufu Ambali, University Technology MARA (UiTM), Malaysia Chapter 24 Promoting Local Tourism through Local Government Web Site: An E-Government Application ........................................................................................................... 480 Jiaqin Yang, Georgia College & State University, USA
Compilation of References ............................................................................................................... 495 About the Contributors .................................................................................................................... 539 Index ................................................................................................................................................... 549
Detailed Table of Contents
Foreword ............................................................................................................................................ xix Preface ................................................................................................................................................. xx Acknowledgment .............................................................................................................................. xxx
Section 1 Research and Learning Chapter 1 The Development of E-Government Capabilities: Framework for Government ................................... 1 Jae Yong Lee, The London School of Economics and Political Science, UK Chapter 1 presents an e-government capabilities framework and attempts to develop an intellectual framework for practitioners and researchers to follow within the area of organizational abilities or personnel management in an e-government era. Chapter 2 Digital Inclusion and Electronic Government: Looking for Convergence in the Decade 1997-2008 ................................................................................................................................ 21 Helena Pereira da Silva, Federal University of Bahia, Brazil Lídia de Jesus Oliveira Loureiro da Silva, University of Aveiro, Portugal This chapter presents the results of two categories of the search that was carried out in the Library and Information Science Abstracts (LISA) database, with the aim of shedding light on the status of the connection between digital inclusion and electronic government. Chapter 3 The E-Governance Concerns in Information System Design for Effective E-Government Performance Improvement.................................................................................................................... 48 Kam Hou Vat, University of Macau, Macau
Chapter 3 investigates a set of governance concerns related to the electronic transformation of public administration for improving performance under the context of reinventing government in the knowledge age, and looks into the transformative impact of an information system effort on the design of a citizen-centric model of public service in the digital operation of e-government. Chapter 4 Sociocultural Context of E-Government Readiness: Selected Problems ............................................. 70 Lech W. Zacher, Kozminski University, Poland Chapter 4 incorporates a research to determine the framework of e-government strategies and practices in the context of sociocultural issues and tries to identify and briefly analyze the challenges for e-government strategies and practices from the point of view of sociocultural context. Chapter 5 National Culture and E-Government Readiness ................................................................................... 87 Zlatko J. Kovačić, The Open Polytechnic of New Zealand, New Zealand This research conducts an analysis of the impact of national culture on e-government readiness and forms and tests research models and hypotheses using correlation and regression analysis to study the impact of national culture and its components in 62 countries. Chapter 6 Financial Analysis of the ICT Industry: A Regulatory Perspective .................................................... 105 Somesh K. Mathur, IIT Kanpur, India Chapter 6 attempts to quantify the technical efficiency of the ICT sector in 45 countries during 2002-03, and in 52 countries during 2006-07 by using data envelopment analysis (DEA) method; and finds that the productivity growth in the ICT sector in developing and newly industrialized countries is slightly higher than the growth in developed and transition countries. The research suggests that developing and newly industrialized countries need to intensify their efforts to be compatible with their industrialized competitors.
Section 2 Tools and Techniques Chapter 7 The Promise and Potential of Streaming Media Technology ............................................................. 137 Mindy Anneli Lassila, Indian and Northern Affairs Canada, Canada Chapter 7 describes and discusses the advantages and limitations of streaming media technology, a form of new ICT tool, and the comparative benefits it has in both developing and developed countries for promoting effective e-governance.
Chapter 8 Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems ........... 155 Peter Cissek, University of Magdeburg, Germany Jorge Marx Gomez, University of Oldenburg, Germany Chapter 8 intends to reveal the benefit of predated notifications of personal actions for human resource planning (HR-planning) and discusses the interrelated demands on entrepreneurship resources planning systems. This chapter emphasizes the importance of efficient HR-planning for governments in order to improve their business processes, as one of important goals of e-government readiness. Chapter 9 Enhancing Accessibility to E-Government Processes ........................................................................ 169 Stefan Richter, Institute for Software Systems in Business, Environment, and Administration, Germany Norbert Kuhn, Institute for Software Systems in Business, Environment, and Administration, Germany Stefan Naumann, Institute for Software Systems in Business, Environment, and Administration, Germany Michael Schmidt, Institute for Software Systems in Business, Environment, and Administration, Germany Chapter 9 is built on the observation that governmental processes are mostly based on the exchange of forms between government authorities and citizens. However, for each scenario there exist different tools to improve accessibility for people with certain disabilities. This chapter focuses on approaches that provide access to governmental processes for people with visual impairments, elderly people, illiterates, or immigrants. Chapter 10 Patterns for Designing E-Government Programs ............................................................................... 189 Majed Ayyad, Nextlevel Technology Systems, Palestine In Chapter 10, the design process of e-government is analyzed in order to find possible patterns into recurring problems. If patterns exist and matches for one context, then nations resolving the same problem have the opportunity to use the encapsulated knowledge and employ the others’ best practices, and thus save resources and time. Chapter 11 Collaborative Learning: An Effective Tool to Empower Communities.............................................. 209 Hakikur Rahman, Institute of Computer Management & Science, Bangladesh Despite challenges in designing and implementing collaborative learning techniques and technologies, Chapter 11 emphasizes introducing collaborative learning at a community level and improving the knowledge capacity for the empowerment of community participants. This chapter, further, investigates the relationship of collaborative learning towards improved e-governance at the grass roots.
Section 3 Applications and Services Chapter 12 Knowledge Management for E-Government Applications and Services ........................................... 239 Penelope Markellou, University of Patras, Greece Konstantinos Markellos, University of Patras, Greece Eirini Stergianeli, University of Patras, Greece Eleni Zampou, University of Patras, Greece In Chapter 12, authors argue that the usage of knowledge management (KM) would greatly assist e-government applications and services. The basic aim is to point out the necessity of designing and implementing efficient KM e-government applications in order to improve public sector quality. The chapter provides a review of literature and all these foundations upon which it is envisioned and then demonstrates the close relationship between issues of design and implementation. The chapter continues with the presentation of a characteristic KM conceptual model for e-government services. It examines the most interesting applications in the area, and finally demonstrates the barriers, the arising opportunities, and the key challenges regarding e-government and KM. Chapter 13 E-Participation: Informing and Transforming Local Government Decision Making ......................... 258 Peter Demediuk, Victoria University, Australia Rolf Solli, Goteborg University, Sweden Chapter 13 examines the extent to which progressive e-participation practice interacts with local government decision making and contributes to the espoused benefits of citizen participation. The chapter further argues that e-participation can positively contribute to community capabilities, political relevance, better problem identification, and assist in finding more relevant solutions. Chapter 14 E-Democracy ...................................................................................................................................... 271 Jo-An Christiansen, Athabasca University, Canada Chapter 14 presents a review and analysis of e-democracy conceptual models, terminology, methodologies, case studies, outcomes, future issues, and research opportunities. A critical assessment of credible research studies is provided to support a determination as to why and how ICT can be utilized to expand the role of citizens in providing responsive input to government representatives. Chapter 15 Local E-Government Management: A Wider Window of E-Governance .......................................... 295 Hakikur Rahman, Institute of Computer Management & Science, Bangladesh Chapter 15 has tried to draw a line of reference by put forward the importance of local e-government organizational structure, and their supremacies in terms of utilization of ICT. Along this context, the
chapter has attempted to synthesize a few prospective local e-government scenarios, focus on their adaptation of ICT, and put forward recommendations to improve local e-government for better utilization of information services. Chapter 16 E-Business Perspectives through Social Networks............................................................................. 324 Mahesh Raisinghani, Texas Women’s University, USA Elon Marques, University of Dallas, USA Chapter 16 focuses on some of the current research being conducted in the field of social network theory. This chapter covers some aspects of the social network theory and some applications for social networks in terms of e-governance. It also discusses virtual communities, as well as the control over communications tools through social networks.
Section 4 Case Studies Chapter 17 eGovernance: ICT and the Essential Roles of Knowledge Management and Learning Organization Behavior for Good Governance .................................................................................... 335 Jaro Berce, University of Ljubljana, Slovenia Sam Lanfranco, York University, Canada Chapter 17 is a case study on Slovenia, and explores how to formulate an ICT-enabled e-governance action plan, including the necessary components of a knowledge management strategy, and the adoption of a culture of learning organization behavior based on lessons learned from a model designed and tested on data from 140 Slovenian public agencies. Chapter 18 Antecedents and Consequences of the Risk Taking Behavior of Mobile Commerce Adoption in Lebanon .......................................................................................................................................... 354 Rima Charbaji, American University of Beirut, Lebanon Karim Rebeiz, American University of Beirut, Lebanon Yusuf Sidani, American University of Beirut, Lebanon Chapter 18 contains a case study on Lebanon and this study was conducted to explore the attitude of Lebanese people towards adopting m-commerce in Lebanon. The objective of the research is to understand customers’ behavior and motives in choosing to adopt m-commerce in Lebanon. It examines both the consumer risk perceptions and the motives as they are the key elements that will affect customers’ adoption of new technology.
Chapter 19 E-Government in a Federal State: The Case of the Introduction of E-Government in Germany in the Early 2000s ............................................................................................................................... 381 Bernhard Seliger, University Witten/Herdecke, Germany Chapter 19 is a case study on e-government initiatives in Germany, and specifically it presents the e-government initiative of Bavaria, “BayernOnline”. The research also discusses the problems of egovernment in Germany, including providing a suggestion to utilize advancement of e-government as one instrument to act as a solution of economic problems in Germany. Chapter 20 The Challenge of Bringing User and Development Communities Together ...................................... 395 Adamantios Koumpis, ALTEC S. A. Thessaloniki, Greece Vasiliki Moumtzi, ALTEC S. A. Thessaloniki, Greece Chapter 20 relates with an European Union (EU) work that has been carried out in the context of the European Information Society Technology (IST) Project, namely SemanticGov. The project aims at implementing a set of advanced Semantic Web technologies for adoption in the European public sector to advance the level and expand the volume of e-government solutions in EU. Chapter 21 Does the Technological Sophistication of a Firm Influence an Owner-Mangers Choice of Exit Mode............................................................................................................................................ 409 Geraldine Ryan, University College Cork, Ireland Bernadette Power, University College Cork, Ireland Chapter 21 contains a case from Scotland, and this case study examined the technological sophistication of a sample of mature small and medium sized enterprises in Scotland and analyzed whether there is a link between access to information, some other firm-specific factors, or an entrepreneur’s succession choice exists to make them e-ready. Chapter 22 Toward a Roadmap to E-Government for a Better Governance ......................................................... 435 Driss Kettani, Al Akhawayn University, Morocco Bernard Moulin, Laval University, Canada Asmae El Mahdi, Al Akhawayn University, Morocco Chapter 22 presents a case from Morocco, and discusses about the main phases of the methodology and lessons learned during the e-Fez Project of Moroccan city of Fez, which is an e-government project runs in collaboration with the municipality of Fez. The research recommends that this approach may benefit similar projects, especially in developing countries that are willing to create and deploy e-government systems for the benefit of their citizens.
Chapter 23 Determinants of E-Government Satisfaction: The Case Study of E-Procurement ............................. 465 Abdul Raufu Ambali, University Technology MARA (UiTM), Malaysia Chapter 23 is a case from Malaysia that examines some determinants of users’ satisfaction and their relationships with e-procurement services. In order to bridge the gap between theory and practice focusing the e-procurement implementation of Commerce Dot Com Sdn Bhd, which was given by the Malaysian government. The study employs a quantitative survey analysis as its methodological approach. The findings of the research show a significant relationship between service quality, ease of access, knowledge, transparency, and security in e-procurement services as the key factors that determine the satisfactions of the service users. Chapter 24 Promoting Local Tourism through Local Government Web Site: An E-Government Application ........................................................................................................... 480 Jiaqin Yang, Georgia College & State University, USA Chapter 24 incorporates a case from the Unites States and it investigates the current issues and development of the application of e-government techniques in promoting local tourism industry for small and local cities and counties throughout the United States, through a comprehensive website evaluation.
Compilation of References ............................................................................................................... 495 About the Contributors .................................................................................................................... 539 Index ................................................................................................................................................... 549
xix
Foreword
E-government refers to concepts of performing activities related to government matters, varying from government proceedings and national affairs to business entrepreneurships by electronic means. Ereadiness refers to a country’s capability to take advantage of the newly evolved information and communication technologies (ICTs) as an active engine of human development and economic empowerment. E-readiness ranges from preparedness in information infrastructures and human resources development to framework for policy and planning depending on national demand and standing. In this perspective, e-government readiness has turned out to be one of the important elements of a country’s state of being ready to act within the country enabling prospective economic dynamics and at the same time compete regionally and globally. E-government readiness should enclave the benchmarking, preparedness, and promotion of technological and telecommunication infrastructures, human resources management, education, environment, and health, including basic livelihood infrastructures. It is a notable sign that global leaders, international organizations, the United Nations, and national governments have considered e-government readiness as an essential component of human development and countries across the globe are performing professionally towards raising their e-government platforms. Already, many have taken leadership in this aspect and many are reacting positively towards achieving a better goal. A handbook of research on e-government readiness for information and service exchange utilizing the progressive ICTs would stand as a milestone in the arena of ICT for development. This book will not only act as a guideline for the stakeholders, but also act as a pathfinder to select appropriate e-government plan in national and local context. This handbook will be useful to development practitioners, researchers, policy makers, and academics as a valuable knowledge content and potential guidebook in learning, designing, and understanding effective, efficient, transparent, and responsive e-government systems.
Prof. Dr. Lutfor Rahman Khan Vice Chancellor Bangabandhu Sheikh Mujibur Rahman Agricultural University Salna, Gazipur Bangladesh
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Preface
OVERVIEW In general, the term e-government applies to concepts of electronic management, electronic commerce, and electronic operation of government functions. But, in a strict sense, e-government refers to government’s use of information and communication technologies (ICTs) to exchange information and services with citizens, businesses, employees, civil societies, and other arms of government1 (Nia & Hob, 2004; Thompson, Rust & Rhoda, 2005; Sadok & Djemaiel, 2007). E-government may be applied by the elected representatives, judiciary, or government administration, in order to improve not only the internal efficiency, but also the delivery of public services or processes of democratic governance. The primary delivery models may comprise of Government-to-Citizen or Government-to-Customer (G2C), Government-to-Business (G2B), Government-to-Government (G2G), and Government-to-Employees (G2E). However, the most important anticipated benefits of e-government may include improved efficiency, reduced cost, added convenience, and better accessibility of public services2. On the other hand, readiness in terms of e-government is the degree in which a community or country is prepared to participate in the networked world. At the national level, e-readiness refers to a country’s ability to take advantage of the Internet as an effective engine of economic growth and human resource development3. By far e-readiness could be referred to several defined components, such as information infrastructure (telecommunications), human resources (skilled personnel), and legal and policy framework (liberal policies). Usually, it is estimated by assessing its relative advancement in the areas that are most critical for ICT adoption and favorable for important applications of ICTs (UNDP, 2001; Bidgoli, 2004; Pattinson & Low, 2006; Rahman, 2007; Wagner & Klaus, 2008). When considered collectively, e-government readiness relates to the maturity of the information system of a government in terms of physical and logical infrastructures (relates to the available information infrastructure of a country), preparedness of their information dynamics to be compatible with available global indices ranking the country (relates to the governmental efforts to improve the information system), better understanding in the context of strategic planning, ability to take intelligent decision by taking dynamic strategies for ICT development (relates to the eagerness of the policy makers and their knowledge in this aspect), and foremost, empowerment of communities for engaging themselves in societal developments through ICTs (relates to practical applications in the outreach). A good sign in recent years is that with the specter of the increasing digital divide looming at large, world leaders in government, business, and civil society organizations have started harnessing the power of ICT for development. They seek to improve their countries’ and communities’ e-readiness (i.e., the ability of a region to benefit most out of ICT). But, at the national level, especially in South Asian and Sub-Saharan African regions, the majority of countries are not able to cope up with the advancement of technologies, their transformations, and reap the actual benefit of information technology innovations.
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These failures relate to many parameters and constraints that are inherited by their socioeconomic culture, created through ambient surroundings, improper decision making by national policy initiators, lack of awareness and proper attention within the communities, lack of interest by the entrepreneurs in investing in some kind of non-profit ventures, and many visible and invisible parameters. One may see that many national governments have enthusiastically taken numerous steps to improve the situation, but again they failed due to lack of change management, proper justification, balanced fund flow, adequate knowledge on governance issues, proper monitoring and evaluation, and inadequate documentation. To provide some necessary information and knowledge in these aspects, a handbook of research compiling initiations, progress, failures, and success cases around the globe for the last decade of ICT innovation was being thought of and has been put forward here with a few research findings, methodologies, and case studies. It is expected that it will be able to cater to the information need of the stakeholders in this dimension and at the same time would be extremely valuable to the governments, researchers, academics, development partners, and individuals as a guidebook.
OBJECTIVES AND MISSION Nowadays, e-government is not only meant to utilize ICT to enable more efficient, cost-effective, and participatory government, but also to facilitate more convenient government services by allowing greater public access to information, promoting information as rights, and making the government more accountable to citizens (Govt. of Italy, 2004). As Syjuco (2007) stated, these practices, in the longer run, will reinforce other reforms that are helping countries to better compete in the regional and global economy through strengthening of markets and individual choice to promote sustained economic growth and poverty reduction. Furthermore, along the perspectives of e-government readiness, e-readiness is seen as an enabler of globalization. Moreover, one can observe that a country’s digital competitiveness cannot be developed in isolation. Though national e-readiness may allow local industries to foster longer term economic success, the ideal e-readiness condition should be to attain solid ICT infrastructure and comprehensible regulatory structure. Therefore, e-readiness in the longer run should accommodate processes on local specific, country specific, regional specific, and global specific (The Economist, 2005). Hence, e-government readiness has became a function of not only a country’s state of readiness, but also its technological and telecommunication infrastructure and the level of its human resource development, among other factors, and at a minimum should be based on the level of all four mentioned above. Foremost, e-government initiatives, if they remain sophisticated, expensive, and over ambitious, are unlikely to contribute significantly to the national development if they reach only the privileged few (UN, 2005). Keeping all these in the research scenario, the primary objective of the research handbook will be to assist its readers in acquiring knowledge on the significance of e-government for developing efficient and effective government systems in recommending formulation of ICT strategies for their countries’ and at the same time, acknowledge the importance of e-governance for building institutions to achieve transparency and accountability, and democratic governance. The secondary objective of the handbook will be to assist its readers in implementing collaborative policy initiatives among the private, public, and non-profit sectors for eliminating the global digital divide, and this handbook explores the relationship among different variables related to technical, planning, and managerial issues related to the implementation of digital initiatives for effective e-government readiness utilizing progressive information communication technologies.
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The handbook has tried to provide an insight into the context of e-government at local, national, regional, and global levels, and tried to find solutions to deal with various challenges in the implementation processes of e-government, such as adopting and enforcing appropriate laws, regulations, including management and organizational changes of financing infrastructure (in addition to information infrastructure), systems, technical support, and skills development, while ensuring equitable access and affordability.
TARGET AUDIENCE In the era of innovative applications utilizing ICTs, electronic governance goes hand-in-hand in many countries. However, due to various factors, many countries are lagging behind the global ranking. This makes this handbook on e-government readiness a valuable asset not only to individual researchers and practitioners acting in the field of electronic governance and electronic government, but also to the practitioners actively involved with the national governments, especially in LDCs; Non-Governmental Organizations and civil society organizations; donor agencies and development partners; national and international financial institutions; research organizations and academic institutes; and private sector entrepreneurs and philanthropic organizations operating in ICT4D arena.
ORGANIZATION OF THE HANDBOOK This handbook has been divided into four sections: research and learning; tools and techniques; applications and services; and case studies. Research and learning contains six chapters, tools and techniques has five chapters, applications and services has five chapters, and case studies contains eight chapters as eight cases.
Section 1: Research and Learning Chapter 1 aims to explore the capabilities of governments in terms of e-government. The chapter presents a seven core e-government capabilities framework and attempts to develop an intellectual framework for practitioners and researchers to follow within the area of organizational abilities or personnel management in the e-government era. In this aspect, this research contributes to the readers’ formulation of ICT strategies for their countries, which is the first objective of this book. Chapter 2 presents the results of the search carried out in the Library and Information Science Abstracts (LISA) database, with the aim of shedding light on the status of the connection between digital inclusion and electronic government. The search took place at two different times: in August 2006 and in October 2008. Two aspects were the focus of the analysis of the retrieved items: the process of information retrieval and the objective and questions of research. This study shows that “digital inclusion” and “electronic government” is a “kaleidoscopic” topic because it reveals many other facets, according to the evolution of the use and non-use of ICTs, particularly access to and use of information on the Internet. However, one idea seems central and permeates all considerations of this relationship: that the implementation of electronic government and its success go far beyond technology deployment. Therefore, the effectiveness of electronic government depends on many more issues involving the participation of citizens. This participation depends on issues related to the provision of information and care with the architecture of information for government Web sites, in addition to human resource development.
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Chapter 3 investigates a set of governance concerns related to the electronic transformation of public administration for performance improvement under the context of reinventing government in the knowledge age. Particularly, this research is looking into the transformative impact of an information system effort on the design of a citizen-centric model of public service in the digital operation of egovernment. The framework of analysis in this research accommodates the configuration of a government unit’s value profile in public sector as exemplified in many of today’s citizen-centric societies. This framework highlights a public sector reform approach to nurture information systems support for improving public sector management. E-government is not only an innovative idea but, more and more in a growing number of countries, it is becoming a practical activity of high priority. It reflects the emergence and development of information societies. Moreover, it has been observed that sociocultural context is an important framework of e-government strategies and practices. Chapter 4 incorporates a research in this aspect to determine the effects of such efforts. This chapter tries to identify and briefly analyze the challenges for e-government strategies and practices from the point of view of sociocultural context. It is argued that this context should be treated dynamically, as changing and as creating potential for change leading to further advancement of information societies. Diffusion of information and communication technologies is nowadays becoming a global phenomenon. However, in spite of rapid globalization, there are considerable differences between nations in terms of the adoption and usage of new technologies. In recent years, several studies exploring causal factors, including national cultures of information and communication technology adoption have been carried out. The focus of Chapter 5 is slightly different from other studies in this area. Rather than concentrating on the individual information technology, an overall e-government readiness is the focus of this chapter. This research conducted an analysis of the impact national culture has on e-government readiness and its components for 62 countries. The research model and hypotheses were formed and tested using correlation and regression analysis. The findings indicate that worldwide e-government readiness and its components are related to culture. Analysis of financial issues in the ICT sector is an essential element to study the progress of the sector, and especially the analysis should relate to the regulatory perspective of the country, if it would judge the overall e-government scenario of that country. Along this context, Chapter 6 attempts to quantify the technical efficiency of the ICT sector in 45 countries during 2002-03, and in 52 countries during 2006-07 by using data envelopment analysis (DEA) method; and finds that the productivity growth in the ICT sector in developing and newly industrialized countries is slightly higher than the growth in developed and transition countries, suggesting the catching-up of developing and newly industrialized countries.
Section 2: Tools and Techniques Information is a valuable commodity for an information based society, but only if it is shared. Through diversified technologies, the dissemination of information has been made possible for a number of government organizations around the world, but for some, developing efficient and effective e-government systems poses a variety of unique challenges. Key demographic and economic variables, such as income, education, language, human resources, and lack of appropriate products and robust regulatory frameworks for ICTs drive the policy questions surrounding electronic commerce in government operations. Chapter 7 describes and discusses the advantages and limitations of streaming media technology, a form of new ICT tool, and the comparative benefits it has in both developing and developed countries for effective e-governance.
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Chapter 8 intends to reveal the benefit of predated notifications of personal actions for human resource planning and discusses the interrelated demands on entrepreneurship resources planning systems. Human resource planning (HR-planning) is a component of strategic enterprise planning within the governance system. It is fully integrated into the enterprisewide planning process, because HR-planning is not only determined by other planning areas, but it also determines them vice versa. This chapter emphasizes the importance of efficient HR-planning for governments in order to improve their business processes. It can be seen as one of the goals of e-government readiness. In recent years, many governmental institutions have started to provide their customers with access to governmental documents by electronic means. This changes the way of interaction between authorities and citizens considerably. Hence, it is worthwhile to look at both the chances and the risks that this process of change implies for disabled citizens. Due to different laws or legal directives, governmental authorities have a particular responsibility to consider also the needs of handicapped persons. Therefore, they need to apply appropriate techniques for these groups to avoid an “Accessibility Divide”. Chapter 9 is built on the observation that governmental processes are mostly based on the exchange of forms between authorities and citizens. For each scenario, there exist different tools to improve accessibility for people with certain disabilities. This chapter focuses on approaches that provide easier access to governmental processes for people with visual impairments, elderly people, illiterates, or immigrants. In the context of e-government, one believes that patterns are about finding solutions to recurring problems, so that they can be solved based on the local experience and then benchmarked with international solutions. It has been found that one of the common and recurring problems in the context of e-government is the design of e-government programs. Throughout Chapter 10, the design process is analyzed in order to find possible patterns. If patterns exist for one context, then nations resolving the same problem have the opportunity to use the encapsulated knowledge and employ the others’ best practices. By doing this, nations can avoid remarkable cost and act proactively. Learning is considered as one of the potential tools to empower a community in terms of governance. Over the past decades, technology mediated learning has been recognized as an alternate channel replacing/supporting/strengthening the traditional forms of education in various forms, especially with the advent of interactive and collaborative learning. However, the organizational learning at the peripheries and capacity development at the grass roots remain almost unattended, despite recognized national and global efforts under many bottom-up empowerment sequences. Social components at large within the transitional and developing economies remain outside the enclosure of universal access to information and thus, access to knowledge has always been constricted to equitably compete with the global knowledge economy. Despite challenges in designing and implementing collaborative learning techniques and technologies, Chapter 11 emphasizes introducing collaborative learning at a community level and improving the knowledge capacity at the grass roots for their empowerment. This chapter, further, investigates the relationship of collaborative learning towards improved e-governance.
Section 3: Applications and Services The Web is revolutionizing the way citizens and businesses interact with government agencies and related organizations. Nowadays, a wide spectrum of governmental services is available online in order to facilitate end-users and provide them with effective Web-based experiences. In Chapter 12, authors argue that the usage of knowledge management (KM) would greatly assist e-government applications and services. The basic aim is to point out the necessity of designing and implementing efficient KM e-government applications in order to improve public sector quality. The chapter provides a review of literature and all these foundations upon which it is envisioned and then demonstrates the close rela-
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tionship between issues of design and implementation. The chapter continues with the presentation of a characteristic KM conceptual model for e-government services. It examines the most interesting applications in the area, and finally demonstrates the barriers, the key challenges, and the arising opportunities regarding e-government and KM. Citizen participation in government decision making through online and other electronic technologies has been termed as e-participation, and has the potential to facilitate better decisions, better citizens, and better government. Chapter 13 examines the extent to which progressive e-participation practice interacts with local government decision making and contributes to the espoused benefits of citizen participation. The chapter argues that e-participation can positively contribute to community capabilities, political relevance, better problem identification, and assist in finding more relevant solutions. Chapter 14 presents a review and analysis of e-democracy conceptual models, terminology, methodologies, case studies, outcomes, future issues, and research opportunities. A critical assessment of credible research studies is provided to support a determination as to why and how ICT can be utilized to expand the role of citizens in providing responsive input to government representatives. The approach envisions involved deliberation by citizens on issues of concern with subsequent dialogue between citizens, the government, and especially the elected officials. Furthermore, the chapter addresses e-democracy in the context of governments seeking to utilize ICT to support a means of communication with citizens. It has been observed that, despite the popularity, potency and perfection of electronic government, it is yet somehow remain in uncharted territory for many countries in terms of implementing e-governance at the local government level. However, technology possess the potential for improving the way government works, and utilizing the newly evolved technology many countries have been engaged themselves for improving the way their citizens work. Moreover, local and national governments are trying to realize this potential by finding ways to implement novel technology in spearheading its utilization to achieve the best services for their citizens. Chapter 15 has tried to draw a line of reference by putting forward the importance of local e-government organizational structure and their supremacies in terms of utilization of ICT. Along this context, the chapter has attempted to synthesize a few prospective local e-government scenarios, focus on their adaptation of ICT, and put forward recommendations to improve local e-government for better utilization of information services. Chapter 16 is focused on some of the current research being conducted in the field of social network theory. The importance of studying the social network concepts is attached to a better understanding of individuals and how and why people interact with each other, as well as how technology and the Internet can affect this interaction, which in turn affects the governance system of a country. The social network theory field has grown significantly in the last years, and the use of the Internet and advanced computing technology has contributed to new research in this growing area. This chapter covers some aspects of the social network theory and some applications for social networks. It also discusses virtual communities, as well as the control over communications tools through social networks. Finally, the technology side of social networks is presented, as mobile social networks, internet social networking systems, and e-business correlation, social network software, and future trends of social networks.
Section 4: Case Studies Chapter 17 explores how to formulate an ICT-enabled e-governance action plan, including the necessary components of a knowledge management strategy, and the adoption of a culture of learning organization behavior. This strategy is based on lessons learned from a model designed and tested on data from 140 Slovenian public agencies. Slovenia, a small transition economy newly admitted to the European Union (EU), faces both its own demands and the demands of the EU for good governance. Moreover, Slovenia
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offers lessons relevant for both developed and developing countries. This chapter argues that there are three progressively complex stages when integrating ICT into the operations of government. The chapter concludes with the argument that successful e-governance works hand-in-hand with e-democracy, whereas failed e-governance will position e-democracy as a force in opposition to the behavior of government. Chapter 18 contains a case study that was conducted to explore the attitude towards adopting mcommerce in Lebanon. The objective of this research is to understand customers’ behavior and motives in choosing to adopt m-commerce in Lebanon. This research investigates internal and external motives underlying individual behavioral intention to use m-commerce in Lebanon. It examines both the consumer risk perceptions and the motives as they are the key elements that will affect customers’ adoption of new technology. The results of the study suggest that the relationship between different variables need to be investigated further through elaborated studies using a larger sample. However, qualitative findings suggest that the majority of the participants desire to be involved in m-commerce, and there is a lack of awareness, including some financial restrictions. After reluctance in the 1990s, Germany actively began to pursue the modernization of its administration through online government in the early 2000s. The federal initiative “Bund online 2005” with an investment volume of 800 million Euro was one of the largest government online projects worldwide focusing on services for citizens, especially at the federal level. Chapter 19 first gives a short overview of e-government initiatives in Germany. Afterwards, the e-government initiative of Bavaria, “BayernOnline,” is presented. Then, the problems of e-government in Germany are discussed, followed by a discussion of e-government as one instrument to contribute to a solution of economic problems in Germany. Finally, a view ex-post looks at the results of the “Bund online 2005” initiative and how it helped to overcome bureaucratic inertia in Germany. Work reported in Chapter 20 relates with work carried out in the context of the European Information Society Technology (IST) Project SemanticGov. The project aims at implementing a set of advanced Semantic Web technologies for adoption in the European public sector to advance the level and expand the volume of e-government solutions in the European Union (EU). The research elaborates on the need to (re)position the idea of providing an advanced solution for an ideally functioning e-gov island within a sea of non-interoperable e-gov process frameworks, to become parts of open-ended ventures to allow the creation of collaborative networks for electronic governance. In a small firm, access to information is usually linked with strategic awareness, a growth orientated mindset, and improved performance. The advent of communication technologies has significantly changed the amount of information available, how it is being accessed, and the cost of collecting and using this information. However, to exploit this resource, individuals, firms, and governments must be e-ready. In Chapter 21, the authors examine the technological sophistication of a sample of mature small and medium sized enterprises in Scotland and analyzed whether there is a link between this, some other firm-specific factors, and an entrepreneur’s succession choice. The evidence suggests while firms located in urban and suburban areas have better access to ICT and may benefit from e-government services targeted at assisting them through the transfer process, older and more rural firms have limited access and will only benefit if government policy is directed towards providing ICT access and making them e-ready. ICTs have a magnificent potential to improve the quality of people’s livelihood in general and especially in the developing countries. They can enhance business, support education and health systems, and also improve the governance that is a major and vital factor in the development process. In the context of Fez e-Government Project, that is being led in Morocco, in a close collaboration with the municipality of the Moroccan city of Fez, authors have developed a pilot e-government system that facilitates citizens’ access to governmental information and services. In Chapter 22, authors present the main phases of the methodology and lessons learned during the e-Fez Project. Authors state that this approach may benefit
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similar projects, especially in developing countries that are willing to create and deploy e-government systems for the benefit of their citizens. E-procurement incorporates electronic means for purchasing or buying goods. The government of Malaysia implements e-procurement systems in realizing the cost benefits therein. The government provided the charge to Commerce Dot Com Sdn Bhd to independently develop the best practice of eprocurement that can meet the satisfaction of the business and non-business citizens of the country. In the light of this, Chapter 23 examines some determinants of users’ satisfaction and their relationships with e-procurement services. In order to bridge the gap between theory and practice, the study employs a quantitative survey analysis as its methodological approach. The findings of the research show a significant relationship between service quality, ease of access, knowledge, transparency, and security in e-procurement services as the key factors that determine the satisfactions of the service users. Chapter 24 investigates the current issues and development of the application of e-government processes in promoting local tourism industry for small and local cities and counties throughout the United States. The primary data for this study are collected through a comprehensive Web site evaluation. The prime objectives of this chapter are to examine the use of online tourism promotion implemented in local city and county websites across the United States, to identify major issues and challenges for local governments in promoting local tourism online, and to discuss the managerial implications for future research. The data collected from this study show that there is an emerging need for improvement in promoting local tourism through e-government application.
CONCLUSION Though in recent years governments are intending to reorient development programs and strategies for the attainment of knowledge-based economies, many developing countries are still finding it difficult to divert scarce resources towards ICT-led-development when faced with pressing priorities of reducing poverty; as such providing basic health and education; and thus to maintain sustainable economic growth. Furthermore, lack of technical skills and policy building capacity are other key barriers for effective e-government, e-participation, and e-service delivery in many countries (UN, 2003; UN, 2009). It was realized that a handbook focusing on these critical factors and parameters is extremely essential at this time, for initiating realistic formulation of strategies, planning, design, and implementation. This handbook covers several in-depth studies along the e-government readiness perspectives, incorporating issues related to major deficiencies in cross-sectoral atmosphere, critical implications in the implementation processes, and preparing measurable criteria for successful e-government readiness. If one can think of an ideal transparent public administrative process, an ontology-based organizational memory systems predominantly come into focus; with many existing sources of information, content, knowledge bank, laws, acts, comments on laws, specific regulations, recommendations, similar old cases, available case-specific documents, information, and so forth are prevalent in different places and in different forms and representations, at several degrees of formality, and are related through many links. Henceforth, in order to make informed, transparent, responsive, and accountable decisions consistent with the past that are compliant with the law and consistent with similar decisions in other part of the globe, all of this knowledge should be placed within an inclusive coherent framework (Abecker & Mentzas, 2001; Kovačič, 2006; Cegarra-Navarro, Jiménez & Martínez-Conesa, 2007). Taking these factors in mind, this handbook has tried to compile researches, applications and services, tools and techniques, efforts, cases, and initiatives towards establishing a common platform of transparent, effective, versatile, and futuristic e-government.
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REFERENCES Abecker, A., & Mentzas, G. (2001, May). Active knowledge delivery in semistructured administrative processes. Paper presented at the 2nd Int’l Workshop on Knowledge Management in Electronic Government (KMGov-2001), Siena, Italy. Bidgoli, H. (2004). (Ed.). The Internet encyclopedia. John Wiley and Sons. Cegarra-Navarro, J. G., Jiménez, D. J., & Martínez-Conesa, E. Á. (2007). Implementing e-business through organizational learning: An empirical investigation in SMEs. International Journal of Information Management, 27(3), 173-186. Elsevier Ltd. Economist, The. (2005). The 2005 e-readiness rankings: A white paper from the Economist Intelligence Unit. The Economist. Government of Italy. (2004). Towards the national system of e-government strategic lines. Ministry for the Reforms and the Innovations in Public Administration. Retrieved on January 15, 2009, from http:// topics.developmentgateway.org/egovernment/rc/filedownload.do?itemId=1103080. Kovačič, A. (2007). Process-based knowledge management: Towards e-government in Slovenia. Management, 12(1), 45-64. Nia, A.Y., & Hob, T.-K. A. (2004). Challenges in e-government development: Lessons from two information kiosk projects. Government Information Quarterly, 22(1), 58-74. Elsevier Inc. Pattinson, H. M., & Low, D. R. (2006, December 4-6). Exploring marketing and e-readiness through digital country studies. Paper presented at the ANZMAC 2006 Conference Australian and New Zealand Marketing Academy (ANZMAC) Conference, Queensland University of Technology, Gardens Point Campus, Brisbane, Australia. Rahman, H. (2007). E-government readiness: From the design table to the grass roots. In Proceedings of the 1st International Conference on Theory and Practice of Electronic Governance, ACM International Conference Proceeding Series (Vol. 232, pp.225-232). Sadok, M., & Djemaiel, Y. (2007). Leading factors to assess and conduct effective e-government deployment: Modelling, analysis, and practice. In D. Remenyi (Ed.), Proceedings of the 3rd International Conference on e-Government (pp.233-242). Academic Conferences Ltd. Syjuco, A. B. (2007). Celebrating gains in ICT. Acknowledgement speech of Secretary Syjuco during the commencement exercises for the Capability Building Component of the Management Program on E-Governance, Department of Labor and Employment, Government of the Philippines, Philippines. Thompson, D.V., Rust, R.T., & Rhoda, J. (2005). The business value of e-government for small firms. International Journal of Service Industry Management, 16(4), 385-407. Emerald Group Publishing Limited. UN. (2003). UN global e-government survey 2003. Department of Economic and Social Affairs Division for Public Administration and Development Management, United Nations. UN. (2005). From e-government to e-inclusion. UN Global E-Government Readiness Report 2005, Department of Economic and Social Affairs Division for Public Administration and Development Management, United Nations.
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UN. (2009, February 17-19). E-government development in Africa: Progress made and challenges ahead. Aide Memoire, Rev 08 Oct 2008 (MM), Ethiopia. UNDP. (2001). Strategic ICT program for social and economic development. Programme Document, UNDP Syria, SYR/02/01. Wagner, R., & Klaus, M. (2008). Cultural impacts on the spread of mobile commerce: An international comparison. In B. Unhelkar (Ed.), Handbook of research in mobile business: Technological, methodological, and social perspectives, 2nd ed. Hershey, PA: IGI Global.
ENDNOTES 1 2 3
http://www.datacomm.co.id/index.php/solution/government http://www.datacomm.co.id/index.php/solution/government http://www.cdt.org/international/principles/tsld019.htm
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Acknowledgment
The editor gladly acknowledges the support from all involved in the entire accumulation of manuscripts, review process, revision, and finalization of the book, without which the project could not have been satisfactorily completed. He is highly grateful to all the authors who provided their relentless and generous assistance, and especially those reviewers who were most helpful and provided inclusive, thorough, and creative comments, namely Kam Hou Vat, Mindy Anneli Lassila, Jiaqin Yang, and Martin A. Schell of the EAB. Thanks go to my colleagues and friends at SchoolNet and ICMS for their wholehearted encouragements during the entire process. Special thanks also go to the dedicated publishing team at IGI Global, particularly to Christine Bufton and Julia Mosemann for their continuous suggestions, relentless supports, timely feedbacks, and wholehearted cooperation for keeping the project on schedule, and to Mehdi Khosrow-Pour and Jan Travers for their everlasting professional guides. Finally, sincere thanks go to my wife, Shamima, and daughter, Sausan, for their love and support throughout this period.
Hakikur Rahman, PhD ICMS, Bangladesh November 2008
Section 1
Research and Learning
1
Chapter 1
The Development of E-Government Capabilities Framework for Government Jae Yong Lee The London School of Economics and Political Science, UK
ABSTRACT This chapter aims to explore the capabilities of governments in terms of e-government. A seven core e-government capabilities framework is presented as the framework for exploring and implementing in-house government capabilities needed to facilitate the development of e-government, measured by overall, business-oriented and IT-oriented capabilities and resulting performances. The seven capabilities are as follows: legitimation and relationship building as overall capabilities; IS/IT governance and business systems thinking as business-oriented capabilities; informed buying, contract facilitation and monitoring, and designing technical architecture as IT-oriented capabilities. This chapter attempts to develop an intellectual framework for practitioners and researchers to follow within the area of organizational abilities or personnel management in e-government era. On this point, this research will contribute to the readers’ formulation of IT strategies for their countries which was set up as the first objective of this book.
INTRODUCTION This chapter describes the capabilities of government organizations to design, build, implement, and facilitate e-government. E-government is “the use of information technology (IT) to enable and improve the efficiency with which government services are provided to citizens, employees, busiDOI: 10.4018/978-1-60566-671-6.ch001
nesses and agencies” (Carter & Belanger, 2005, p. 5). Capabilities are defined as “distinctive sets of human resource-based skills, orientations, attitudes, motivations and behaviors that have the potential, in suitable contexts, to contribute to achieving specific activities and influencing business performance” (Willcocks, Feeny, & Olson, 2006, p. 29). As is implied by these definitions, this chapter involves related discussions about capabilities that are required of government bureaucracy in order to
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The Development of E-Government Capabilities Framework for Government
successfully complete e-government processes, from the planning stage to the delivery of public services stage. Using the activities of governments as a way to expand the use of e-government is also considered. In general, access to and use of advanced technology cannot guarantee better organizations. Orlikowski, Walsham, and Jones (1996) suggested that the IT characteristics of shift and change require innovation in organizational work, as well. On the contrary, such issues have used to be regarded only as a matter of technology by many practitioners from public and private sectors. According to the findings of Mead and Boeschoten (2006, p. 15), the understanding of IT governance has been inappropriately belonged only to the IT-side decisions. This aspect shown in information systems (IS) fields has many implications on practices and public management studies regarding e-government. On the other hand, IT has become a significant subject in public management. Technology has been almost ignored until recently, despite the fact that digitization by the government has a long history (Dunleavy, Margetts, Bastow & Tinkler, 2006; Fountain, 2001). Under these circumstances, this chapter aims to provide an intellectual framework to analyze and explore government capabilities on e-government. Government organizations should identify and build related capabilities for ideal IS and manage appropriate organizational changes. On this point, this research will contribute to the readers’ formulation of IT strategies for their countries which was set up as the first objective of this book. This framework is reinvented from relative literature and applied to a single case study adopted as a research strategy. This research is expected to provide implications on how to understand government capabilities in the contemporary e-government, which can be different from traditional perspectives of public management theories. It is not the scope of this research to identify the qualification of a specific capability. The reinvented and employed framework was developed
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to discuss a value-neutral analytical scheme regarding capabilities. The result of a single case study is referred to as secondary evidence of the framework. The results of the single-case study are difficult to apply to other cases. Therefore, broader theoretical issues will be introduced to provide references in order to make up for the weak points of a single-case study.
BACKGROUND Divergent literature will be introduced separately to form the theoretical perspective and analytical framework. On the one hand, Digital Era Governance (DEG) is presented as a main literature to form a theoretical perspective; on the other hand, Feeny-Willcocks nine core IS capabilities model (Feeny-Willcocks IS capabilities model) is involved as a main analytical framework to reinvent the conceptual framework of the government capabilities analysis. There will be other secondary literature supporting these main perspectives as well. These are related so as to find a way to frame and organize this research. Although all parts of the literature mentioned originated from slightly different research areas, they can be compared, shared or reorganized with each other, according to the Locke and Golden-Biddle’s concepts of intertextual coherence, problematizing context, and intertextual progressive coherence (Locke & Golden-Biddle, 1997, pp. 1033-1038). These authors suggested them as processes to be considered when researchers employ a literature or point their research to existing literature. These concepts are particularly appropriate for this research which requires interdisciplinary approaches from both public management and IS studies.
Theoretical Perspective Two groups of literature were examined as theoretical perspectives of the research, as follows: the interpretive flexibility of IT and the formal
The Development of E-Government Capabilities Framework for Government
organization from IS studies side; and the DEG and virtual state from public management studies. The relationship between technological artefacts and human practices has been a persistent issue in IS studies. Many researchers have sought key elements to understand the relationship between organization and IT from the feature of technology. This tradition was well explained by Doherty, Coombs and Loan-Clarke (2006) who explained first the technical determinism which regards technology as the determinant of human practice, and second social constructivism in which technology is constructed through human agency. However, a broad consensus has been reached which says that IT and organization have influences upon one another (Rose & Jones 2004). A key and common concept of interpretive flexibility emerges from these arguments. The definition of interpretive flexibility here depends on Sahay and Robey’s (1996; as cited in Doherty et al. 2006, p. 572) “capacity of a specific technology to sustain the divergent opinions.” Pinch and Bijker (1987) introduced it in the social construction of technology (SCOT) using the concept of the empirical programme of relativism (EPOR) from the tradition of the sociology of scientific knowledge. In EPOR, scientific findings are open to more than one interpretation. According to this proposition, Pinch and Bijker (p. 40) stated that “technological artefacts are culturally constructed and interpreted; in other words, the interpretative flexibility of a technological artefact must be shown.” The extreme version of this position is called anti-essentialism, which is strongly opposed to technical determinism. On the other hand, Orlikowski (1992, pp. 404-405) criticized these two perspectives as a false dichotomy. She applied Giddens’ structuration theory as “recognition that human actions are enabled and constrained by structures, yet that these structures are the result of previous actions.” From this understanding, Orlikowski explained the structurational view of technology as “technology embodies and hence is an instantiation of some of the rules and
resources constituting the structure of an organization.” Neither technology nor human practice has dominant power over the other; there are always mutual interactions and changes in the structurational context. This understanding was upgraded later, through her practice lens approach, to deny the viewpoint that technology embodies structure (Orlikowski, 2000). Instead, she urged that technology is enacted and emerged during the use of it by actors. At any case, interpretive flexibility is described as the characteristic of IT to make these interactions possible. In the meantime, the boundaries of interpretive flexibility of technology have been argued. Accepting the wide consensus on mutual influence, the degree of strength and scope of interpretive flexibility has become another important issue. Initially, social constructivists applied it during the design stage (Pinch & Bijker, 1987). On this point, Woolgar and Grint (1991; as cited in Orlikowski, 2000, p. 406) criticized SCOT stating that technical determinism is allowed after development. Orlikowski (1992; 2000) expanded the application of interpretive flexibility to the stage of use in this respect, stressing the ongoing potential for users to redesign the technology physically and socially. On the other hand, Kallinikos (2002; 2004) and Doherty et al. (2006) stressed the lack of research on the characteristics of IT which constrain the human agency. Doherty et al. (2006) argued that the user-centric aspect of prior literature, with the concept of the functional boundaries embedded in packaged software, which was defined as the determinant of “the extent to which its functionality can be appropriated to meet the desired outcomes of specific stakeholders” (p. 578). Kallinikos (2002) also sustained the same position that IT is not as malleable as is expected from conventional theories. Many other empirical researches have supported this limit of the interpretive flexibility of IT, especially with case studies of packaged software like the enterprise resource planning (ERP) system (e.g. Cadili & Whitley, 2005). As another theoretical perspective, Kallinikos’
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The Development of E-Government Capabilities Framework for Government
formal organization, that is, bureaucracy in his term, provides insightful conceptualization of organization theory in information age. Bureaucracy is still a conventional theoretical framework in organization studies, although the famous Weber’s modern bureaucracy has been criticized under the title of post-bureaucratic or network organization (Courpasson & Reed, 2004; Du Gay, 2005). Two characteristics of this trend were well represented by Fairtlough (2007; as cited in Clegg 2007, p. 11) as follows: “reduction of hierarchy and of coercive elements in bureaucracy and a move towards less rigid and perhaps apparently less rationalistic ways of organising.” As implied by these trends, many current discourses on bureaucracy have been conducted on the aspects of organizational forms or processes. However, bureaucracy included another aspect of institution from Weber’s original concept as well represented by Casey (2004, p. 60) as follows: In the classical Weberian view, modern bureaucratic production and administrative organizations manifest in their everyday processes and enactments the forms of rationalization and secularization characteristic of societal modernization. The modern bureaucratic organization epitomizes the systematic, methodical, rationallegal instrumentality of industrial society. Despite this institutional characteristic, overemphasis on stable structural arrangements of organization caused bureaucracy to be partially understood as just an organizational form (Clegg, 2007). As an institution, however, bureaucracy could be understood in the wider context of social, political and economic domains. For example, Courpasson (2000) analyzed bureaucracy through the lens of organizational politics, and Kärreman and Alvesson (2004) identified it as a socio-ideological layer of control. Kallinikos (2006) provided an inclusive term of bureaucracy as both institution and organizational form in modernity. In particular, his perspectives
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are strongly inspired by the consequence of contemporary information growth and institutional influence on organizations. His concept of formal organization is not the functional collectivities of organizational arrangements but “social entities (most notably firms and public agencies) that operate under a specific regime of rules and regulations, as the outcome of the jurisdictional responsibility granted to them through legal, administrative or political processes” (p. 125). He insisted on the juxtaposition of networks within formal organization, because there are few evidences of the demise of bureaucracy. It is well exemplified by his stress on elementary and microscopic level analysis about decomposition and functional recomposition of organizational arrangements, which is disclosed by increasing dissolvability of organizational operations. Consequently, compared to other conventional strands of new organizational forms, such as network and something virtual, Kallinikos relatively emphasizes the significance of formal organizations — represented by bounded and hierarchical systems — within the institutional context. One can find possible conceptualization even in the literature of post-bureaucracy. While noting characteristics of complexity in network organization, Black and Edwards (2000, p. 572) admitted the existence of traditional organizational orders: “Being a virtual organization does not preclude the using of traditional business methods, just that the dominant method of doing business is heavily dependent upon advanced information technology.” The other group of literature is the works of public management, which should be necessarily examined for e-government studies. First, Fountain (2001, pp. 102-103) suggested seven propositions to enact technology well in a contemporary government, titled a virtual state, as summarized in Table 1. In addition, she compared seven elements of a virtual bureaucracy with those of a traditional Weberian bureaucracy, one example of which is the “rules embedded in applications
The Development of E-Government Capabilities Framework for Government
Table 1. Seven propositions to enact technology well in a virtual state • Government agencies will resist the potential for dramatic efficiency gains if those gains translate into loss of resources (budget and personnel) for the agency. • Federal interagency networks will be difficult to build and maintain because the formal institutions of the federal government reward agency-centered activities and discourage cross-agency activities. • Agencies lack resources for learning to use IT. • Intergovernmental and public–private networks will over-shadow cross-agency IT-based networks because the institutional context favors those arrangements more readily than cross-agency federal networks. • Agencies are likely to focus reform efforts on constituents, or “customers,” who also are potential or actual strategic allies in the appropriations process. • The nature of changes necessary to develop a network will affect the probability of success of the effort. • The culture, history, mental models, and standard practices of a policy domain or agency will affect technology enactment – that is, whether and how an agency uses the Internet.
and information systems” of the former instead of the “general rules based office systems” of the latter (p. 61). On the other hand, Dunleavy et al. (2006) provided a new paradigm for public management reform with DEG focusing on the central role of IT in organizing and delivering public services to citizens. DEG seems to be exploitation to try to enhance IT as a means to the fundamental principal in contemporary public management. This suggestion appears clear in the following statement (p. 217): The whole thrust of this book has been to stress that government IT changes are no longer peripheral or routine aspects of contemporary public management and public policy changes, but increasingly important and determinant influences upon what is feasible. These authors concluded, by a comparative study of seven countries, that the performance of egovernment differs from country to country based on its context such as internal expertise, resource allocation, government-IT company relationships, etc. It is the same issue of interpretive flexibility, which has been discussed in IS researches, with similar technology and different results. One interesting finding is the discussion about the impact of governance institutions and bureaucratic cultures. These authors showed that cultural differences had less influence on IT
performance than expected. They guessed that IT outsourcing-dependent environments of public organizations may explain this phenomenon, in that applied outsourcing technology, which was developed by many global IT suppliers, is common in the individual contract of many countries. Subsequently, Dunleavy et al. (2006) examined the competitive tension and the power of the IT industry around each government, but they could not find a straightforward relationship between specific IT outsourcing types and IT performance. These authors provisionally concluded that it depends on the individual context of each government.
Analytical Framework The Feeny-Willcocks IS capabilities model was mainly adopted for an empirical analysis. This was developed as “a framework for planning the in-house IS function and keeping up with the pace of technological change” (Feeny & Willcocks, 1998, p. 9). The definition of a core IS capability was given as “a capability needed to facilitate the exploitation of IT, measurable in terms of IT activities supported, and resulting business performance” (Willcocks et al., 2006, p. 29). Nine capabilities were selected as follows: IS/IT governance, business systems thinking, relationship building, designing technical architecture, making technology work, informed buying, contract facilitation, contract monitoring, and
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The Development of E-Government Capabilities Framework for Government
Table 2. Components of IT governance in a broad sense Components
Description
Source
IS/IT governance
Focusing on ensuring the linkage of business and IT plans; on defining, maintaining and validating the IT value proposition; and on aligning IT operations with enterprise operations
ISACA, ITGI and Webb et al.
Delivery of business value through IT
Executing the value proposition throughout the delivery cycle, ensuring that IT delivers the promised benefits against the strategy, concentrating on optimising costs and proving the intrinsic value of IT
ISACA, ITGI and Webb et al.
Risk management
Risk awareness by senior corporate officers, a clear understanding of the enterprise’s craving for risk, understanding of compliance requirements, transparency about the significant risks to the enterprise, and embedding of risk management responsibilities into the organization
ISACA, ITGI and Webb et al.
Performance management
Tracking and monitoring strategy implementation, project completion, resource usage, process performance and service delivery, using, for example, balanced scorecards that translate strategy into action to achieve goals measurable beyond conventional accounting
ISACA, ITGI and Webb et al.
Resource management
Optimized investment and the proper management of critical IT resources: applications, information, infrastructure and people
Control and accountability
Leadership, control and direction from those persons within an organization with authority to govern
ISACA and ITGI Webb et al.
* Source: Information Systems Audit and Control Association (ISACA, 2006); IT Governance Institute (ITGI, 2005); Webb, Woodham & Ridley (2006)
vendor development (Feeny & Willcocks, 1998; Willcocks et al., 2006). Descriptions will be given in the section of main focus. These capabilities were derived from their researches including an archival analysis of more than 14 prior researches and more than 100 interviews with high performers in the IT function. The original model has been verified many times by following researches and practical applications (Willcocks et al., 2006). Originally, the framework was developed from two streams of research: study about the characteristics of high performers in IT function and IT outsourcing. In addition, these authors summarized it later as follows: “We synthesized the findings into an IT governance and management framework suggesting the nine in-house core capabilities needed to govern and manage any IT sourcing arrangement” (Willcocks et al., 2006, p. 28). Considering the importance of IT outsourcing in government as generally discussed by Dunleavy et al. (2006) and Fountain (2001), this characteristic strengthens the appropriateness of this scheme as an analytical framework in this research.
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IT governance was adopted as a secondary framework. This is defined as “specifying the decision rights and accountability framework to encourage desirable behaviour in the use of IT” (Weill & Woodham, 2002, p. 1). Mead and Boeschoten (2006) also provided guidelines for excellent governance regarding IT. These authors categorised two decision domains as follows: the business side (Cross-unit governance, Business strategy, and Risk management) and the IT side (IT strategy, Development portfolio, IT organization, and Tactical IT governance). These discussions around IT governance vary from one researcher to another. Within the narrower concept, IT governance is focused on issues of business and system alignment. On the other hand, some researchers broaden its boundary to whole governance issues concerning organization and IT. Six components of IT governance in this position are presented in Table 2. Regarding an IT management scheme, the IT infrastructure library (ITIL) and the IT service management (ITSM) are worth considering as
The Development of E-Government Capabilities Framework for Government
other secondary framework. The Office of Government Commerce (OGC), the developer of ITIL, defined ITIL as “a set of best practice guidance for ITSM” and ITSM as “a top-down, businessdriven approach to the management of IT that specifically addresses the strategic business value generated by the IT organisation and the need to deliver a high-quality IT service. ITSM is designed to focus on the people, processes and technology issues that IT organisations face” (OGC, 2006, p. 21). ITIL describes 2 domains and 11 processes of IT service management as follows (TSO, 2005): the service support domain with the processes of service desk, incident management, problem management, configuration management, change management, and release management; and the service delivery domain with the processes of service-level management, capacity management, IT service continuity management, availability management and financial management for IT services. A hierarchical structure of roles and responsibilities is provided within each process as well. Moreover, the International Organization for Standardization (ISO) established the ‘ISO20000’ as the specification of international standards for IT service management in 2005, which succeeded the ‘BS15000’ specification of the British Standard Institution based on the ITIL of OGC (ISO, 2007). Finally, an IT outsourcing-related framework was examined concerning the importance of IT outsourcing discussed in public management theories and the Feeny-Willcocks IS capabilities model. Cullen, Seddon and Willcocks (2005) established an IT outsourcing configuration framework. This gave the shape of specific outsourcing decision-making processes such as the capability of informed buying in the Feeny-Willcocks IS capabilities model as discussed later.
MAIN FOCUS OF THE CHAPTER As stated in the introduction, the purpose of this chapter was set up to establish a conceptual framework of government capabilities analysis. In addition, the result of literature review revealed two limitations of existing literature. From the public management point of view, there is the lack of e-government researches focusing on capability issues. On the other hand, it is also difficult to find theoretical perspectives rooted in public management theories from IS researches. Consequently, the main focus of this chapter is to develop an interdisciplinary approach of public management and IS researches for exploring government capabilities of e-government. Related literature is employed to frame this research and to refine adequate theoretical background and existing conceptual framework.
Research Question There may be two extreme positions to IT in public organizations. On the one hand, IT is just a tool for business automation, but at other times it is regarded as omnipotent to bring innovation. Those disputable positions are connected with organizational argument regarding roles and responsibilities between relative organizational departments. On this point, the classification of capabilities will be emphasized in this research because it is not only the persistent issue of IT governance but also the cause of emerging problems in actual e-government fields. Against this background, research questions were set up as follow: what are the business- or IT-oriented capabilities for affecting e-government system and organizational structure/processes; what are the social processes and the context of the underlying choices made by government organizations in terms of capabilities; to what extent is the contemporary literature able to explain relative phenomena? This research defines business- and IT-oriented capabilities as a capability which should be retained more by busi-
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The Development of E-Government Capabilities Framework for Government
Figure 1. Conceptualized realities of the PPS
ness staff based on knowledge of organizational strategy and business process and a capability which should be retained more by IT staff based on knowledge of IT, respectively. There may be arguments about this categorization in that integration and business–IT alignment became a serious topic in IS research. However, in my observations, a clear consensus of the roles and responsibilities between each part should be achieved in advance. It is only possible to go on collaborating with each other based on these assignments. It can be more important in a government agency which is more strictly segmented in its organizational structure. The Public Procurement Service (PPS) of Korea was selected as an adequate case to support this research. Details will be discussed in the section of empirical investigation.
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Reconstruction of Theoretical Perspective To reorganize theoretical frameworks, it is worthwhile to provisionally apply relative literature components to the results of potential empirical analyses. As a trial to map PPS realities with related literature, the conceptualized realities of the PPS are illustrated in Figure 1. The purpose of the PPS is the innovation of public procurement through the e-government procurement system. However, it is not achieved automatically by the introduction of IT; there has to be a social process, like interpretation, negotiation, and construction. The characteristics of the interpretive flexibility of the e-procurement system allow the constituents’ divergent interpretations of IT. In the meantime, the capabilities of constituents must be involved to interpret, construct and reshape the system and organization. In addition, capabilities can be enabled or constrained by divergently interpreted technology as well. These social processes occur not only within the PPS but
The Development of E-Government Capabilities Framework for Government
also between the PPS and other interested parties or among interested parties. More specifically, these are exemplified as follows: how the characteristic of interpretive flexibility works; how technology is flexibly interpreted by constituents; what the responses of constituents are; how capabilities are constructed; and what the context of the PPS is to bring about these phenomena. These phenomena can be explained by the employed literature again. For example, interpretive flexibility affects these processes through the interpretations of the actors in organizations. In addition, as reflected by Dunleavy et al. and Fountain, there is the shortage of study on IT in public management studies. On this point, we inevitably referred to IS literature to study e-government. However, it is not clear to identify the public sectorspecific elements within interpretive flexibility of IT and formal organization perspective. Under these circumstances, what are the characteristics of public organizations to differentiate them from private ones in terms of existing IS theoretical perspectives? From DEG, only two distinctions between public and private sectors are identified. First, outsourcing is strengthened by the fact that the government is unable to compete with private industry in recruiting good quality IT experts, due to insufficient finance. The second is that there is no movement of globalsourcing in governments which emerges as mainstream reform in private sectors. Considering all of these, theories rooted in private sectors are also valid to explain the phenomena observed in government agencies. Or, there is no evidence of significant differences between two capabilities models of public and private sector at least. On the contrary, the findings of DEG (Dunleavy et al., 2006) show the same perspective with the structurational view of IT and institutional view of bureaucracy, as follows (p. 217): We see this influence of IT systems as having effects not in any direct technologically determined way but via a wide range of cognitive, behavioural, organizational, political, and cultural
changes that are linked to information systems broadly construed. In spite of weaknesses stated until now, every involved perspective has its own strengths to lead this research. First, the interpretive flexibility of IT reveals well the aspects of mutual interrelationships between organization and technology. The adoption of e-government systems has limited implication only. We have to consider human behaviors and social context affecting technological systems. Second, Kallinikos’ formal organization has great advantage on understanding contemporary organizations in terms of informatization. In particular, there is much room for his conceptualization of bureaucracy as institution to be applied for public management studies in that bureaucracy is recognized as a key feature of government organizations. Third, virtual state exploited government-specific reflections in terms of changing environment around e-government. It provided significant and straightforward rationales and criteria which were observed and analyzed within public management practices in emerging e-government era. Lastly, DEG paid attention to the emerging role of IT in public management theory beyond mere innovation tools. Dunleavy et al. suggested that DEG be able to replace new public management theory which has been predominant during the past two decades. Consequently, DEG can be regarded as a primary theoretical underpinning of this research because it addresses insightful vision of IT in public management studies. It also includes versatile analyses of seven countries’ e-governments comparative study. However, DEG will be supported by other frameworks considering its shortage of aligned elements of organizational capabilities in detail. Generally speaking, I conclude that e-government capabilities had better be tackled in wider context of its relationships with interpretively flexible e-government system, and the reappraisal of bureaucracy shown in formal organization as discussed in literature review section. On the other hand, Fountain’s approach
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The Development of E-Government Capabilities Framework for Government
will also work to provide tangible examples of this kind research.
Reconstruction of Analytical Framework Examining and applying the Feeny-Willcocks IS capabilities model, this research has made some modifications to the original one responding to provisional findings in the PPS. The changes are made for three reasons as follows: to make up for want of consideration of the government agency; to improve the appropriateness of explaining the context of the PPS; and to answer the research question more exactly. First, the need of legitimation was recognised as an independent capability. In government, consensus or agreement, even an order of senior staff is not a sufficient condition to do something. Formalisation, such as a legal framework, official adjustment of the organizational chart and change of staffing should be followed to make an IS work. In fact, that would be explained by leadership capability by the subtitle “organizational arrangements” which accounts for structures, processes, staffing (Feeny & Willcocks, 1998, p. 12). However, observations of the PPS gave so many issues regarding IS/IT governance that leadership is better understood in the narrow sense, that is, IS/ IT governance. The definition of the legitimation here was set up as managing the organizational structure, legal framework, and public relations for IS to work. This plays the important role of resource management and control and accountability of government in the broad IT governance components presented in Table 2. Second, to improve the appropriateness of the model, this research integrated three capabilities regarding IS/IT service sourcing into one, that is, contract facilitation and monitoring including contract facilitation, contract monitoring, and vendor development from the original model. There is no change in meaning; but the author has just found that it is a more balanced way to explain
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the phenomena in the PPS and the original three capabilities could be constructed altogether in a carrot-and-stick approach. In this respect, this research has defined it as organizing and ensuring long-term success of contracts in a win-win way with IS/IT service suppliers. On the other hand, to explain informed buying, the IT outsourcing configuration model (Cullen et al., 2005) is employed in an empirical investigation. Consequently, informed buying is described again as managing the IS/IT sourcing strategy and designing the IT outsourcing configuration that meets the interests of the business. This revised analytical framework with eight capabilities appears in Table 3 and it will be applied as a direction to go forward with the empirical investigations of this research.
Empirical Investigation: Case Overview Korea has had in place a citizen-centered e-government since 2001, with eleven e-government initiatives (Lee, Tan & Trimi, 2005). Among these, the Korea ONline E-Procurement System (KONEPS), developed and operated by the PPS (Public Procurement Service) since 2002, is renowned in the international world as a successful innovation case (Lee, Lim, Hahm & Lee, 2007; OECD, 2004; UN, 2004; World Bank, 2006). In particular, public procurement is recognised as one of the most important areas to be reformed by many countries. On the one hand, its volume accounts for 10-15% of gross domestic product (GDP), on the other hand, it requires many documents, complicated processes and considerable time-consuming efforts during procedures (Lee et al. 2007). As a result, the aim of public procurement innovation is to enhance transparency and efficiency. In 2005, the annual transaction volume of KONEPS reached US$ 43 billion, and involved 30,000 public organizations and 150,000 suppliers. In addition, it is so well implemented that Internet bidding was conducted for up to 93%
The Development of E-Government Capabilities Framework for Government
Table 3. Eight core IS capabilities for the analysis of PPS Capability
Description
IS/IT Governance
Integrating IS/IT effort with business purpose and activity
Business Systems Thinking
Envisioning the business process that technology makes possible
Relationship Building
Getting the business constructively engaged in IS/IT issues
Designing Technical Architecture Making Technology Work Informed Buying Contract Facilitation and Monitoring Legitimation
Creating the coherent blueprint for a technical platform that responds to current and future business needs Rapidly achieving technical progress – by one means or another Managing the IS/IT sourcing strategy and designing the IT outsourcing configuration that meets the interests of the business Organizing and ensuring long-term success of contracts in a win-win way with IS/IT service suppliers Managing the organizational structure, legal framework, and public relations for IS to work
* Source: modified from Feeny and Willcocks (1998, pp. 12-15) and Willcocks et al. (2006, p. 30)
of the whole sealed bids from public agencies in 2005 (PPS, 2006). The PPS, founded in 1949 and currently with 950 staff members, is the central procurement agency, with a turnover of US$ 24 billion in 2005, i.e. 30% of total public procurement. Within the centralized system, every public agency is constrained to request the PPS to make contracts with suppliers on their behalf, in particular, over a specific threshold of scales. Regarding figures, the volume of the central procurement is distinct from that of the KONEPS. The latter includes the transactions occurred between the other public agencies and suppliers using application services of the KONEPS without the intervention of the PPS as a contractor. The functions of the PPS are as follows (PPS, 2006, p. 11): domestic and foreign procurement for public institutions; contracts for the government’s major construction projects; stockpiling and supply of raw materials; coordination and audit of government property management; and management and operation of KONEPS. KONEPS was developed as an application service and integrated e-government procurement portal for all public organizations, from central and local governments to state-owned enterprises.
The staff composition of related units is worth being reviewed to understand the context. Most employees (up to about 80%) are engaged in contract-related duties, such as sourcing strategy, pricing, contracting, delivering and inspecting. In addition, around 70 officers are assigned to the e-Procurement Service Bureau, the director general (DG) of which is the chief information officer (CIO) of the PPS. The head office of the PPS consists of five DGs who are important decision-makers under the administrator, who is a vice-minister level officer. Within the bureau, two teams out of six are in charge of managing KONEPS. The overall assignment of duties is as follows: the information planning division (IPD) for planning and the information management division (IMD) for operating KONEPS. The latter is composed of 17 officers (15 IT experts) and the former consists of 12 (2 IT experts) at the end of 2006, and the directors of both teams are non-IT experts. About the computing environment of the PPS, all systems are integrated into KONEPS except for some client-packaged programs of other bureaus. Until 2000, as few as 15 in-house IT-experts in one team were able to manage the system, supported by a small number of external operators.
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The Development of E-Government Capabilities Framework for Government
Table 4. Longitudinal composition change of IT-related organizations (IPD/IMD) Year 2000
No. of teams
No. of total staff
No. of IT-experts (IPD and IMD)
No. of IT-experts (etc.)
1
17
15
0
2002
2
25
18
1
2006
2
29
17
7
* Source: PPS (2004a) and PPS organization chart
At that time, there were only 13 servers and users within the PPS and 20 other public agencies. However, by 2005 there were 77 much larger servers, and more than 250,000 users, involving crucial activities such as e-bidding, e-contracting and e-payment. On the one hand, as is common within government, the number of in-house experts was not increased in proportion; on the other hand, Table 4 shows that IT-related functions have been respected by the leadership of the PPS in that steady increases in terms of organizational power appeared. However, one finds that it is still a small part of the whole organization considering the rapid growth of importance and management work of e-procurement. In addition, some qualitative alterations appear in Table 4. Seven IT-experts were working in non-IT departments to share experiences of IS and business staff in 2006, which might be allowed by the IT outsourcing introduction.
Empirical Investigation: Analyses and Implication Having carried out the case study, author has tried to answer the following questions: what the social processes occurring in the PPS regarding IS and organizational change were; how such processes can be explained from the point of view of relative capabilities; and what the social context to support these phenomena was (See Lee, 2007 for details). In general, decisions were made by negotiation within and outside the PPS. The social context worked as a background for
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the positioning of each constituent. For example, people could not understand the negative attitude of PPS staff towards KONEPS at the first stage if they did not know the history of the political struggle between centralised and decentralised procurement. In fact, the centralized procurement system had been challenged by a decentralized one for more than 30 years in terms of the autonomy of each agency. The opponents of the centralized system urged the abrogation of the PPS and the PPS struggled for survival. The traditional strategy of PPS e-procurement, which was started in 1997, had been differentiating the developed centralized procurement from the underdeveloped systems of decentralized procurement. On this point, an application service to support decentralized procurement could be regarded, in part, as a conflicting mission. Accordingly, it took time for all constituents to accept the KONEPS as an identical mission of the PPS. Observations related to capabilities are summarized as follows. First, all the capabilities originated from the Feeny-Willcocks IS capabilities model were useful in explaining the social processes in the PPS. In addition, the insertion of legitimation as a capability in this research was found to be appropriate in that it was required for every occasion of whole processes from planning to facilitating stages. Second, capabilities may be regarded as both the results and the causes of constituents’ interpretations of a given technology, as was suggested by the concept of interpretive flexibility. Capabilities were enabled by technology. For instance, one
The Development of E-Government Capabilities Framework for Government
could not imagine business systems thinking being enacted without appropriate implementation of IS functions. IS are requisite to business process innovation. At the same time, non-malleability or functional boundaries of IT should be considered as well to understand the characteristics of contemporary IS. For example, the PPS had planned to change the database management system (DBMS) in order to be free from the influence of a specific manufacturer by 2005. However, the PPS found that too much time and money would be required, not only for the purchase of new software but also for the modifying and testing of existing applications. Moreover, the current vendor of DBMS restrained the PPS by raising the maintenance fee if the applied volume of DBMS was reduced. The technological and social context sets limits on the changes to KONEPS, that is, KONEPS was too non-malleable to be reshaped easily by human practices. Lastly, making technology work does not seem to be an independent in-house capability any more in the PPS. The adoption of the IT outsourcing changed the management paradigm from the management of computer program to that of IT service. However, this does not mean that the capability of making technology work is not important. The findings here are the fact that it matters but can be outsourced. In this respect, a core in-house capability is not making technology work but contract facilitation and monitoring to let outsourcing make technology work. This view was also supported by the result of a survey on the in-house staffs’ recognition of PPS capabilities. It was a survey to investigate the PPS officers’ recognition of the priorities of capabilities (Lee, 2007). Relevant priorities of eight capabilities for business and IS departments were asked to both groups in this survey. The number of total respondents was 22, consisting of 9 IT experts of IS departments and 13 business staff. The response ratios of each part were 47% and 17%, respectively. This survey revealed some interesting findings. First of all, no common or harmo-
nized recognition about the priorities of specific capabilities’ importance were found. Everyone has diverse positions about which capabilities should be retained by whom. This is a proof of why researches about organizational capability are required. Appropriate capabilities seem not to be built based on this kind of disagreement about the expected roles and responsibilities of each department. Another interesting finding is the understanding of making technology work which is necessarily related to the work of IT experts. Although some business staffs consider it as an important capability of IS departments, IT experts did not agree with them. About capabilities of business departments, both business and IS staff thought much of IS/ IT governance, business systems thinking and legitimation. At the same time, the capabilities of informed buying, contract facilitation and monitoring, making technology work and designing technical architecture were less respected by both groups. On the other hand, IT experts responded that relationship building as a more significant capability of business departments than business staff did. For IS departments, IS/IT governance was also regarded as the most important capability followed by designing technical architecture; whereas informed buying, contract facilitation and monitoring and relationship building were recognised as unimportant ones in general. However, business systems thinking and legitimation show the discrepancy of recognition between two groups. IT experts regarded them as their important capabilities, while business staff did not think so.
Reinventing Government IS Capabilities Model: Businessand IT-Oriented Capabilities According to the results of the observation and survey, this research concludes that in the final model of the seven capabilities applied to the
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The Development of E-Government Capabilities Framework for Government
Table 5. Seven IS capabilities and required skills in the Feeny-Willcocks analyses Capabilities IS/IT governance
Business skills High
Technical skills Medium
Business systems thinking
High
Medium
Relationship building
Medium-High
High
Designing technical architecture
Low-Medium
High
Informed buying
High
Medium
Contract facilitation and monitoring
High
Medium
Legitimation
N/A
N/A
* Source: modified from Map of Capabilities and Skills (Feeny & Willcocks, 1998, p. 19)
PPS, making technology work does not belong. In this section, consideration about business- and IT-oriented capabilities will be described and explored. Among the seven capabilities, designing technological architecture is unavoidably classified as an IT-oriented capability. Finally, six capabilities will be examined by exploring their nature, areas of expertise and phenomena observed in the PPS. Similar research interests were dealt with by Feeny and Willcocks (1998). These authors identified required skills for such capabilities as business and technical and interpersonal skills. If interpersonal skills were regarded as business ones, which do not require IT-dependent knowledge in any case, the summary of the seven capabilities in their research and its required skills would appear as displayed in Table 5. Applying the same approach to this investigation, this research concluded the classification of capabilities, as shown in Figure 2. Within the findings, higher business skills are required by IS/IT governance and business systems thinking, which is consistent with the analysis of Feeny and Willcocks in Table 5. On the other hand, relationship building and legitimation are categorised as overall capabilities. These were also the two most common capabilities found in every phenomenon observed in the PPS. Considering the emphasis on interpersonal skills, this is also a consistent result with that of Feeny and Willcocks.
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The most arguable conclusions are the classification of informed buying and contract facilitation and monitoring. These belong to IT-oriented capabilities, whereas Feeny and Willcocks did it another way. This made sense within the phenomena in the PPS. Neither leadership nor other business departments are engaged in the IT outsourcing and IT management innovation carried out by the PPS. It was definitely planned and implemented by the IMD only. The required skills were related to IT service sourcing strategy, ITIL, system architecture, pricing methods of IT services, evaluation criteria of IT service suppliers, and so on. Due to the centralized IS departments structure, all relative works have been assigned to IS departments which were mainly composed of IT experts. Moreover, the motivation was formulated by the IT experts who have encountered many challenges brought about by the introduction of the outsourcing. They confronted an identity crisis between the business staff and outsourced private specialists. Finally, the IT outsourcing and IT management was selected as an alternative area of expertise for IS departments. However, it is worth examining negative responses of IT-experts, in the related survey, on informed buying and contract facilitation and monitoring. They graded them as the two least important capabilities of IS departments. It can be analysed by the presumably conflicting interests between in-house and outsourcing suppliers.
The Development of E-Government Capabilities Framework for Government
Figure 2. Seven business- and IT-oriented capabilities in the PPS
IT outsourcing innovation was initiated by the director of IMD who was not an IT-expert, and many arguments arose there and then. Although considerable resources on that issue were input and currently operated, not enough consensuses seemed to be achieved. Whether it is desirable or not, IT outsourcing is absolutely a crucial issue on contemporary organization; moreover, it is more serious one in government bodies (Dunleavy et al., 2006; Fountain, 2001). In this respect, IT outsourcing-related capabilities should be concerned in IS departments. On the other hand, an interesting suggestion by Feeny and Willcocks (1998) is their insightful viewpoint of project management. They thought it was an overall organizational capacity rather than a specific IS capability. At the same time, they allowed the possibility of its requirement when the lack of such core organizational capability exists (Willcocks et al., 2006). The findings in the PPS show the implications of original suggestion in a slightly different way. The position of Feeny and Willcocks in this respect was well explained as follows (Feeny & Willcocks, 1998, p. 15):
If the IS function – through development and deployment of leadership, relationship-building and business systems thinking capabilities – successfully meets the challenge of business and IT vision, there are no large IS projects. Projects become business projects with IS and other dimensions, and project management responsibility passes to business managers. Within the PPS case, the PPS introduced a flexible structure of IT outsourcing contract in 2005 to allow small IS projects, which have been sourced separately before, to be integrated into it based on contingent requirements and budget allotments. In this new structure, more frequent and direct discussions occurred between the outsourcing suppliers and the business staff under the management of IS departments. These activities were bureaucratized under the scheme of ITIL processes to manage the KONEPS e-procurement services, as was implied by the Kallinikos’ formal organization. Consequently, IS projects were integrated and the roles of business departments seemed to increase. This is not the same as the Feeny and Willcocks suggestion in that the responsibilities of the project
15
The Development of E-Government Capabilities Framework for Government
remain within the IMD. However, regarding the mainstream functions of KONEPS, all IS/IT activities do not proceed as independent, single projects but are operated as comprehensive IT management which combines the scheme of in-house and IT outsourcing contracts. This should be regarded as an issue of IS/IT governance in a wide sense rather than that of project management.
FUTURE TRENDS According to Dunleavy et al. (2006), DEG will become the new paradigm of public management theories and practices. The impact will not be restricted to so called e-government services. It will be an underlying principle that orders all public management issues. E-government is not a specific domain of public services, but a kind of phenomenon contributing to the public management environment. Under this circumstance, every area of public management needs to be examined through the lens of DEG. This chapter attempts to describe e-government within the area of personnel management or organizational capacity. This not only applies to the public sector, but also to the private sector. However, it is more important for the public sector since government organizations are more conservative than private ones and because conventional public management studies have paid little attention to this aspect from an academic point of view. In addition, previously introduced Fountain’s propositions are expected to be expanded and verified by empirical researches. Her work can be discussed in terms of both distinctions between private and public sector or traditional and newly-emerging public management theory. Further research is expected in four directions. The first is critical research of this framework by applying it to diverse organizational sets. The reinvented framework of this research was examined by a single case in a public organization set, though the original Feeny-Willcocks
16
model was an intellectual framework derived from a multiple case study. Consequently, the following empirical researches of this approach will enhance the adaptability of this framework. Second, an interpretive and intensive case study applying this framework in dynamic context will contribute to understanding the social contexts underlying e-government practices. This model is expected to work as an analytical framework for following e-government research. Third, indepth studies on bureaucracy can be conducted based on the introduced literature. For example, the formal organization perspective provides many implications on the vision of bureaucracy in the e-government era. ITIL, IT governance, and IT outsourcing configuration models also show the shapes and rationales of organizational formats and processes. Finally, research should be conducted on how to implement and facilitate relative capabilities found in this research through staff training and establishing visions and IS/IT strategies. All of these researches are expected to contribute to the enhancement of government capabilities in terms of human resource and organization design, which constitutes the key parts of IT strategy required to e-government facilitation.
CONCLUSION This chapter discusses the framework for exploring capabilities of government organizations in terms of e-government. This is a critical research in that the chosen literature was attempted to be verified by a case study. The Feeny-Willcocks IS capabilities model is a proper framework for exploring organizational capabilities since its aim is shared with the subject of this research. Works by Dunleavy et al. and Fountain also supported this application of the works of IS research to public sector. Accordingly, this chapter will contribute to developing an interdisciplinary approach between the public management and IS researches. On the other hand, some modifications car-
The Development of E-Government Capabilities Framework for Government
ried out in this research increases the ability of this framework in public organization sets. On this point, reinvented framework can be referred to as the Seven Core E-government Capabilities Framework. This can be described here as, using the definition from Feeny and Willcocks, a framework for exploring and implementing the inhouse government capabilities needed to facilitate the development of e-government, measurable by overall, business-oriented, and IT-oriented capabilities and resulting performances. The seven capabilities are as follows: legitimation and relationship building as overall capabilities; IS/IT governance and business systems thinking as business-oriented capabilities; informed buying, contract facilitation and monitoring, and designing technical architecture as IT-oriented capabilities. It is noteworthy here to mention the differentiations between this framework and the original one. Legitimation was added in the new model. The capability of making technology work was excluded from the new model because it can be outsourced. In terms of theoretical perspectives, the interpretive flexibility shows how the decisions and interactions were negotiated and constructed responding to the introduction of e-government systems. DEG allows public management-dependent recognitions of e-government at a very high level. Although the original Feeny-Willcocks framework is grounded on resource-based perspectives, the combined scheme of IT management, like IT governance and ITIL, improves the consistency between the employed literature and realities in the PPS. Finally, a new paradigm of public management like DEG provides implications about how to integrate public management theories with the traditions of IS research. This chapter contributes to readers’understanding of e-government. For practice contribution, practitioners can obtain useful lessons from the addressed rationales of the model. However, though the findings here will not necessarily be applicable to other cases because the social context will be
different. Regarding academic contribution, a wide literature review was provided for reference in this chapter. As Yin (2003) suggested, that approach improved the universality of the single case study. In addition, this chapter addressed a reference framework, which can be employed and tested by many empirical and theoretical research studies from both public management and IS domains.
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Kallinikos, J. (2004). Farewell to constructivism: Technology and context-embedded action. In C. Avgerou, C. Ciborra & F. Land (Eds.), The social study of information and communication technology (pp. 140-161). Oxford, UK: Oxford University Press. Kallinikos, J. (2006). The consequences of information: Institutional implications of technological change. Cheltenham, UK: Edward Elgar. Lee, J. Y. (2007). Capabilities for affecting information systems and organisational changes: A case study of the Korean e-government procurement service. Unpublished MSc dissertation, The London School of Economics and Political Science, London. Lee, J. Y., Lim, G. G., Hahm, Y., & Lee, S. (2007). Government does e-business: The Korean government’s e-procurement system. In J. K. Lee, B. G. K. Siew & V. Sethi (Eds.), Premier e-business cases from Asia: Problem-solution-challengeimpact approach (pp. 155-174). Singapore: Prentice Hall. Lee, S. M., Tan, X., & Trimi, S. (2005). Current practices of leading e-government countries. Communications of the ACM, 48(10), 99–104. doi:10.1145/1089107.1089112 Locke, K., & Golden-Biddle, K. (1997). Constructing opportunities for contribution: Structuring intertextual coherence and ‘problematizing’ in organizational studies. Academy of Management Journal, 40(5), 1023–1062. doi:10.2307/256926 Mead, K., & Boeschoten, J. (2006). IT governance–finding the right approach for your firm. In A. Pappenheim (Ed.), Leadingedgeforum (pp. 1-58). Results: CSC Experience.
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Orlikowski, W. J. (1992). The duality of technology: Rethinking the concept of technology in organizations. Organization Science, 3(3), 398–427. doi:10.1287/orsc.3.3.398
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Orlikowski, W. J. (2000). Using technology and constituting structures: A practice lens for studying technology in organizations. Organization Science, 11(4), 404–428. doi:10.1287/ orsc.11.4.404.14600
UN. United Nations. (2004). Global e-government readiness report 2004: Towards access for opportunity. New York: UN. Retrieved on November 2, 2006, from http://unpan1.un.org/intradoc/groups/ public/documents/un/unpan019207.pdf
Orlikowski, W. J., Walsham, G., & Jones, M. (1996). Information technology and changes in organizational work: Images and reflections. In W. J. Orlikowski, G. Walsham, M. Jones & J. I. DeGross (Eds.), Information technology and changes in organizational work: Proceedings of the IFIP WG8.2 Working Conference on Information Technology and Changes in Organizational Work (pp. 1-10). London: Chapman & Hall.
Webb, P., Pollard, C., & Ridley, G. (2006). Attempting to define IT governance: Wisdom or folly? In Proceedings of the 39th Annual Hawaii International Conference on System Sciences (HICSS’06) Track 8, University of Hawaii, HI. Retrieved on October 29, 2006, from http://csdl2. computer.org /comp/proceedings/ icss/2006/2507/08/250780194a.pdf
Pinch, T. J., & Bijker, W. E. (1987). The social construction of facts and artifacts: Or how the sociology of science and the sociology of technology might benefit each other. In W. E. Bijker, T. P. Hughes & T. J. Pinch (Eds), The social construction of technological systems: New directions in the sociology and history of technology (pp. 17-50). Cambridge, MA: The MIT Press. PPS, Public Procurement Service. (2006). Annual report 2005. Daejeon, Korea: PPS. Retrieved on November 2, 2006, from http://www.pps.go.kr/ upload/ english/pub/2005/2005_Annual_Report. pdf
Weill, P., & Woodham, R. (2002). Don’t just lead, govern: Implementing effective IT governance. [Cambridge, MA: MIT Sloan.]. CISR WP, 326, 1–17. Willcocks, L., & Feeny, D. (2006). IT outsourcing and core IS capabilities: Challenges and lessons at Dupont. Information Systems Management, 49–56. doi:10.1201/1078.10580530/45769.23.1 .20061201/91772.6 Willcocks, L., Feeny, D., & Olson, N. (2006). Implementing core IS capabilities: Feeny-Willcocks IT governance and management framework revisited. European Management Journal, 24(1), 28–37. doi:10.1016/j.emj.2005.12.005 19
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Woolgar, S., & Grint, K. (1991). Computers and the transformation of social analysis. Science, Technology & Human Values, 16(3), 368–378. doi:10.1177/016224399101600305 World Bank. (2006). E-government procurement in World Bank projects: An operational perspective. In Proceedings of the High-level Seminar on E-procurement, Naples. Washington, D. C.: World Bank. Retrieved on November 2, 2006, from http:// www.oecd.org/dataoecd/57/46/36238837.pdf Yin, R. K. (2003). Case study research: Design and methods. Thousand Oaks, CA: Sage.
KEy TERMS AND DEFINITIONS Seven Core E-Government Capabilities Framework: A framework for exploring and implementing the in-house government capabilities needed to facilitate the development of e-government, measurable by overall, businessoriented, and IT-oriented capabilities and resulting performances. Business-Oriented Capability: A capability which should be retained more by business staff based on knowledge of organizational strategy and business process.
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IT-Oriented Capability: A capability which should be retained more by IT staff based on knowledge of IT. Relationship Building: Getting the business constructively engaged in IS/IT issues (overall capability). Legitimation: Managing the organizational structure, legal framework, and public relations for IS to work (overall capability). IS/IT Governance: Integrating IS/IT effort with business purpose and activity (businessoriented capability). Business Systems Thinking: Envisioning the business process that technology makes possible (business-oriented capability). Informed Buying: Managing the IS/IT sourcing strategy and designing the IT outsourcing configuration that meets the interests of the business (IT-oriented capability). Contract Facilitation and Monitoring: Organizing and ensuring long-term success of contracts in a win-win way with IS/IT service suppliers (IT-oriented capability). Designing Technical Architecture: Creating the coherent blueprint for a technical platform that responds to current and future business needs (IT-oriented capability).
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Chapter 2
Digital Inclusion and Electronic Government Looking for Convergence in the Decade 1997-2008 Helena Pereira da Silva Federal University of Bahi, Brazil Lídia de Jesus Oliveira Loureiro da Silva University of Aveir, Portugal
ABSTRACT This chapter presents the results of the search carried out in the Library and Information Science Abstracts (LISA) database, with the aim of shedding light on the status of the connection between digital inclusion and electronic government. The theme is the leitmotif of the authors’ research projects. The method of search is detailed, and the strategies used are presented. The search took place at two different times: in August 2006 and in October 2008. The results of each survey are presented separately, with the purpose of comparison and to emphasize the differences between one and the other. Two aspects were the focus of the analysis of the retrieved items: the process of information retrieval and the objective and questions of research. In the 2006 survey, the points that stand out are: that researchers need to be competent in information retrieval from bibliographic databases; the new role of public libraries and librarians, with respect to electronic government; and the importance of formulating national policy on information and electronic government. The second study highlighted again: the need for informational competence on the part of researchers for the retrieval of information; the concept of Information Asymmetry, as a new component in the relationship between digital inclusion and electronic government; the importance of the architecture of information in government Web sites and the role of professional information;
DOI: 10.4018/978-1-60566-671-6.ch002
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Digital Inclusion and Electronic Government
and electronic citizenship or cyber-citizenship. This study showed that “digital inclusion” and “electronic government” is a “kaleidoscopic” topic because it reveals many other facets, according to the evolution of the use and non-use of ICTs (Information and Communication Technologies), particularly access to and use of information on the Internet. However, one idea seems central and permeates all considerations of this relationship: that the implementation of electronic government and its success go far beyond technology deployment. The effectiveness of electronic government depends on many more issues involving the participation of citizens. This participation depends on issues related to the provision of information and care with the architecture of information for government Web sites, in addition to training information for citizens.
INTRODUCTION
BACKGROUND
This chapter presents the results of the search carried out in the Library and Information Science Abstracts (LISA) database with the aim of shedding light on the status of the connection between digital inclusion and electronic government. The questions and objective addressed by this research on “digital inclusion and electronic government” were outlined by the Information Policies and Digital Inclusion Studies Group (Grupo de Estudos em Políticas de Informação e Inclusão Digital - Gepindi), of the Institute of Information Science at the Federal University of Bahia (ICI/UFBA), Brazil, and the Communication and Information in New Technologically Mediated Contexts Group, at the Research Unit CETAC.MEDIA, Centre of Studies in Technologies and Science Communication at the University of Aveiro, Portugal. The considerations underpinning the formulation of the research questions are outlined in the first section, entitled Background. The review of literature is the research itself and this is described in the section: “Main Focus of the Chapter”, where the “Method” of bibliographical research and the “Discovery” are presented. The “Discovery” took place at two separate moments, through the analysis of papers located in the Library and Information Science Abstracts Database (LISA). The section “Future Trends” discusses possibilities for future research and is followed by the “Conclusion”.
Since 2003, the theme of digital inclusion has been studied by Gepindi under the INFOINCLUSION Studies Program. The underlying rationale behind this work is the concept of digital inclusion, with access to information on the Internet being the central issue. This condition is a question of ethics and citizenship in the XXI century. The ethical issue involves the recognition of everyone’s right to access e-information while citizenship comprises “electronic” citizens, exercising their rights and respecting their duties through the services provided by remote access. Access to e-government information is associated to this condition. Increasingly, governments around the world are becoming e-governments. They communicate their information and services through digital means and advocate the promotion of digital inclusion. Visibility and deployment occur through the means of portals, which enable the State to reach citizens and to be understood by them. In this way, they should be intelligible and easily incorporated into the daily transactions that take place between citizens and government. Searching for information on government portals, even if they are user-friendly and logical, can be complex, or even impossible, for those who are not information literate. Therefore, it is necessary to instruct people towards information literacy education. However, not everyone, in the short to mid-term, will succeed in obtaining the
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necessary skills to interact virtually with governments, search for information or use information systems. In this situation, the role of intermediaries is fundamental in order to help citizens that may not otherwise reach an adequate level of information literacy. In short, digital inclusion does not exist unless a citizen has access to the information available on networks and is able to use it in their lives, as with e-government. This approach towards digital inclusion is supported in the policies and/or directives considered to be fundamental for the Gepindi partnership (UFBA) and the Communication and Information in New Technologically Mediated Contexts Group (CETAC.MEDIA): the Brazilian Information Society Program (Takahashi, 2000) and the Portuguese Information Society Program (Missão, 1997). In addition to these sources, UNESCO (Uhlir, 2004) drew up directives on public information access policies, with the aim of drawing attention to digital exclusion; the importance of the dissemination of government public domain information, and highlighting the responsibility of governments in promoting access to this information. The latest directives were those drawn up during the HighLevel Colloquium on Information Literacy and Lifelong Learning, that took place in November 2005 in the Alexandria Library, promoted by the following organizations: UNESCO; the National Forum on Information Literacy (NFIL) and International Federation of Library Associations and Institutions (IFLA), (High-Level, 2006). Important international institutions congregated in this symbolical place of Knowledge for this event. The “Alexandria Proclamation” honors information literacy and lifelong learning as pillars of the Information Society and as the conditions needed for development, prosperity and freedom. These conditions endow people with the skills to locate, evaluate and use information for their personal, social, educational and work purposes, and finally to achieve social inclusion. They are part of the Basic Universal Rights in the digital world.
During one of the sessions, the relationship between information literacy governance and citizenship was discussed. Elizabeth Dudziak, a researcher who has carried out research into this theme for some time now, represented Brazil during this session and declared that citizenship goes beyond identifying needs and how to search for information; she shared her knowledge about why information is important. She stated that the intermediary process can be applied to information skills and that librarians may be the intermediaries between information, information skills and the community. (High-Level, 2006, p.82). These observations about the relevance of the connection between “digital inclusion and e-government” brought to the fore the following questions: 1. 2. 3.
How has this connection been addressed in international literature? Who has been working on it? What information is available on Brazil and Portugal?
Having stated that the research would be restricted to online bibliographical databases, the underlying goal was to understand, in an analytical way, the status of the connection between digital inclusion and electronic government “discovered” in bibliographical databases, in terms of contents and authors/researchers. In particular, it was to understand the situation in Brazil and Portugal. Thus, as mentioned above, the research we proposed was the search for literature within the theme, as indicated by the questions above, which justifies the lack of a literature review here in this section.
MAIN FOCUS OF THE CHAPTER The Method The research design followed the three steps outlined below: 23
Digital Inclusion and Electronic Government
1.
2.
3.
“to discover what knowledge existed” involving the connection between “digital inclusion and e-government” and analyze it; “to discover” the authors and/or researchers who had published and/or researched this connection and to map it; and to identify relevant Brazilian or Portuguese information and authors/researchers in the retrieved results.
The expression “discover” is used because the knowledge we sought is “hidden”, and it is necessary to lift the “veil” or truly “search” within the “mountain of information” found on bibliographical databases, with indexing languages that do not always reflect the contents. This means that the indexing and functional specificities of each database should be studied, in order to establish search strategies that guarantee a relevant result, or prevent relevant information from being lost. The authors decided that the Library and Information Science Abstracts (LISA) should be the first database to be consulted, as it is one of the most important sources covering Information Science. In this way, the results retrieved from LISA offer an initial overview of the area. The search strategies developed on LISA will serve as directives for other databases that cover correlated areas. During the “search” of the Capes Periodicals Portal (CAPES - Coordenação de Aperfeiçoamento de Pessoal de Nível Superior - http://www.periodicos.capes.gov.br/portugues/ index.jsp), all of the papers available online as full text were retrieved. The analysis of results involved two aspects: the recovery of information and the proposed objective. They can be defined as dependent and independent variables. The recovery of information was the independent variable and obtaining the contents, in order to reach the objective, depended on the recovery method used, without which the results might have been nil. The first expression found was “digital inclu-
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sion” and “electronic government”. The result of this recovery determined the following strategy and any strategies that followed. The recovered items were placed in tables, in the same way as they appear on the database in order to demonstrate the reasoning behind the strategies and to analyze the results. The LISA search was conducted in two time frames; the first “discovery” took place from the 5th – 19th August, 2006, and covered the period from its beginning, in 1969, until that moment. These results were presented in Silva & Silva (2006). The second “discovery”, seeking to update the results and to answer the call of this Handbook, was done in October 2008, 10th. The results are presented separately but they are summarized in the conclusion.
The First “Discovery” (up to 19th August 2006) LISA has been a referential database since 1969 covering more than 400 titles, 68 countries and 20 languages. The indexing of the subjects is in English. The recovery system used included the “Scholar Universe” database that registers professional profiles. It was thus decided to search the “Scholars database” when the papers were retrieved in order to answer the question, “who is working on this theme”. In the description of the strategies below, the keywords are between quotation marks; the Boolean operators are between brackets and the fields or search resources are between square brackets. The strategies are presented in sequential order, followed by the results: 1.
Before the researchers carried out the searches, they verified that the terms, “digital inclusion” and “electronic government”, do not appear as descriptors in the LISA Thesaurus (August, 2006). However, the title “Descriptors” appears as a field in the format of search results. Thus, the descriptors, as that field demonstrates, are also data
Digital Inclusion and Electronic Government
Table 1. Expression: “digital inclusion” [Keywords] (and) “access to information” [Descriptors] (and) “information literacy” [Descriptors] Author Conhaim, W. W.
Title
Publication
Descriptors*
Update on the digital divide in the United States
Link-Up (USA); 18 (4) Jul/Aug 2001, p.2
Internet; Access to information; Social aspects; Social inclusion concept; Information literacy; USA
* To reiterate: the expression “Descriptors” is in the log format of LISA. It represents not only the descriptors that appear in the Thesaurus, but also the terms given by the human indexers, who keep up the records in the database. Evidence of this is that the term “electronic government”, which will be considered in the next few strategies, is not in the Thesaurus, but is in the field “Descriptors” in some of the results.
2.
3.
4.
for allocation of indexers, even if they do not appear in the Thesaurus. In this way, the search began with the expression “digital inclusion” [Descriptors] (and) “electronic government” [Descriptors]. The results were nil. The same expression under [Keywords], “digital inclusion” [Keywords] (and) “electronic government” [Keywords] was used, and again results were nil. The function [Keywords] also searches in the fields of title and abstract, as well as the field Descriptors. Considering the adopted digital inclusion concept, the expression “digital inclusion” [Keywords] (and) “access to information” (and) “information literacy” [Descriptors] was formulated. The result was one paper (see Table 1) and the results for Scholars were nil.
Conhaim (2001) comments on digital exclusion by presenting some statistics about access to the Internet for Africans and Hispanics in the United States, with reference to the report entitled, “Falling Through the Net: Toward Digital Inclusion”, 2000, by the Department of Commerce National Telecommunications and Information Administration. This record was recovered because the expression “digital inclusion” was present in the title in the abstract of the report. The items “Information Literacy” and “access to information” arose amongst the descriptors, representing the content that deals with digital exclusion as lack
of access to the Internet, but the indexation did not consider as descriptors “digital inclusion” or “digital divide”, which appear in the title of Conhaim. Conhaim (2001) also refers to the original discussions about digital exclusion and inclusion. The author informs us that the expression “digital divide” originated in the issue of “information haves and information have-nots”, those who have access and those who do not have access to information, or better still, those poor and those rich in information. There is much controversy about the date and origin of the term “digital divide” (Brandão & Silva, 2004), but there is no doubt that considerations about the “digital divide” and “digital exclusion” have led to the growth of the worldwide movement for “digital inclusion”. 5.
Considering only “digital inclusion” [Descriptors] it was confirmed that the term does not exist as a descriptor, or by allocation of human indexers, but two papers were retrieved (see Table 2).
Even though it is a prominent theme in the United States, the home of LISA, the term “digital inclusion” has not yet become part of its index language. It appears in the Farmer record because it is part of the title and not because it was considered in the subject matter. Seeing that it is a book review, it was not used as part of our analysis. Moore (2005) presents the term in the title of the project that she reports. This has an interesting
25
Digital Inclusion and Electronic Government
Table 2. Expression: “digital inclusion” [Descriptors] Author
Title
Publication
Descriptors
Farmer, Lesley S J
Digital inclusion, teens and your library
Library + Information Update; 4 (12) Dec 2005, pp.45
Book review abstracts; Digital inclusion, teens and your library
Moore, Wilma
Supporting learning in the Gorbals
Information Scotland; 3 (2) Apr 2005, pp.10-11
Libraries; Education activities; Educational technology; Computer assisted instruction; Computers; Users; Disadvantaged people; Public libraries; Scotland; Glasgow; Gorbals; Gorbals Digital Inclusion Project
Table 3. Expression: “digital divide” [Keywords] (and) “electronic government” [Descriptors] (and) “access to information” (Descriptors) Author
Title
Publication
Descriptors
Berryman, J.
E-government: issues and implications for public libraries
Australian Library Journal; 53 (4) Nov 2004, pp.349359
Access to information; Information technology; Government information; Electronic government; Public libraries
Sealy,W.U.
Empowering development through e-governance: creating smart communities in small island states
International Information and Library Review; 35 (2-4) Jun -Dec 2003, pp.335-358
Information communication; Government information; Access to information; Public; Companies; Impact; Internet; Users; Government; Caribbean; Electronic government; Information society concept
and current content, although it does not relate to e-government. The paper describes the work of the Gorbals Library and Learning Centre within the Gorbals Digital Inclusion project, which involved more than 6 thousand residents of the neighborhood for a period of three years. It contributed to the employment of 150 local citizens and has developed projects in order to form a community network with the support of ICTs. Gorbals is a suburb of Glasgow, Scotland, that has serious social problems. The new library, inaugurated in 2004, was intended to be a centre of excellence for the XXI century. According to the author, the aim was to attract those who did not usually visit a traditional library. A pleasant atmosphere and a new service concept make this library a new space for accessing information and learning. This is an interesting example of how public libraries can review their roles. The descriptors include terms that can be taken into account in future searches, such as: Disadvantaged people; Public libraries; Education activities. This result puts forward a new
26
strategy related to the expression “digital divide”, that is also not present in the Thesaurus. 6.
7.
Thus, the search for “digital divide” (and) “electronic government” under [Descriptors] produced no result. Searching for “digital divide” [Keywords] (and) “electronic government” (and) “access to information” under [Descriptors], two papers were recovered (see Table 3) but none were found in the Scholars database. The result was the same for all of the expressions under [Keywords].
The term “electronic government” comes up as a descriptor by attribution of the human indexer. Despite the fact that the concept “information literacy” is not related, the recovered papers are excellent examples of the proposed connection. Berryman’s paper (2004) is based on the New South Wales (NSW) Public Library Network Research Committee Report, Australia, 2004. It
Digital Inclusion and Electronic Government
forms part of an important project which aims at understanding the impact of the delivery of e-government services of NSW through the means of public libraries. The author prefers the term “electronic government”, which can be similarly understood in other expressions, such as “electronic government service delivery”; “government online (GOL)”; “e-administration” or “e-democracy”. Berryman (2004) carries out a literature review on the development of e-governments around the world and attributes two possible roles to public libraries: that of preserving the traditional role of information provider, now through electronic means, and the new role of intermediary for the transactions between the public and e-government. This means, according to this author, that the public library should play an important role in encouraging the use of e-government resources, which implies a significant development in the role of public libraries. The paper outlines the themes and the implications for public libraries, such as the impact of digital exclusion and the action of intermediaries. Sealy (2003) addresses the impact of ICTs on contemporary society and how they can provide channels for the government to reach isolated communities by means of “information kiosks” that would be made available in libraries, police headquarters, tourist information centers and post offices. The author states that it is not possible to discuss e-government and its functions, without holding a debate on digital exclusion. This correlates entirely with our proposed connection. 8.
9.
The term “government information” appeared amongst the descriptors and it is also in the Thesaurus. It was inferred that a new strategy should be used with “digital divide” (and) “government information”. When searching for both terms under [Descriptors], the results were nil. Under the expression “government information” (and) “digital divide” under
[Keywords], fourteen papers were found. 10. By refining the search further with the expression: “digital divide” [Keywords] (and) “government information” (and) “access to information”, both [Descriptors], seven articles then remained. 11. By refining the search again, with the expression “information literacy” all [Keywords], the results were nil. 12. Therefore, the authors took into consideration the seven papers retrieved from the previous strategy. Among them, Berryman and Sealy (see Table 3) appeared once again. The remaining five papers are presented in Table 4. The result retrieved with the term “government information” shows that if the search was restricted to “electronic government”, there would be a loss of information. The titles refer to the concept of electronic government with the expressions: “egovernment”; “e-governance” and in three of them, “digital divide” was present. These papers were not retrieved when the term “electronic government” was used, but the index identified this connection with “access to information”. However, the term “information literacy” did not come up. Choudrie, Weerakkody & Jones (2005) carried out comparative empirical research on an urban and a rural area in the United Kingdom. They discuss digital inclusion and e-government and point out that one of the greatest challenges for the government is to encourage citizens to search for services via the Internet and to build a single information system for easy service access. They realize that, just as in the private sector, the government has been trying to provide its services to the whole country, however, there are certain regions and groups that will always remain excluded. Evans & Yen (2005) discuss the rising potential of efficiency and the benefits of the implementation of e-government in the United States and in the international community. They state that e-government can offer full time services to citi-
27
Digital Inclusion and Electronic Government
Table 4. Expression: “digital divide” [Keywords] (and) “government information” [Descriptors] (and) “access to information” [Descriptors] Author
Title
Publication
Descriptors
Choudrie, Jyoti; Weerakkody, Vishanth; Jones, Stephen
Realizing e-government in the UK: rural and urban challenges
Journal of Enterprise Information Management; 18 (5)2005, pp.568-585
Access to information; Information technology; Communications technology; Government information; Rural areas; Urban areas; UK; Comparative studies
Evans, Donna; Yen, David C
E-government: an analysis for implementation: framework for understanding cultural and social impact
Government information Quarterly; 22 (3) 2005, pp.354-373
Access to information; Information technology; Government information; Local government; USA
Weerasinghe, Shivanthi
Revolution within the revolution: the Sri Lanka attempt to bridge the digital divide through e-governance
International Information and Library Review; 36 (4) Dec 2004, pp.319-327
Access to information; Information technology; Government information; Sri Lanka
Kuk, George
The digital divide and the quality of electronic service delivery in local government in the United Kingdom
Government information Quarterly; 20 (4) 2003, pp.353-363
Online information retrieval; Local government information; Web sites; Public services; Internet; Access to information; UK; Surveys
National Information Policy developments worldwide. 2: Universal access: addressing the digital divide
Journal of Information Science; 28 (4) 2002, pp.263-73
Access to information; Government information; National policies; Surveys
M u i r , Oppenheim,C
A ;
zens, with more efficiency and at a much lower price. However, some obstacles to implementation, such as: citizen resistance, high investment and implementation conditions are not easy to overcome. They also analyzed the historical government/citizen relationship, from the perspective of e-government. In addition, they looked at the advantages, disadvantages and the domestic and international social impacts, concluding that the implications on cultural order and social values are more significant than on technological issues. Finally, it is also pointed out that non-access to e-government facilities may heighten the situation of global digital exclusion. Weerasinghe’s paper (2004) refers to the concept known as E-Sri Lanka which aims at connecting the country and diminishing the information imbalance. This technologically enabled integration emphasizes that libraries and librarians have very important roles. The libraries need to change from places where documents are kept to centers of digital information access. Librarians also need to become information professionals
28
able to address user needs on the Internet, which is an infinite repository of information. This paper identifies the implementation of e-government as a challenge to libraries and librarians in Sri Lanka, which should now adopt their new role as “bridges” towards digital exclusion. Kuk (2003) clearly refers to the connection between digital inclusion and e-government. The author states that the greatest challenge is to encourage people to use it. Furthermore, he presents Internet usage statistics per region in the United Kingdom and then analyzes the websites of local governments. He concludes that the websites, in terms of the contents made available to citizens, are mediocre. They are organized according to government structural requirements and not according to citizen information needs. The author compares the access statistics to the quality of the websites and points out that there is a direct connection between the quantity of services and information offered and the quantity of access and use. He realizes that the proposal to balance access availability among various social groups is more rhetoric than reality.
Digital Inclusion and Electronic Government
The work of Muir and Oppenheim (2002) is the second of a series of four papers with the general title “National Information Policy developments worldwide: I electronic government; II universal access – addressing the digital divide”; “III ecommerce; IV copyright, Freedom of Information and data protection”. All the papers discuss the research results, whose goal was to identify government initiatives related to the national information policies of developed countries during the period 1997-2000. The first paper that looks at e-government has not been retrieved; it was identified in the references of the second one. The complete text was then recovered and analyzed. The third and the fourth were not analyzed. Concerning e-government, Muir and Oppenheim, point out that the identified results show problems citizens may have with the use of technology and the risks of digital exclusion are rather vaguely addressed. The emergence of government portals was without a doubt the most significant development found in the period studied. The leading countries presenting the most effective portals for their citizens were: Australia, New Zealand, the United States and Canada. The authors refer to universal access as part of a national information policy that will provide access to information for all, irrespective of location, financial resources or disability. They declare that from the retrieved results, this issue has remained in a rhetorical and ideal state. This concept has been widely discussed in terms of digital exclusion, on the basis that the poorest citizen living in the most remote region should have access to information which is equal, in terms of quantity and quality, to that available in urban areas. Furthermore, government policies are changing their focus from universal information access to universal e-information access. The authors also emphasized that digital exclusion goes beyond simply having or not having access to the Internet. The technological problems and those of access to technology are easy to solve. The issue is to address the disparity
in ability in certain sectors of the population when using technologies and accessing information. The Internet offers people services for a number of routine activities, but normally these are restricted to a small sector of the population. They point out that there is still a large variation in the level of policy detail regarding the provision of universal access. In several countries, universal access does not have an independent, clear program, but only underlies other government initiatives. They allege that. surprisingly, the initiatives are always carried out from top to bottom and little effort is made to find out what citizens really want from ICTs. They point out that the approach concerning citizens’ information needs is a promising research area. They also state that the solution for digital exclusion resides in active partnerships between industry; non-government organizations and the government. 13. Table 4 includes the final search results obtained under related concepts. In all of the strategies used, the result for Scholars was nil. To answer the question proposed regarding who is working on the theme, this research looked at the authors of the retrieved papers. Each author’s name was searched for on the LISA database, with a view to assessing the number of papers they had written in order to discover any possible line of research related to the theme and whether their profile was in the Scholars database. The presentation in Table 5 follows the order in which the authors appeared in the tables above, followed by their affiliation institution, present in the same paper, and the number of papers identified on the database. From the recovered authors, three are from the United Kingdom; two from the United States, one is from Scotland; one is from Australia; one is from Sri Lanka and one is from the Caribbean. None of the authors, even those that have written
29
Digital Inclusion and Electronic Government
Table 5. Authors Identification, Number of Papers Retrieved and Scholars Profile Authors
Affiliation Institution and Country
Other references on LISA
Conhaim,W.W.
No affiliation present – USA
83 other references appear between 1993 and 2003 in Link Up No reference in the Scholars database.
Moore, Wilma
Community Libraries Network Manager, Glasgow Libraries – Scotland.
No other references. No reference in the Scholars database.
Berryman, Jennifer
Planning and development of policies for the state library of New South Wales, Australia. Doctoral research at the University of Technology, Sydney. He lectures on information management and is responsible for research projects on quality management consultancy.
One other reference appears: about a 1984 conference paper concerned with public library services for people with special needs. No reference in the Scholars database.ne in the base Scholars.
Sealy,Wendy Unette
Manager of the Information Services Unit of the Caribbean Development Bank in Wildney, Barbados; Chairman Caribbean Information Action Group - (CARINFO)
No other references. No reference in the Scholars database.
1-Choudrie, Jyoti; 2-Weerakkody, Vishanth; 3-Jones, Stephen
1 - School of Information Systems, Computing and Mathematics, Brunel University, Uxbridge; 2 -University of Salford, Salford, UK; 3 - Conwy County Borough Council, Conwy, UK
Choudrie: Four other papers appear concerning ICTs; information and telecommunication systems; Weerakkody: only one paper on the database; Jones: one other conference paper from 1979 about data recovery. No reference in the Scholars database.
Evans, Donna; Yen, David C
Evans does not present an affiliation. Yen: Department of Decision Sciences and Management Information Systems, Miami University, Oxford, Ohio – USA
Evans: only one reference on the database Yen: 7 other references No reference in the Scholars database.
Weerasinghe, Shivanthi
Bank of Ceylon, Library, Colombo 01, Sri Lanka
One other paper about the Bank of Ceylon website. No reference in the Scholars database.
Kuk, George
Nottingham University Business School, Jubilee Campus, Wollaton Road, Nottingham, UK
Only one paper in the database. No reference in the Scholars database.
Muir, Adrienne; Oppenheim, Charles
Both from the Department of Information Science, Loughborough University, UK
Muir: 15 other papers 1993-2002 Oppenheim: 165 other papers, from 1974 to 2003, commented on below. No reference in the Scholars database.
many papers, reflect a line of research related to the theme “digital inclusion and e-government”, or to either of the subjects separately. Conhaim, with eighty three papers, maintained a writing column from 1993 to 2003, which is the date of his last work that appears on LISA. In this paper, he comments on the issues that accompany the development of ICTs and their implications. It is neither an academic nor a research paper. Muir and Oppenheim are the only authors who are clearly academically affiliated to Information Science and with a large number of papers.
30
Nevertheless, neither of them has this theme as a line of research, because Muir’s last paper on this database is dated 2002 whilst Oppenheim’s is 2003. A general overview of their research, from 1974 to 2003, demonstrates that they tried to accompany the evolution of information processing and organization through digital means. 14. As no Brazilian, Latin-American or Portuguese papers were found, the authors decided to search for the expressions “Brazil” [Descriptors] (and) “digital divide” (and)
Digital Inclusion and Electronic Government
Table 6. Expression: “Brazil” [Descriptors] (and) “government information” [Keywords] Author
Title
Publication
Descriptors
Gracioso, Luciana de Souza
Disseminação de informações estatísticas no Brasil: práticas e políticas das agências estaduais de estatística.
Ciência da Informação; 32 (2) 2003, pp.69-76
Information services; Government information; Statistics; Brazil
Barboza, E. M. F.; Nunes, E. M. A.; Sena, N K
Web sites governamentais, uma esplanada à parte
Ciência da Informação; 29 (1) Jan/Apr 2000, pp.118-205
Online information retrieval; Federal government information; Brazil; World Wide Web; Web sites
Souza, L.P.
A informação estatística: bem econômico e social
Perspectivas em Ciência da Informação; 2 (2) Jul/Dec 97, pp.203-22
Information work; Statistics; Government information; Brazil
“electronic government” [Keywords], with nil results. 15. With “Brazil”[Descriptors] (and) “electronic government” [Keywords], again there were no results. 16. The expression “Brazil” and “government information” and “access to information” [Keywords], results also produced no results. 17. “Brazil” and “government information” [Keywords] (see Table 6). The first and third papers are not pertinent to this study. However, Barboza, Nunes & Sena (2000) clearly encompass the theme of e-government, as e-government is only successful when information is presented effectively on the pages available on the Internet, reaffirmed by Muir and Oppenheim and directly stated by Kuk. The paper dated 2000 synthesizes the research carried out about the analysis of the web portals of the Brazilian government, from an ergonomic point of view, for the Information Society Program in Brazil. The conclusion was that they needed to make adjustments for better information access. The indexing in the paper itself did not identify e-government or government information. This result, that presents two well-known publications in the area of Information Science in Brazil, alerts us to the fact that there were no Brazilian papers retrieved using the term “digital inclusion” in [Keywords]. At least one paper
should have been retrieved among the results. Silva et al. paper (2005), which was published in ‘Ciência da Informação’ and includes this term as a keyword and in the Abstract. While searching for the title of the publication on LISA, we verified that the year 2005 is still not indexed. With regard to the publication ‘Perspectivas em Ciência da Informação’ we discovered that the year 2005 is indexed, but that there is a gap from 2000 to 2004. By performing a search in the year 2006, under the field , the result retrieved 3301 records. A general overview of these indicated that they are mostly European or American publications. Thus, we can infer that the contents of the Latin-American countries are not prioritized on the LISA database, thus affecting the knowledge of this area in that region of the world. 18. The same strategy was applied to “Portugal” [Descriptors] (and) “digital divide” (and) “electronic government” [Keywords], with nil results. 19. “Portugal” [Descriptors] and “electronic government” [Keywords] retrieved no papers. 20. “Portugal” (and) “government information” (and) “access to information” [Keywords] again obtained no results. 21. “Portugal” and “government information” [Keywords] retrieved one paper (see Table 7).
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Digital Inclusion and Electronic Government
Table 7. Expression: “Portugal” [Descriptors] (and) “government information” [Keywords] Author Vidigal, L
Title
Publication
Descriptors
As novas tecnologias multimédia e o papel dos profissionais de informação e documentação
Cadernos BAD; (3) 1993, pp.81-90
Computerized information work; Government; Portugal
The search retrieved the 1993 article from the Portuguese publication ‘Cadernos BAD’. Vidigal, in that year, stressed the importance of taking advantage of the potential of information professionals in the organization of government information. The paper was written at the beginning of the commercial opening of the Internet, therefore it was an innovative vision that recognized the value of professionals. This was the last result obtained from the database. Other strategies could “retrieve” significant contents. A “miner” using the term “information literacy”, which has not appeared other than in relation to Conhaim, is likely to identify relevant contents. This will be considered in future research.
The Second “Discovery in LISA” (2005 - 10th October 2008) It is important to remember that the first “discovery” ended in August 2006. However, the second “Discovery” also encompassed the year 2005 because it was found that some Brazilian journals were not indexed in LISA, until that moment. This discovery considered the same search strategies as the first one, following the same order. The results are presented below: [It may also be noted, in advance, that no profile was found on the “Scholars” database the second time which reflected the proposed relationship between “digital inclusion” and “electronic Government”. The recovery on this database does not use exactly the Boolean operator (and), which results in the recovery of profiles that have only one of the words, which do not correspond to the relationship proposal. Thus the recovery in the database Scholars will not be discussed.]
32
1.
2.
3.
The terms “digital inclusion” and “electronic government” were still not listed as descriptors in the LISA Thesaurus. The relation “digital inclusion” [Descriptors] (and) “electronic government” [Descriptors] again revealed no result. The expression “digital inclusion” [Keywords] (and) “electronic government” [Keywords], whose result was zero in 2006, now produced one reference, which is in table 8.
The term “digital inclusion”, has not yet been used by human indexers, as demonstrated by the field Descriptors. The reference was recovered because “digital inclusion” is in the abstract of the record. Recapitulating, the function [Keywords] searches in the title and abstract, as well as in the field Descriptors. This result highlighted again the fact noted earlier, about the article by Silva (2005), published in the journal, Brazilian Information Science, not being recovered. Checking again the indexing of the journal, it was found that the 1st issue, where this article was published, ha not yet been indexed. Only the second issue had been indexed. It is important to point out again that such a lag in indexing affects the knowledge about the subject in Brazil. In this article, Asgarkhani (2007) discusses the strategic value and the effectiveness of e-government. He refers to it as “digital government”, where it concerns enhancing citizen participation and social inclusion. He makes a review of optimistic and pessimistic views on the impact of e-government, along with some perceptions about the social, cultural and ethical. For him it is necessary to examine four specific areas to
Digital Inclusion and Electronic Government
Table 8. Expression: “digital inclusion” [Keywords] (and) “electronic government” [Keywords] Author Asgarkhani, Medhi
Title
Publication
Descriptors
The reality of social inclusion through digital government
Journal of Technology in Human Services, 25(1/2) 2007, pp. 127-146
Electronic information services; Government information; Social exclusion; Electronic government; Digital divide
determine “effectiveness”, including: the view of management and ICT strategists; social and cultural implications; the implications of digital inclusion/exclusion and e-readiness upon social inclusion; and the citizens’ view of the success of e-government in enhancing public access to information and transparency, based on a pilot study of e-government initiatives by local government in the region of Canterbury, New Zealand. The author concludes that technology alone is not enough to drive e-government although it can be a catalyst for reform to promote social inclusion. Asgarkhani’s conclusion proves once again that the implementation of electronic government and its success go far beyond technology development. The effectiveness of electronic government depends much more on issues involving the participation of citizens. This participation depends on issues related to the provision of information and care with the architecture of information for government websites, in addition to the informational empowerment of citizens. 4.
Considering the arguments presented above for Number 4 of the first search, the strategy “digital inclusion” [Keywords] (and) “access to information” (and) “Information Literacy” [Descriptors] was formulated. The result was zero.
5.
6.
7.
8.
Checking again for “digital inclusion” [Descriptors], the only recovered item was again Farmer’s (2005) book, cited in Table 2. In this recovery, this title appeared in another journal, the “Journal of Librarianship and Information Science”, in June 2006. The same observation, which was made in Table 2, is valid for this new record of the same reference. The term “digital divide” is also not yet in LISA’s Thesaurus. Seeking the two terms “digital divide” (and) “electronic government” under [Descriptors], the result was 1 paper, Asgarkhani (2007) the same paper as given in Table 8. This is in contrast to the 2006 search, when the results were nil. The expression “digital divide” [Keywords] (and) “electronic government” (and) “access to information” under (Descriptors), gave no result, unlike in the first survey, which produced two relevant items. The search for “government information” (and) ‘digital divide’ [Descriptors] recovered 2 papers, one was again Asgarkhani, Medhi (2007). The other paper is in Table 9.
Clarkson, Jacobsen and Batcheller (2007) argue that, while much digital divide research focuses on access to technology, another cause of
Table 9. Expression: “government information” (and) “digital divide” [Descriptors] Author Clarkson, Gavin; Jacobsen, Trond E.; Batcheller, Archer L.
Title
Publication
Descriptors
Information asymmetry and information sharing
Government Information Quarterly; 24(4), Oct 2007, pp. 827-839
Information communication; Digital divide; Government information; American Indians.
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Digital Inclusion and Electronic Government
Table 10. Expression: “digital divide” [Keywords] (and) “government information” [Descriptors] (and) “access to information” [Descriptors] Author Stowers, Genie N. L.
Title
Publication
Descriptors
User Help and Service Navigation Features in Government Web Sites.
International Journal of Electronic Government Research, 2(4) Oct-Dec 2006, pp. 24-39.
Access to information; Government information; Information technology; Communications technology; World Wide Web; Web sites; Searching; User interface
the divide is the lack of information awareness that they call information asymmetry. They consider that Information asymmetry often stems from inadequate information sharing and can result in negative consequences for both the information poor and the information rich. For these authors information asymmetry has been insufficiently studied as a possible cause of underdevelopment and inequality. In response, they developed a typology to classify information asymmetry into two categories, horizontal and vertical, and then identify those information sharing practices that cause the imbalance. To illustrate the negative consequences of information asymmetry and the potential benefits of information sharing, they discuss two examples from the experiences of modern American Indian tribes. First, Indian tribes face horizontal information asymmetry when they attempt to access the capital markets, and second, they face vertical information asymmetry in terms of law enforcement data sharing. They also describe the ongoing examination of horizontal information sharing among tribes and vertical information sharing between tribes and other groups in the American polity as possible solutions to the problems created by information asymmetry. These strategic responses are embodied in two information systems, the Tribal Financial Information Clearinghouse and an Intergovernmental Tracking System for sharing law enforcement data. They conclude with a discussion of how the typology can be more generally applied to other instances of information asymmetry, as other underserved communities, including poor urban areas, remote rural communities, and other
34
disadvantaged populations, these information poor entities could use the strategy of horizontal information sharing to increase their abilities to overcome the challenges to their communities. This was the first time authors were faced with the concept of “Information Asymmetry”. This will be an important consideration in future research, especially relating to “practices of information sharing,” as the authors point out. For them, while efforts have succeeded in removing the impediment of access to information technology, they may uncover forms of information asymmetry that continue to characterize practices of information sharing. It is interesting to note that the term “electronic government” is not considered by the authors, but “electronic government” is implicit in the relationship between “government information” and “digital divide”. Another important aspect in the work of Clarkson, Jacobsen and Batcheller is the proposal to create information systems that seek to resolve the problem of information asymmetry, addressed to the communities which are in a state of exclusion. In this case study, they expose the Tribal Financial Information Clearinghouse and an Intergovernmental Tracking System for sharing law enforcement data. The proposal to create systems and information services is in line with our understanding of the need for mediation between electronic government and those who, for whatever reason, have no informational competence. 9.
This time the two terms, “government information” (and) “digital divide”, were considered under [Keywords], and eight papers
Digital Inclusion and Electronic Government
Table 11. Authors Identification, Number of Papers Retrieved and Scholars Profile Authors
Affiliation Institution and Country
Other references on LISA
Asgarkhani, Medhi
Principal Lecturer (Associate Professor), CPIT, Christchurch, New Zealand
No other references. Not in Scholars database.
1-Clarkson, Gavin; 2-Jacobsen, Trond E.; 3-Batcheller, Archer L.
1-University of Michigan School of Information, School of Law, and Native American Studies, USA 2-3-University of Michigan, School of Information, USA
No other references with the three authors together, or any of them separately. Not in Scholars database
Stowers, Genie N. L.
San Francisco State University, USA
No other references. In the Scholars database.
were recovered. As in the 2006 search, the same strategies for refinement of the results were followed, as reported in step 10. 10. By refining the search further with the expression: “digital divide” [Keywords] (and) “government information” (and) “access to information”, both [Descriptors], three articles then remained. Two items were recovered and discussed in the first search: Choudrie et al (2005) and Evans & Yen (2005), which appear in Table 4. The third is in Table 10. In this article, Stowers (2006) examines the user help and service navigation features in egovernment Web sites and compares them across levels of government. He tells us that these features are critical to ensuring that users unfamiliar with government are able to successfully and easily access e-government services and information. His research finds clear patterns in the use of similar help and navigation features across governments, leading to a conclusion that these features are spreading in the public sector Web development field. The author concludes by stating that Web developers should work to overcome a second digital divide, one of lack of knowledge of Web site organization and government structure. Users need to be actively assisted in their search for information by Web developers. Stower’s conclusions strengthen the commentary or our research on the necessity to take care of the information architecture of government
websites, made in the comments on the article by Asgarkhani, above. The interfaces of electronic government should consider some key issues regarding information architecture: user-centered design; interactivity with users/citizens; public policies supported by legislation, information education for users/citizens, ranging from the mass dissemination of information and services to the mediation, which will involve specialist officers, such as information practitioners in traditional informational spaces, such as public libraries. 11., 12. With this result of step 10, it was not necessary to apply the filters demonstrated in 11 and 12 used in 2006. 13. In this step, as in the first search, a search was made by the name of each author of the articles retrieved to see if there was other work produced by each, indexed in LISA. The presentation of Table 11 also followed the order of recovery. There is no other article by Asgarkhani indexed on the LISA database, nor on the Scholars database. However, references in the recovered article (as shown in Table 8) indicate that the author is interested in the “electronic government and digital divide” relationship. So it is the case that his production must be sought in other sources and through direct contact with the author. This should be programmed for future research. There is also no other work by Clarkson,
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Digital Inclusion and Electronic Government
Table 12. Expression “Brazil” [Descriptors] (and) “electronic government” [Keywords] Author
Title
Publication
Subjects by LISA
Joia, Luis Antonio
A heuristic model to implement government-to-government projects.
International Journal of Electronic Government Research, 3(1) Jan-Mar 2007, pp. 1-18.
Electronic information services; Government information; Public administration; Egovernment; Heuristic methods; World Wide Web; Brazil
Moreira Garcia, Rodrigo
Electronic government, information and information literacy.
Informação & Sociedade: Estudos, 16(2) 2006, pp. 87-97.
E-government; Government information; Electronic information services; Information literacy; Brazil
Jacobsen and Batcheller indexed, separately or together, their profiles are not recorded on the Scholars database. There are no other references for Stowers in LISA. His profile is in the Scholars database with an indication of his homepage (http://userwww. sfsu.edu/~gstowers/research.html). His curriculum states that his area of expertise is in public management, with emphasis on electronic government, but without a focus on the relationship we seek. However, this is a name to be registered on a future map of researchers on the subject, or who touch on the subject in their scientific production. 14. In this second study, no Brazilian, LatinAmerican or Portuguese papers were recovered. So, we decided to search for the expressions “Brazil” [Keywords] (and) “digital divide” [Keywords] (and) “electronic government” [Keywords]. We obtained no results. 15. With “Brazil” [Descriptors] (and) “electronic government” [Keywords], the result was two papers of two Brazilian authors, presented in Table 12.
The article by Joia (2007) does not fall within the scope of our research so it was excluded from the analysis. He presents a heuristic model to implement government-to-government endeavors effectively. The framework presented in his article was largely drawn from an actual government-to-government case study successfully implemented in Brazil. The article by Moreira Garcia (2006) is well within the scope of this research. He outlines considerations on the relationship “electronic government” and “Information Literacy” and argues that the potential of electronic government can not be achieved without expanding the scope of competence and digital information in society. This stance is in line with the vision of the authors of this text. Another discovery of this search was the descriptor “e-government”, which was not included in the first search, finished in August 2006. Seeking “e-government” in [Descriptors], 94 articles were retrieved. The first article registered with this descriptor, (Record 94), is in the year 2006. However, the expression still does not appear in the Thesaurus. Refining the search with the descriptor “digital inclusion” [Descriptors] the result was zero. With “digital inclusion” [Keywords] one article was retrieved (Table 13).
Table 13. Expression “electronic government” (and) “digital inclusion” [Keywords] Author Bustamante Donas, Javier
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Title
Publication
Subjects by LISA
The new human rights: eGovernment and community computing
Enl@ce: Revista Venezolana de Informacion, Tecnologia y Conocimiento, (2) 2007, pp. 13-27.
E-government; Human rights; Democracy
Digital Inclusion and Electronic Government
Table 14. Expression “Brazil” [Descriptors] (and) “electronic government” [Keywords] Author
Title
Publication
Subjects by LISA
Joia, Luis Antonio
Sources of resistance to G2G endeavors: evidence from a case study in the Brazilian context.
Information Technology for Development, 13(3) 2007, pp. 233-251.
E-government ; Information technology; Government information; Public administration; Brazil
Jambeiro, Othon; Borges, Jussara; Sobreira, Rosane
Politicas e gestão da informação publica: o caso da Prefeitura de Salvador.
Informação & Sociedade: Estudos, 17(2) 2007.
Information management; Information communication; Local government information; Brazil
Simao, J Batista; Rodrigues, Georgete
Accessibility to public information: an evaluation of an services and information portal of Brazilian Federal Government.
Ciência da Informação, 34(2) May-Aug 2005, pp. 81-92.
Information services; Government information; Internet ; Portals; Evaluation; Brazil
Bustamante (2007) indicates that this article is part of a series linked to the AECI (Spanish Agency for International Cooperation) research project, entitled “Experiences of inclusion and digital electronic government in public administration - a study comparing Brazil-Spain”. In this article, he analyses specifically the relationship between human rights, technology and democracy, particularly, the relationship between the Internet, the politics of digital inclusion, and the development of e-Government, with reference to the cases of Brazil and Spain. These are taken to be factors for a real change of the limits of democracy and of the concept of citizenship. The Linux movement, virtual communities and hackers’ ethics, among others, are manifestations of a first generation of deeply transforming, powerful alternative uses. The concepts of citizenship and human rights are being transformed in this new environment by a new set of values and metaphors, as well as a new ethical paradigm. This author and his research project are an important discovery. Bustamante deals exactly with the proposed “digital inclusion” and “electronic government “, based on concepts also considered by that author: extending the concept of citizenship, considering the electronic medium, or “electronic citizenship” or “cyber citizenship”; the consideration of a new universal right: access to information in the digital environment, particularly e-government; all this in a context
of “electronic democracy”. Furthermore, he is a Latin American, and his study focuses on a comparison, Brazil and Spain, and the context of Brazil in particular interests us. 16. “Brazil” and “government information” and “access to information” [Keywords], results nil. 17. “Brazil” [Descriptors] and “government information” [Keywords] again retrieved the two papers of Table 12 and the three present in Table 13, also of Brazilian authors. The same expression with Brazil under [Keywords] recovered the same articles present in Table 14. Again Joia’s article (2007) was excluded because, as with the first article (Table 12), it did not fall within the scope of our research. This work seeks to analyze why a G2G endeavor in Brazil led to outcomes that fell short of those expected. In order to achieve this, single case study methodology based on a recent real-life case was adopted, namely the digital link between the Brazilian Central Bank and the Federal Senate. Some lessons are drawn in order to assist policy makers and public administrators in dealing with this new field of knowledge. Jambeiro, Borges & Sobreira (2007) discuss policies and management of public information, in Salvador, Bahia, Brazil. They analyze the
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municipal legislation on this matter, identifying and qualifying sectors and people in charge of the production and dissemination of public information in the municipal government of Salvador. Besides studying the areas under direct control of the Mayor, the authors analyze the sectors related to Health, Education and Transport. They call attention to the fact that various bodies of the prefecture do not have websites, such as four of the eight superintendencies of the Secretary of Transportation and Infrastructure. All deal with issues of relevance to citizens and are therefore obliged to provide information and establish channels of communication, using tools for easy access. However, Jambeiro, Borges & Sobreira show that the Agency of Regulatory Services Collective Transport of Passengers (Agert), the Superintendent of Parks and Gardens (SPJ), the Superintendency of Urbanization of Capital (Surcap) and the Superintendent of Maintenance and Preservation of the City (Sumac), only communicate or provide information via telephone. The core conclusion of the authors is that there are not coherent municipal policies on public information across the local government. Neither is there a central department in charge of elaborating these policies. As there is a vacant space in the realm, this role has been occupied by the Secretary of Administration, through two of its sectors. Despite the fact that Jambeiro, Borges and Turangi’s article does not address the relationship between “digital inclusion” and “electronic government”, the fact verified by the authors that some of organs of the municipal government of Salvador still do not have websites, nor do they have a policy of consistent information, indicates that electronic government is still in its early stages in the city of Salvador, a municipality that interests us in particular. These researchers believe that in the absence of a consistent policy of information, “digital inclusion” and “electronic government” are not yet being considered, perhaps not even the awareness of the need for this relationship, or even the importance of urgent deployment of
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electronic government. It should be emphasized that the authors are members of Gepindi and partners in the work relating to digital inclusion and electronic government. Simon & Rodrigues’ article was published in 2005 in the Brazilian journal “Information Science” (Ciência da Informação) which was not indexed in 2006, as noted above. They present the results of a Masters dissertation, based on data from 2003 and 2004, on the information portals and services of the Brazilian federal government, which came into operation on the Internet in 2000. The work stemmed from the following proposition “Universal public services on the Internet: critical analysis of the actions of the federal government.” The assessment was made in order to know the actual scope of the portal in terms of content, usability and functionality, using the methodology of Vilella (2003). According to the authors, this methodology has proved itself to be an objective and efficient tool for a critical evaluation of the portal, covering the dimensions cited for content, usability and functionality. The results showed the strengths and weaknesses of the portal; the notes attributed to the low form of presentation of content, updating and maintaining the content; balance in usability, emphasizing, however, in this case, difficulties in access for people with special needs. In the conclusions, the authors indicated that many of the problems encountered could be solved easily and often derived from the lack of effective management, such as the dimension of content. The conclusions of Simon & Rodrigues (2005) are already outdated regarding the performance of the Brazilian Government Portal. The Brazilian Government Portal has already been adjusted and other assessments have been made, in the four years since the authors’ data were collected. However, the findings remain valid and are consistent with the thinking of these authors. They recommend further studies on the information which is most relevant to the citizen. In that sense, they indicate that the main objective of a portal
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Table 15. Expression “Portugal” [Descriptors] (and) “government information” [Keywords] Author Cardoso, Gustavo; Cunha, Carlos; Nascimento, Susana
Title
Publication
Descriptors
Bridging the E-democracy gap in Portugal.
Information, Communication & Society, 9(4) Aug 2006, pp. 452-472.
Information communication; Political aspects; Government information; Democracy; Electronic media; Portugal
should be to provide the information and services that help citizens in their daily life (aspect pointed out in Silva & Silva, 2006b), which necessarily depends on the State, indeed the government. They suggest adherence to a recommendation of the Green Paper on the Information Society in Portugal, which we understand as fundamental and worth quoting: [...] the “citizenship information” (which should be universal and free), the “Information for Development” (paid at nominal price - cost of support - or possibly free) and “value added information” (available at market prices) (PORTUGAL. MINISTRY OF SCIENCE AND TECHNOLOGY, 1997, p.33, apud Simão & Rodrigues, 2005, p.90).
18. The same strategy was applied to “Portugal” [Descriptors] (and) “digital divide” (and) “electronic government” [Keywords], with no results. 19. “Portugal” [Descriptors] and “electronic government” [Keywords] results nil. 20. “Portugal” (and) “government information” (and) “access to information” [Keywords] nil results. 21. “Portugal” (and) “government information” [Keywords] (Table 15) Cardoso, Cunha & Nascimento (2006) analyzed the communication practices of Portuguese Members of Parliament (MPs) and their views on the role that the Internet plays in a democratic system, followed by a discussion of the origins of what the authors label the e-democracy gap in Portugal. They counter several Deputies’ beliefs
that weak vertical communication between the elected and the electors result from the small number of Internet users, the weak participatory quality of the citizens and insufficient secretarial support. Because adaptation to the Internet must be viewed from a broader perspective, the authors demonstrate that not only are there varied examples of civic participation via the Internet between citizens and parliament, but that there is also an absorption of Internet use in the routines and management of parliamentary functions by many of those entrusted with those duties in the last two Portuguese legislatures. The authors’ thesis is that the Internet, under the current methods of political institutional integration of the media, does not on its own enable an increase in public participation. Citizens’ political participation vis-à-vis democratic institutions such as parliament can be empowered by the Internet so long as representation and politicians’ attitudes toward the public, and of the latter toward the former, change. The relationship between electronic government and performance of politicians, the relationship with their citizens and political participation of the population using the Internet as a new public space are fundamental and have been widely studied. This was noted and discussed in Silva & Silva (2006b). However this is not the focus of our research, which seeks to link electronic government with the provision and use of information and basic services to citizens, those that are fundamental to life and make the difference in daily living. Before being “political”, the citizen is a “being” who must have their basic necessities of life met, some of which are vital, as is the case of health.
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Digital Inclusion and Electronic Government
Table 16. Expression “e-government” [Descriptors] (and) “digital divide” [Keywords] Author
Title
Publication
Descriptors
Al-Shafi, Shafi
Free wireless internet park services: an investigation of technology adoption in Qatar from a citizens’ perspective
Journal of Cases on Information Technology, vol. 10, no. 3, pp. 21-34, July-Sept 2008
E-government; Electronic information services; Internet ; Qatar
Singh, Awdhesh K.; Sahu, Rajendra
Integrating internet, telephones, and call centers for delivering better quality egovernance to all citizens
Government Information Quarterly, vol. 25, no. 3, pp. 477-490, July 2008
E-government; Internet ; Telecommunications
22. Finally the research decided to investigate the relationship “e-government” (and) “digital divide” that is not in the search, 2006. Considering both in [Descriptors], the result was zero. With “e-government” [Descriptors] (and) “digital divide” [Keywords] the two articles that appear in Table 16 were recovered. Al-Shafi (2008) examines the adoption of free wireless Internet parks (iPark) by Qatari citizens as a means of accessing electronic services from public parks. He reports that the Qatar government has launched the iPark concept with a view to providing free internet access for all citizens while enjoying the outdoors. This concept is enabled by an ICT infrastructure and broadband facilities, which is considered as regional good practice. By offering free wireless Internet access, the Qatari government encourages its citizens to actively participate in the global information society with a view to bridging the digital divide. Using a survey-based study, Al-Shafi’s research set out to examine the Qatari citizens’ perceptions of the iPark initiative. Results of the survey showed that there is a positive level of relation between the independent variables, usefulness, ease of use, Internet safety, and Internet speed/response time and one dependent variable, intention to use the iPark in Qatar. The paper provides a discussion on the key findings, research implications, limitations, and future directions for the iPark initiative in Qatar. Singh and Sahu (2008) examine the current approach of providing e-government services
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through the Internet. Since the Internet is not accessible to most of the populations of the world, the authors advocate adopting a multi-platform approach in which mobile and fixed phone lines can be used to enhance the Internet in the delivery of e-government services. They also suggest the concept of Government Call Centers to overcome the limitations posed by the digital divide. They conclude that integration of the Internet, phones, and call centers can enable governments to deliver e-government to every citizen of a nation. Finally, they make specific recommendations to spread e-government services to more citizens through the approach they suggest. This research considers the proposal of Singh and Sahu (2008) very interesting and fully incorporated in our approach. The proposal is real action towards digital inclusion and the use of electronic government, especially in countries where the majority of the population is in a state of digital exclusion. The idea that the government is pro-active, delivering information and services by alternative means, such as those proposed by Singh and Sahu: Mobile Government (mgovernment), Interactive Voice Response System (IVRS), and Public Information kiosks, is not new, but it is a pleasant surprise to find such a recent piece of work using the strategies employed here. As shown, the descriptors “digital inclusion” or “digital divide” are not in the field [Descriptors] in LISA. This is undoubtedly a work of reference for our research. Using the same procedure in step 13, researched by the name of each author recovered after Table 11, Table 17 has been composed.
Digital Inclusion and Electronic Government
Table 17. Authors Identification, Number of Papers Retrieved and Scholars Profile Authors
Affiliation Institution and Country
Other references on LISA
Joia, Luis Antonio
Brazilian School of Public and Business Administration, Getulio Vargas Foundation, Brazil
9 papers in LISA None in the Scholars database
Moreira Garcia, Rodrigo
At the time of publication of the article: Master of the Postgraduate Program in Information Science of the Faculty of Philosophy and Science – UNESP, Brazil
No other reference None in the Scholars database
Bustamante Donas, Javier
Professor of Ethics and sociology at the University Complutense de Madrid (UCM), Spain and visiting professor in the Department of Science and Technology Policy, UNICAMP, Brazil
No other reference None in the Scholars database
1-Jambeiro, Othon; 2-Borges, Jussara; 3-Vieira Sobreira, Rosane3
1-2 Teachers at the Institute of Information Science at the Federal University of Bahia-Brazil (ICI/UFBA) 3- student to graduate and colleger of scientific initiation (ICI/UFBA)
1- One other reference 2- One other reference. The same as Jambeiro 3-No other reference None in the Scholars database
1-Cardoso, Gustavo; 2-Cunha, Carlos; 3-Nascimento, Susana
1-Assistant Professor and Researcher at ISCTE in Lisbon, Portugal. 2-Professor in the Political Science Department at Dowling College (Oakdale, NY) and Research Associate in the Research centers of sociological study (CIES) at Institute of Labor Science and Business (ISCTE) Lisbon 3-is a Research Assistant at ISCTE in Lisbon
1- 1- One other reference 2- 2- One other reference. The same as Cardoso. His name appears in the Scholars database. 3- 3- One other reference. The same as Cardoso and Cunha 4- None in the Scholars database
1-Simao, Joao Batista; 2-Rodrigues, Georgete
1- Does not present membership 2- Professor of the Department of Information Science and Documentation at the University of Brasilia, Brazil.
1- One other reference 2- Three more references None in the Scholars database
Al-Shafi, Shafi
School of Information Systems, Computing and Mathematics, Brunel University, UK
No other reference. None in the Scholars database
1-Singh, Awdhesh K 2-Sahu, Rajendra
1-officer of Indian Revenue Service (Customs & Central Excise). He is presently working as Additional Director in the Directorate of Systems & Data Management, Customs & Central Excise, New Delhi. 2-Associate Professor in ABV-Indian Institute of Information Technology and Management, Gwalior, India.
1, 2-No other references None in the Scholars database
None of the authors’ scientific production in LISA indicates a continuous line of research on “electronic government” and “digital inclusion”. The 9 references from Joia do not show that relationship. Jambeiro and Borges, although they do not have other papers indexed by LISA, are our acquaintances, belonging to the research group Gepindi. They are therefore partners in several projects on the subject. The work of Al-Shafi; Singh & Sahu is very interesting to our research, and indicates that we should look into their production in other sources.
FUTURE TRENDS Recalling that the objective of this research was to determine the status of the connection between digital inclusion and electronic government from surveys in online bibliographical databases, the results were analyzed in LISA in two respects: the process of information retrieval and the objective and questions of research. Thus, the inferences about the trends and future research were made in accordance with these two aspects. Regarding the retrieval of information, the first search found that researchers need to have information skills in order to take advantage of
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Digital Inclusion and Electronic Government
the potential information available. The process demonstrated that it is necessary to know the search tools and the indexing language of each database. Besides this, it is necessary to make several attempts, develop intuitive search strategies, because even when one has tools and a set language, indexing is always subjective and often distorts the content representation. An example was found on the Wilson Web database, consulted only to check the indexing of this article which has not yet been indexed by LISA in 2008. The index attributed to Silva et al (2005) was: “Librarianship/Social aspects”; “Bibliographic instruction”; “Ethics”; “Universidade Federal da Bahia/Dept. de Biblioteconomia e Documentação” (sic). This does not represent the content of the paper. In the original paper, the term “digital inclusion”, appears as a keyword. This evidence raises a new and important question to be considered by the Gepindi/ CETAC.MEDIA partnership in a new project: have the Brazilian and Portuguese researchers in Social Applied Sciences developed their information skills? Are they digitally included? The second search, in 2008, confirmed the inconsistency in the indexation in LISA. The concept of “electronic government” has been represented also by the term “e-government,” since 2006. As noted, it first appeared in the recovery shown in Table 12. Thus, the two terms are used in the indexation, which implies that in the formulation of strategies for research with these concepts, both terms (which are still not in the LISA Thesaurus) should be used connected by the Boolean operator (or); otherwise it is likely that information will be lost. The idea that there is a need for Information Literacy on the part of the researcher was reinforced. This confirms the trend towards a line of research linking “digital inclusion” and “information literacy” of researchers, particularly in Information Science and Communication. As for the objectives and questions of research - about who is working on the issue, the results showed that in the first search none of the authors/ researchers have this theme as a permanent line
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of research. In the second study, in 2008, authors emerged who most directly touch on the issue, which is growing as a matter of research around the world, especially in developing countries. These countries are trying to transform their realities into “knowledge societies”, through access to information, as is the case of Brazil and Portugal. Thus, it is important that a line of research be established to map the authors who are working on this topic throughout the world, using other databases, institutional repositories, digital libraries, and so on. We are particularly interested in who is working with this issue in the areas of Information Science and Communication. In the first search, 2006, with respect to the content, the few papers recovered allowed the researchers to comment on this area of research. This is a very recent topic, and even in developed countries it is still at an early stage. Within academia and as a research theme, this subject is relatively new to the area of Information Science and with respect to the literature available on LISA. However, from the content analyzed, two important factors emerged: 1.
The new role of public libraries and librarians – They can be strategic agents in the dissemination of the use of e-government information and services, as a consequence of digital and social inclusion. When referring to this theme, challenge is a recurrent word. A true revolution of concepts is necessary for public libraries, which could become learning centers. Concerning the relationship between e-government and citizens, vis-à-vis librarians, the former role of intermediaries may be re-examined, in such a way that the delivery of services and information can satisfy all types of information needs in every aspect of life. They can promote “e-citizenship” through information literacy education, or, even, act as direct intermediaries for those who do not have the possibility to acquire these skills. They can also become
Digital Inclusion and Electronic Government
2.
involved in the debate about digital exclusion and take on the role of actors concerning digital exclusion public policies. That prospect has opened a new line of research, yet virtually unexplored in Brazil and Portugal: public libraries and electronic government, hosted by the research agenda of the groups involved and has been in development since 2007 (Conceição et al, 2007; Silva et al, 2008) The importance of national information policies and electronic government – There is no doubt that the basic conditions for the promotion of the connection between digital inclusion and e-government should be considered by public policies as pointed out in the two texts by Muir & Oppenheim (2002). National information policies and e-government should be closely linked, with mutual references. These policies should encompass the wide dissemination and promotion of access to e-government information and services. However, as already mentioned, policies are ideal plans, that do not materialize unless concrete actions are carried out. In this case, the above-mentioned authors point out that active partnerships between industry, non-government organizations and government may be a solution. Governments responsible for public policies should be the ones to promote action.
A further aspect to be considered is the strategic role of public libraries and librarians, as well as creating the necessary environment for bringing about radical change in these national institutions and in the role of librarians. This can greatly strengthen the remit of information professionals concerning actions against digital and social exclusion. Citizens can also be “included”, through the actions of intermediaries present in libraries, telecentres, neighborhood or community associations, schools and other entities. Thus, they may serve as the “bridges” which connect essential
citizenship information, improving standards of living and bringing citizens up-to-date. Courses for information professionals (Librarianship, Information Science) should also take this into consideration and therefore re-orientate their curricula in a radical way, so as to endow these professionals with information skills in particular, in order to make them acutely aware of their new roles. Another question to take into consideration with regard to government policies and actions is the development of portals. These make egovernment tangible. As Vidigal wisely stated back in 1993, information professionals can collaborate with the organization of information so that it can be effectively retrieved. In his analysis of government portals in the United Kingdom, Kuk (2003) demonstrated that the portals were mediocre in terms of their information content and information availability. Borges (2005) has analyzed the web portals of the Brazilian Federal Government and has acknowledged the difficulty of accessing information of a utilitarian nature and the lack of information organized according to the basic needs of citizens. This is another matter to be considered in new curricula for information professionals and a new research line: information professionals and electronic government. In addition, information professionals can play the role of organizers of information on government websites, working on the architecture of information geared to users / citizens. Thus, they can use their traditional competence of organizing information, study of users of information systems, the new role of intermediaries between citizens and electronic government. This account also opens a new possibility to search: “information professionals” and “electronic government” which seems promising. In the search of 2008, the concept of Information Asymmetry (Asgarkhani, 2007) emerged, which had not yet been considered by these researchers, and it opened a new path of study, which converges with the concepts of digital
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inclusion and digital divide related to electronic government. Moreover, our position on the need for intermediaries between people who do not have or never will be able to have information literacy and electronic government was validated. This intermediation goes from someone, a mediator that serves the citizen in a public place and “acts as bridge” between the electronic government and the citizen, “delivering” the information directly and instructing on its use, to the publishing and delivery of basic information, necessary for life, for example, via mobile phones (Mobile government, Singh & Sahu, 2008), whose penetration amongst the poor in Brazil is growing dramatically. In Portugal the number of mobile phones exceeds the number of inhabitants. This means that the convergence of services in the mobile phone will enhance the possibilities of delivering useful information to the population in this way. Thus, the “intermediation, Information Literacy and mobile government” seems a promising line of research, which should incorporate a new descriptor, which also emerged in the second search, that is: “electronic information services” (Asgarkhani, 2007; Joia, 2007; Moreira Garcia; 2006. In 2005, the designation was still “information services” (Simão & Rodrigues, 2005). To close, it is important to highlight the relationship between “citizenship and electronic government” as an important line of research. The term “citizenship” has expanded to include “electronic citizenship or cyber-citizenship”, adding the right of access to information in digital media, especially e-government, as a new universal right, as advocated by Bustamante (2007) and already touched on by Silva, et. al., (2005).
CONCLUSION This section provides an explanation for our title. The words “looking for convergence” mean, as we have tried to demonstrate in the course of this chapter, the search for research and authors who
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deal with two related issues – “digital inclusion and electronic government”. Their understanding is that the electronic government which is needed, whether people are ready or not, should take care of digital inclusion. It should outline policies and promote actions that provide facilities for citizens for the use of electronic information and services, thinking to improve the quality of life of those who are in a state of digital and social exclusion. As for the decade selected, 1997-2008, it corresponds to the decade of the “Information Society” in Portugal and Brazil, following the launch of the Green Paper in Portugal in 1997 (Portugal, 1997). In the formulation of its Green Paper in 2000, Brazil (Takahashi, 2000) used Portugal’s Green Paper as one of the sources of its wording. The research showed that “digital inclusion” and “electronic government” is a “kaleidoscopic” topic because it reveals many other facets, according to the evolution of the use and non-use of ICTs, particularly access to and use of information on the Internet. However, one idea seems central and permeates all considerations of this relationship and has been noted previously: that the implementation of electronic government and its success go far beyond the deployment of technology. The effectiveness of electronic government depends on many more issues involving the use of information and electronic services and the political participation of citizens. These factors depend on issues related to the provision of information and care with the architecture of information for government websites, in addition to information training and political and civic education for citizens. Therefore, electronic government must be proactive in order to seek solutions to provide the people with knowledge and skills for use and participation. This implies the mass dissemination of electronic government. People in general, especially those who are in a state of digital and social exclusion, do not know and do not know how to use electronic government and suffer from “political apathy”. Empirical studies in the
Digital Inclusion and Electronic Government
city of Salvador, Bahia, Brazil, have shown very clearly that people do not know and do not use, even those who are promoting actions called “digital inclusion”. For them, “digital inclusion” is just “teaching” how to use the computer in its most basic form. Authors of this study believe that the issue is consistent: the line of research of the theme – digital inclusion and e-government – is promising and should continue to be studied. It is virtually unexplored, especially in Brazil and Portugal. Research on other bibliographical databases is already envisaged, and those results should be comparable, and may also allow us to develop an epistemological basis from which to carry out future work.
ACKNOWLEDGMENT The authors acknowledge the opportunity of partnership consolidation with the following institutions: Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES) of the Ministério da Educação do Brazil; Universidade Federal da Bahia (Instituto de Ciência da Informação) and Universidade de Aveiro (Departamento de Comunicação e Arte), Portugal.
REFERENCES Al-Shafi, S. (2008). Free wireless internet park services: An investigation of technology adoption in Qatar from a citizens’ perspective. Journal of Cases on Information Technology, 10(3), 21–34. Asgarkhani, M. (2007). The reality of social inclusion through digital government. Journal of Technology in Human Services, 25(1/2), 127–146. doi:10.1300/J017v25n01_09
Barboza, E. M. F., Nunes, E. M. A., & Sena, N. K. (2000). Web sites governamentais, uma esplanada à parte. Ciência da Informação, 29(1), 118–205. Berryman, J. (2004). E-government: Issues and implications for public libraries. The Australian Library Journal, 53(4), 349–359. Borges, J. (2005). Inclusão digital e governo eletrônico: Conceitos ligados pelo acesso à informação [Digital inclusion and government electronic: Concepts linked to information access]. Unpublished master dissertation, Federal University of Bahia. Brazil. Retrieved from http://www. ufba.br/tedesimples/tde_arquivos/16/TDE-200608-17T13:02:28Z-262/Publico/Dissertacao%20 Jussara%20Borges%20seg.pdf Brandão, M., & Silva, H. P. (2004). Inclusão digital, conceito, e contexto: Uma abordagem preliminar em Salvador-BA. In O. Jambeiro & J. Straubhaar(Eds.), Informação e Comunicação; o local e o global em Austin e Salvador (pp.323348). Salvador: Edufba. Bustamante Donas, J. (2007). The new human rights: E-government and community computing. Enl@ce: Revista Venezolana de Informacion, Tecnologia y Conocimiento, (2), 13-27. Cardoso, G., Cunha, C., & Nascimento, S. (2006). Bridging the e-democracy gap in Portugal. Information Communication and Society, 9(4), 452–472. doi:10.1080/13691180600858630 Choudrie, J., Weerakkody, V., & Jones, S. (2005). Realizing e-government in the UK: Rural and urban challenges. Journal of Enterprise Information Management, 18(5), 568–585. doi:10.1108/17410390510624016 Clarkson, G., Jacobsen, T. E., & Batcheller, A. L. (2007). Information asymmetry and information sharing. Government Information Quarterly, 24(4), 827–839. doi:10.1016/j.giq.2007.08.001
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Conceição, V., et al. (2007). Intermediação entre cidadãos e informação de governo eletrônico: Um novo papel para as bibliotecas públicas e comunitárias. In XXII CBBD- Congresso Brasileiro de Biblioteconomia, Documentação e Ciência da Informação, Brasília. Anais.
Moore, W. (2005). Supporting learning in the Gorbals. Information Scotland, 3(2), 10–11.
Conhaim, W. W. (2001). Update on the digital divide in the United States. Link-Up, 18(4), 2.
Muir, A., & Oppenheim, C. (2002). National information policy developments worldwide 2: Universal access: Addressing the digital divide. Journal of Information Science, 28(4), 263–273.
Evans, D., & Yen, D. C. (2005). E-government: An analysis for implementation: Framework for understanding cultural and social impact. Government Information Quarterly, 22(3), 354–373. doi:10.1016/j.giq.2005.05.007 Farmer, L. S. J. (2005). Digital inclusion, teens, and your library. Library + Information Update, 4(12), 45. High-Level Colloquium on Information Literacy and Lifelong Learning. (2006). Report of a Meeting. Bibliotheca Alexandrina, Alexandria, Egypt: UNESCO, IFLA & NFIL.
Moreira Garcia, R. (2006). Electronic government, information, and information literacy. Informação & Sociedade: Estudos, 16(2), 87–97.
PORTUGAL. (1997). Ministério da Ciência e Tecnologia. Livro verde para a sociedade da informação em Portugal. Lisboa. Sealy, W. U. (2003). Empowering development through e-governance: Creating smart communities in small island states. The International Information & Library Review, 35(2-4), 335–358. doi:10.1016/S1057-2317(03)00020-1
Jambeiro, O., Borges, J., & Sobreira, R. (2007). Politicas e gestao da informacao publica: O caso da Prefeitura de Salvador. Informacao & Sociedade: Estudos, 17(2).
Silva, H. P., et al. (2005). Inclusão digital e educação para a competência informacional: Uma questão de ética e cidadania. Ciência da Informação, 34(1), 28-36. Retrieved on May 11, 2005, from http://www.ibict.br/cienciadainformacao/ viewarticle.php?id=672&layout=html
Joia, L. A. (2007). A heuristic model to implement government-to-government projects. International Journal of Electronic Government Research, 3(1), 1–18.
Silva, H. P., et al. (2008). Inclusão digital, governo eletrônico, bibliotecas e lan houses: Alguma relação? In IX ENANCIB, São Paulo. Textos Completos.
Joia, L. A. (2007). Sources of resistance to G2G endeavors: Evidence from a case study in the Brazilian context. Information Technology for Development, 13(3), 233–251. doi:10.1002/ itdj.20072
Silva, H. P., & Silva, L. J. O. L. (2006a). Inclusão digital e governo eletrônico: em busca da convergência. In ENCONTRO NACIONAL DE PESQUISA EM CIÊNCIA DA INFORMAÇÃO, 7., 2006, Marília. Comunicações. Marília: ANCIB.
Kuk, G. (2003). The digital divide and the quality of electronic service delivery in local government in the United Kingdom. Government Information Quarterly, 20(4), 353–363. doi:10.1016/j. giq.2003.08.004 MISSÃO Para a Sociedade da Informação. (1997). Livro verde para a Sociedade da Informação. Lisboa,Portugal.
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Silva, H. P., & Silva, L. J. O. L. (2006b). Informações e Serviços Básicos ao Cidadão: da burocracia dos balcões para os portais de governo eletrônico. In CONGRESO IBERCOM, 9., 2006, Sevillha. Comunicaciones, Sevilla.
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Simao, J. B., & Rodrigues, G. (2005). Accessibility to public information: An evaluation of an services and information portal of Brazilian federal government. Ciência da Informação, 34(2), 81–92. Singh, A. K., & Sahu, R. (2008). Integrating internet, telephones, and call centers for delivering better quality e-governance to all citizens. Government Information Quarterly, 25(3), 477–490. doi:10.1016/j.giq.2007.01.001 Stowers, G. N. L. (2006). User help and service navigation features in government Web sites. International Journal of Electronic Government Research, 2(4), 24–39. Takahashi, T. (Ed.). (2000). Sociedade da informação no Brasil: Livro verde. Brasília: Ministério da Ciência e Tecnologia. Uhlir, P. F. (2004). Orientaciones sobre Políticas para la elaboración y promoción de información oficial de dominio público. Paris, UNESCO. Retrieved on July 5, 2005, from http://portal.unesco. org/ci/en/file_download.php/6de480e6b6219b02 57b4912cdefeaea4Es-CI-2004-WS-05.doc Vidigal, L. (1993). As novas tecnologias multimédia e o papel dos profissionais de informação e documentação. Cadernos BAD, (3), 81-90.
KEy TERMS AND DEFINITIONS Digital Inclusion: Promotes effective information literacy to access facilities on the web and not just basic computer use. Digital Divide: Exclusion from the digital world can lead to social exclusion. E-Citizen: An individual who exercises rights and duties in the electronic world by means of information access. Electronic Government: Government representation via the internet delivering information and services. Portals: E-government sites that provides access to information, services and transactions between the government and citizens by remote access. Information Literacy: The ability to locate, evaluate and use information effectively for personal, social, educational and work goals, towards social inclusion. The lack of information literacy compromising the Basic Universal Rights in the Digital World. Digital Inclusion and Electronic Government: An important relationship between government and citizens. Every citizen needs to know how to locate and use e-government information and services in his/her daily life.
Weerasinghe, S. (2004). Revolution within the revolution: The Sri Lanka attempt to bridge the digital divide through e-governance. The International Information & Library Review, 36(4), 319–327. doi:10.1016/j.iilr.2003.10.015
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Chapter 3
The E-Governance Concerns in Information System Design for Effective E-Government Performance Improvement Kam Hou Vat University of Macau, Macau
ABSTRACT This chapter investigates a set of governance concerns related to the electronic transformation of public administration for performance improvement under the context of reinventing government in the knowledge age. Of specific interest is the organizational context to situate information systems (IS) design for services referring mainly to the decisions that define expectations, enable empowerment, or verify performance of the people or units involved. In particular, this research is looking into the transformative impact of such an IS effort on the design of a citizen-centric model of public service in the digital operation of today’s government (or e-government). Meanwhile, e-governance should relate to the practical rendering over an electronic environment such practices as consistent management, cohesive policies, responsive processes, and decision-rights for different areas of responsibilities. The framework of analysis in this discussion should accommodate the configuration of a government unit’s value profile in public sector as exemplified in many of today’s citizen-centric societies. This framework highlights a public sector reform approach to nurture information systems (IS) support for improving public sector management. The premise of our exploration is that as we move into the knowledge society, more and more public sector organizations should fulfill their roles from the creation and application of knowledge. This is an example of the value shop model, in which value is created by configuring and applying specific knowledge to solve problems in citizens’ areas of interest. This discussion covers the issues in digitizing knowledge portfolios in support of performance improvement among institutional units. Thereby, managing knowledge work at the e-government level is a behavior involving various e-governance concerns such as challenges on internal enculturation of participative knowledge sharing among public sector organizations, and on the proper understanding of the institution’s context of public service development. DOI: 10.4018/978-1-60566-671-6.ch003
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The E-Governance Concerns in Information System Design for Effective E-Government
INTRODUCTION In the emerging digital economy of the 21st century (Tapscott, 1997), organizations co-evolve with their environments. The advance of Internet technologies (Vossen & Hagemann, 2007) coupled with the trend of globalization is forcing many a government to devise new strategies, develop new capabilities, design new organizational structures, and deploy new governance models (Eifert & Puschel, 2004; Rivard, Aubert, Patry, Pare & Smith, 2004). Oftentimes, the governance model in a public sector organization could be considered as a prototype being creatively constructed and deconstructed over time. The disruptive effect of fast technological innovations and adoptions has literally redefined the essence of governing effectiveness from sense and respond to anticipate and lead. If governments are planning to sense the changes and then respond, it might be already too late; rather anticipating the coming changes and executing with speed to lead, is a fact of life today. Like an enterprise, it is a governing necessity to be equipped with the ability to respond quickly and effectively to change. This necessity has rendered the concept of electronic governance (e-governance) (Riley, 2003, 2001) indispensable, relating to the practical rendering over an electronic environment, such practices as consistent management, cohesive policies, responsive processes and decision-rights for different areas of responsibilities. Of particular interest is the electronic medium to support e-governance activities referring mainly to the decisions that define expectations, enable empowerment, or verify performance of the people or governmental units involved. In this chapter, the author is peculiarly interested in a set of e-governance concerns related to the design of IS (information systems) support for effective e-government performance improvement (Wiig, 2004). Our framework of analysis examines the public sector organization’s efforts
to nurture IS support (Checkland & Holwell, 1998) for collaborative knowledge work that should accommodate the configuration and visibility of the organization’s value profile in public service as exemplified in today’s citizen-centric society. The discussion is also situated around the installation of electronic knowledge portfolios for government units, through providing suitable IS support in the electronic transformation of different public services amidst the technological advances of the Internet.
THE CONTExT OF E-TRANSFORMATION IN GOVERNANCE Today, the connotation behind the “e” transformation of governance is an important policy issue and surely one that will influence how governments and citizens will interact in the coming decade (Oliver & Sanders, 2004). Clearly, the Internet and the information technologies have the potential to fundamentally change how society is governed and what role citizens come to play in that important process (Garson, 2007). Still, as the “e” prefix becomes affixed to more and more aspects of governance and government operations, it is helpful to clarify the differences between governance and government, and the implications behind their “e” counterparts. According to Kettl (2002), government is an institutional superstructure that society uses to translate politics into policies and legislation. Governance is the outcome of the interaction of government, the public service, and citizens throughout the political process of policy development, program design, and service delivery. Put it simply, one might say that governments are specialized institutions that contribute to governance. As for the meanings of their “e” counterparts, Riley (2001) provides a useful description for egovernance: In its simplest sense, e-governance is about the use of emerging information and
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The E-Governance Concerns in Information System Design for Effective E-Government
communication technologies (ICT) to facilitate the processes of government and public administration. It is about providing citizens with the ability to choose the manner in which they wish to interact with their governments. And it is about the choices governments make about how ICT will be deployed to support citizen choices. The term e-government, in many instances, is associated with the migration of government information and services to an online delivery platform, the so-called electronic service delivery (White, 2007; Andersen, 2004; Curtin, Sommer, & Vis-Sommer, 2003; McIver & Elmagarmid, 2002; Heeks, 2001). This is currently demonstrated by many a government especially in developed countries to migrate many of their government services to electronic portals. Indeed, there is little doubt that the Internet and ICTs have helped create the transformative pressures that will dramatically influence the ways in which governments are organized and operated. The transformation of governance structures and processes, enabled by technology, will be embedded in new modes of information exchange, perhaps, more integrated and distributive approaches to operations and service delivery, and a more open and participatory system of policy making. By capitalizing on the Internet revolution, governments can create new channels of communication and new methods for participation via e-government. It is foreseeable that the changing environment, coupled with citizen and business demands, would continue to encourage government involvement in e-government initiatives and related uses of ICTs.
THE IDEAS BEHIND KNOWLEDGE E-PORTFOLIOS The last decade of the 20th century saw explosive growth in discussions about knowledge (Cortada & Woods, 2000). We talk of knowledge as the new currency, often seen as an objective com-
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modity (Liebowitz & Beckman, 1998, p.37) that is transferable, independent of individuals and context. Indeed, enterprises and governments alike are increasingly recognizing that knowledge is their most important source of sustainable development (Wimmer, 2003; O’Looney, 2002; Burton-Jones, 1999). By the term knowledge portfolio, there is a multi-faceted connotation (Henry, 2006; Batson, 2005; Birchall & Tovstiga, 2002; Dove, 1999). It could mean a tracking record of an entity (such as a government unit) showcasing her strength and accomplishments in stewarding knowledge to her citizens. It could also mean an adaptable tool for an organization to learn from the respective people performing and receiving their knowledge work. Besides, an electronic form of such a portfolio (knowledge e-portfolio) (Jafari & Kaufman, 2006) is to facilitate more online collaboration inside and outside an entity (Stalk, Evans, & Shulman, 1992) to share knowledge in a way that makes it easier for individuals, teams, organizational units and other entities to work together to effectively contribute to one another’s success. If in the Internet age, public sector organizations depend on access to and sharing of knowledge to succeed, the installation of e-portfolios as containers of knowledge items that reflect the learning processes required to construct them, serves well the needs of many a government. The idea of a knowledge portfolio is based on Dewey’s (1910) observation that knowledge is a product constructed by people and learning is the process by which knowledge is created, which is subject to being criticized and improved by other learners (Bereiter & Scardamalia, 1998). This purpose of e-portfolio has become broader than mere showcasing of achievements: for the individual public sector organizations, they can capture a learning journey of services to citizens, while for the government at large they can contribute to knowledge building by communicating knowledge from public administration into the society and vice versa. Essentially, as contain-
The E-Governance Concerns in Information System Design for Effective E-Government
ers, e-portfolios denote a selection of artifacts (Hartnell-Young, 2006) in the form of digital files – whether they are in audio, visual, or textual form or a combination of these – with a focus on purpose such as performance history, assessment, showcase of achievements, or learning. Well-constructed e-portfolios could support the portfolio owners’ claims of value, by providing an inventory of acquired knowledge, skills and performance records. Contextually, the purpose of e-portfolios often have a richer built-in connotation: namely, they must have the potential to encourage reflection on learning events such as services performed and cases solved in public administration, suggest opportunities for action, raise problems to solve, and offer flexibility to communicate policies to a range of audiences. As Scardamalia and Bereiter (1999) put it, knowledge itself must be visible in the world, rather than in the mind; hence, electronic knowledge portfolios (or knowledge e-portfolios) serve one means to present the collective thinking and action of a government to her citizens, and to support a technology-enhanced governance memory especially in times of rapid development.
(Stewart, 1997) of their employees, the public or civil servants. In fact, employees in a typical knowledge-intensive public sector organization (White, 2007; Nonaka & Takeuchi, 1995) are expected to continually improvise, and invent new methods to deal with unexpected problems, and share these innovations with fellow employees through some effective channels of communications or knowledge transfer. Such activities could be conducive to enriching an effective institutional e-portfolio that enables the organization to launch and learn. The key is collaboration (Ghosh, 2006) through some facilitative e-governance policies, promoting that institutional knowledge is created only when individuals keep modifying their knowledge through interactions with other organizational members, and updating their individual e-portfolios of knowledge work. The challenge that governments now face is what and how to devise suitable e-governance policies to enable such collaboration among various public sector organizations over the Internet or Intranet using perhaps some of the latest ICT technologies, namely, to turn the scattered, diverse knowledge of their people into dynamic knowledge assets ready for reuse to benefit the whole government in the services to her citizens.
THE IMPLICATIONS IN CITIZENCENTRIC E-GOVERNANCE
The Learning Center Concept
The success of today’s governments, measured in terms of their ability to learn and to apply lessons learned, is highly dependent on the capabilities of their people. With the advent of the e-government movement (Malkia, Anttiroiko, & Savolainen, 2004; Curtin, Sommer, & Vis-Sommer, 2003; McIver & Elmagarmid, 2002; Heeks, 2001; Turban, Leidner, McLean, & Wetherbe, 2005), characterized by an advanced mode of electronic service delivery, we have witnessed an increase in people’s expectation of what governments should do to perfect their governance, especially in their efforts to deliberately manage knowledge (Tapscott, 1997), namely the intellectual capital
The surge of computer technology and changing market needs have prompted many an enterprise to develop knowledge management strategies (Wiig, 2004), including the learning center concept (Oyston, 2003; Levine, 2001) offering both virtual and physical learning space suitable for different types of work and research. In the specific context of e-governance, the learning center concept could be considered as the response of government to one particular aspect of institutional strategy to serve her citizens: knowledge accumulation and dissemination through learning, communicating, and case handling. It is a distinctive, citizen-centric, response
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The E-Governance Concerns in Information System Design for Effective E-Government
to supporting and improving the quality of governance. It is premised that the leaning center, besides providing information services to support citizens’ information needs, must take a wider view of service support. Namely, it must be activity-based (rather than merely resourcebased or service-based) providing support of a variety of citizen interactions with the resources and services rendered by the governmental units. The essential characteristic of the learning center approach to knowledge exchange between government and citizens is that it is virtually centered on individual citizens’ initiatives to stay informed and connected. This philosophy must be evident in the vision statement, mission and objectives of the services installed in the center. The exact mix of services constituting the center organization will undoubtedly vary; inquiry and information services are essential, together with the necessary ICT support. Yet, the most significant inclusion could be citizen engagement influenced by new ways in which citizens interact with governments and contribute to shaping government policies, which has the potential to add a different dimension to the role of the center organization, making it more of a partner in the development of responsive governing and encouraging more effective exploitation of its resources and services. Whatever the mix, there must be a sense of the different parts working together across boundaries, in an integrated manner, rather than just co-existing within an institutional structure of governing. That is exactly where the e-governance concerns have to account for.
The Value Shop Concept A value configuration describes how value is created in an organization for its customers. It represents the way a particular company conducts business. A value shop (Gottschalk, 2005, 2007; Afuah & Tucci, 2003) schedules activities and applies resources in a fashion that is dimensioned and appropriate to the needs of the client’s prob-
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lem. It is a value configuration creating value for an organization by applying knowledge to solve customer problems. Today, many examples of the value shop activities can be found in professional service firms, such as those conducted in medicine, law, architecture and engineering, where knowledge is the most important resource and reputation is critical to the firm’s success. In the context of a public sector organization, the typical e-governance concerns in shaping knowledge work as value shop activities is often based on supporting electronically such iterative knowledge work as: problem identification, problem solving, choice making, executing, and evaluating. Problem identification involves working with the citizens or community concerned to determine the exact nature of the problem or need. It is about deciding on the overall plan of approaching the problem. Problem solving is the actual generation of ideas and action plans. Choice making represents the decision of choosing between alternatives, and it is the most important in terms of customer value. Solution executing denotes the communicating, organizing and implementing of the decision, or the performing of the treatment. Evaluating involves the monitoring and measuring of how well the solution solved the original problem or met the original need. In this value shop model, iteration of the above activities is always a fact of life, for two simple reasons. First, if the proposed solution is inadequate or did not work, the last stage of evaluation should feed back into learning why it was inadequate and begins the problem-solving phase anew. Second, if the problem solution was successful, the public sector organization might enlarge the scope of the problem-solving process to solve a bigger problem related to, or dependent upon, the first problem being solved.
The E-Governance Concerns in Information System Design for Effective E-Government
The Complex Setting of CitizenCentric Governance Work In the world of Internet-enabled e-government (O’Looney, 2002; Curtin, Sommer, & VisSommer, 2003; Afuah & Tucci, 2003), work is changing, and so is the workplace. Apart from work complexity, the workplace itself is equipped with sophisticated work aids (Ehn, 1989) that often take considerable understanding to handle and exploit. Example aids include IT-based infrastructure capabilities and task-specific aids such as knowledge bases, and work guides for complicated work processes. Besides, with more communications capabilities (e-mails, blogs, wikis, and RSS) in place, many people experience difficulties to perform their work (see http://govleaders.org/ index.html), without disruptions, as intended to deliver the quality expected. Nonetheless, effective work (Allen, 1993) requires that public servants must have greater proficiency; namely, they must be capable of innovating and improvising when customized demands require it. More, they must integrate their work with adjacent functions and departments, include inter-disciplinary perspectives and expertise where required, and understand how they, as individuals, teams, or functional units assist in implementing e-governance goals, objectives, and strategy. Put it more precisely, public sector organization workers at all levels nowadays, to the extent that they affect outcomes, must understand requirements regarding quality and service standards. Thereby, they need to have access to knowledge in different ways, such as through the learning center concept (collaboration) described, expert networks, or communities of practice. Indeed, what is often required in the acquisition and creation of new knowledge in an institutional work setting (such as the value shop) is a holistic approach that integrates both explicit and tacit knowledge, the latter of which is much more a living process than a static body of information. Pragmatically, not everything we know can
be codified as documents or turned into usable tools readily. Sharing tacit knowledge requires interaction and informal learning processes such as conversation, coaching, and apprenticeship. The tacit aspects of knowledge required in the workplace often consist of embodied expertise – a deep understanding of complex, interdependent elements that enables dynamic responses to context-specific problems. This type of knowledge is very difficult to replicate. However, this is not to say that it is not useful or worthy to document such knowledge in whatever manner serves the needs of the citizens. The introduction of the knowledge e-portfolios serves an important effort towards this goal. This attempt must nonetheless be situated around the learning concerns of the institution (Garvin, 1993), which could be defined as a continuous process of creating, acquiring, and transferring knowledge accompanied by a modification of behavior to reflect new knowledge and insight, and to produce a higher level asset for the whole government.
DESIGNING IS SUPPORT FOR E-GOVERNANCE IN PUBLIC SECTOR ORGANIZATIONS In their 1977 publication, The Management of Innovation, Tom Burns and G.M. Stalker, argued that the form of an organization should be dependent on the situation in which it is trying to operate. They proposed two polar ideal types of organizations respectively known as the mechanistic and the organic systems. The former “mechanistic” system carries such features as hierarchical differentiation, vertical communication, and centralized authority, and they are often viewed as appropriate to stable conditions. By contrast, the latter “organic” system is characterized by an emphasis on the holistic tasks of the organization, collegial relationships, decentralized authority and horizontal as well as vertical communication. Such systems are
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The E-Governance Concerns in Information System Design for Effective E-Government
considered as often appropriate to conditions of change or uncertainty, such as those prevailing in today’s digital economy. This perspective from Burns and Stalker, has given information systems (IS) designers the necessary context required for aligning the various organizational domains such as strategies, people, resources, structures, goals and processes, in support of e-governance implementation. An example of such alignment is that there must be some strategy to combine people and resources in a suitable way in a particular structure, to create relevant processes in order to achieve the defined goals compatible with an organization’s e-governance policies. Of particular interest in our exploration of e-governance concerns include two strands of thinking in IS work to situate the discussion of an e-governance mechanism, which is established with the intention of serving or supporting members of an organization and the organization itself in the daily value configuration of knowledge work. Yet, before discussing these two strands of IS work, it is important to review the development context of e-governance in an organization.
The IS Development Context of E-Goverance With the advance of Internet technologies (currently, the Web 2.0 standard) (Vossem & Hagemann, 2007), many a public sector organization is being compelled to question and redesign the entire existing operations in a way that uses new ICTs to serve her mission better. According to Venkatraman (1994), there are five levels of ICT-enabled transformation. The first level is the application of ICT to address functional requirements of high-value business operations in order to cut cost and to save time. The second level is to systematically leverage ICT throughout an enterprise, involving technical interconnectivity, and business process interdependence. The idea is to build an electronic infrastructure, which carries
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a common pool of data and information that is captured once, and then flows automatically to the point of need in every affected process. The third level is to initiate an ICT-enabled redesign of critical business processes, involving a fundamental rethinking of what work must be done, why, and by whom, in the context of what technology makes possible and with special emphasis on creating learning loops and enhancing knowledge sharing. The fourth level is to lead the development of technology-enhanced business networks, involving the redesign and concomitant re-distribution of business activities across different organizations. The fifth level is to redefine the business scope through technology, involving the fundamental re-organization of activities in an organization’s value chain (Porter, 1985). Venkatraman refers to the first two levels as evolutionary, and the last three as revolutionary. Literature review of this research has indicated that there have been failures to fully exploit level two, and to move from level two to level three (Goodhue, Quillard, and Rockart, 1988; Lederer & Sethi, 1988; Goodhue, Kirsch, Quillard & Wybo 1992; Earl 1993). In fact, the failure to move from technical to business process interdependence is largely responsible for the failure to move out of the evolutionary phase into the revolutionary stage. Retrospectively, ICT professionals have been largely driven by the technology of information, and not the interconnectivity of information with other domains of the organization, notably its business processes and knowledge workers. Meanwhile, the emerging digital economy has witnessed the organization’s continuous move from a principle of automation to one of integrative processes, as described in the principle of ‘informating’ advanced by Zuboff (1988). While automation involves the removal of the individual from a process, informating is a form of process abstraction and integration between the individual and a computer system. Namely, through information technology, an individual manipulates the inputs and outputs of
The E-Governance Concerns in Information System Design for Effective E-Government
several tasks, sees beyond his or her immediate work, and is able to perceive the entire business process. Besides informating, ‘knowledging’ as an essential form of process integration, has appeared. Savage (1990) refers to knowledging as an active and continual process of interrelating patterns. It is more than the accumulation of and access to information, because it looks at both the known (information) and the visionary (what could be). Knowledging involves both explicit (the known) and tacit (the vision) forms of knowledge. It depends on people for interpreting the known and for embodying the vision. It is focused on learning and is characterized by the content and process of knowledge creation, individual motivation, and the active involvement of the individual with his or her work. Consequently, an organization that is focused on knowledging is more likely to anticipate a culture of engagement among its members. Each successive transformation, from automating to informating to knowledging, requires higher levels of process abstraction and a broad range of process integration. For knowledge interconnectivity to work, individuals in an organization will have to play different roles such as operational, tactical and strategic ones. And managers are becoming organizational architects (Morabito, Sack, & Bhate, 1999). Their new roles increasingly include designing organizational structures, engineering processes, developing people, leveraging information technologies, facilitating learning and integrating the whole change efforts, through the installation of suitable e-governance polices.
The Hard and Soft Strands of IS Work for E-Governance Most IS work today involves a set of assumptions which sees organizations as goal seeking (Checkland & Holwell, 1995, 1998; Zwass 1992; Boland, 1987), a characteristic of the command and control mechanistic model. The prime organizational activity is then decision-making in pursuit
of goals, objectives or some longer-term mission. Information required by the organization is that which supports and services decision-making. It is not difficult to criticize this view of the world, and there is currently some growing recognition in the IS field that an alternative strand of thinking is also relevant. Namely, people feel that being a member of an organization is more like being part of a family than being the servant of a rational machine. For such people, social reality is constantly being constructed and reconstructed in a social process in which meanings are negotiated. In particular, an organization does not exist as an independent entity but is part of sense making by a group of people engaged in dialogue, an essential characteristic of the organic model. This makes the context of information and that of information system much more problematic, since information is now obviously related in some profound way to meaning attribution and sense making. Equally, this view will not automatically embrace would-be-scientific methods of investigation and research, based on systematic data collection aimed at hypothesis testing. It should seek alternative processes of inquiry in such areas as interpretative action research (Anderton 1991; Boland 1986; Checkland 1999; Galliers 1992). The difference between these schools of thought in IS work could be captured in the words ‘hard’ (for the objective scientific view) and ‘soft’ (for the subjective interpretative view). In the IS context, the hard approach assumes that organizations are systems with information needs which ICT can supply; the soft approach takes a process view of organizations and explores, using soft systems ideas (Checkland & Scholes, 1999) to structure action research, the way in which people in organizations inter-subjectively attribute meaning to their world and hence form a view on what knowledge or information is relevant.
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The E-Governance Concerns in the Hard Functional Strand In the hard strand of IS work, the notions of organization are usually accepted without being questioned (Robey & Zmud 1992). Namely, the typical view expounded is that organizations, assumed to be social entities, seek to achieve goals, with managerial activity being seen as decisionmaking in pursuit of the declared goals. Essentially, an organization is considered to comprise a group of people who together can seek to achieve objectives which would be beyond the reach of an individual, and that the entity, the organization, can be thought of as a system, usually ‘a socio-technical system’ (Emery & Trist, 1960) whose managing comprises such activities as planning, organizing, staffing, coordinating, directing and controlling. This latter thought usually conveys the view that an organization’s members will be working in several different functional parts connected together, and changing any one of these will have some affect on all the others. As a member of such a social unit, a manager is a problem solver, and the fundamental activity in problem solving is decision making, which is the process of identifying a problem, identifying alternative solutions, and choosing and implementing one of them (Zwass 1992). Information systems have an important role in this; namely, they are there to support individual decision-making. In fact, it is the work of Herbert Simon (Boland 1987; Simon 1960) which has persuaded so many people to assume the nature of managing to be problem solving through decision making. In Simon’s words (1960, page 27), “problem solving proceeds by erecting goals, detecting differences between present situation and goal, finding in memory or by search tools or processes that are relevant to reducing differences of these particular kinds, and applying these tools or processes. Each problem generates sub-problems until we find a sub-problem we can solve. We
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proceed until, by successive solution of such sub-problems, we eventually achieve our overall goal – or give up.”
The E-Governance Concerns in the Soft Interpretive Strand In the soft strand, nevertheless, an organization is seen at core as a social process, essentially a conversational process, in which the world is interpreted in a particular way which legitimates shared actions and establishes shared norms and standards. There is no single body of work, which underlies the soft (interpretive) approach to information systems, but the work of Sir Geoffrey Vickers (1965) provide quite an interesting reference. For Vickers, organizational managers set standards or norms rather than goals, and the focus on goals is replaced by one on managing relationships according to standards generated by previous history of the organization. Furthermore, the discussion and debate which leads to action is one in which those taking part make judgments about both ‘what is the case’ (Vickers’ reality judgments) and about its evaluation as good or bad, satisfactory or unsatisfactory – what Vickers calls appreciative judgments. This places Vickers’ work firmly in the interpretive tradition, which sees social action as based upon personal and collective sense making. Interestingly, Vickers’ idea is also at the core of the writings of Winograd and Flores (1986), whose much-noticed Understanding Computers and Cognition is written from the point of view that language as a medium does not simply reflect the world out there but constitutes it in the social process of interaction. This leads to the view that organizations are constituted as networks of conversations in which commitments are generated. Information systems can support such conversations: “Computers are a tool for conducting the network of conversation (page 172).” Another author within the soft strand of IS thinking is Ciborra (1987). He argues
The E-Governance Concerns in Information System Design for Effective E-Government
that organizations should be seen as networks of communicative exchanges, and that computerbased information systems should be thought of as making such exchanges easier – the exchange support systems. He contrasts this idea with the more conventional view within IS work, when he writes: “Present-day IS designers either tend to a data view of organizations, or in the case of those most influenced by business needs, to a decision-making view. These two ways of looking at the problems of computerization are so widely accepted and have been so much taken for granted that they can be said to form the conventional wisdom of today. The origins of the former can be traced directly back to the EDP (author added, Electronic Data Processing) field, while the latter stem from the influential work of Herbert Simon.”
The E-Governance Challenge in Supporting Knowledge Work In developing a richer concept of organization for e-governance, than that on which most IS work and most of its literature are based, the problem is to capture the tension between the rationality of collectively organizing to achieve declared goals and the ultimate recalcitrance of human beings as members of organizations (Checkland & Holwell 1998). The tension referred to is central in the writings of a pioneering sociologist, Ferdinand Tonnies. In seeking to understand the transition from agrarian to industrial society, Tonnies, in his major work Gemeinschaft und Gesellschaft (1887) (translated as Community and Association by Loomis (1955)) constructed models of two types of society or organizations. These were on the one hand the natural living community of the family (Gemeinschaft), the group which we find ourselves part of, and on the other, the formally created associations (Gesellschaft) where men and women join in some complicated contractual sense – as when we choose to become employees of a company or a
public sector organization. This is the basis of a typology often for analysis rather than a description of actual organizations. The interesting point is that actual organizations in the world, although artificially designed and created, also continue to have some of the natural characteristics of the family, thanks to the ultimate autonomy and unpredictability of human beings: no Gesellschaft is ever simply a rational machine whose members willingly combine together totally to pursue organizational goals. In trying to build a picture of organization capable of better supporting IS work we first assume that the word ‘organization’ always refers to a social unit, or collectivity. It is a social collectivity concerned with some collective action, and there are associated social practices, which relate to this. Accordingly, to be a member of an organization is to have a contractual relationship with it, whether a legal contract of employment or a more complex psychological contract, or both. Members of an organization in a role structure are assumed to share an image of their organization in terms of its context, aims and objectives, its structures, processes and resources, and the measures of performance, which indicate whether or not the aims are being achieved. Within this framework, the members make their contribution to decision making in pursuit of objectives. Nonetheless, it is the readiness of people, members and non-members of the organization alike, which causes the organizational entity to exist. People talk and act as if there were a collective entity, which could behave like a conscious being, with the ability to decide to do things and then make them happen. Oftentimes, there are conceptualizations based on the interests and agendas of individuals, or sub-groups within the organizations as well as the overall declared, public, official account of the organization. The existence of these different interests and agendas means that the organization as a whole, the collectivity, has constantly to seek accommodations between conflicting interests upon which action
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can be based. It cannot simply assume consensus. And, following Vickers, the action is here expressed more richly as managing a changing set of relationships, rather than taking rational decisions to achieve goals.
A Pragmatic Model of IS-Based E-Governance Support As an account to contextualize IS support for e-governance, we consider the orderly provision of information in organizations as one important aspect of governance. Accepting this is to assume that organizations can never be static but are always changing in response to changing circumstances, both internal and external. Wise people in organizations will try to ensure that problems are perceived, framed and tackled consciously; and a ubiquitous feature of any organizational problem-solving activity will be work to create orderly systems of information provision. In any case, the provision of information systems, even if done only in response to technological imperatives, will itself bring about organizational development. It is assumed that this organizational change activity will in principle be capable of being fed by four particular bodies of relevant knowledge, represented by four streams of thinking and activity: information systems (Checkland, 1999), systems thinking (Checkland, 1988, 1981), ICT, and organizational theory. The IS stream is that concerned with fundamental idea of data, information and knowledge, also with methodology for IS planning and development and the managing of the information resources in organizations. The systems stream consists of the body of systems thinking, which emerged with general systems theory in the 1950s and is relevant to anything which may be thought of as a complex whole. The technology stream refers to the body of knowledge and work, which focuses on ICT and its development. It is important because, although ICT provides a possible means (a ‘how’) to
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achieving the end of a working system to provide information (a ‘what’), this is a technology in which new ways of doing things technically, new ‘hows’, can change ideas about possible ‘whats’. The fourth stream is concerned with understanding organizations, and organizational behavior. This is the context of IS work, work which can hardly be undertaken without taking as given some concept of what an organization is. In fact, any particular piece of work in IS-based e-governance may draw upon any or all of these areas. Obviously, it must be described, how and with what an organization performs its e-governance work. Here the alignment context could be expressed in terms of the dynamics of the peopleprocess-system issue. Namely, under specific e-governance policies, one needs to design suitable information systems to help people with knowledge to perform the processes involved to produce results of value to the organization. In fact, Zuboff (1988) has written extensively on the interaction of people and ICT technologies, and the all-important shift in management thinking from automating to informating. In practice, automating typically refers to the use of ICT during process change to substitute the deployment of humans. It serves to lower uncertainty and increase managerial control. Informating, in contrast, refers to the effect ICT may have on the understanding and transparency of a process. It makes people more productive through their use of, and process integration with technologies. It serves to increase people’s capacity to understand the entire value-adding business process. Thus, informating concerns itself with the connection people have with their specific tasks as well as the whole flow of work. Certainly, the notion of knowledge cannot be neglected. While informating concerns IT and task integration, the idea of knowledging (Savage, 1990) refers to individual and organizational learning, and is characterized by the process of knowledge creation and the active involvement of the individual with his or her work. In fact,
The E-Governance Concerns in Information System Design for Effective E-Government
each context from automating to informating to knowledging may be thought of as a stage, a progression requiring additional alignment threads and trade-off. In particular, the trade-off between individualism and community may impact the movement from informating to knowledging. In this respect, individualism drives individual knowledge and rewards, and thus encourages informating, while a community emphasizes sharing and is more closely associated with knowledging, including the interaction of computers, people, lateral relations, business processes, organizational learning and knowledge creation. Thereby, in order to create a pragmatic model of IS support for e-governance, each successive organizational transformation, from automating to informating to knowledging, requires higher levels of process abstraction and a broad range of process integration and alignment threads.
FUTURE TRENDS OF E-GOVERNANCE FOR PERFORMANCE IMPROVEMENT With the advent of the Internet, and the emergence of a global information (or knowledge) society (Miller, 2009), we find ourselves in the midst of an electronic transformation, which is accelerating the pace of change and overwhelming established methods of organizing and governing that were largely developed for a world of more limited information flows and clearer boundaries (Riley, 2001). As a result, government today is compelled to be reinvented in order to provide new capabilities and perspectives; to be able to cope with new challenges; and to renew the organization to adopt new approaches, keeping those that work well and discarding those that are outdated. In this transformation, it is not only organizations and governments that are changing: it is the process of governance itself (Rosell, 1999). The ultimate purpose of contemplating IS support for e-governance is that by considering the future, we
become more aware of what is going on in the present. Hence, scenarios of concerns represent distinctly structured views of the future that are self-consistent and plausible. And our question of interest is this: What choices might we be making now that will shape the performance improvement we can make of e-governance in a society that is increasingly global, networked and knowledgeintensive?
Learning-Based E-Governance Systems Today a number of forces, particularly globalization, the rapid evolution of ICTs and changing demographics are putting pressure on institutions and processes of governance around the world. To remain effective and relevant, governments must begin their respective process of incremental adaptation through various initiatives largely focused on improving the functioning of their public services. The idea of a learning-based egovernance system assumes that organizational and societal learning with the support of ICTs are central to a government’s ability to adapt in an ever-changing environment. Without the ability to learn and change, many a government will become unresponsive and outdated. Paquet (1999) coined the term co-evolution to describe adaptive, learning governance systems as ones that learn from their environment. Co-evolution in governance requires fostering a culture of learning among individuals and organizations within society. Paquet also interprets social learning as the process of interaction through which individuals and organizations learn from each other and consequently adapt, innovate, and develop new arrangements, conventions, and rules of engagement. Indeed, creating a learning-based e-governance system is very much about developing an understanding of how citizens view their society and their role in it. A key building block of knowledge-age organizations is the ability of
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their participants to learn and share knowledge effectively. Public sector organizations that can learn have learning objectives and meet them by consciously aggregating what individuals, teams, and work units learn into the organization’s work plans and processes. Rosell (1999) suggests that if government is to provide the sort of leadership needed in the knowledge society, it will require the support of a different sort of public service, one that is more attuned to change, more able to learn and adapt flexibly to a turbulent environment, and more able to address longer-term issues that cut across departmental boundaries. Literally, this means strengthening the learning capacity of the public service, and finding better ways to engage other sectors of society in that learning process. Nowadays, many public sector organizations are already developing their institutional e-portfolios (Lorenzo & Ittelson, 2005) to more effectively and easily assess and share information about their overall missions and goals. These e-portfolios typically reveal an institution’s accomplishments, documenting progress (or lack of progress) at the various levels of governing, along with information about how it plans to improve. Like a business portfolio, publishing information publicly on the Internet often results in a more concerted and coordinated effort by an institution’s stakeholders (officials, citizens, and communities) to work on continuous improvement plans and policies. An example of such effort (Stalk, Evans, & Shulman, 1992) is the Urban Universities Portfolio Project (UUPP) (http://www.imir.iupui.edu/ portfolio/) which had two basic goals in mind: to enhance understanding, among internal and external audiences, of an institution’s distinguishing features, mission, and goals through a public institutional e-portfolio; and to use the process of building and updating an institutional e-portfolio to enhance and maintain an institution’s ability to communicate, plan, and achieve its mission and goals on a continuous basis. Here, external audiences are mainly accrediting agencies, prospective
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students and parents, and the communities the institution are meant to serve. Undoubtedly, responding appropriately is fundamental to ensuring the ongoing legitimacy of governing institutions and processes of governance.
ICT-Enabled CitizenCentric Public Service Information and communication technologies (ICTs) represent new tools that governments can use to transform how they do business and interact with citizens, allowing them to become more responsive and inclusive. Indeed, the knowledge society will bring forth new concepts of citizenship, both in terms of needs and responsibilities. Dramatic advances in ICTs have expanded the information available to citizens and the means to organize, now on a global basis. This growing access to information and ICTs enables greater numbers of people to participate in policy and program design and government decision making. This represents what could be a fundamental change in how citizens relate to government and to one another. It will redefine not just government processes – what governments do and how they do it – but also why they do it, altering the very essence of democracy as we have known it. Governments of advanced democracies are now witnessing a global shift in values, wherein citizens are more demanding of governments and want a stronger voice in decision making. Indeed, the process of fully exploiting the potential of ICTs in government has only begun. An example is the use of knowledge e-portfolios, which creates new capacities to link ideas, people, organizations and information in new ways for the benefits of citizens. The fundamental challenge before government is to harness and direct this new technology to share knowledge in a way that makes it easier for individuals, communities, and governmental units to work together to effectively contribute to an improvement of e-governance performance. As Nevitte
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(2000) notes that the expansion of education has produced a more articulate, better informed, more sophisticated and more demanding citizenry. Thereby, strategic e-portfolio positioning for citizen participation has become a central area of concerns in inviting citizen engagement in e-government (Malkia & Savolainen, 2004; Coe, 2004; Greenberg, 2004; Wiig, 2004; Figallo & Rhine, 2002; Hackos, 2007), which is often considered as the signature identifying mature governance processes. Accordingly, managing the institutional e-portfolio well means receiving participants’ support in setting appropriate priorities on the projects that individual public sector organizations undertake; namely, it means deciding what can be done well and ensuring the work done is worth doing, and adds value to the government as a whole including the stakeholders (officials and citizens). For example, the IUPUI experience (http://www.iport.iupui.edu/) has indicated that a great deal of organizational preplanning and development must be in place with the ongoing support and participation of administrators, faculty, information technologists and students, to make building a logical and easy-to-comprehend institutional e-portfolio site a success.
Reflecting on a Framework of Change in E-Governance With the advent of the digital economy and the knowledge society, it is convinced that governments, in collaboration with citizens and other stakeholders need to develop a vision and plan for shaping the future of the institutions and processes of governance, in order to achieve performance improvement. Yet, how do we move forward? The E-Government Policy Network, affiliated with the Government of Canada (Coe, 2004) provides a timely framework for us to ponder the underlying change required: managing complexity and interdependence, engaging citizens, bridging jurisdictions, and working together.
Managing Complexity and Interdependence In today’s complex and dynamic world of interdependence, government including the legislative and executive arms, and governmental actors including public servants, policy makers, and politicians, must be prepared to redefine their roles. Besides the traditional functions in such areas as economic and social policies, it is believed that governments should create, with the enabling ICTs, a supportive environment for innovation (Lanvin, 2003), taking up such new roles as consensus building, setting ground rules for participation, protecting public interest, and providing quality information. In fact, the ability of governments to provide a vision and lead by example has become more relevant in today’s knowledge society. This is quite consistent with Rosell (1999) when he describes leadership as a process of making meaning: identifying vision and mission, framing problems, setting goals, arguing and engaging in dialogue, theory-building and testing, story-telling, and the making of contracts and agreements. Perceptively, leading change by reflecting on the values of the public (Paquet & Roy, 1998), after having listened extensively to their views, is also an important demonstration of leadership in governance. Engaging Citizens It is understood that citizens must become more active participants in governance today. The question is: How? In an age when citizens are becoming better informed and more demanding of their leaders and are requesting a stronger voice in the policy-making process, governments has the responsibility to adapt and be open to making policy and decisions differently. Indeed, creating institutions and processes of governance that are less controlling and more engaging and less secretive and more transparent, is essential to performance improvement. To realize a more interactive decision-making process that places citizens at the core, to help
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build what Coleman (2000) identifies as a culture of democratic communication based on strong representation and engaged citizenship, it is believed that some of the central governance components should include: developing a government strategy of inclusion and outreach to ensure that all voices are heard; creating new public spaces – virtual and physical – that citizens trust as places of consultation and engagement; ensuring appropriate timing of engagement to make certain that the process has a genuine impact on decision makers; and assuring that voices are authentic and representative. Namely, attempts must be made to get citizens involved in solving social problems. This is done especially at the local level, by establishing network-like structures based on cooperation, co-determination, and co-decision-making. Bridging Jurisdictions The knowledge society, characterized by increased complexity, diversity, and interdependence, demands a more holistic approach to governance and more precisely the bridging of jurisdictions across all levels of government, the private sector and civil society. This means overcoming traditional divisions in order to integrate functions, programs and services across traditional vertical and horizontal boundaries. Leaders of the future must be willing to break down the silo approach to accountability and look closely at the structural, cultural and institutional barriers that pose a challenge to collaborative action. The key development trend is the shift from centralized, authoritarian, uni-polar, machine-like organizations to decentralized, democratic, multi-polar, organic modes of interaction. Organizations and society must no longer be understood as a machine to be controlled by the individual or group in power, but rather as a network of semi-independent actors to be activated, motivated, encouraged, and coordinated. More importantly, these types of organizations are based on respect and trust. Typically, decisionmaking powers are decentralized from national to
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regional and local levels of government, and local governments and communities are empowered to take control of their future. From a theoretical perspective, this shift can be seen behind the ways in which we speak about the intelligence of democracy (Lindblom, 1965), about reinventing government (Osborne & Gaebler, 1992), about the need for trust (Fukuyama, 1995), or about the rise of the network society (Castells, 1996). Working Together In an era where knowledge and innovation are viewed as drivers of economic growth and productivity, institutions and processes of governance must reflect these priorities. Likewise, it will be crucial for the people of government to become more adaptive, innovative and collaborative in order to meet the needs of citizens and society as a whole. With respect to organizational design of government, this will mean trying to find a suitable balance between traditional hierarchical structures, which emphasize command and control, and a network model that is more flexible and dynamic. The aim is to create a management model that is flatter with more empowered knowledge workers and an operational model that is teambased, learning-oriented, networked, horizontal and citizen-centric. Moreover, establishing an organizational culture that rewards creativity and risk taking and that provides incentives for human capital to flourish must be a priority. Such an environment will require developing shared values, objectives, and frameworks of interpretation to coordinate the actions of a multitude of players, including the public servants who are expected to be more collaborative and comfortable with change.
The E-Governance Concerns in Information System Design for Effective E-Government
IMPLICATIONS FOR PERFORMANCE IMPROVEMENT Today it becomes evident that attempting to examine e-government without a clear understanding of the surrounding socio-economic environment sounds a limited endeavor at best. This world is experiencing a noticeable shift in the structure and nature of society, comparable in scope and significance to the change experienced during the industrial revolution at the turn of the 19th century. Countries around the world are now witnessing the emergence of an increasingly knowledgeintensive, diverse, complex and interdependent planet. This move to a knowledge society suggests that ways of organizing and governing production processes and human interaction in an industrialbased society no longer work as expected. The industrial paradigm of government – and governance – often hierarchical, command-andcontrol oriented, procedure-driven, rules-based and organized into a system of departments and agencies with well-defined boundaries, nonetheless, does not easily function well in an era of information and network organizations (Putnik & Cunha, 2008). It is becoming clear that vast changes in organizational and governance arrangements are required to induce any significant performance improvement. In fact, over the past two decades, we have witnessed many a government to undertake efforts to address mounting pressures for reform, especially after the birth of the World Wide Web in 1994. These efforts of reform have often been guided by a loosely connected set of principles, referred often as the new public management, where lessons of the private sector. The emergence of the knowledge society has created a new imperative for reform (Wimmer, 2003), and as discussed in the chapter, it has changed the nature of transformations required. Despite significant efforts during the past decade to meet the challenges of operating in a more dynamic world, governments today are facing the reality
that the 21st century will demand even more radical change, especially because of the advances in the ICTs. As such, the transformation path ahead is full of challenges, highlighting the importance of flexibility and adaptability in moving forward. Thereby, experimentation, innovation, and dialogue are the essential building blocks for performance improvement. These also represent some of the e-governance concerns in IS design to support effective e-government work. It contains a transformation agenda ambitious in nature and scope, representing wide-ranging implications for civil society, the public and the private sectors.
CONCLUSION Effective behavior is important in all knowledge work. The installation of knowledge portfolios, in the form of institutional e-portfolios, seeks to improve the performance of organizations and the people responsible for achieving effective behaviors. From an e-governance perspective, it might be useful to conceptualize organizations from the perspective of human performance system. Literally, the external environment presents organizations with opportunities, pressures, events, and resources, which stimulate the organizations to generate goals and objectives (responses to the environment), and internal requirements, representing sets of actions allowing the organization to avail of the opportunities and to meet the pressures from the external environment. One set of internal requirements may be specifically tailored to human performance, which once articulated, should trigger a number of behaviors that result in accomplishments. Behaviors and accomplishments are both essential elements of the knowledge e-portfolios, and they are influenced by both the external environment (what is happening out there and how the organization has decided to respond), and the internal environment of the organization (composed of many elements such as people, process, structure, strategy, and technology).
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Accomplishments may or may not suffice sometimes; hence, they are subject to verification and either accepted as being aligned with the governance requirements or judged as not being so aligned and in need of modification. In such circumstances, the result is usually some alteration in behaviors, which in turn will result in a change in the organization’s accomplishments. Analysis of the system, along with a diagnosis of the changes required and the design of suitable interventions, drives the e-governance concerns as discussed in this chapter, especially, in the special context of IS support for governance activities. As organizational architects, we are obliged to engineer an appropriate solution that will entail the greatest payback in this world of Internet revolution. That is also the motivation behind digitizing the knowledge portfolios for accomplishing effective institutional behaviors in response to the external challenge of the 21st Century knowledge environment. More importantly, from a knowledge sharing perspective, such a digitization effort should facilitate participative knowledge creation and transfer as taking place in the context of a value network comprising governments, citizens and various communities of interest in society, rather than viewing it from a traditional organizational viewpoint. Namely, making effective use of knowledge e-portfolios requires a network of partners, in which citizen engagement and cross-jurisdictional collaboration are embedded and made plausible. In this regard, knowledge barriers can be overcome by suitable IS support, and knowledge islands could be bridged to stimulate the evolution, dissemination and application of collective knowledge to improve the e-government’s performance.
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KEy TERMS AND DEFINITIONS E-Governance: The use of emerging information and communication technologies (ICT) to facilitate the processes of government and public administration. It is about providing citizens with the ability to choose the manner in which they wish to interact with their governments. And it is about the choices governments make about how ICT will be deployed to support citizen choices. E-Government: The use of internet technology as a platform for exchanging information, providing services and transacting with citizens, businesses, and other arms of government. eGovernment may be applied by the legislature, judiciary, or administration, in order to improve internal efficiency, the delivery of public services, or processes of democratic governance. Electronic Transformation: The process of organization transformation from a bricks-andmortar entity to its clicks-and-mortar counterpart, involving the use of various information and communications technologies (ICT) to enhance the productivity of the enterprise in the Internet era. E-Portfolio: An electronic space to reflect upon a person’s or an organization’s digital
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identity, including relevant working experiences in terms of artifacts that relate to his or her professional career, or the organizational profiles detailing the mission, history and achievement of the enterprise. Governance: Referring to decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. In the case of a business or of a non-profit organization, governance relates to consistent management, cohesive policies, processes and decision-rights for a given area of responsibility. In the governmental setting, governance is often
considered as the outcome of interaction among the government body, the public service, and citizens throughout the political process of policy development, program design, and service delivery. Government: A government is the organization, that is, the governing authority of a political unit, the ruling power in a political society, and the apparatus through which a governing body functions and exercises authority. Public Administration: The development, implementation and study of branches of government policy.
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Chapter 4
Socio-Cultural Context of E-Government Readiness Selected Problems Lech W. Zacher Kozminski University, Poland
ABSTRACT E-government is not only an innovative idea but, more and more in a growing number of countries, a practical activity of high priority. It reflects the emergence and development of information societies (IS). Socio-cultural context is a framework of e-government strategies and practices. The context will determine the effects of such efforts. It is important to consider and understand the socio-cultural characteristics and functioning of society while its e-government undertakings are planned and introduced. From this point of view, the presently emerging worldwide information societies can be grouped in classes. It may help to analyze the classes’ needs and possibilities and to formulate proper e-government agenda to be implemented. The real specificities and diversities among classes make the IS development multi-trajectory. In this diversified world, the effects will vary greatly. This chapter has tried to identify and briefly analyze the challenges for e-government strategies and practices from the point of view of socio-cultural context. It is argued that this context should be treated dynamically – as changing and as creating potential for change leading to further advancement of IS. Thus the discourse on the sociocultural context of e-readiness is summarized. Some conclusions and recommendations are formulated, especially with reference to diversities and specificities of IS classes.
INTRODUCTION E-government readiness has several dimensions. Readiness on the side of government depends on government’s propensity to use informationDOI: 10.4018/978-1-60566-671-6.ch004
communication technologies (ICTs) to exchange information and provide services to citizens and business. Such propensity, which is psychological, political, social and cultural in character, varies from society to society. Psychological, political, social and cultural factors and conditions can act in positive or negative directions with regard to e-readiness.
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Either way, it can be assumed that governments play the role of enlightened leaders and are under the influence of the external world (that is, the networked world). However, governments may strive for democratic governance or prefer tough rules based on control of people, surveillance, and manipulation. Moreover, they can be effective in both cases. ICTs can be used in both ways. So the historical heritage, norms and values, social and religious customs and attitudes, orientations (e.g., proactive, future-oriented, openness), social aspirations and national ambitions, social structure, level and span of education, competences in administration and business, technological culture, political and legal systems, media status, advancement of civil society, relations with other countries etc. are non-technological determinants of e-government readiness of all its stakeholders – public administration, business and civil society. These factors constitute the socio-cultural context of e-readiness of both government and society. It is worth noting that business has an economic motivation and arguably a more “natural” technology-driven propensity to use ICTs. To make government and social e-readiness work properly and effectively, all factors and their feedbacks should be considered by all stakeholders, including central and local public authorities, business, and NGOs, while the stakeholders develop strategies, plans, and policies and while they react to various pressures and challenges imposed by ICTs and globalization. Socio-cultural context ought to be treated dynamically—as changing and as creating potential for change. Unfortunately, quite often this context is overlooked or underestimated what diminishes possible advantages and positive effects for all sides involved in ICTs applications and diffusion in all spheres of social activities and life. The fundamental component of e-readiness is technology—computers, telecommunications infrastructure, and ICT organization and management. Tools and techniques of e-government are connected with the use of some hardware, software
and orgware. The latter has evident political and cultural dimensions. Security and privacy standards also have legal dimensions. E-government is nowadays necessary in order to take advantage of ICTs for better public administration, for more effective business performance, and for citizen activism. However, it is costly. After the initial period, e-government functioning should be measured and evaluated from the point of view of all stakeholders. Moreover, failures, incompatibilities, negative side effects, and exclusions should be also identified and recognized, and strategies and policies toward diminishing or liquidating the unintended effects elaborated and implemented. Media and educational institutions (being in fact the components of socio-cultural context) can play an important role in ICTs assimilation and use in the public and private sectors.
BACKGROUND Selected Approaches and Cultural Challenges The discourse on the socio-cultural context of ereadiness is a rather new area of research. From the point of view of the history of science, it can be located close to such themes as technology and culture, technology and society, STS studies, or social assessment of technology. Without the technological component e-government would not exist. However, more types of innovation are necessary to make it work. It is worthwhile to note that technology also emerges in certain cultural, social, economic, and international settings. This is the first socio-cultural condition of technology. The second lies in technology’s social use (i.e., for education, training, strategies, policies, building infrastructure, legal framework). The third condition is connected with the social response (will, propensity, attitudes, expectations, competencies).
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The analysis of social contextual aspects of e-government should not be ignored by policymakers and developers. Social aspects of technology have been investigated from the point of view of already classic sociological theories like structuration theory, actor-network theory, social construction of technology, strategic choice approach and so on, not to mention more philosophically oriented approaches concerning man – technology relationship. However for the practical understanding of e-readiness issues and for the pragmatic goals (like developing strategies and undertaking deliberated actions) the best approach should be policy-oriented approach, not a general theoretical perspective. The transdisciplinary experience of STS studies can be helpful here, especially if linked to governance, public management and politics (see Dunleavy et al., 2006). The socio-cultural conditions combine to create strong positive feedbacks. But the processes involved here are not totally planned or totally spontaneous, they are mixed and may be chaotic. Moreover, external factors and pressures (global competition, international trade, technology transfer, FDIs, migrations, brain drain) are influential as well. External influences—consumption patterns, attitudes, worldviews, behaviors presented by the global media—have distinctive cultural and sociopolitical characteristics. They can be disruptive for some aspects of local or national cultures, but may at the same time create or contribute to a potential for change and a more effective cultural ability to transform and reform. So the imitation or adoption of external influences, when reasonably implemented, may be instrumental for e-readiness undertakings. To overcome the technocratic temptation, it is vital to underline that “culture matters” (Harrison & Huntington 2000), that cultural values powerfully shape social, political and economic performance, and therefore also shape e-government readiness. Cultural values determine individuals’, governments’, and business’ thinking, decision making and actions. Culture shapes perceptions
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of technological change, risks, opportunities, and positive and detrimental effects. It forms as well the principles around which activity is organized and strategies and actions performed. Culture plays a significant role in shaping attitudes about work, trust, responsibility, authority, democracy, and visioning of the future. Religious beliefs can be considered part of culture. There are progress-resistant cultures and progress-prone cultures (Lindsay in Harrison & Huntington, 2000, p. 284, see also Gascó, 2007). For better understanding of culture’s role and its mechanism of influence, it is useful to refer to mental models (or mindsets). Mental models are the underlying beliefs that influence the way people behave. While culture is a broader macrolevel variable, a mental model is a micro-level variable. Mental models apply to individuals and groups of individuals, and are identifiable and changeable. Culture reflects the aggregation of individuals’ mental models. The two are linked in a perpetually evolving system (Lindsay, ibidem, p. 284). Mental models are differentiated in communities, companies, societies, and regions. Globalization is producing global-oriented mindsets. There is a difference between mental models in advanced countries and in LDCs. Important for e-readiness are the mental models of political leaders, government officials, business leaders, and NGO leaders. Changing mental models, by the introduction of ICTs and their applications, can generate changes in the culture of a society. Those mental models which drive the strategic choices that are being made should become the focus for change efforts in the e-government area. There are many challenges for e-government utilizing ICTs and connected with cultural dimensions. For example, rather massive migration of people from LDCs (e.g., to Europe) requires a special tailoring of egovernment information and services exchange. Not only do migrant inhabitants but also tourists in their masses need special ICT treatment. On the other hand, the globalization processes have
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cultural, or rather multicultural, dimensions. Culture is being changed globally, nationally, locally and on the level of individual mindsets (on cultural aspects of globalization see Appadurai, 1996, Rajaee, 2000). Much research has been done on themes connected with culture, technology and organization interactions. For example, cultural politics of technology (Sørensen, 2004) versus normative politics of technology (Garrety & Badham, 2004) has been discussed. The former type of politics combines critical and constructive interventions; the latter is based on user-centered design. These approaches can be applied to ICTs in the context of e-government. Since ICTs are in fact sciencebased innovation, they can be an objective of innovation policy. Their creation, transfer and diffusion may capitalize on the idea of a triple helix of university, industry, and government relations (Etzkowitz, 2006). Cultural values are present where the new centers of electronic and information technology were created. Interestingly, the communities involved in such processes (e.g., in Silicon Valley – Lécouyer, 2005) generated the dynamic pattern of knowledge sharing. So communities of learning, practice and collaboration developed the culture of knowledge sharing. Needless to say, such centers were and are at present an important source of technological and cultural innovations that can be helpful in e-readiness undertakings. E-readiness in the networked environment, which is the growing density of relations between government, business and the public, needs a kind of intermediary. Information brokers can play such a role. The brokers link sources and users of new e-government ideas, concepts, actions and services. In fact, we can think in terms of information, knowledge and technology brokers. They are ex definitione innovation brokers (on innovation brokers as actors in social networks, see Winch & Courtney, 2007). ICTs have both great dynamic and transformational powers so the process of their introduction
into e-government activities should be smoother and more effective if some principles of so-called constructive technology assessment are adopted. However, the two-track approach (promotion and control of technologies separated) does not resolve problems of resistance or risks (nota bene the present societies are called risk societies). It is important to understand that linear models are no longer relevant. The e-government model should not be “producer-centered” (sender sending coded messages to receiver who decodes them). Transfer of information and knowledge is not simple because coding and decoding is culturally embedded; moreover, both parties should be interested in the process and users should not be just reactive but interactive. It cannot be assumed that there is a priori consensus on values and goals. So the challenge is how to reshape, transform, put to use, and translate into a domestic setting this information, knowledge and ICTs’ possibilities and programs. The concept of domestication can be applied (e.g., domestication of computers, the Internet, e-government information and services exchange). It is a kind of cultural appropriation (Sørensen, Aune & Hatling, 2000). E-government activities are more successful in the information and innovation intense environments. Such special environments have been internationally known since the 1970s as industrial clusters, information or knowledge cities, technopolises, and science parks (Roberts, 2005). In other words, these factors constitute an intelligent ambiance which is very advantageous for stimulation of e-readiness. However, the networks of e-government have various densities, junctions, and operating speeds in different countries and regions. E-readiness of all parties (government, business, citizens) depends greatly on their understanding and trust in science and technology, in their positive effects and in the possibility of avoiding serious detrimental impacts. Social assessment of e-government can be a part of social learning. A reflexive version of social learning (see Wynne,
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1995) involving the systematic investigation and debate of ICT’s role, impact, risks and transformational strength imposes adequate re-organization of society and relations between public administration, business and citizens. Under democracy, social paternalism (deciding from above what is good for society) cannot be accepted. The same can be said about the technological expert approach neglecting non-technological consequences. E-readiness may be analyzed from various points of view reflecting different rationalities (sets of criteria of choice): political, technological, business, social. Technological commitments reflect social values, cultural identities, interests and incipient social orders. So reflexivity, social criticism and negotiatory discourse can be helpful to promote e-readiness and to make socially wise use of it. The users’ involvement in ICT systems design and functioning can generate important knowledge but it should be rewarding for the users by offering a feeling of being in control and having certain advantages. Thus a more participatory policy approach is needed. A proper institutional framework for e-governance should be built on the basis of communicative partnership of all actors involved (i.e., scientific and technological, government, business, civil society – Burgess & Chilvers, 2006). In common opinion, e-governance is connected primarily with participatory or deliberative (or discursive) forms of democracy, which is an important value constituting a new socio-cultural context for decisions, activities and life. The transformation from the traditional government structures and mechanisms to e-government is a complex process and very difficult from the beginning (especially for less advanced countries). It requires some policy and transition management (the term adopted from Elzen, Geels & Green, 2005) in which long-term targets, visions and transition agendas will be present. For example, in the European Union, there were general recommendations and directives in the Bangemann Report in 1994 and then in the Lisbon Strategy in 2000 (recently updated).
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From the point of view of social learning strategies, it is interesting to use the concept of bounded socio-technical experiments (Elzen et al., 2005). To avoid risks, it is reasonable to introduce ICTs and services and social arrangements connected with them on a small scale. The results should diffuse on a larger scale what can lead to further experimentation, to a new applications, and single-loop learning (among the experiment actors and their immediate professional networks) and higher-order social learning (including society at large) (ibidem). Aside from top-down policies, bottom-up initiatives are important for stimulating e-government readiness. Bottom-up initiatives express public interest in finding advantageous solutions. But all actors in the process should show good will to achieve consensus. The process is in fact of a civilizational character; that is, it epitomizes the co-evolution of technological and societal developments. Technological innovations and market-type instruments alone are not sufficient for the transition. Social, cultural and human capitals play no less significant roles. Cross-cultural studies, investigations and comparisons can be insightful and practically helpful. Mobile phones, which have become the primary info-communication tool, are a good example. They are already embedded in the lives and activities of more than a billion people, not only young, but people of all ages, professions and social strata. The mobiles are used similarly in different cultures (e.g., in Japan and Europe; see Ito, Okabe & Matsuda, 2005). However, there are indications that cultural heritage (e.g., in Africa) may influence mobile phone users’ behavior. Still, the new technologies are actually focused on the developed world. It can be postulated then to design technologies, including mobile phones, important for e-readiness that satisfy culturally specific needs. This resembles somewhat the old idea of appropriate technology (originated in E. F. Schumacher’s works in the 1960s. and 1970s). There are, however, opinions that we experi-
Socio-Cultural Context of E-Government Readiness
ence growing cultural divides and the need for indigenous technology appears again (especially in big, diversified countries like India) (see van Dijk, 2005). Digital divides—on the local, national and global levels—constitute a serious problem when we debate on e-government readiness. These divides mean the information exclusion of groups and individuals, countries and regions. There are national and international efforts to bridge these divides, but low-cost laptops and free software may be not enough. The learning capacity and the cultural ability to use the new opportunities can be lacking. Moreover, some studies show that the access to ICTs does not eliminate inequalities, injustice and poverty (see Eubanks, 2007). They are not only the distributional problems. The development of the techno-landscape and electronic gadgetry can positively influence people’s understanding of technology and facilitate its use. However, the immense diversification of the world and of societies requires that a kind of special approach be taken for less advanced countries and regions (see Ali & Bailur, 2007). More attention should be given to the multifaceted impacts of ICTs on humans (Bradley, 2006). It may stimulate e-readiness too. E-exclusion and the digital divides can also be caused by the growing differences in skills access and usage access. Users with only basic computer literacy and basic, not high-speed, Internet connections will be left far behind; the same concerns apply for elderly and disabled persons. This disparity may greatly affect e-readiness and e-government effectiveness. Can the new generations (“computer children,” network generation) overtake the growing share of ageing and disabled persons? The worst case for e-government readiness would be the significant resistance to ICTs because of lack of trust, computer crimes, overtechnization of life, or computerphobia because of widespread electronic surveillance (see special issue of International Sociology, 2004). Some Neo-Luddism is still possible (Jones, 2006).
CONSIDERING SOCIOCULTURAL CONTExT IN E-GOVERNMENT DEVELOPMENT: THE TIMELy DISCOURSE Any formulation of ICT strategies for developing efficient and effective government systems, for building appropriate institutions and for the empowerment of communities requires a solid recognition of the socio-cultural situation and trends. The proper reference point is the broader framework, i.e., information society (or e-society).
Assumptions and Issues For better understanding of the problematique, it is necessary to make some general explanations. •
The e-government idea and its practical applications are often viewed in a rather abstract way. Therefore, some silently accepted assumptions should be disclosed and considered in this discourse: ◦ E-government is an integral part (a set of institutions and activities) of an information society (IS); ◦ The more developed the IS, the more chances for e-government’s broad and effective use; ◦ E-readiness cannot be separated from a given (investigated) IS or its class and its stage of development; ◦ An important characteristic of an IS is always its socio-cultural context. This context should always be considered both in analyzing e-readiness of a particular IS and in recommending formulation of ICT strategies and policies; ◦ E-readiness has both internal (domestic) and external dimensions; the latter is connected with the globalization processes (making the networked world) and sometimes with regional
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•
•
integration processes (e.g., in the European Union). Moreover, e-government as a concept has several definitions and interpretations (Heeks, 2005, Anttiroiko, Mälkiä, 2006, Zacher, 2007). It is connected with other terms such as e-administration, edemocracy, e-governance, e-economy, ebusiness, e-society, e-world and more. It is worthwhile to note that when prefacing a word with “e” we underline the technological aspect (electronic technology), while “i” (info) is often used as its substitute and signifies the more general aspect of information in its socio-cultural setting. Some immediate provisional conclusions can be formulated: ◦ In information societies, there are complex and interactive networks of power (political and economic) and, connected with them, activities (like egovernment, e-governance), so a particular IS should be investigated from the point of view of existing networks. (Such approaches will be helpful in this regard, such as the theory of networks or web theory; Wellman, 1999, 2001; Burnett & Marshall, 2003.); ◦ Some characteristics of IS development are especially important: general education, technical education, computer literacy, e-inclusion, societal prospective orientation, innovativeness, drive for new knowledge, legal and policy framework, strategies for ICTs development and use, empowerment of communities, potentials of technology, knowledge and skills transfer, international cooperation and exchange.
There are measurable indicators for analyzing and forecasting these characteristics;
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•
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Span and depth of e-government applications depend strongly on these indicators— precisely, on their values and levels; E-readiness is determined to a great extent by the stage of advancement of the IS and strategies of government, businesses and people (social, cultural and human capitals).
IS CLASSES: DIVERSITIES AND SPECIFICITIES, SOME POSSIBLE RECOMMENDATIONS The real information societies (in plural) are just emerging in recent decades, mostly in highly developed countries. These countries make up the highest class of ISs—they are pioneers in ICT production, diffusion and application. They are sometimes called high-tech economies/societies. They are technologically, economically, educationally, and culturally advanced. They are often rich and expansionistic, exporting not only technology and goods, but also patterns of development (via media, tourism, migrations). But even these countries are still far from info- or e-maturity. The question emerges to what extent their patterns of ICT use are universal and applicable in effective ways in other countries. Opinions vary since the important factor here is the socio-cultural context, which is very different in the networked world. Even in the highest class of ISs, some regions, communities, and individuals (e.g., poor, unemployed, disabled) can be excluded from informational development and its advantages. That is why e-inclusion policies are needed. The good example is the EU initiative called European e-Inclusion Initiative (Lisbon, 3 Dec. 2007 – see http://ec.europa.eu/information society/einclusion, also www.epractice.eu). The second class of information societies is in fact somewhat divergent. Arbitrarily, one can separate the second class into one subclass—the emerging powers (like China and India)—and a second subclass—the transitional countries (so
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called “post-Communist” countries, mostly in Eastern Europe, recently introducing and stimulating the market economy and joining the EU). These two subclasses differ greatly, yet their similarity lies in some of their problems. The first subclass has started in fact from the position of LDCs, having all of the problems and barriers typical for LDCs like poverty, illiteracy, big traditional agriculture, low technology, unemployment, cultural backwardness. In other words, their social and cultural capitals were rare resources. However, due to economic dynamics and technological progress (from imitation to their own original creations, e.g., computer software, techno-service, highly skilled personnel, science and technology parks), they are becoming more and more world players. Nevertheless, they still experience substandard living conditions, economic dualism (only enclaves of high tech), informational exclusion of significant segments of their (immense, in the cases of China and India) societies, and brain drain. The problem of the emerging powers is how to harness ICTs into processes of development of masses of people and how to introduce egovernment on such scale. E-readiness may not be difficult at the level of regions, communities, and individuals, thanks to infrastructure, access to the Internet and education (all stimulated by both state efforts and market forces), but the immense scale of these undertakings can make it difficult and generate specific problems not known in smaller economies and societies. What strategies and policies should be adopted in ICT production, diffusion and use, and—no less important—how can those strategies and policies be made really participative for the masses of people in order to diminish dualism, exclusion, and brain drain? It is necessary to consider the socio-cultural and political contexts and their transformations. Positive adaptation, creativity and synergy are badly needed. E-government, e-democracy, e-governance can be goals as well as instruments of change. However, when comparing the emerging powers with highly advanced countries, the difference is that the
countries in question, which constitute a big part of the world and humankind, will have still serious problems with poverty, medical care, pension systems, overpopulation, unemployment, excessive armaments, and migration. Could the emerging powers imitate the trajectory of the pioneers or perhaps learn from the transition economies, or should they do it their own way (not easy in the age of globalization, TNCs activities, hegemonic policies of the old powers)? Transitional countries have their specific transitory problems but they are definitely not LDCs. They usually have a fairly good education level and are culturally developed, with more modern attitudes and some technological culture in society. They have quite good general infrastructure and do not occupy as much land mass as the emerging powers. Their political and administrative institutions function well. What they lack is sufficient expenditures for research and development (R+D) and proper R+D strategies. This is, however, partly substituted by R+D Framework Programs of the EU. Moreover, they have problems with the transfer of innovation from the R+D sphere to industry and to social life. Transitional countries are subject to brain drain and excessive migration (e.g., from Poland). However, they capitalize on European integration (cooperation programs, aid funds). Their businesses and bureaucracies are not fully ready for complex electronization, computerization, informatization. Barriers are plentiful: insufficient technical infrastructure, high cost of access to the Internet, traditional organization (hierarchical and bureaucratic) of decision-making processes, often poor management, and psychological obstacles in the case of less educated, poor, provincial people. Intellectual and cultural elites are good, political elites not; the rest of society is in the difficult process of transition to a market economy and democratic system. E-government is perceived more as a tool of politics than an instrument enhancing dialogue between authorities and citizens, so stimulating people’s participation and activism
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is rather difficult (NGOs are relatively new and have poor financing). Moreover, many legal regulations are counter-effective to e-government or e-governance (e-democracy included). The vast sector of shadow (informal) economy and corrupt networks are not conducive to e-undertakings in administration, politics, business, and finances. Transition economies/societies have some problems that are similar in nature to the emerging powers and LDCs and that contribute negatively to e-readiness; they are, however, of a much smaller scale. Nevertheless, these countries can take advantage of integration and of participation to a growing extent in international networks of research, innovation, exchange of experts and the like. Their socio-cultural setting is rather conducive to e-change (besides the fact that some societal segments are excluded). These countries try to orient (or re-orient, rather) on strategies and patterns of more developed countries. However, the difference and distance is significant so the simple imitation does not seem possible or feasible. Such countries ought to improve their technical infrastructure, make access to the Internet easier and cheaper, stimulate info-building capacities, re-orient legal regulations and attitudes of authorities on all levels (from central to local), make the people and their NGOs more active and participative. All this requires some social innovations—new procedures, new organizational and institutional structures, some regulatory efforts, more responsiveness and friendly attitudes of public authorities, more e-inclusive policies more social networks (computer-aided) and commitment, more e-trust and e-democracy (Zacher, 2001), not only electoral but also participatory. The next class of information societies are countries which are less advanced (e.g., many in Latin America and Africa) and not developing sufficiently in economic, technologic, education, social, or cultural spheres. Do they have chances for a really “indigenous” development of an IS? Globalization—technology transfer, international trade, FDIs, technological cooperation and aid,
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impacts of global networks, potentials of Internet use—pushes toward e-development, at best in enclaves. Such countries should not be passive observers of the globalization and informatization of the world. They should have proactive policies and should elaborate comprehensive strategies to participate in the contemporary civilizational development. Societal activism is necessary for e-government readiness in such countries (see e.g. Rahman, 2007, Mutula & Wamukoya, 2007). What seems to be the most important and necessary is the comprehensive approach to ICT development, to economic and socio-cultural dimensions of ICT diffusion and their massive use. Internal conditions and factors ought to be identified, forecasted and evaluated and a model of change should be elaborated for policy needs. Each society’s specificities, negative and positive, should be analyzed in depth. External factors are also to be considered. Experiences of other countries (especially on similar stage) may help greatly. The countries may also capitalize on international institutions. The question for overall strategy (of government, business and citizens and their organizations) is how to connect in a synergetic way some domestic ICT enclaves with external factors and nets and to stimulate socio-cultural change which is at the same time conditio sine qua non of success. So it is not a problem of ICTs per se but of connectivity and of making relevant the socio-cultural context. Market mechanisms ought to be supported by a variety of government policies, by a learning propensity, and by properly profiled activities of citizens (education, consumption patterns, learning from media, NGOs). Both supply and demand sides are important. Simplistic imitation of the pioneering countries is not recommended. To take advantage of ICTs as an engine of human development is difficult in less advanced countries because there is a mutual conditioning of technology use and of cultural progress. Persons are both the agents and beneficiaries of development, provided they are empowered, able
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to participate, and feel included. Unfortunately, in many cultures the model of family life is often male-dominated and authoritarian, excluding women and children from the modern pattern of progress. For many religious traditionalists, such model is mandated by religion. A new mindset is needed as well as new public family support systems to change the unjust tradition and overcome practically the barriers in education, work and public activities of women, children and youth. It is, thus, possible to talk about cultural access to ICT. On a societal level, such access requires the acceptance of other traditions and cross-cultural harmony, also in many cases ethnic peacebuilding. In societies of ethnic, religious, racial and social tensions and conflicts, e-government readiness is difficult to promote and stimulate. Moreover, e-literacy can be used for fights and terrorism. Positive values should not be forgotten in education, public policy and media. It is often pointed out that building modern ICT infrastructure is not enough (e.g., in a society of castes or ruled by religious fundamentalists). “Physical” use of ITCs should be accompanied by cultural, psychological, even spiritual transformations. Moreover, technological appliances should be properly tailored and appropriately used (this is reminiscent of the E. F. Schumacher concept of intermediate or appropriate technology which can be creatively used in the present). A good example, elaborated in India by Cisco, is the so-called information kiosk, a wheeled box with computer and wireless Internet access. It is designed to be used even by illiterate persons. Another promising “technological fix” is a mobile phone (about 140 millions in India) that is radically changing communication possibilities. “A $100 computer” is one of the Global Millennium Goals initiated by N. Negroponte from MIT. To make the computer common and readily available, the Indian government finances research on a $10 laptop for children (there are similar initiatives by private companies in the hardware and software areas). The supply side of ICTs is necessary to stimu-
late social and cultural change. However, technosolutions will not automatically achieve success without costs and negative side effects. But is there a better way? It is not the philosophical recognition of technological determinism, but the acceptance and practical utilization of technologically driven dynamic forces of change. Moreover, it seems that technological systems and human (social) systems develop asymmetrically throughout history. From the middle of the last century (this time point coincidences with J.D. Bernal’s concept of the beginning of the scientific and technological revolution), the leading force has been technology and its systems. So the technologization of politics, government, and democracy is the present civilizational trend. Of course we can postulate that socio-cultural contexts should make it more humane. Moreover, we can strive for this in order to come closer to an equilibrium between power of technology and power of culture and people. Such equilibrium will be beneficial for e-government readiness.
CONCLUSION The socio-cultural context of development determines to a great extent its directions, dimensions and effects. The same refers to e-government development, of which a crucial part is the e-readiness of all parties involved in the process, including public administration, business, citizens and their organizations. All conditions of development, including material and technological, constitute a potential for change. The important component of this potential is culture in a broad sense, including for example gender ideal, aesthetic patterns, understanding of justice, beneficence, privacy, security, autonomy, corruption, liberty, duty, sacrifice, loyalty, sanctity, beliefs, trust, cooperation, competition, innovation, and future. To make culture conducive to e-development, some cultural ability is needed (i.e., innovativeness, future orientation, entrepreneurship, proactivity, efficacy). Both the potential for change and the
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cultural ability to capitalize on ICT development and applications vary in communities, societies, countries and regions. The process of e-development, and e-government development in particular, is very complex. It is determined by the aforementioned conditions (potentials, capacities) but it can be to some extent modified, changed, or improved by deliberate strategies, policies, actions and behaviors of all stakeholders of the process. Positive feedback and learning contribute to final success. Undoubtedly, mental models of individuals and groups and the capacity to learn define the future changes. Social learning capacities are based on social, cultural and human capitals. In the emerging information societies (e-societies), in spite of diversities there are some common propensities and aspirations to capitalize on the development occasions resulting from present technological and economic trends (e.g., globalization). The transformational potential of ICTs is enormous. The same may be said of the emerging and possible effects and impacts, also detrimental. Because of the diversity of societies and countries, the situation is multi-optional and the future is open-ended. In addition, the agents of change – actors, subjects, stakeholders – are diverse. They use various types of rationalities: technological, economic, environmental, political, social or utilitarian vs. moral. Information societies are now driven more by technology than by culture and social choice. Hence, there are quite distinct tendencies toward technocracy, meritocracy, netocracy as forms of control and governance. To summarize: • • •
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E-government is an important dimension (and factor) of IS; ISs emerging at present are developing according to multi-trajectory patterns; ISs are widely differentiated as to scale, span and effectiveness and impacts of ICTs used;
•
•
•
•
A factor (and set of conditions at the same time) greatly determining IS “shape” is socio-cultural context (often overlooked or underestimated); To change this context is difficult since it cannot be just bought or imported; moreover, it has some potential both to create and adapt to new technologies and also to restrain or even refuse them; A list of quantitative and qualitative indicators can be set up to identify potentials and gaps of a society trying to capitalize on the use of ICTs; so no one, universal, “good for all” strategy and policy can be recommended. Specificity of the country ought to be seriously considered. (This is sometimes difficult for foreign experts, and also for domestic experts not sufficiently experienced, often educated abroad and too ambitious and optimistic.) Some exemplary indicators are: social and psychological propensity to novelty and change, to risk and challenge; level of education; level of technological culture and technical skills; willingness to imitate and adopt patterns of development of advanced countries; social customs and habits stimulating (or not) entrepreneurship and technology use; institutional structures of government (all levels); public activism and potentials of NGOs; business openness to consider all central and local stakeholders (also social). It is worth noting that positive feedback exists between the introduction of ICTs (and e-government undertakings) and change in socio-cultural context; At least two kinds of general strategies should be elaborated to stimulate e-government readiness: (1) strategy directed toward technology per se (in connection with financing, management, organizational infrastructure), and (2) strategy directed toward improving socio-cultural context and to make it advantageous to ICT diffusion, effective use, absorption;
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•
•
Not only is the introduction of e-government technologies and procedures important, but so too is making them work properly (which is not merely technical matter); impact assessment methods (e.g., anticipatory social impact assessment) should be used to make it possible. In government, strong subsidiary attitudes are necessary (not easy at all), some de-bureaucratization and transparency in decision-making processes, as well as openness to citizens’ demands and requests. Conversely, citizens should be apt to use ICTs and be publicly more active and participative (a condition very difficult in many countries having weak democratic tradition and authoritarian rulers). The next step, in the not-too-distant future) will be to take care of improving economic effectiveness of e-government; Also external factors (integration, globalization, international trade, cooperation, joint actions, global media) will impose introduction and acceleration of e-government structures, mechanisms and procedures. More and more, the national e-governments will be a part of international and global networks of power, politics, information, dialogue with citizens (netizens), and public activism. Of course, in some cases in some regions other trends are possible as well. For example, a kind of Orwellian scenario would mean e-government better invigilating, controlling and censoring citizens and their activities. Much will depend on generations not yet born.
tique (see e.g., IGI Encyclopedia of Digital Government and other series of this publisher). The most important task is to make e-government activities a kind of learning system. E-government initiatives should thus be taken not only by the authorities, but also by citizens, the business sector, and the R&D sphere. They all may contribute to the e-government agenda which ought to be all increasing one. Moreover, e-government’s practices, methods, opportunities and barriers should be the subject of multidisciplinary research evaluating the intersection of theory, method and empirical findings. E-government agendas in general are well known since they are often the subjects of conferences and public and political debates. The following list exemplifies issues considered in e-government agendas: • • •
•
• • • • •
FUTURE RESEARCH DIRECTIONS There are already well-established research agendas concerning the information civilization, information society, e-society, knowledge-based society, and of course e-government problema-
•
•
Strategies for development, implementation, maintenance and best practices; ICT investment planning and decision-making, including models and financing; Transforming inter- and intragovernmental information systems, integration of systems, reengineering administrative processes; Assessing risks, possible failures, costs and benefits, and barriers limiting e-government initiatives and undertakings; Models, frameworks and implementation guidelines; E-government business models (economic effectiveness); Public procurement and e-government; Redesigning linkages and cooperation within and between government agencies; E-democracy and e-governance (citizen participation); E-government and social exclusion, especially in regard to unemployed or disabled persons, women, and minorities; E-government discourse and implementation, and the role of the media (public in particular);
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•
Other social, political and cultural issues in e-government.
The list clearly shows that e-government initiatives and their implementations are de facto transforming government and transforming the people, processes and policies involved. The complexity of issues and problems must be recognized by all actors. This recognition is especially important in less advanced countries, though their map of problems will be unique. It is worthwhile to focus research on one, usually underestimated factor of change and development. It is in its nature generational. The subsequent generations of people are better and better educated especially in the areas of computers, the Internet, and other technological objects and processes. Symbolically, one can talk about a “books, press and films generation,” then “TV (media) generations,” and presently “computer (or Internet) generations.” These terms illustrate civilizational way of people from a “Gutenberg Galaxy” to “Internet Galaxy”. So to imagine now what the future behavior of the next generations will be is difficult and risky. It is also conceivable that a kind of rule of generational acceleration may emerge. If so, there is the chance for faster development but also a danger of a new digital divide (“worlds of two speeds”). However, the chance can mean that further progress is achieved as a result of the higher level of computer literacy and use, ICT infrastructure, and the experience of living from birth in an emerging IS. G. Small supposes that the digital natives (already born and raised in the digital environment) will have new abilities to live easily and creatively in such setting (perhaps this can be even genetically imprinted – Small, 2008). This means a new possible level of e-readiness, but also – new digital divides.
REFERENCES Ali, M., & Bailur, S. (2007). The Challenge of Sustainability in ICT4D – Is Bricolage the Answer? Proceedings of the 9th International Conference on Social Implications of Computers in Developing Countries, Sao Paulo. Anttiroiko, A.-V., & Mälkiä, M. (2007). Encyclopedia of Digital Government: Hershey, PA.: Idea Group Inc. Appadurai, A. (1996). Modernity at Large. Cultural Dimensions of Globalization. Minneapolis: University of Minnesota. Bradley, G. (2006). Social and Community Informatics: Humans on the Net. London: Routledge. Burgess, J., & Chilvers, J. (2006). Upping the ante: a conceptual framework for designing and evaluating participatory technology assessment. Science & Public Policy, 33(10), 713–728. doi:10.3152/147154306781778551 Burnett, R., & Marshall, P. D. (2003). Web Theory – An Introduction. London – New York: Routledge. Dijk, van J.A.G.M. (2005). The Deepening Divide. Inequality in the Information Society. London: Sage. Dunleavy, P., et al. (2006). Digital era governance: IT corporations, the state and e-government, Oxford: Oxford University Press Elzen, B., Geels, F. W., & Green, K. (Eds.). (2004). System Innovation and the Transition to Sustainability – Theory, Evidence and Policy. Aldershot: Edward Elgar. Etzkowitz, H. (2006). The new visible hand: an assisted linear model of science and innovation policy. Science & Public Policy, 33(5), 310–320. doi:10.3152/147154306781778911
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Eubanks, V. (2007). Popular technology: exploring inequality in the information economy. Science & Public Policy, 34(2), 127–138. doi:10.3152/030234207X193592 Garrety, K., & Badham, R. (2004). User-Centered Design and the Normative Politics of Technology. Science, Technology & Human Values, 29(2), 191–212. doi:10.1177/0162243903261946 Gascó, M. (2007). Civil Servants’ Resistance toward E-Government Development. In: Encyclopedia of Digital Government. Hershey, PA: Idea Group Inc. Heeks, R. (2005). Implementing and managing e-government. London:Sage International Perspectives on Surveillance: Technology and Management of Risk, 2004, International Sociology, vol. 19, No. 2, June, 131-254. Ito, M., Okabe, D., & Matsuda, M. (Eds.). (2005). Personal, Portable and Pedestrian: Mobile Phones in Japanese Life. Cambridge, Ma: MIT Press.
Roberts, R. (2005). Issues in Modeling Innovation Intense Environments: The Importance of the Historical and Cultural Context. Technology Analysis and Strategic Management, 17(4), 477–495. doi:10.1080/09537320500357384 Small, G. (2008). iBrain: Surveying the Technological Alteration of the Modern Mind. New York: HarperCollins. Sørensen, K. H. (2004). Cultural Politics of Technology: Combining Critical and Constructive Interventions. Science, Technology & Human Values, 29(2), 184–190. doi:10.1177/0162243903261944 Sørensen, K. H., Aune, M., & Hatling, M. (2000). Against Linearity – On the Cultural Appropriation of Science and Technology. In: M. Dierkes, C. von Grote (Eds.) (2000). Between Understanding and Trust – The Public, Science and Technology. Amsterdam: Harwood. Taylor, P. A., & Harris, J. L. (2005). Digital Matters – Theory and culture of the matrix. London-New York: Routledge.
Jones, S. E. (2006). Against Technology: From the Luddites to Neo-Luddism. New York: Routledge.
Wellman, B. (1999). Networks in the global village. Boulder, Col.: Westview Press.
Lécouyer, Ch. (2005). Making Silicon Valley: Innovation and the Growth of High Tech, 19301970. Cambridge, MA: MIT Press.
Wellman, B. (2001). Physical place and cyberplace: the rise of networked individualism. International Journal of Urban and Regional research, No. 1.
Mutula, S. M., & Wamukoya, J. (2007). E-Government Readiness in East and Southern Africa. In: Encyclopedia of Digital Government. Hershey, PA: Idea Group Inc. Rahman, H. (2007). Community-Based Information Networking in Developing Countries. In: Encyclopedia of Digital Government. Hershey, PA: Idea Group Inc. Rajaee, F. (2000). Globalization on Trial. The Human Condition and the Information Civilization. Ottawa: International Development Center.
Winch, G. M., & Courtney, R. (2007). The Organization of Innovation Brokers: An International review. Technology Analysis and Strategic Management, 19(6). doi:10.1080/09537320701711223 Wynne, B. (1995). Technology Assessment and Reflexive Social Learning: Observations from the Risk Field. In: A. Rip, T. J. Misa, J. Schot (Eds.). Managing Technology in Society – The Approach of Constructive Technology Assessment. LondonNew York: Pinter
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Zacher, L. W. (2001). Between Risk and Trust – Values, Rules and Behaviour in the E-Society. In: Innovations for an e-Society – Challenges for Technology Assessment, Berlin (conf. proc.), ITAS – VDI. Zacher, L. W. (2007). E-Government in the Information Society. In: Encyclopedia of Digital Government, vol. II. Hershey – London – Melbourne – Singapore: Idea Group Inc.
ADDITIONAL READING Abbot, J. P. (2001).
[email protected]? The challenges go the emancipatory potential of the net: lessons from China and Malaysia. Third World Quarterly, 22(2). Browning, G. (1996). Electronic Democracy: Using the Internet to Influence American Politics. Wilton, CT: Pemberton Press. Bugliarello, G. (1997). Telecommunities: The Next Civilization. The Futurist, vol. 31.
Fisher, D., & Wright, L. (2001). On Utopias and Dystopias: Towards an Understanding of the Discourse Surrounding the Internet. Journal of Computer-Mediated Communication, 6(2). Florida, R. (2002). The Rise of Creative Class. New York: Basic Books. Gassler, R. S. (2001). Globalization and the Information Economy. Global Society, 15(1). doi:10.1080/13600820123743 Gray, Ch. H. (2001). Cyborg Citizen. New York: Routledge. Heeks, R. B. (2001). Reinventing Government in the Information Age. London: Routledge. James, J. (2001). Bridging the digital divide with low-cost information technologies. Journal of Information Science, 27(4), 211–217. doi:10.1177/016555150102700403 Kamarck, E. C., & Nye, J. S. (Eds.). (1999). democracy.com? Governance in a Nerworked World, Hollis, NH: Hollis Publishing.
Castells, M. (2000). The Rise of the Network Society. Vol. 1, Second Edition, Oxford: Blackwell.
Kapucu, N. (2007). Ethics of Digital Government. In: Encyclopedia of Digital Government. Hershey, PA: Idea Group Inc.
Castells, M. (2001). The Internet Galaxy: Reflections on the Internet, Business and Society, Oxford: Oxford University Press.
Katz, J. (1997). The Digital Citizen. Wired, No. 12.
Currie, W. (2000). The Global Information Society. Chichester – New York: Wiley. Davis, J., et al. (Eds.). (1997). Cutting Edge – Technology, Information Capitalism and Social Revolution. London – New York: Verso. Ester, P., & Vinken, H. (2003). Debating Civil Society: On the Fear for Civic Decline and Hope for the Internet Alternative. International Sociology, 18(4). doi:10.1177/0268580903184002 Everard, J. (2000). Virtual States – The Internet and the Boundaries of the Nation – State, London - New York: Routledge.
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Kerckhove de. D. (1997). Connected Intelligence – The Arrival of the Web Society. Toronto: Somerville House. Levinson, P. (2004). Cellphone. The Story of the World’s Most Mobile Medium and How It Has Transformed Everything. New York: Palgrave Macmillan. May, Ch. (2002). The Information Society – a skeptical view. Cambridge: Polity. Negroponte, N. (1996). Being Digital. New York: Vintage Books.
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Rheingold, H. (2002). Smart Mobs – The Next Social Revolution – Transforming Culture and Communities in the Age of Instant Access. Cambridge, Ma.: Basic Books. Rifkin, J. (2000). The Age of Access – The New Culture of Hypercapitalism Where All of Life is a Paid – for Experience. New York: Jeremy P Tarcher/ Putnam. Schiller, D. (1999). Digital Capitalism. Cambridge, Ma – London: The MIT Press. Van de Donk, W. (2000). Infocracy or Infopolis? Transparency, Autonomy and Democracy in an Information Age, In: Hoff J., Horrocks J., Tops P. (Eds.), Democratic Governments and New Technology, New York: Routledge. Wellman, B., & Haythornthwaite, K. (Eds.). (2002). The Internet in Everyday Life. Malden, Ma.: Blackwell. Zacher, L. W. (2000). The Way Towards a Knowledge Society – Some Barriers not only for Countries in Transition. In: G. Banse et al. (Eds.) Towards the Information Society. Berlin – Heidelberg: Springer. Zacher, L. W. (2007). E-transformations of Societies. In: Encyclopedia of digital government (vol. 2). Hershey, PA.: Idea Group. Zacher, L. W. (2009). Information Society Discourse. In Encyclopedia of Information Science and Technology. Second Ed. Hershey, PA.: IGI Global
KEy TERMS AND DEFINITIONS Information Society (IS): A society, which predominantly deals with production and applications of information in all fields of economy and social activities and human life. Many particular indicators are elaborated. It is assumed that the mass info-activities in IS are based on sufficient
technical infrastructure, access, computer literacy, cultural capacity, efficiency etc. There are closely related terms as: information-rich society, cybersociety, e-society, network (or networked) society, virtual society, digital society, information society based on knowledge. IS Classes: The real world’s societies are very diversified in terms of the advancement of IS characteristics and indicators. The most advanced countries create ICTs and use them widely and effectively. They are pioneers in ICTs production, diffusion and applications (they are often called high-tech economies/societies). The second class comprises two subclasses: the emerging powers and the transitional countries. The third class are countries which are less advanced, not participating sufficiently in e-development, if so – only in enclaves. They are subject both of digital exclusion and divide. E-Transformations of Societies: All social changes driven by various electronic devices and systems (mostly ICTs) used in all areas of human activities and life (including e-economy, e-banking, e-trade, e-media, e-government, e-democracy, e-health, e-learning etc.). E-transformations stimulate e-government readiness. Multitrajectory IS Development: The great diversity of determinants and conditions, also of strategies and policies of various information societies makes their development multi-optional and de facto multitrajectory; this diversity determines their differentiated progress on the way towards a “mature info-society”. E-Government: Institutionalized practices and activities using ICTs to provide information and services by public administration to the society and to interact with various stakeholders (like business, NGOs), also within government itself. E-Government Readiness: can be understood in two ways: as readiness of a government to use ICTs to exchange information and provide services to business and citizens this readiness depends on pro-modern attitude: strive for efficiency, understanding of world trends, political will and
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also on availability of ICTs (including technical infrastructure, proper skills and administrative structures etc.) As a Societal Readiness: With the idea, procedures and mechanism of e-government broadly understood – to use ICTs in all spheres of social activities this depends on an existing socio-cultural context (i.e. historical heritage: norms and values, social and religious customs, psychological attitudes and propensities, social aspiration and ambitious social structure, education, competences in public administration and business, technological culture, political and legal systems, media status, advancement of civil society, relations with other countries and so on) E-Readiness Stakeholders: All subjects involved in the development of e-government,
namely central and local public authorities, businesses, NGOs – together with their plans, strategies, policies, also attitudes, reactions and behavior. E-Inclusion: A set of policies and activities leading to “e-inclusive society” where every person has equal opportunities to participate, including those people who are physically, mentally, socially or economically disadvantaged. Cultural Ability (capacity) to Capitalize on ICT Development and Applications: Refers to all IS stakeholders, to organizations, social groups, individuals; their innovativeness, entrepreneurship, level of proactivity, efficacy, future-orientation, aspirations, technological culture, educational advancement, managerial skills etc. constitute this ability.
This work was previously published in International Journal of Information Communication Technologies and Human Development, Vol. 1, Issue 2, edited by S. Chhabra and H. Rahman, pp. 94-109, copyright 2009 by IGI Publishing (an imprint of IGI Global).
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Chapter 5
National Culture and E-Government Readiness Zlatko J. Kovačić The Open Polytechnic of New Zealand, New Zealand
ABSTRACT Diffusion of information and communication technologies is a global phenomenon. In spite of rapid globalization there are considerable differences between nations in terms of the adoption and usage of new technologies. Several studies exploring causal factors including national cultures of information and communication technology adoption have been carried out. The focus of this chapter is slightly different from other studies in this area. Rather than concentrating on the individual information technology an overall e-Government readiness is the focus. This research conducted an analysis of the impact national culture has on e-Government readiness and its components for 62 countries. E-Government readiness assessment used in this study is based on the UN E-Government Survey 2008, while the national cultural dimensions were identified using Hofstede’s model of cultural differences. The research model and hypotheses were formed and tested using correlation and regression analysis. The findings indicate that worldwide e-Government readiness and its components are related to culture. The result has theoretical and practical implications.
INTRODUCTION Analysis of electronic government readiness worldwide is difficult for conceptual and methodological reasons. Furthermore, little quantitative assessment of the factors that might cause a country to become ready has been conducted or completed so far. DOI: 10.4018/978-1-60566-671-6.ch005
Therefore, it is too early to make any comparative or even meta-analysis of various research efforts. This chapter aims to contribute to empirical research literature in the area of electronic government, focusing on national culture that might have an impact on the country’s readiness for e-Government. Before setting up a theoretical framework for the analysis, this research begins by defining the core concepts and identifying the main issues.
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
National Culture and E-Government Readiness
The concepts of electronic governance (hereafter labeled e-Governance), electronic government (e-Government), and electronic democracy (eDemocracy) have not been uniquely defined and used in literature. The term e-Government (also called digital or virtual government) is sometimes confused with e-Governance and the two terms are often used interchangeably. For example, Fountain (2004) defining e-Government says it refers to governance affected by Internet use and other information technologies and also includes e-Democracy (see also Fountain, 2001, for an alternative definition). However, e-Governance is a broader concept, which includes the use of information and communication technology (ICT) by government and civil society to promote greater participation of citizens in the governance of political institutions. According to Fang (2002) e-Government can be defined as a way for governments to use the most innovative information and communication technologies, particularly webbased Internet applications, to provide citizens and businesses with more convenient access to government information and services, to improve the quality of the services and to provide greater opportunities to participate in democratic institutions and processes. Though most of the e-Government definitions focus more on use of technology, management and delivery of public services (for example Edmiston, 2003), Pardo (2000) stated that e-Government is about transforming the fundamental relationship between government and the public. In other words, eGovernment initiatives are complex efforts to change intended to use new and emerging technologies to support a transformation in the operation and effectiveness of government. Grönlund (2003) pointed to the strategic aspect of e-Government initiative by stating that “electronic government refers certainly to more use of information technology (IT), but more importantly to attempts to achieve more strategic use of IT in the public sector” (p. 55). This strategic aspect of e-Government opens discussion of some societal
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and technical topics and the interactions between the two, as was noted by DiMaggio, Hargittai, Neuman, Robinson & John (2001). On the societal level, they suggested that the adaptation of government and civic engagement to increasingly computerized environments raises political, organizational, and social questions concerning use, context, reciprocal adaptation mechanisms, learning, the design of government work, the design of political and civic communities of interest, and the design of nation states in addition to international governance bodies. In this chapter, author has accepted the definitions and classification provided by Rogers Okot-Uma. As a starting point he uses the Good Governance concept to clearly explain the relationships between e-Governance, e-Government and e-Democracy Okot-Uma (2004) defines Good Governance as processes and structures that guide political and socio-economic relationships, with particular reference to “commitment to democratic values, norms & practices; trusted services; and to just and honest business”. E-Governance includes all processes and structures by means of which the new ICTs can be used by government to enable: •
•
•
Administration of government and delivery services to the public; this constitutes e-Government; All forms of electronic communications between government and citizen with the aim of informing, representing, encouraging to vote, consulting and involving the citizen. This constitutes e-Democracy; Transact business with its partners, clients and the markets. This constitutes government electronic business.
In the last decade we have witnessed a rapid rate of Internet penetration worldwide. Although this Internet diffusion happened on a global scale there are significant differences between countries in terms of how far they went and how fast they
National Culture and E-Government Readiness
have adopted new information and communication technology (hereafter labeled ICT) as was shown by Maitland & Bauer (2001). Since the adoption of a new technology varies between countries it is important to construct a composite measure of the country’s overall readiness to adopt and use a new technology and also to measure factors that contribute to the adoption of ICT. Various factors influencing Internet adoption have been considered in several studies. It was confirmed that telecommunication infrastructure (Hargittai, 1999), socio-economic factors (Robinson & Crenshaw, 1999) and cultural values (Maitland & Bauer, 2001) have a significant influence on ICT adoption among countries. A country’s overall readiness to adopt, use and benefit from using ICT is called country’s e-Readiness. Knowledge of the factors which make a significant contribution to e-Readiness and the country’s position on the e-Readiness scale would help the country’s leaders to identify the strengths and weaknesses of the country’s current position and to concentrate on the areas where improvement and further integration of ICT could be made (Bridges.org, 2001). An important component of the country’s overall e-Readiness is its government readiness to operate and benefit from the new environment. The label ‘e-Government readiness’ is used to describe government readiness to adopt, use and benefit from ICT, and it also forms one of the main focuses of analysis. The concept of e-Government readiness is important because of the opportunities it creates for each country in terms of benefiting from e-Commerce activities, openness to globalization, potential to strengthen democracy and make governments more responsive to the needs of their citizens, increasing citizen wellbeing, etc. The second focus in analysis is on the role that culture has in the adoption of ICT. Cultural differences between countries in general and particularly in relation to information technology adoption is a highly researched subject. The
concept of culture adopted and used in this paper is based on works of Dutch anthropologist Geert Hofstede who defines culture as “a system of collectively held values”. The following authors identified cultural values as one of influential factors on adoption of ICT: Bagchi, Cerveny, Hart & Peterson (2003), Johns, Smith & Strand (2003), Maitland & Bauer (2001) and Sørnes, Stephens, Sætre, & Browning (2004). Others also recognize the role culture could have in adopting ICT; for example, Bridges.org (2001) suggests that: “… unique cultural and historical environment of a region must be taken into account as part of a national ICT policy to truly gauge the country’s e-Readiness for the future.” In other words, each country should find its own way to the optimal e-Government readiness which is consistent with the national culture. The main objective of this research is to investigate the relationship between national culture and e-Government readiness. More specifically the purpose of this research is to provide a theoretical framework for the impact of national culture on e-Government readiness and to test whether the national cultural dimensions have significant impact on the e-Government readiness. While most of other papers in this area are focused on an individual indicator of a country’s e-Readiness (for example, the number of Internet hosts or the number of PCs per 100 citizens) this paper is the first to use a synthetic indicator to measure e-Government readiness. In addition, the data set for this research includes the largest number of countries in comparison to data sets in other papers. In the next two sections, author has reviewed e-Government readiness frameworks and the relationship between national culture and ICTs, providing the theoretical foundation for our empirical analysis. Based on deduction from theory and previous empirical work the third section will provide the answer to the question, how does culture influence e-Government readiness? The following two sections report data, method of
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National Culture and E-Government Readiness
analysis, results and a discussion of the results. In the final section some implications of this research will be presented.
E-GOVERNMENT READINESS FRAMEWORKS In this chapter, e-Government readiness is defined as the aptitude of a government to use ICTs to move its services and activities into the new environment (a similar definition was given in UN, 2008). The reason why e-Government readiness is important to monitor and assess is explained in Bridges.org (2001), for country’s e-Readiness: “It is increasingly clear that for a country to put ICT to effective use, it must be ‘e-Ready’ in terms of infrastructure, the accessibility of ICT to the population at large, and the effect of the legal and regulatory framework on ICT use. If the digital divide is going to be narrowed, all of these issues must be addressed in a coherent, achievable strategy that is tailored to meet the local needs of particular countries.” There is a proliferation of e-readiness assessment tools, methods, guidelines, and results. Based on its study of assessments, Bridges.org (2001) finds that at least eighty-four countries have been assessed using one of the instruments, sixteen countries have been assessed by five different organizations, and many countries have not had any e-readiness assessments. While the assessment indicators vary, most tend to measure ICT connectivity, ICT use and integration, training, human capacity, government policies and regulations, infrastructure, security, and economy. Bridges.org (2001) lists a few studies in which a list of indicators were expanded to explore historical background and socio-cultural and political variables such as ethnic homogeneity, population density, political openness, political structure and culture, and key players. The most complete assessment of e-Government readiness including 190 countries was
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initially undertaken by the United Nations in 2001. The United Nations Division for Public Economics and Public Administration, together with the American Society for Public Administration, started a project in 2001 analyzing the e-Government environment of 190 UN Member States. Their conceptual frame postulates that the state of e-Government readiness is a function of the combined level of a country’s state of readiness, economic, technological development and human resource development. A final product of their analysis was the construction of a synthetic indicator named the e-Government Index. Two years later in 2003, the UN Department of Economic and Social Affairs and the Civic Resource Group presented a second survey slightly changing the definition of the e-Government index and naming it the e-Government Readiness Index. Since then the same framework were used in 2004, 2005 and 2008 to assess e-Government readiness of 192 UN member states. Three important indices contribute to this index: the web measure index, the telecommunication infrastructure index and the human capital index as described in Table 2. An alternative measure of e-Government readiness was provided by West (2008a). He focuses on the features national government web sites are offering. It may be said that this index tries to capture the same phenomenon as the UN web measure index. The adoption of an e-Government initiative or UN framework for assessment of an e-Government readiness is basically a supply-side approach to e-Government analysis using data about the national government web sites, telecommunication infrastructure and human capital rather than a demand-side approach, which is based on the real use of the e-Government web sites by the citizens, businesses and government or their perceptions about quality of the online services delivery. In this research measurement and assessment of e-Government readiness was based on the United Nations (2008) framework. There are two reasons for adopting the UN e-Government
National Culture and E-Government Readiness
readiness framework: their framework includes more countries than any other study and the data is gathered in a consistent manner covering key areas of any e-Readiness assessment study, i.e. technological infrastructure and human capital component. Unfortunately this framework does not provide data to apply a demand-side approach while the other studies which took both, a supply and demand-side approach (Altman, 2002; Graafland-Essers & Ettedgui, 2003) are limited to Latin American and European data only. There were also other assessments of eGovernment readiness worldwide (West, 2008a) or at the different levels of federal, state or local governments (West, 2008b; Holden, Norris & Fletcher, 2003) or regions of the world (Altman, 2002). West (2008b) assessed federal and state e-Governments in US. He claimed that “Although considerable progress has been made over the past decade, e-government has fallen short of its potential to transform public-sector operations” (p. 1). Altman (2002) assessed e-Government in Latin America. Surprisingly he didn’t find a direct proportional relation between those countries with high potentiality (readiness) and those with actual broad use of e-Government. His research is of particular interest because it brings together the supply-side and demand-side approaches to e-Government analysis. Graafland-Essers & Ettedgui (2003) assessed e-Governments in Europe also taking both supply-side and demand-side approaches. Bridges.org (2001) provides a very detailed list and comparison of e-Readiness assessment models which were developed until 2001. Choucri, Maugis, Madnick, & Siegel (2003) critically considered these, what they called ‘first generation’ e-Readiness models and setup a theoretical framework for the ‘next generation’ of e-Readiness models. Defining e-Readiness “as the ability to pursue value creation opportunities facilitated by the use of the Internet” (p. 4), they derived a key element of their framework from the answer to the question: e-Readiness for what? According to them, an e-Readiness indicator
should measure the degree of ability and the capacity to pursue, but emphasis in the framework should be put on value creation opportunities. Another framework of national e-Readiness was given in Bui, Sankaran & Sebastian (2003). Their framework is based on eight factors: digital infrastructure, macro economy, ability to invest, knowledgeable citizens, competitiveness, access to a skilled workforce, culture, and the cost of living and pricing. A total of 52 indicators were used to quantify these 8 factors. A detailed analysis of each individual country’s e-Readiness with all components included would probably require the use of the ‘next generation’ of e-Readiness models, to make a decision about the optimal approach to implementation of ICT. However, to identify the impact various factors could have on the global e-Government readiness, derivation of a synthetic indicator is sufficient. The main reason for not using one of proposed ‘next generation’ of e-Readiness models is a lack of the full set of data for most of the countries. Usually complete and reliable data is available only for developed countries. All these measures of e-Readiness (United Nations, 2001, 2008; West, 2008a, 2004; Kirkman, Osorio & Sachs, 2002), including the ‘next generation’ of e-Government readiness measures (Bui, Sankaran & Sebastian, 2003; Choucri, Maugis, Madnick, & Siegel, 2003), provide what is known as a supply-side approach to e-Government research. This means they studied the features that are available on national government web sites and in the e-Government environment (telecommunication infrastructure and human capital) rather than the real usage of e-Government websites by the citizens, businesses and government, or their perceptions of online services delivery. The rationale for a supply-side approach to the analysis of e-Government in this article stems from the expectation that people will act rationally and will use the newly opened channel for communication with government agencies and for participation in public affairs. However, according
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to Graafland-Essers & Ettedgui (2003, pp. 35-36) there are differences in consumer preferences towards use of a particular online e-Government service even when highly sophisticated online services are available. For example, for services such as tax declaration only a few people prefer performing this operation online (demand-side), though the level of sophistication of this service (supply-side) is the highest when compared to other online services. The most preferred online services on the e-Government websites are library book search and job search. Research studies which considered the various factors having an impact on the ICT adoption confirmed that telecommunication infrastructure (Hargittai, 1999), socio-economic factors (Robinson & Crenshaw, 1999) and cultural values (Maitland & Bauer, 2001) contributed to the explanation of differences in Internet diffusion between countries. This author would also expect that in a democratic political system the government will foster the design and development of various channels for providing their services to the citizens. Indeed, research has examined the impact of democracy, corruption and globalization on e-Government readiness and found that more democratic countries are higher ranked on the eGovernment readiness list than the less democratic countries (Kovačić, 2005). He found significant positive correlations between e-Government readiness and democracy (Freedom House index) and between e-Government readiness and globalization. Of course the degree of e-Government service adoption does not depend only on the level of democracy in the country but also on the cost of implementation, the perceived political benefits for the government from implementing an e-Government initiative and other factors. As Bretschneider, Gant & Ahn (2003) suggested, the degree of e-Government service adoption could be explained in terms of the perceived administrative benefit from adopting e-Government services, the political nature of online applications, the government’s organizational capacity in adopting new
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information technology, and the diffusion effect of e-Government service technology.
NATIONAL CULTURE AND ICTS The concept of culture is not uniquely defined in literature. As Sørnes, Stephens, Sætre & Browning (2004) pointed out over 400 definitions of culture have been identified. Fortunately, in most of these definitions a commonly held view is that the cultural environment influences and shapes the values shared by the members of the society. Hofstede (1981), whose four-dimensional cultural model was used in this research, wrote that “… culture is the collective programming of the human mind that distinguishes the members of one human group from those of another. Culture in this sense, is a system of collectively held values” (p. 24). He emphasized that “in the center is a system of societal norms, consisting of the value systems (the mental programs) shared by most of the population” (p.24). According to him, culture is an “interactive aggregate of common characteristics”, “a collective phenomenon” which “is learned, not inherited” (p. 24). Though the Hofstede model of culture is the most well-known classification of culture it is not the only one used in literature. Chanchani & Theivanathampillai (2002) investigate and discusse alternative classification of culture to Hofstede’s classification based on the works of Triandis, Trompenaars and Fiske. They have set up a framework for comparing alternative classifications, evaluating the sufficiency and adequacy of these classifications. One of their suggestions is to use a classification of culture based upon the research objective. The Hofstede model is recommended in the following case “… if the researcher wishes to use an instrument or has collated data then correlation with Hofstede’s data may be considered” (p. 15). McSweeney (2002) also criticized Hofstede’s model of national cultural differences. He focused his critique on
National Culture and E-Government Readiness
the Hofstede research methodology arguing that the quality of evidence in the Hofstede model of national culture is poor and the set of assumptions are not justified. However, in spite of criticisms the Hofstede model of culture has been widely used in the literature in the last two decades. There have been also numerous studies on the relationship between national culture and the use and adoption of ICTs. The following authors: Bagchi, Cerveny, Hart & Peterson (2003), Johns, Smith & Strand (2003), Maitland & Bauer (2001), Robinson & Crenshaw (1999) and Veiga, Floyd & Dechant (2001) concluded that the significant variation in Internet diffusion, IT implementation and acceptance between countries could be attributed to national culture as described by Hofstede’s cultural model. Sørnes, Stephens, Sætre & Browning (2004) provided an excellent overview of the literature and a list of relevant studies on how ICTs impact culture and how culture impacts on ICT practices. Based on 116,000 questionnaires Hofstede (1980, 1983) collected data from 50 countries and 3 regions about the work-related value patterns of employees in IBM, a large multinational firm. By using data from one firm only Hofstede controlled for a number of industry and company variables so that he could focus on cultural differences. Using correlation and factor analysis he revealed four largely independent dimensions of differences between national value systems: (1) power distance (large vs. small), (2) individualism vs. collectivism, (3) masculinity vs. femininity, and (4) uncertainty avoidance (strong vs. weak). Later Hofstede identified a fifth dimension, dealing with long versus short-term orientation, replying to those who criticized his cultural model to be biased toward Western culture. The Power Distance dimension reflects the perception that members of society have about unequal distribution of power in institutions and organizations and the extent to which it is accepted in a society. People in countries where power distance is large accept a hierarchical order in
which everybody has a place that needs no further justification. Countries with small power distance allow upward social mobility of its citizens and their participation in the process of decision making. One of the conditions for such citizen’s participation would be the implementation of various communication technologies which would support and help this participation happen. Therefore it could be argued that a country with a larger power distance would have a negative attitude toward implementing and using ICTs. The Individualism/Collectivism dimension describes the relationship between individuals and the group in a society. For the countries with low individualism, i.e. high collectivism, people consider the group as the main source of their identity. On the other hand, an individualistic culture would pay more attention to the performance of the individual. Time management would be important and any technology that could help individuals to perform more efficiently would be highly regarded and quickly accepted. Therefore it could be argued that the country with a strong individualistic culture would have a positive attitude toward implementing and using ICTs. The Masculinity/Femininity dimension describes the achievement orientation in a society. When the preferences in society are for achievement, assertiveness, and material success then the country is ranked high on masculinity. On the other side, cultures that rank low on masculinity, i.e. high on femininity, prefer relationships, caring for the weak, and the quality of life. A high masculinity index indicates a culture that emphasizes masculine values and has very separate and rigid gender roles and expectations. Some authors, such as Bagchi, Cerveny, Hart & Peterson (2003) argued that “ITs promote more cooperation at work, better quality of life and these values are espoused in nations with low MF index” (p. 960). However, it could be argued equally well that in a country with high masculinity there would also be a positive attitude toward implementing ICTs if these technologies improve performance, increase
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Table 1. Countries with highest and lowest cultural dimensions values Power Distance Max
Individualism Min
Max
Min
Masculinity Max
Uncertainty Avoidance Min
Max
Min
Slovakia 107
Austria 11
US 91
Guatemala 6
Slovakia 110
Sweden 5
Greece 112
Singapore 8
Malaysia 104
Israel 13
Australia 90
Ecuador 8
Japan 95
Norway 8
Portugal 104
Jamaica 13
Iraq 95
Denmark 18
UK 89
Panama 11
Hungary 88
Iceland 10
Guatemala 101
Denmark 23
Source: Hofstede (2004)
the chance of success and support competition, which are all key factors of a masculine culture. In other words the masculinity/femininity dimension could have at least at the conceptual level a mixed impact on the ICTs. The Uncertainty Avoidance dimension describes the degree to which members of a society feel uncomfortable with uncertainty and ambiguity, preferring structured over unstructured situations. Members of societies with strong uncertainty avoidance would tend to avoid or reduce the risk induced by the unknown, i.e. unstructured situation, while people from countries with weak uncertainty avoidance could be described as ‘risk takers’. It could be expected that countries with strong uncertainty avoidance would be slow in the adoption and use of new ICTs, while the countries on the opposite end of this scale would be leaders in implementing new ICTs and willing to take the risk of failure. Therefore it could be argued that the country with a strong uncertainty avoidance culture would have a negative attitude toward implementing and using ICTs. All four dimensions of the Hofstede cultural model were included in the later empirical analysis. As statisticians say ‘let the data speak for itself’. However, in the literature not all four dimensions were considered to be relevant for research on the impact of national culture on the ICTs adoption. For example in Maitland & Bauer (2001) only uncertainty avoidance dimension from the Hofstede model has been included. However, they have added two other variables which might be considered as cultural variables: gender equality
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and English language. Also, Johns, Smith & Strand (2003) included the individualism/collectivism and uncertainty avoidance dimensions only. They felt that achievement orientation (masculinity/ femininity dimension) has a mixed impact on the use of technology. The same conclusion was drawn for power distance dimension and its impact on the use of technology. To illustrate the four Hofstede cultural dimension values, three countries were selected from the list of all countries, those with extreme values (maximum and minimum) on each dimension and their scores were presented in Table 1. For example, Slovakia scores 110 on masculinity and Sweden 5 reflecting the fact that Slovakia is a ‘masculine’ society where men are tough and concerned with material success, whereas women are more tender and interested in quality of life. On the other side of the masculinity/femininity scale Sweden is a ‘feminine’ society where both men and women are equally concerned with quality of life.
HOW DOES CULTURE INFLUENCE E-GOVERNMENT READINESS? Figure 1 describes the model of influence that national culture has on e-Government readiness. The arrow in the cultural environment block illustrates the assumption that national culture affects society’s basic values. People of the country are using these basic values as a foundation to build and shape the whole legal environment and a legal
National Culture and E-Government Readiness
system with its three constitutive components: legislature, executive and judiciary. Then the legal environment and the legal system influences whether and how the government will use the new ICTs to support its internal and external activities. External to this model are socio-economic, technological and other factors which may influence e-Government readiness. Though in his conceptualization Hofstede treated national culture as systematically causal, one can argue along the same line with Sørnes, Stephens, Sætre & Browning (2004) that “the relationship between organizational cultures and ICTs is not simply causal. Either one can cause changes in the other, because technology is part of culture and vice versa.” In other words, there is a reflexive and dynamic relationship between national culture and ICTs rather than causal. Therefore, arrows, i.e. feedback links from e-Government block to legal and cultural environment blocks in Figure 1 have been added to take into account the impact that e-Government may have on the national culture and legal system. However these feedback links were not analyzed further for the methodological reasons explained later. Based on the model in Figure 1, the above discussion of Hofstede’s four cultural dimensions and the attitude that the country and its govern-
ment might have toward using ICTs the following research hypotheses are offered: Hypothesis H1: The government of a country with a larger power distance would have a negative attitude toward increasing the level of e-Government readiness Hypothesis H2: The government of a country with a strong individualistic culture would have a positive attitude toward increasing the level of e-Government readiness Hypothesis H3: The government of a country with a high/low masculine culture would have a positive attitude toward increasing the level of e-Government readiness Hypothesis H4: The government of a country with a strong uncertainty avoidance culture would have a negative attitude toward increasing the level of e-Government readiness
DATA AND METHODOLOGy Data for this research was collected from three different sources and was available for 62 coun-
Figure 1. Model of the impact of national culture on the e-Government readiness
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tries. While the data for e-Government readiness and GDP per capita were available for 192 countries, the major constraint came from a database containing cultural dimensions scores (Hofstede, 2004), i.e. data for only 62 countries was available. Generally, one of the main difficulties in assessing worldwide e-Readiness including e-Government readiness and the effect that national culture might have on ICTs adoption and their use, is a lack of data which would cover most of the countries around the world and would be available for all indicators to be included in analysis. Table 2 describes the definition of variables in detail, their acronyms and data sources used. The reason for including GDP per capita in an analysis is explained by Hofstede (1980). He suggested including economic variables such as GDP per capita when examining the effect of national culture. When the effect of others hard variables (economic variables, for example) are significant, then the cultural variables are redundant. If the cul-
tural variables are still significant in spite of included economic variables, then the effect of culture on observed phenomenon, i.e. e-Government readiness and its components could be confirmed. Methods of correlation and regression analysis were applied to the data. To estimate e-Government readiness regression models ordinary least squares estimation method was used. For all calculations in this chapter the SPSS for Windows version 16 was used.
RESULTS Is there a relationship between cultural dimensions and e-Government readiness and its components? Pearson’s correlation coefficients were calculated to test the hypotheses that the e-Government readiness and its components correlate with the Hofstede’s national cultural constructs. Results are presented in Table 3.
Table 2. Description of variables, acronyms and data sources Acronym
Description
eGOV
e-Government Readiness Index is a composite index based on the Web Measure Index, the Telecommunication Infrastructure Index and the Human Capital Index. [Source: United Nations (2008)]
WMI
Web Measure Index is a quantitative index which measures the generic aptitude of governments to employ e-Government as a tool to inform, interact, transact and network. [Source: United Nations (2008)]
TII
Telecommunication Infrastructure Index is a composite, weighted average index of six primary indices, based on basic infrastructural indicators that define a country’s ICT infrastructure capacity. These six indices are: PCs/1,000 persons; Internet users/1,000 persons; Telephone lines/1,000; On-line population/1,000 persons; Mobile phones/1,000 persons; and TVs/1,000 persons. [Source: United Nations (2008)]
HCI
Human Capital Index is based on the United Nations Development Programme “education index”. This is a composite of the adult literacy rate and the combined primary, secondary and tertiary gross enrolment ratio, with two thirds of weight given to adult literacy and one third to the gross enrolment ratio. [Source: United Nations (2008)]
PDI
Power Distance Index is a cultural construct developed by Geert Hofstede and interpreted as the degree of equality, or inequality, between people in a country’s society. [Source: Hofstede (2004)]
IDV
Individualism is a cultural construct developed by Geert Hofstede and interpreted as the degree a society reinforces individual or collective achievement and interpersonal relationships. [Source: Hofstede (2004)]
MAS
Masculinity is a cultural construct developed by Geert Hofstede and interpreted as the degree a society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control, and power. [Source: Hofstede (2004)]
UAI
Uncertainty Avoidance Index is a cultural construct developed by Geert Hofstede and interpreted as the extent to which the members of a culture feel threatened by uncertain or unknown situations, i.e. unstructured situations. [Source: Hofstede (2004)]
GDP
Gross Domestic Product per capita in 2007 - purchasing power parity. [Source: CIA’s World Factbook, CIA (2008)]
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Table 3. Pearson’s correlation matrix eGOV WMI
.885**
WMI
TII
.945**
.736**
TII
HCI
.802**
.559**
.702**
HCI
PDI
-.651**
-.519**
-.705**
-.433**
PDI
IDV
.696**
.528**
.753**
.507**
-.648**
IDV
MAS
-.132
-.168
-.107
-.060
.038
.053
MAS
UAI
-.196
-.235
-.231
.035
.262*
-.253*
.000
UAI
GDP
.584**
.628**
.861**
.584**
-.591**
.662**
-.040
-.159
** significant at the 0.01 level. * significant at the 0.05 level. See Table 2 for description of variables
Three results emerge from the correlation matrix presented in Table 3. Firstly, e-Government readiness and all its components are highly negatively correlated with Power Distance Index (correlation coefficients are in range from -0.433 to -0.705) and positively with Individualism (correlation coefficients are in range from 0.507 to 0.753). High individualism (countries where individual rights are paramount) accompanied with smaller power distance (those countries which allow upward social mobility of its citizens) characterized a society in which e-Government readiness is at the higher level than in the collectivistic countries with larger power distance. There are no statistically significant correlations between e-Government readiness and other two cultural dimensions, Masculinity and Uncertainty Avoidance Index. Contrary to other studies where Uncertainty Avoidance Index was argued to be one of the most relevant cultural construct which explain ICTs adoption, in this analysis Uncertainty Avoidance Index was not statistically related to any other variables included, beside two cultural constructs, i.e. Power Distance Index (correlation coefficient 0.262, significant at 5% level) and Individualism (-0.253, significant also at 5% level). Secondly, within a subset of national cultural components there is a highly significant negative
correlation between Power Distance Index and Individualism, while all the other correlation coefficients are insignificant at the usual 5% level. This result, i.e. corr(IDV, PDI) = -0.648 confirms Hofstede’s proposition that a collectivist country is also likely to be a high power distance country. However, from methodological point this result could cause a multicollinearity problem when it comes to the estimation and interpretation of regression models for e-Government readiness and will be address later. Thirdly, the absolute value of the correlation coefficient between GDP per capita and all eGovernment readiness indices is higher than the correlation coefficients of e-Government readiness indices with any cultural dimension. This result might suggest that economic factors, as measured by GDP per capita, are more important than any other cultural construct, or even the only one which explain variation in the level of e-Government readiness. This will be tested using a regression model which includes both GDP and cultural variables. Furthermore, significant correlation coefficient corr(GDP, IDV) = 0.662 confirmed another proposition from Hofstede’s work. He indicated a strong relationship between a country’s national wealth and the degree of individualism in its culture. Richer countries tend to be more individualistic,
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Table 4. Summary of regression results (models with cultural variables only) Dependent variable
Variable with significant t-test at 5% level (β-coeff.)
R2
Web Measure Index
PDI(-0.27), IDV(+0.34)
0.37
Telecommunication Infrastructure Index
PDI(-0.36), IDV(+0.53)
0.66
Human Capital Index
IDV(+0.43)
0.32
e-Government Readiness Index
PDI(-0.33), IDV(+0.49)
0.57
See Table 2 for description of variables
whereas poorer countries are more collectivist. As a poor country grows richer it tends to move away from a collective pattern to an individualistic one. Also, positive correlation coefficients between GDP and e-Government readiness indices mean that developed countries are better prepared for implementation of e-Government initiative. After the correlation analysis a regression analysis was used to get further insight into the relationship between the variables considered in this paper. However, at this stage it cannot be assumed that the national culture is truly exogenous, in other words, that there is one-way causation between national culture and e-Government readiness (i.e. national culture → e-Government readiness). The same was pointed out by Slack & Wise (2002) who argued that there is a reflexive relationship between cultures and ICTs, i.e. the relationship between culture and ICTs is not simple causal. Therefore we could argue equally well that the e-Government readiness could have an impact on national culture. So, if we have a two-way causation in a function such as e-Government readiness (i.e. national culture ↔ e-Government readiness), this implies that the e-Government readiness function cannot be treated in isolation as a single equation model, but belongs to a wider system of equations that describe the relationships between the relevant variables. This system of equations, known in econometrics as a simultaneous equation system, would be more appropriate to use for a full description of such complex social phenomena as a national culture, e-Government and its components. However, at this stage author has estimated
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a single regression equation for each of the key variables (e-Government readiness indices) in spite of the fact that the estimation method used (ordinary least squares) will produce a biased estimate of the effects that national culture has on e-Government readiness. This result is due to a violation of the assumptions of the estimation method used, which creates what is known as simultaneous equations bias. Regression analysis was carried out in two steps. In the first step e-Government readiness indices were regressed on all four cultural indicators. A summary of the regression results is presented in Table 4. Based on the results of the correlation analysis, i.e. significant correlation between cultural indices, we checked to see if there is any problem with multicollinearity. Multicollinearity simply means a high correlation between the independent variables, i.e. cultural indices. One effect of “too much” collinearities between independent variables is that the standard error of ordinary least squares estimates tends to be inflated. This also means that we get a less efficient estimate of the regression coefficients. To detect degree of multicollinearity a collinearity diagnostic tool known as variance-inflation factor (VIF) was used. An arbitrary, but common cut-off criterion for deciding when a given independent variable displays “too much” multicollinearity is VIF value of 4. Since VIF was well below 2 in all regression models reported in Table 4, the multicollinearity as such was not a problem in these regression models.
National Culture and E-Government Readiness
The first column in Table 4 lists dependent variables, the second column shows which cultural index is significant at the 5% level and the value of its standardized β coefficient. Standardized β coefficients are used to make statements about the relative importance of the independent variables in a regression model. A higher β value means that the particular variable is more important that the others. The coefficient of determination R2 measures the proportion of the variation in the dependent variable “explained” by the regression model (last column in Table 4). The results reported in Table 4 suggest that the cultural variables explained between 32% and 66% variation in the e-Government readiness indices when treated as the only explanatory variables in regression models. Observed jointly, cultural variables made a significant impact on e-Government readiness. However, when observed individually, only two of the cultural variables (Individualism and Power Distance Index) are significant at level 5%. The sign of each coefficient matches our expectation: IDV has a positive sign, while PDI has a negative impact on e-Government readiness. Furthermore, standardized β coefficients suggest that IDV is a relatively more important cultural construct in predicting e-Government readiness than PDI. Interestingly MAS was not significant in any regression model, suggesting there are both masculine and feminine countries with a strong attitude toward implementing e-Government initiative. It can be noted that, PDI coefficient has a negative sign in the regression model for TII. However, this result is consistent with the findings of Veiga, Floyd & Dechants (2001). According to them, attitude toward ICT use will be enhanced by a decision and implementation process that increases users’ sense of participation in the choice of new ICTs. One should, herefore, expect to find evidence of resistance in situations where new ICTs, and policy pertaining to their use, are implemented without the participation of members below top management. UAI was used in many studies as a predictor
of the likelihood of ICT adoption. Surprisingly, UAI appears not to be significant in regression models presented in Table 4. In summary, based on regression models with cultural variables only, the first two hypotheses, i.e. H1 and H2 were confirmed. For the reason explained in the data and methodology section GDP per capita was added to the list of explanatory variables in each regression model of e-Government readiness. A summary of all regression models is presented in Table 5. Similarly to regression models in Table 4 the VIFs were calculated for models in Table 5. The values of VIF increased slightly, but they were still well below 4 in all regression models reported in Table 5. The largest value of VIF was in case of IDV variable, where VIF was about 2.24. This result would suggest that the multicollinearity was not a serious problem in the regression models where GDP and cultural indices were independent variables and the conclusion could be made that among cultural variables in regression models which include GDP only IDV and PDI seem to be significant in some models. Based on regression model WMI was found not to be related to any cultural dimension, which means that all governments accepted that they have to implement ICTs as a tool to inform, interact, transact and network. Controlling a level of economic development (measured by GDP) in the regression model for WMI (general aptitude of government to employ e-Government) it appears that general globalization trend in this area, i.e. wide acceptance of e-Government initiative was not influenced by any cultural dimension. Similar result was obtained for HCI, i.e. based on its regression model HCI was found not to be related to any cultural dimension. Results of the regression model for TII are comparable with the results from Bagchi, Cerveny, Hart & Peterson (2003) and confirm their findings. They have tested the impact of national culture on adoption of six information technologies. Since the TTI is a synthetic index composed from six
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National Culture and E-Government Readiness
Table 5. Summary of regression results (models with cultural variables and GDP) Variable with significant t-test at 5% level
Dependent variable Web Measure Index
GDP(+)
R2
Part of R2 attributed to culture
0.47
0.032
Telecommunication Infrastructure Index
PDI(-), IDV(+), GDP(+)
0.83
0.072
Human Capital Index
GDP(+)
0.40
0.062
e-Government Readiness Index
IDV(-), GDP(+)
0.73
0.052
See Table 2 for description of variables
primary indices similar to their six information technologies, it would be expected to get similar results for the synthetic indicator as they got for each individual indicator. In their case all cultural variables were significant with the same sign, though not the same cultural variables in each regression model for an individual IT. Also the coefficient of determination was in the same range as in their study. For the overall e-Government readiness, measured by eGOV the regression model suggests that IDV and GDP are significant variables. Contributions of cultural dimensions to variation in e-Government readiness regression models are from 3.2% to 7.2% (last column in Table 5). Returning back to four postulated hypotheses it could be said that the hypothesis H1 was weakly supported, i.e. the government of a country with the larger power distance do have a negative attitude toward increasing the level of e-Government readiness. Hypothesis H2 was moderately supported, i.e. the government of a country with a strong individualistic culture does have a positive attitude toward increasing the level of e-Government readiness. However, hypothesis H3 was not supported, i.e. masculinity of the country has nothing to do with the attitude toward increasing the level of e-Government readiness. The same conclusion was reached in case of hypothesis H4, i.e. the uncertainty avoidance culture has nothing to do with the attitude toward increasing the level of e-Government readiness.
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LIMITATIONS AND FUTURE RESEARCH This study is subject to certain reservations. As with any empirical research, our methodological approach and data used affect our findings. Three limitations, in particular, should be mentioned. Discussion of these limitations also suggests what the future research issues are and where should be the focus related to continuing this research. First, national culture constructs were derived from the Hofstede cultural model. Since there are other cultural models it would be necessary to check in the future research whether cultural constructs based on an alternative theory of culture to Hofstede’s theory confirm the impact that national culture has on the e-Government readiness. Second, only one operational definition, i.e. measure was used for e-Government readiness. Alternative definitions and indicators of e-Government readiness should be used in the future research to see how robust the results in this study are, where the e-Government readiness is based on the United Nations definition. Third, beside economic and cultural factors we have considered, other factors such as social and political (e.g. ruling system) and a full list of economic variables that might affect e-Government readiness should be considered in the future research as candidates for inclusion in the model. The current model of e-Government readiness might be misspecified and the results
National Culture and E-Government Readiness
could be distorted. For example, we have examined e-Government readiness at the national level. This approach based on the highest level of data aggregation, could partly distort results in case of federal states. Since in federal states e-Government solutions are primarily offered on the subnational level in such cases e-Government readiness measures or at least component which is related to the web presence might indicate lower level of overall country’s e-Readiness despite the fact that the web presence at the subnational level might be very sophisticated. In future research, the introduction of an indicator such as “form of government” in the analysis should probably be able to capture this effect. For a final thought, we note that further research on the impact of the national culture on the e-government readiness should also focus on the time component because the relationship between e-Government readiness and its determinants may evolve over time.
to 7.2%). Among cultural variables in regression models which include GDP only IDV and PDI seem to be significant in some models. From regression models for WMI and HCI it follows that general aptitude of government to employ e-Government via governmental websites and that general aptitude of government to increase value of the human capital were not influenced by any cultural dimension. Results of the regression model for TII confirm that cultural variables such as PDI and IDV were significant. In addition to this empirical finding the study also has implication for diffusion theory, or adoption of a new technology theory. Empirical results justify the inclusion of cultural variables and demonstrate the need to broaden the adoption of a new technology theory in the area of the influence of social norms, ss Bridges.org (2001) suggested: “… the unique cultural and historical environment of a region must be taken into account as part of a national ICT policy to truly gauge the country’s e-readiness for the future.”
CONCLUDING REMARKS ACKNOWLEDGMENT This study is designed to examine whether differences in worldwide e-Government readiness levels are explained by cultural variables. Results of this research give some support to this statement. Based on results from Table 3 - Table 5 it was found that national cultural indicators have a moderate impact on the e-Government readiness worldwide. Among four cultural dimensions Individualism and Power Distance are the only significant variables that could be used to explain differences in level of e-Government readiness. This study has implications both for practice and for theory. It shows that cultural variables are relevant to the worldwide e-Government readiness. Indeed, the empirical analysis found that the model with both economic and cultural variables explains between 40% and 83% of the variability in e-Government readiness indices (cultural variables alone contributed from 3.2%
This chapter is a revised version of the paper “The impact of national culture on worldwide egovernment readiness” published in the Informing Science Journal, 8, 143-158. Author takes this opportunity to thank John Green, Senior Lecturer in the School of Information and Social Sciences at The Open Polytechnic of New Zealand for valuable comments on the first draft of this chapter. However, the author should be held responsible for any remaining errors.
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Bagchi, K., Cerveny, R., Hart, P., & Peterson, M. (2003). The influence of national culture in information technology product adoption. In Proceedings of the Ninth Americas Conference on Information Systems, 957-965. Bretschneider, S., Gant, J., & Ahn, M. (2003). A general model of e-government service adoption: Empirical exploration. Public Management Research Conference, Georgetown Public Policy Institute Washington, D.C., October 9-11, 2003. Retrieved May 10, 2004, from http://www. pmranet.org/conferences/georgetownpapers/ Bretschneider.pdf Bridges.org. (2001). Comparison of e-Readiness assessment models. Retrieved April 1, 2004 from http://www.bridges.org/e-Readiness/report.html Bui, T. X., Sankaran, S., & Sebastian, I. M. (2003). A framework for measuring national e-readiness. International Journal of Electronic Business, 1(1), 3–22. doi:10.1504/IJEB.2003.002162 Chanchani, S., & Theivanathampillai, P. (2002). Typologies of culture. University of Otago, Department of Accountancy and Business Law Working Papers Series, 04_10/02. Dunedin: University of Otago. Choucri, N., Maugis, V., Madnick, S., & Siegel, M. (2003). Global e-Readiness – for what? MIT Sloan School of Management Research Paper 177. CIA. (2003). The World Fact book. Retrieved April 1, 2004, from http://www.cia.gov/cia/publications/factbook DiMaggio, P., Hargittai, P., Neuman, E., Robinson, W. R., & John, P. (2001). Social implications of the Internet. Annual Review of Sociology, 27, 307–336. doi:10.1146/annurev.soc.27.1.307 Edmiston, K. D. (2003). State and local e-Government: Prospects and challenges. American Review of Public Administration, 33(1), 20–45. doi:10.1177/0275074002250255
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Fang, Z. (2002). E-government in digital era: Concept, practice, and development. International Journal of the Computer, the Internet and Management, 10(2), 1-22. Fountain, J. E. (2001). The virtual state: Transforming American government? National Civic Review, 90(3), 241–251. doi:10.1002/ncr.90305 Fountain, J. E. (2004). Digital government and public health. Preventing chronic disease – Public Health Research . Practice, and Policy, 1(4), 1–5. Graafland-Essers, I., & Ettedgui, E. (2003). Benchmarking e-government in Europe and the US. RAND, MR-1733-EC, 2003. Retrieved May 10, 2004, from http://www.rand.org/publications/ MR/MR1733/MR1733.pdf Grönlund, Å. (2003). Emerging electronic infrastructures: Exploring democratic components. Social Science Computer Review, 21(1), 55–72. doi:10.1177/0894439302238971 Hargittai, E. (1999). Weaving the Western web: Explaining differences in Internet connectivity among OECD countries. Telecommunications Policy, 23(10/11). Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Beverly Hills, California: Sage Publications. Hofstede, G. (1981). Culture and organizations. International Studies of Management and Organization, 10(4), 15–41. Hofstede, G. (1983). National cultures in four dimensions – A research-based theory of cultural differences among nations. International Studies of Management and Organization, 13(1-2), 46–74. Hofstede, G. (2004). Geert Hofstede cultural dimensions. Retrieved November 19, 2004, from http://www.geert-hofstede.com/hofstede_dimensions.php
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Holden, S. H., Norris, D. F., & Fletcher, P. D. (2003). Electronic government at the grass roots: Contemporary evidence and future trends. In Proceedings of the 36th Hawaii International Conference on System Sciences. Big Island, Hawaii, January 06 - 09, 2003. Retrieved May 10, 2004, from http://csdl.computer.org/comp/proceedings/ hicss/2003/1874/05/187450134c.pdf Johns, S. K., Smith, M., & Strand, C. A. (2003). How culture affects the use of information technology. Accounting Forum, 27(1), 84–109. doi:10.1111/1467-6303.00097 Kaufmann, D., Kraay, A., & Mastruzzi, M. (2008). Governance matters VII: Governance indicators for 1996-2007. World Bank Policy Research June 2008 Kim, K.-J., & Bonk, C. J. (2002). Cross-cultural comparisons of online collaboration. Journal of Computer-Mediated Communication, 8(1). Retrieved April 1, 2004, from http://www.ascusc. org/jcmc/vol8/issue1/kimandbonk.html Kirkman, G. S., Osorio, C. A., & Sachs, J. D. (2002). The network readiness index: Measuring the preparedness of nations for the networked world. In S. Dutta, B. Lanvin & F. Paua, (Eds.), The global information technology report 2001 – 2002: Readiness for the networked world (pp. 10-29). New York: Oxford University Press. Kovačić, Z. (2005). A brave new eWorld? An exploratory analysis of worldwide e-Government readiness, level of democracy, corruption and globalization. International Journal of Electronic Government Research, 1(3), 15–32. Maitland, C. F., & Bauer, J. M. (2001). National level culture and global diffusion: the case of the Internet. In Ess C. (Ed.), Culture, technology, communication: towards an intercultural global village. Albany, NY: State University of New York Press, 87-128.
McSweeney, B. (2002). Hofstede’s model of national cultural differences and their consequences: A triumph of faith – a failure of analysis. Human Relations, 55(1), 89–118. Okot-Uma. W’O R. (2004). Building cyberlaw capacity for eGovernance: Technology perspectives. The Commonwealth Centre for e-Governance, London, United Kingdom. Pardo, T. A. (2000, October). Realizing the promise of digital government: It’s more than building a web site. IMP Magazine. Robinson, K. K., & Crenshaw, E. M. (1999). Cyber-space and post-industrial transformations: A cross-national analysis of Internet development. Retrieved May 10, 2004, from http://www.soc. sbs.ohio-state.edu/emc/RobisonCrenshawCyber1a.pdf Slack, J. D., & Wise, J. M. (2002). Cultural studies and technology. In Livingstone, S., & Lievrouw, L. (Eds.), Handbook of new media. London: Sage. 221-235. Sørnes, J.-O., Stephens, K. K., Sætre, A. S., & Browning, L. D. (2004). The reflexivity between ICTs and business culture: Applying Hofstede’s theory to compare Norway and the United States. Informing Science Journal, 7. Retrieved May 10, 2004, from http://inform.nu/Articles/Vol7/ v7p001-030-211.pdf United Nations. (2008). UN e-government survey 2008: From e-government to connected governance. Retrieved August 25, 2008, from http:// unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdf United Nations, Division for Public Economics and Public Administration and American Society for Public Administration. (2001). Benchmarking e-government: A global perspective --- Assessing the progress of the UN member states. Retrieved May 10, 2004, from http://www.unpan.org/egovernment/Benchmarking%20E-gov%202001. pdf 103
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Veiga, J. F., Floyd, S., & Dechant, K. (2001). Towards modeling the effects of national culture on IT implementation and acceptance. Journal of Information Technology, 16(3), 145–158. doi:10.1080/02683960110063654 West, D. M. (2008a). Improving technology utilization in electronic government arount the world, 2008. Governance Studies at Brookings. Retrieved August 24, 2008, from http://www.brookings. edu/~/media/Files/rc/reports/2008/0817_egovernment_west/0817_egovernment_west.pdf West, D. M. (2008b). State and federal electronic government in the United States, 2008. Governance Studies at Brookings. Retrieved August 24, 2008, from http://www.brookings.edu/~/ media/Files/rc/reports/2008/0826_egovernment_west/0826_egovernment_west.pdf.
KEy TERMS AND DEFINITIONS E-Government: Administration of government and delivery services to the public by using information and communication technologies. E-Government Readiness: Electronic government readiness is the aptitude of a government to use information and communication technologies to move its services and activities into the new environment.
E-Government Readiness Index: A synthetic index constructed by United Nations agencies to assess country’s overall readiness for electronic government. Hofstede Model of Culture: A system of societal norms, consisting of the values shared by most of the population. In its operational form consists of four dimensions: power distance, individualism/collectivism, masculinity/femininity and uncertainty avoidance Individualism/Collectivism Dimension: A dimension in the Hofstede model of culture. Describes the relationship between individuals and the group in a society. Maculinity/Femininity Dimension: A dimension in the Hofstede model of culture. Describes the achievement orientation in a society. Power Distance Dimension: A dimension in the Hofstede model of culture. Reflects the perception that members of society have about unequal distribution of power in institutions and organizations and the extent to which it is accepted in a society. Uncertainty Avoidance Dimension: A dimension in the Hofstede model of culture. Describes the degree to which members of a society feel uncomfortable with uncertainty and ambiguity.
This work was previously published in International Journal of Information Communication Technologies and Human Development, Vol. 1, Issue 2, edited by S. Chhabra and H. Rahman, pp. 77-93, copyright 2009 by IGI Publishing (an imprint of IGI Global).
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Chapter 6
Financial Analysis of the ICT Industry: A Regulatory Perspective Somesh K. Mathur IIT Kanpur, India
ABSTRACT Analysis of financial issues for the information and communication technology (ICT) sector is an essential element to study the progress of the sector, and especially the analysis should relate to the regulatory perspective of the country, if it would judge the overall e-government scenario of that country. Along this context, this chapter attempts to quantify the technical efficiency of the ICT sector in 45 countries during 2002-03, and in 52 countries during 2006-07 by using DEA method; Malmquist index of productivity growth in the ICT sector in 45 countries between these two periods; the proportions of the productivity growth attributable to efficiency change and technical change; and the effect on total factor productivity (TFP) of catching-up, the export ratio, broadband policy, and technical readiness using a regression analysis. As a result, the chapter finds that the ICT sectors in South Korea and Argentina were relatively efficient in 2002-03, while in 2006-07, the ICT sectors in Bahrain, Brazil, and Sweden showed relative efficiency. Furthermore, the productivity growth in the ICT sector in developing and newly industrialized countries is slightly higher than the growth in developed and transition countries, suggesting the catching-up of developing and newly industrialized countries. This catching-up effect is also confirmed in the regression analysis. Finally, this chapter concludes that, technological readiness, which is a measure of the agility with which an economy adopts existing technologies, has a positive impact on TFP growth. DOI: 10.4018/978-1-60566-671-6.ch006
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Financial Analysis of the ICT Industry
INTRODUCTION Trade in services has been growing faster than merchandise trade and growth rate in GDP across countries. The major contributor of this differential growth is the substantial contribution of the Information and Communication technologies (ICT) sector in terms of its revenues, exports and productivity. In India trade in IT (Information Technology) services has grown at rates four times the rate of growth of GDP since 1990s. While the major markets of India are the US and other OECD Countries India is keen on integrating with the most fast growing economies of the World like the East Asian Economies.Exports of IT Sector from India likely to touch 60 billion US $ by 2010. The IT sector revenues are growing at 30% a year with domestic component catching with the external sector. Most of the success of the IT sector(like IT Enabling Sector) is intertwined with the success of the telecommunication industry, internet and web based innovations, among other communication and media sectors(ICT Sector) There are however common set of problems faced by ICT sectors particularly in the South Asian countries. These problems include limited access to ICT technologies and low tele-density especially in rural areas, inadequate quality and skills of graduates, rising salaries not commensurate with increase in productivity, weak infrastructure which result in frequent power shortages, low level of PC use and internet penetration, low level of domestic technology development in microprocessors, limited bandwidth, inadequate availability of venture capital for the small scale units (taxed in India), high attrition rates in BPO companies, e-security, improper content design of e- governance programs, Use of ICT Technologies by anti-social elements, and limited domestic market for knowledge based technology and products. The South Asian governments have an important role to address them in times to come. In this chapter we focus on the issues of Regulation of the ICT sector and pin point areas of
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cooperation on raising ICT usage and efficiency of ICT sector (among many issues pertaining to the ICT Sector).Our productivity and efficiency indices from DEA and Malmquist exercise will measure how best countries are able to transform their ICT Readiness and ICT Environment into high ICT Usage. Out of population of more than 1000 million we have in India 40 million internet connections, 187 million mobile connections, 60 million fixed telephone lines, 40 million PCs, 20 million broadband connections by 2010(Data from Telecommunication Regulatory Body website). 10 million mobiles subscribers are added every month in India though. Information technology (IT) essentially refers to computer software (operating systems, programming tools, utilities, applications, and internal software development); computer services (information technology consulting, computer and network systems integration, Web hosting, data processing services, and other services); and hardware (computers, storage devices, printers, and other peripherals). Communication Technology is the term used to describe telecommunications equipment, through which information can be sought and accessed, for example, phones, faxes, modems and computers. The IT, telecommunication and other Communication technologies together are called Information and Communication Technologies (ICTs). The three dimensions of ICTs, therefore, are electronic infrastructure (hardware part), electronic content (information produced, processed, stored, distributed or retrieved using the technology), and electronic access of technologies (ownership, internet access and e-literacy). From a dynamic perspective the three dimensions can reinforce one another. This is particularly relevant in network technologies such as Internet or telephone. These ICTs, however, change processes or behavior and play an important role in social and economic transformation. There are five roles that ICT can play as driver of change: efficiency enhancing, transparency enhancing,
Financial Analysis of the ICT Industry
control enhancing, network enhancing and innovation enhancing (Winden, 2003). This chapter analyzes the ICT sector in over 45 countries around the world keeping the relevance of revenue (finance) in mind. The ICT operator, ICT regulator and ICT users are all concerned with the price movements of ICT goods and services. Further, the ICT regulator has to bring about the right balance between generating competition (level playing field) and efficiency. Equity objectives are best undertaken by the Government. ICT user on the other hand is concerned about getting quality services at the cheapest price. This chapter uses methodology given by Malmquist(1953) for working out productivity increase for mapping the price increase of ICT goods and services from the level attained in 2002-03 till 2006. This may help in attaining convergence of objectives among ICT operator, ICT regulator and ICT user i.e. in working out the right price of the ICT goods and services to be sold to the user. The ICT data used is for two years namely 2002-03 and 2006-072. This is the requirement to work out the total factor productivity change between the two periods. ICT Input (ICT Environment and ICT Readiness) and Output data (ICT Usage) will help us to work out technical efficiency and total factor productivity change using DEA (Data Envelopment Analysis and Malmquist indices (described below in the section on methodology).The estimates of total factor productivity change as calculated by the Malmquist index will give an estimate of the wage and price increase (decrease) of the ICT sector from the threshold level of 2002-03 in the respective countries. Furthermore, the estimates of total factor productivity change decomposed into technical change (shift of the best practice frontier capturing innovations) and efficiency change (movement of countries towards the frontier over time capturing the catching up phenomena) will be further regressed on twelve factors of competitiveness from the 2007-08 Global Competitiveness Re-
port3, trade, globalization index and initial level of technical efficiency. Catching up phenomena of countries in terms of productivity change in the ICT sector will be worked out. This will help to pin point the exact nature of relationship between productivity in the ICT sector, competitiveness, trade and infrastructure. These twelve pillars of competitiveness are institutions, infrastructure, macro economy, health and primary education, higher education and training, goods market efficiency, labor market efficiency; financial market sophistication, technological readiness, market size and innovation (see Appendix Table III and IV for definition and scores). The latter will help in determining specific areas of cooperation among countries. The final outcome of this study may give the policy makers an idea of the linkages among countries (trade, productivity, competitiveness, technological readiness and infrastructure) and more importantly examine the contribution of the ICT sector productivity on economic growth for cross section of countries and benchmark the valuation of ICT services for furthering policy action and cooperation among the countries.
LITERATURE REVIEW Charnes et.al (1978) developed DEA to evaluate the efficiency of public sector non-profit organizations. DEA aims to measure how efficiently a DMU (Decision Making Unit) uses the resource available to generate a set of outputs. DMUs can include manufacturing units, departments of universities, research organizations, schools, banks, hospitals, airports, power plants, police stations, among others including DMUs who do not price their products and services. DEA can also measure the slacks in each of the input and output variables and also derive a reference group of efficient units with which they can be directly compared (Cooper et a1. 1999). DEA result also helps to improve the productivity of these rela-
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Financial Analysis of the ICT Industry
tively inefficient units without reducing quality of service and while maintaining or even increasing the volume of services provided by DMUs. Ruggiero (2001, 2004) discussed the application of DEA in education sector, Vassiloglon et a1. (1990), Zenios et. al(1999), Rouatt (2002) discussed various application of DEA in banking sector to improve the performance; Sherman (1984) used DEA in hospital sector, Lewin et a1. (1982) used DEA in court system. Mathur (2007a) works out technical efficiency levels of 29 countries consisting of some selected South Asian, East Asian and EU countries using data envelopment analysis from 1966 onwards till 2000. He also decompose labor productivity growth into components attributable to technological changes (shifts in the overall production frontier), technological catch up or efficiency changes (movement towards or away from the frontier), capital accumulation (movement along the frontier) and human capital accumulation (proxied by life expectancy). The overall production frontier is constructed using deterministic methods requiring no specification of functional form for the technology nor any assumption about market structure or the absence of market imperfections. Growth accounting results tend to convey that for the East Asian and the South Asian countries efficiency changes (technological catch up) have contributed the most, while for the European countries it is the technical changes which has contributed more to labour productivity changes between 1966-2000. Mathur (2007a) study also works out technical efficiency levels of the Indian States and Union Territories using Data Envelopment Analysis from 1980-81 to 1997-98. He also analyzes the evolution of cross states net value added distribution for the 22 Indian states and union territories from 1980-81 to 1997-98 using Kernel densities. The efficiency factor accounted for 5.07 percentage only,technological change accounted for 11.66 percentage while the contribution of capital deepening is relatively higher at 17.82 percentage while the point to point productivity change is of 11.66 percentage.
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The Solovian model seems to work in the case of industrial sector in India. The overall averages provide evidence of productivity improvements of 173.29 over 1980-81 (base) to 1997-98 (current year) period. The efficiency factor accounted for -10.63 percentage only,technological change accounted for 173.20 while the contribution of capital deepening is 42.52 percentage to account for 173.20 percentage overall productivity change (not point to point). Mathur 2007(b) is a quantitative study of the Indian Information Technology (IT) and Indian Information and Communication (ICT) sectors, its infrastructure, and its role in India’s recent success with IT exports. More precisely, the study gives an account of IT and ICT infrastructure in India and examines and pin points the reasons for the boom in the IT exports and outsourcing business today and in times to come. The paper analyzes the performances of the Indian IT industry by working out the technical efficiency of the software and telecommunication firms using the mathematical model of the Data Envelopment Analysis (DEA). The study also examines the impact of various determinants on technical efficiency of software firms & net exports across the IT firms and further examines the determinants for new technology adoption by telecommunication industries because the success of the software firms in terms of its exports is intertwined with the performance of telecommunication industry. The study uses a Malmquist index to estimate total factor productivity (TFP) change for common set of software firms existing between 1996 and 2006 using prowess data base. The total factor productivity is decomposed into efficiency change (catching up phenomena) and technical change (innovations) for the common set of software firms existing between 1996 and 2006 in India. At the end the study works out the performance of the Indian ICT sector in comparison with countries which are front runners using the DEA and global information technology report,2006 data base. The study quantifies the changes needed in the
Financial Analysis of the ICT Industry
relatively good Indian ICT environment and ICT readiness indices to increase its ICT usage among individuals, business and government. The paper confirms the improvements in productivity, efficiency change and technical change of the Indian Software industry from 1996 to 2006. This study uses the ICT country data for 45 countries4 (25 developed and transition countries & 20 newly industrialized countries and developing countries) and employ DEA (Data Envelopment Analysis) and Malmquist index to study national innovation system in terms of ICT productivity change along with its linkages like trade, competitiveness and infrastructure. The productivity change can benchmark the changes in prices/wages of the ICT services in the countries.
HyPOTHESES Not many studies however deal with reasons for productivity rise in the ICT sector of the countries (judiciously convert ICT environment and ICT Readiness into high ICT Usage of the country as a whole). Is it catching up, government policies(benign neglect or strategic intent), domestic rivalry, competition and local demand (porter hypothesis), exports, clustering, supporting infrastructure, size of the market, laws related to ICT sector like broadband policies, security framework, number of e-governance programs, use of open source, venture capital availability, technological readiness, higher education, globalization, ICT Trade or trade of merchandise and services, among others?. Hypothesis which follows are the following (a)
Technical efficiency and total factor productivity change in the ICT sector of the developing countries in the sample is greater than their richer counterparts. More orientations in inputs and outputs are needed in Developed Nations to remove inefficiencies in the ICT sector.
(b)We hypothesize that total factor productivity change in the ICT sector across 45 countries (as worked out by Malmquist index) is positively correlated with competitiveness indices (twelve pillars), globalization index, trade, economic growth and infrastructure. (c) There is catching up of countries in terms of technical efficiency change, efficiency change and total factor productivity change in the ICT sector i.e. total factor productivity change, technical change and efficiency change is negatively related with initial level of technical efficiency (input) (d) Total factor productivity change in countries is equivalent to changes in wages and price of the ICT sector between 2002-03 and 2006-07.
DATA AND METHODOLOGy The study will use cross- sectional survey data on ICT Environment, ICT Readiness and ICT Usage of countries published by the World Economic Forum, Geneva to work out ‘efficiency’ of the ICT sector of country and further work out productivity rise(fall) in the ICT Sector of the country using DEA and Malmquist index. Different Firm level Research Studies confirm that ‘Productivity’, Innovations and ‘efficiency’ has improved for Information and Communication Technology (ICT) sector/ firms
Data Used ICT data and data on twelve pillars of competitiveness (most of them survey based and variables defined on a 7 point scale) are from the World Economic Forum Global Information Technology Report 2006-7 and Global Competitiveness
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Report 2007-08, respectively. ICT Input (ICT Environment and ICT Readiness) and Output data (ICT Usage) will help us to work out technical efficiency and total factor productivity change using DEA and Malmquist indices for total of 45 countries The ICT Environment, ICT Readiness and ICT usage data are averages over the subindices which define the variable in question. The World Economic Forum Global Information Technology Reports have used such data on these three indices to work out the network readiness index.5. Please refer to Appendix Table II for Variables Required for Constructing Network Readiness Index from the Global Information Technology Report 2006-07. The same data has been used by us to work out technical efficiency of the ICT sectors and total factor productivity change in the ICT sector. The estimates of total factor productivity change decomposed into technical change (innovations) and efficiency change (catching up phenomena) will be further regressed on twelve factors of competitiveness from the Global Competitiveness Reports, trade/GDP ratio, initial level of technical efficiency in 2002-03, and globalization index. This will help us to pin point the exact nature of relationship between productivity in the ICT sector, competitiveness, trade and infrastructure. These twelve pillars of competitiveness are institutions, infrastructure(INFR), macro economy(MACROTS), health and primary education(HEALTH), higher education and training(HE), goods market efficiency(GME), labor market efficiency(LME), financial market sophistication(FMS), technological readiness(TR), market size(MS) and innovation(INNOV). Trade data(Export/ GDP) is from the Global Competitiveness Report 2007-08
Methodology The DEA technique permits an assessment of the performance or TE of an existing technology relative to an ideal, “best-practice”, or frontier
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technology (Coelli et al 1998). The frontier or best-practice technology is a reference technology or production frontier that depicts the most technically efficient combination of inputs and outputs (i.e., output is as large as possible given the technology and input levels, or input levels are as small as possible given the output levels). The frontier technology is formed as a non-parametric, piece-wise, linear combination of observed “bestpractice” activities. Data points are enveloped with linear segments, and TE scores are calculated relative to the frontier technology. DEA is a non parametric, non statistical (mathematical) way of working out input oriented and output oriented technical efficiency in respect to the’ best practice frontier’. DEA uses non linear programming to work out technical efficiency. The best practice frontier is the combination of all countries which uses minimum level of feasible inputs to produce output or produces maximum output with given level of inputs. Best practice frontier is also formed using non linear programming. Input oriented technical efficiency is the ratio of minimum feasible input usage by actual input usage and its value varies from 0 to 1. If any country gets a value one then this particular country is on the ‘best practice frontier’. Output oriented technical efficiency is the ratio of maximum producible output to actual output produced. The value of such index varies from 1 to infinity. Again if the value is one then the particular country is on the best practice frontier. DEA uses inputs and outputs data to work out technical efficiency. If the country in question scores 0.89 as input oriented technical efficiency then it means it will need 11% scaling down of inputs to reach the best practice frontier. While if a country scores 1.89 using output oriented technical efficiency then it will need 89% scaling up in outputs to reach the best practice frontier. The seminal work was done by Farrell (1957) who used one output and many input model for working out technical efficiency. Charnes Coo-
Financial Analysis of the ICT Industry
per and Rhodes (1978) and Banker, Charnes and Cooper(BCC) are now the most applied models as they can take care of multiple inputs and multiple outputs along with the latter taking into account variable returns to scale. The BCC model eliminates the scale part of efficiency from the analysis and therefore the CCR efficiency score for each DMU (Decision Making Units) will not exceed the BCC efficiency score, which is intuitively clear since the BCC model analyses each DMU locally, i.e. compared to the subset of DMUs that operate in the same region of returns to scale, rather than globally. Thus, the BCC efficiency scores are also called pure technical efficiency scores. One should note that these mathematical programming methods take no account of measurement error, sampling error and other stochastic phenomena (as mentioned earlier). Recent research (Leopold Simar, 1996; Alois Kneip et.al, 1998; Irene Gijbels, 1999; Simar and Paul W.Wilson, 2000) has made substantial progress on the use of bootstrapping method to construct confidence intervals around efficiency index. In this study, however, we are more concerned about the statistical significance of changes in the productivity in the ICT sector.
Malmquist Approach for Total Factor Productivity Change: A Benchmark for Change of Prices and Wages in the ICT sector In this study productivity change (output to input ratio in current year to output to input ratio in base year) will be measured as the geometric mean of two Malmquist indexes. The Malmquist index was introduced by Caves et al. al (1982 a,b) who dubbed it the (output based) Malmquist index after Sten Malmquist, who earlier proposed constructing quantity indexes as ratios of distance functions(see Malmquist 1953).The Malmquist index will be calculated as follows [as outlined in Fare, et.al. (1997)]. The Malmquist index can be estimated as a function of a set of distance
functions (which are reciprocals of the technical efficiency measures), which, in turn, can be estimated using DEA. The index requires 4 DEA models to be estimated, which respectively specify efficiency in the current time period, dto (ut, xt); efficiency in the next time period, do t+1(ut+1, xt+1); efficiency of a firm operating in this time period relative to firms operating in the next time period, dot+1 (ut, xt); and the efficiency of firms operating in the next time period relative to the frontier in this time period, do t(ut+1, xt+1) The TFP index is then calculated using Equation 1/ 2
d t (u , x ) d t +1 (u , x ) m(ut , xt , ut +1 , xt +1 ) = 0 t t +1 t +1 x 0 t +1 t +1 t +1 d 0 (ut , xt ) d 0 (ut , xt )
(1) This formula can be further decomposed into efficiency and technical change as follows
m(ut , xt , ut +1 , xt +1 ) = 1/ 2
d 0t +1 (ut +1 , xt +1 ) d 0t (ut +1 , xt +1 ) d 0t (ut , xt ) x d 0t (ut , xt ) d 0t +1 (ut +1 , xt +1 ) d 0t +1 (ut , xt )
(2) where the first phase of the equation (that which lies outside of the parenthesis) represents efficiency change and the second part (contained within the parenthesis) represents technical change. In summary total factor productivity change is efficiency change (capturing the catching up of countries by movement towards or movement away from the best practice frontier) * technical change (capturing innovation by shifting of the production frontier). Malmquist index uses data on inputs and outputs. If the Malmquist index shows a value 1 it implies no change in total factor productivity while a value greater than one implies an improvement while a value less than one implies a decrease in productivity. TFP comprises of two parts-efficiency changes and technical changes.
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Financial Analysis of the ICT Industry
The efficiency changes relates to how the countries have performed relative to the best practice production frontier. An efficiency change which is greater than 1 implies that the country is operating closer to the frontier than in previous period, while if the figure is less than 1, the country in question is operating further from the frontier (captures the technological diffusion process). Technical change means a shift of the frontier. This can be affected by adoption of new technologies / new innovation or also changes in the economic and regulatory environment This study has used Onfront software for DEA and Malmquist analysis to work out technical efficiency and total factor productivity change in the ICT sector.
DISCUSSION OF THE PRODUCTIVITy AND EFFICIENCy RESULTS Appendix Tables 3 and 4 give the input oriented and output oriented technical efficiency scores in year 2006-07 and 2002-03. In 2006-07 out of 52 countries only three countries get a score of one. These are Sweden, Brazil and Bahrain. This means that these countries were operating on the best practice frontier as far as ICT policies are concerned in 2006-07. These countries were judiciously converting their inputs (ICT Environment, ICT Readiness) into ICT Usage (Output). The average input oriented technical efficiency score across countries in 2006-07 works out to be 0.86. This means that 0.14(14%) scaling down of inputs is required on an average by the ICT industry across countries to produce ICT goods and services to attain the present level of ICT usage and operate at the best practice frontier. The output oriented technical efficiency works out to be 1.15. This means 15% scaling up of output (ICT Usage) is required on an average by ICT Industry across countries to reach the best practice frontier. The average input oriented
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technical efficiency across 45 countries in 2002-03 works out to be 0.83. South Korea and Argentina were the only two countries out of 45 to get a score of one. They were operating judicious ICT policies in 2002-03. There is an increase in input oriented technical efficiency on an average across countries between 2002-03 and 2006-07 of the tune of 3% points. The Malmquist index gives the total factor productivity change decomposed into efficiency change (catching up phenomena) and technical change (innovations through shift of the best practice frontier) between 2002-03 and 2006-07 for common 45 countries (see Appendix Table 5). The average productivity increase in the ICT sector across countries is 10.13%(figure of 1.10133) decomposed into 4.4% increase in efficiency change and 5.4% increase in technical change (1.044*1.054889=1.10133). The above results confirm an improvement in productivity, efficiency and technical change on an average basis in the ICT sector across 45 countries. The mathematical results from Malmquist analysis convey that innovations (technical change) in the ICT industry on an average over 45 countries are slightly more responsible for rise in productivity than the contribution of catching up. This may be because the sample has around 15 developed nations in the Developed and Transition economy group where the innovation process is more responsible for productivity rise than catching up phenomena. More importantly the productivity results give a benchmark of wage increase or price increase across countries. Ideally the wage or price increase of ICT sector should be equal to rise in productivity in the ICT sector (marginal productivity theory). It seems from anecdotal and preliminary evidence that wage increase on an average has been much greater than the productivity rise within each country. This may convey two things (1) the ICT sector can be taxed across countries and (2) the wage increase may be due to shortage of skills across countries and this may require reorientation and
Financial Analysis of the ICT Industry
coordination in public policy at the international level (public goods nature) to address the problem of skill shortage rather than just imposing tax on the ICT sector. One could also find from Appendix Table V that the maximum increase of productivity in the ICT sector in four year time period is that in Romania(49%) followed by Russian federation(39%), Sri-Lanka(30%), Lithuania(28%), Israel(25%), Bulgaria(24%), Jordan (20%), Brazil(16%), among others. All the above countries having high productivity show substantial catching up in terms of efficiency change. India, China and the US show a productivity rise of 17%, 16% and 1% in four year time period. India and China’s rise is again more due to movement of such countries towards the best practice frontier frontier. Most of the productivity rise in India and China is due to catching up while for US is due to 8% improvement in innovations and movement away from the frontier of 7%. The results also convey that 7 countries out of 45 countries show a decline in productivity of the ICT sector (value less than one). These are Mexico (0.92- 8% decline), Poland (0.99), South Africa (0.95), Ukraine (0.97), Australia (0.98), Indonesia (0.93) and Argentina (0.92) from the levels of 2002-03. Author discusses below some comparisons as far total productivity change and technical efficiency levels between two groups of countries are concerned. One is the group comprising of 25 Developed and Transition Countries and another group of 20 Developing and Newly Industrialized Countries. We find that as far as productivity increase for the former group is concerned there is an 11.24% increase while for the developing countries group the rise in productivity in the ICT sector is of the level of 8.75%. The developing countries are not far behind their richer counterpart. See last row of Table 1 (extracted from Appendix Table 5 below) which shows an average increase in total factor productivity increase in the two groups. In fact one finds statistical evidence of catching
up in total factor productivity change i.e. countries which had modest initial level of technical efficiency were the ones which had higher total factor productivity change and also efficiency change(see section on regression results below). The latter result is for group of 45 countries in total. Sri-Lanka and Malaysia have the highest and the second highest growth in total factor productivity change in the ICT sector of the tune of 30% and 18% respectively. Romania, Bulgaria and the Russian federation are the leaders among the developed group. Table 2 below shows the technical efficiency levels of countries in year 2006-07. The average technical efficiency levels among the two groups, i.e. developed and developing is approximately the same Table 3 below shows the technical efficiency levels of countries in year 2002-03. The average technical efficiency levels in developing and newly industrialized economies were slightly greater than their richer counterpart. Korea and Argentina were operating on the best practice frontier while no country in the developed group had a score of one in year 2002-03
Regression Results This study regressed the total factor productivity change, efficiency change (capturing the catching up to the frontier) and technical change (innovations in the ICT sector) on initial level of technical efficiency (input oriented) in the initial year 2002-03 and global competitiveness index 20076 from the Global Competitiveness Report 2007-08 by the World Economic Forum for working out the reasons for variability in productivity in the ICT sector. It finds that initial level of technical efficiency is negatively and significantly related to total factor productivity change and efficiency change signifying substantial catching up of countries in terms of productivity and efficiency change in the ICT sector while we find no statistical evidence of catching up of countries in
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Financial Analysis of the ICT Industry
Table I. Productivity Increase in the ICT Sector between 2002-03 and 2006-07: A Comparison between Developed and Developing Countries
Developed Nations a n d Tr a n s i t i o n Economies
Productivity Increase(Decline) in the ICT sector of the Developed Nations and Transition Economies
Productivity Increase(Decline) in the ICT sector of Developing Countries and Newly Industrialized Countries
Developing Countries and Newly Industrialized Countries
Bulgaria
1.24
1.18
Malaysia
Ukraine
0.97
1.17
India
Poland
0.99
1.16
China
Romania
1.49
1.04
Philippines
Russia
1.39
0.92
Mexico
Estonia
1.12
0.95
South Africa
Israel
1.25
1.3
Ireland
1.02
1.06
Bangladesh
Japan
1.09
1.17
Vietnam
UK
1.11
1.11
Chile
Sri Lanka
Switzerland
1.06
1.14
Thailand
Germany
1.02
0.93
Indonesia
Sweden
1.19
1.2
Jordan
Australia
0.98
1.16
Egypt
New Zealand
1.03
1.16
Brazil
Canada
1.07
0.92
Argentina
Austria
1.12
1.02
KOREA
Denmark
1.04
1.03
Singapore
US
1.01
1.02
Taiwan
Latvia
1.07
1.11
Hong Kong
Lithuania
1.28
1.0875
Slovenia
1.08
Hungary
1.14
Czech
1.03
Greece
1.02
Average
Average
1.1124
Source: Extracted from Appendix Table V below. Note that t-test for testing equality of means shows that the mean scores are same between samples. Standard Two-Sample t-Test data: x: V2 in DS1, and y: V4 in DS1 t = 0.6911, df = 43, p-value = 0.4932 alternative hypothesis: true difference in means is not equal to 0 mean of x mean of y 1.1124 1.0875
terms of technical change (shift of the frontier and signifying innovation). Global Competitiveness index (from Global Competitiveness Report,2007-08) does not have any significant positive impact on the productivity change in the ICT sector, efficiency change
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and technical change.7 This latter phenomena is somewhat different from what Porter (1990) had hypothesized about the reasons why firms in countries move up the ladder in terms of its competitiveness. Porter (1990) had argued that local factor conditions, higher intellectual property lev-
Financial Analysis of the ICT Industry
Table 2. Technical Efficiency of the ICT Sector in 2006-07: A Comparison between Developed and Developing Countries Developed Nations a n d Tr a n s i t i o n Economies
Input Oriented Technical Efficiency
Output Oriented Technical Efficiency
Input Oriented Technical Efficiency
Output Oriented Technical Efficiency
Developing Countries and Newly Industrialized Countries
Israel
0.93
1.08
0.84
1.19
India
Ireland
0.82
1.22
0.85
1.18
China
Japan
0.86
1.17
0.91
1.1
Poland
0.88
1.13
0.83
1.21
Philippines
Russian Federation
0.89
1.12
0.87
1.15
Mexico
Estonia
0.97
1.03
0.85
1.17
Malaysia
United Kingdom
0.91
1.1
0.79
1.27
South Africa
Ukraine
0.73
1.37
0.84
1.19
Sri Lanka
Switzerland
0.88
1.13
0.86
1.16
Bangladesh
Germany
0.88
1.14
0.85
1.17
Vietnam
Latvia
0.86
1.16
0.94
1.07
Hong Kong SAR
Lithuania
0.91
1.1
0.91
1.09
Chile
1
1
0.83
1.2
Thailand
Slovenia
0.92
1.08
0.69
1.44
Indonesia
Australia
0.82
1.21
0.98
1.02
Korea, Rep.
New Zealand
0.81
1.23
0.83
1.21
Jordan
Hungary
0.83
1.2
0.88
1.13
Egypt
Czech Republic
0.83
1.2
1
1
Brazil
Canada
0.87
1.15
0.87
1.15
Argentina
Greece
0.78
1.27
0.92
1.09
Singapore
Romania
0.83
1.2
0.867
1.1595
0.9
1.11
Denmark
0.93
1.08
US
0.81
1.23
Bulgaria
0.83
1.2
Average
0.8672
1.1564
Sweden
Austria
Taiwan, China
Average
Source: Extracted from Appendix Table III below. Onfront software is used to work out input oriented and output oriented technical efficiency. A score of one means that the country is operating on the best practice frontier. Two sample t test shows that mean difference is not statistically different from zero
els and R&D intensity levels and domestic rivalry are likely to promote innovation(for example by adopting broadband policies, among others) and competitiveness of firms. The importance of local demand conditions as spelt out by Porter(1990) for IT firms do matter for ICT sector but not for IT sector at least for India(Mathur,2007)
The study has found that broadband policies turn out to be the most important for the ICT sector usage and governments have an important role in providing the necessary broad band infrastructure at competitive cost to the public and firms alike. The total factor productivity change, efficiency change and technical change in the ICT sector were
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Table 3. Technical Efficiency of the ICT Sector in 2002-03: A Comparison between Developed and Developing Countries Developed Nations a n d Tr a n s i t i o n Economies
Input Oriented Technical Efficiency
Output Oriented Technical Efficiency
Input Oriented Technical Efficiency
Output Oriented Technical Efficiency
Developing Countries and Newly Industrialized Countries
Israel
0.78
1.28
0.75
1.33
India
Ireland
0.83
1.2
0.77
1.3
China
Japan
0.83
1.21
0.93
1.07
Taiwan, China
Poland
0.93
1.07
0.84
1.19
Philippines
Russian Federation
0.69
1.45
0.98
1.02
Mexico
Estonia
0.91
1.1
0.76
1.32
Malaysia
United Kingdom
0.87
1.15
0.87
1.15
South Africa
Switzerland
0.87
1.15
0.68
1.47
Sri Lanka
Germany
0.89
1.12
0.89
1.13
Bangladesh
Latvia
0.84
1.19
0.78
1.28
Vietnam
Lithuania
0.74
1.35
0.9
1.11
Hong Kong SAR
Sweden
0.93
1.07
0.86
1.17
Chile
Slovenia
0.9
1.11
0.76
1.31
Thailand
Australia
0.9
1.12
0.79
1.26
Indonesia
New Zealand
0.83
1.2
1
1
Hungary
0.76
1.32
0.72
1.38
Korea, Rep. Jordan
Czech Republic
0.85
1.18
0.79
1.26
Egypt
Canada
0.87
1.15
0.92
1.09
Brazil
Greece
0.8
1.25
1
1
Argentina
Romania
0.59
1.69
0.93
1.08
Singapore
Bulgaria
0.71
1.4
0.846
1.196
Austria
0.84
1.19
Denmark
0.94
1.06
US
0.87
1.15
Ukraine
0.8
1.25
Average
0.8308
1.2164
Average
Source: Extracted from Appendix Table IV below. Onfront software is used to work out input oriented and output oriented technical efficiency. A score of one means that the country is operating on the best practice frontier.. Two sample t test shows that mean difference is not statistically different from zero
further regressed on the twelve factors of competitiveness, trade/ GDP ratio, Globalization index and initial level of technical efficiency(see results below summarized in Appendix Table 7). Only initial level of technical efficiency (negative) and technological readiness (positive and one of the pillars of competitiveness) came out be
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significant factors in explaining variability in total factor productivity change in the ICT sector across 45 countries(see the results below for total factor productivity change only). The results signify (a) catching up phenomena again among countries (b) technological readiness measures the agility with which an economy adopts existing technologies
Financial Analysis of the ICT Industry
to enhance the productivity of the industries. In particular, considering that ICT has evolved into the “general purpose technology” of our time, ICT access and usage become fundamental to determine economies overall level of technological readiness, given the critical spillovers of ICT to the other economic sectors and its role as efficient infrastructure for commercial transactions. (See Global Competitiveness Report 2007-08). The other factors do not have any impact. It may be due to multi-collinearity among variables. However, even if one combines all the twelve pillars of competitiveness by Principal Components and calls the first factor as Competitiveness index; the measure of competitiveness is not significantly impacting the total factor productivity change in the ICT sector. Further, the three dependent variables were regressed on factors determining technological readiness separately (see Appendix Table 8 ). Only broad band policies8 adopted by the government were significantly impacting the ICT productivity and ICT efficiency across countries (see result below for ICT productivity only). For technical change in the ICT sector internet users per 100 inhabitants were significantly impacting the dependent variable (result not shown). The latter suggests that web based solutions and innovations over the World Wide Web are more likely to increase technical change in the ICT sector and raise productivity in ICT in future. The study does not undermine the impact of competitiveness on growth and productivity in general. Maybe the competitiveness factor impacts the adoption of broadband policies by government. Further the impact of total factor productivity change, efficiency change and technical change were individually regressed on GDP per capita growth(constant US $2000) between 2002-2005 using cross sectional data of 44 countries as given below in Appendix Table 10. Total factor productivity and efficiency change(catching up) had a weak positive impact on GDP per capita growth statistically (see Appendix Table XI for the regression result of the impact of TFP changes in ICT
sector on GDP per capita growth of 44 countries across the world). Around 7% of the variability in GDP per capita growth across countries on an average is explained by TFP change in the ICT sector. It confirms that there are other important factors which are important for explaining variability in GDP per capita growth rates across countries (Mathur, 2007a). Technical change (innovation) in the study had no statistically significant impact on GDP per capita growth (results not shown).
LIMITATIONS OF THE STUDy (Initiate with an starter sentence and please replace We, by third person passive voice. As a research publication, We, Us, need to be avoided). •
• •
•
•
Ideally one should work on firm level data of ICT Industries in each countries to get better measure of efficiency across countries We hope to do the same in future for better and meaningful results. More weight will be given to theories which can explain productivity differential across countries in the ICT Industries, i.e Porter’s Hypothesis (1990), New New Trade theories by Melitz (2003), Ricardian Model of trade and Arrovian work on learning by doing(1962). We will also test given time whether high competitiveness causes higher variability of ICT productivity or high productivity leads to changes in competitiveness. We may then accordingly change the specification Different definition of ICT has been used in literature. World Economic forum have used ICT survey data on ICT Environment, ICT Readiness and ICT Usage for working out Network Readiness Index. We have also used the same data and DEA and Malmquist indices to see how best we can combine ICT Environment and
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Financial Analysis of the ICT Industry
•
ICT Readiness of countries into high ICT Usage across countries. Results based on DEA calculation show that Brazil, Bahrain and Sweden are efficient in the ICT sector in 2006-07. We in future work will study some policies that induced such efficiency.
the East Asian and Indian example for further strengthening interdependence among countries with the objective of engaging more with the Rest of the World . Please provide a few paragraphs on future trends of similar research or studies as a guide to the readers, and also for future research. Also, try to related with the main theme of the book.
FUTURE RESEARCH ISSUES CONCLUSION The study has examined whether countries have been able to judiciously translate their ICT Environment and ICT Readiness into high ICT Usage. This study has helped us to pin point the exact reasons for rise(fall) in the ICT Productivity rise across countries for deepening cooperation in ICT sector across countries. The study can be a guide on whether reforms in the area of trade liberalization, privatization and competition in the services sector has improved productivity in the ICT sector. For further research, firm level data will be used in each of the countries in the sample to link reforms with productivity i.e. whether liberalization, competition and entry of new firms along with trade liberalization has had any significant impact on productivity of firms. Any further research study can examine the peculiar features of the ICT sector across countries of Asia over the years to appropriately specify the role of the governments in building national innovation system. Why did some countries focus on some core areas(Science and Technology Policy, building institutions of higher learning, reasons for focusing on software sector/ hardware sector, applications, Defense, Public Sector Role, ubiquitous applications like in Japan, Korea and China, among others. ICT Industries have been promoted by governments because they had development/ strategic interest, national security concerns in building the national innovation system for betterment of the society in large as opposed to large scale adoption of ICT which can reduce the demand for unskilled labour. The study will draw important lessons from
118
The chapter uses DEA and Malmquist methodology for working out price rise and wage increase across countries in the ICT sector based on productivity change across countries. The research finds that restructuring of the production process is required for attaining efficiency in the ICT sector across countries. There is evidence of inefficiency in the ICT sector across countries. Hence, there is a role of ICT regulator who not only needs to decide about the pricing of ICT goods and services but also work out the orientations needed in inputs and outputs to adopt the best practices to convert ICT Environment and ICT Readiness into high ICT Usage in their respective countries. In this manner the ICT regulator can better focus on its role of enhancing efficiency of the ICT sector. The study confirms an improvement in productivity change (10.13%), efficiency change (4.4%) and technical change (5.4%) across 45 countries on an average between 2002-03 and 2006-07. Seven countries out of 45 though show a decline in productivity between 2002-03 and 2006-07. Countries which show high productivity rise in the ICT sector are also the ones which are catching up to the best practice frontier in the ICT sector. These are also the countries which are transition economies and developing countries. The best practice frontier is the combination of those countries which judiciously convert their inputs(ICT Environment and ICT Readiness) into ICT usage(output).These countries are relying less on innovations (technical change) in the ICT sec-
Financial Analysis of the ICT Industry
tor. Countries which are adopting innovations in the ICT sector are the more developed and newly industrialized countries. There is no statistical evidence of catching up of countries in terms of technical change (innovation) among countries while there is substantial catching up in terms of ICT productivity and ICT efficiency change. Productivity and efficiency change across countries is more dependent on broadband policies of the government than any other factor like competitiveness, trade, infrastructure and globalization process. Any cooperation in the ICT sector hence should focus on new broadband internet technologies to be made available at affordable rates (linked to productivity) for increasing ICT usage within countries. Cooperation in Broadband policies would mean further that countries need to address the issues of providing stable quality of power, increase telephone lines and PCs and concentrate on having e-security in the web pages. IPR seems to matter for all electronically delivered products and service. Fiscal policies in form of concessional loan particularly for different users in the developing countries can generate demand for computers namely among individuals, business and government. ICT in the developing countries can surely become a tool of empowerment if the benefits of ICT can be described and disseminated to all along with low cost provision of new wireless technologies. Involvement of local communities for disseminating the benefits of ICT sector is the indispensable tool of taking ICT to the masses. ICT Readiness of individuals, firms and government seems to be important for ICT usage along with ICT environment. The ICT readiness can be enhanced by providing broadband technologies at competitive rates, generating competition among producers and by improving the national innovation system of countries. The ICT regulator can independently play the role of promoting ICT Readiness and usage among individuals, business and government while the government can stick to its role of promoting equity in the society.
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Ruggiero, J. (2004). Performance evaluation in education: Modeling educational production. In Handbook on DEA. Boston/Dordrecht/London: Kluwer Academic Publishers. Sherman, H. D. (1984). Hospital efficiency measurement and evaluation. Medical Care, 22(10), 922–928. doi:10.1097/00005650-19841000000005 Simar, L. (1996). Aspects of statistical analysis in DEA-type frontier models. Journal of Productivity Analysis, 7(2-3), 177–185. doi:10.1007/ BF00157040 Simar, L., & Wilson, P. W. (2000). A general methodology for bootstrapping in non parametric frontier models. Journal of Applied Statistics, 27(6), 779–802. doi:10.1080/02664760050081951 Stavarek, D. (2005). Efficiency of banks in regions at different stage of European integration process. Economics Working Paper Archive Econ WPA. Vassiloglou, M., & Giokas, D. (1990). A study of the relative efficiency of the bank branches: An application of data envelopment analysis. The Journal of the Operational Research Society, 41(7), 591–597. Winden, W. V. (2003). Essays on urban ICT policies, No. 328. Amsterdam: Tinbergen Institute Research Series. Zenios, C. V., Zenios, S. A., Agathocleous, K., & Soterioou, A. C. (1999). Benchmarks of the efficiency of bank branches. Interfaces, 29(3), 37–51. doi:10.1287/inte.29.3.37
Financial Analysis of the ICT Industry
KEy TERMS AND DEFINITIONS DEA: Data Envelopment Analysis ICTs: Information and Communication Technologies TFP: Total Factor Productivity EC: Efficiency Change TC: Technical Change GME: Goods Market Efficiency LME: Labour Market Efficiency MS: Market Size HE: Higher Education and Training FMS: Financial Market Sophistication TR: Technological Readiness BSOPHIST: Business Sophistication MACROST: Macroeconomic Stability Innov: Innovation Instit: Institutions DMU: Decision Making Unit VRS: Variable Returns to Scale NIRS: Non Increasing Returns to Scale.
ENDNOTES 1
This work is part of the initiation grant project, IIT Kanpur. The author would like to thank the DORD office, IITK for providing funding from the initiation grant project. 2 Ideally longer time period would have given us a better perspective but for the uniformity and availability of data from the World Economic Forum for years before 2002. 3 The competitiveness index is summary measure based on twelve pillars of competitiveness summarized into sub-indexes namely basic requirements (key for factor driven economies), efficiency enhancers (key for efficiency driven economies) and innovation and sophistication factors (key for innovation driven economies). See Global Competitiveness Report 2007-08 by the WEF, Geneva on twelve pillars of
competitiveness. The scores on these twelve pillars are also given in the report. US heads the list followed by other developed nations and newly industrialized countries with all scoring above 5 on a seven point scale. India and China have a score of 4.33 and 4.57 respectively. 4 . Kindly refer to the Appendix Table I for the list of countries 5 The Networked Readiness Index included in the Global Information Technology report produced by the World Economic Forum, Geneva provides the most comprehensive assessment of how prepared an economy is to capture the benefits of technology to promote economic growth and productivity. This study explicitly considers the roles played by the major stakeholders--individuals, businesses and governments, in relation to three dimensions: the environment for the development and use of ICT, the readiness of stakeholders to leverage the potential of ICT, and the degree of usage of ICT. The selection of insightful essays, detailed country profiles for more than 100 economies and data tables on approximately 50 different ICT indicators presented in the report provide a useful guide for the design and formulation of policy measures aimed at capturing the benefits of ICT. With record coverage of 115 economies worldwide and published for the fifth consecutive year, The Global Information Technology Report (GITR) has grown into the world’s most respected assessment of the impact of information and communication technology (ICT) on the development process and the competitiveness of nations. The Networked Readiness Index (NRI) measures the propensity for countries to leverage the opportunities offered by ICT for development and increased competitiveness. It also establishes a broad international framework mapping out the enabling factors of such capacity. Please refer to Appendix
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Financial Analysis of the ICT Industry
Table 2 for variables which were used to construct the network readiness index. 6 Although the left hand side variable is productivity rise between 2002-03 and 2006-07 the global competitiveness (survey data) is of the year 2007-08. We assume that the competitiveness indices for 2007-08 were more or less the same in the year 2002-03. This is reflected in the countries receiving more or less the same rank in the four year time period. 7 Kindly refer to Appendix Tables 6, 7 and 8 for regression results. For saving space and similarity of results we have shown regression results for total factor productivity change only.
122
8
Broad band policies are combined as the First Principal component (explaining 78.7% variability in four variables defining technological readiness). They are Mobile telephone subscribers (hard data),Internet users (hard data),Personal computers (hard data) and Broadband Internet subscribers (hard data) from the World Competitiveness Report 2007-08
Financial Analysis of the ICT Industry
APPENDIx Appendix Table 1. List of Countries Included in the Study (45) Developed Nations and Transition Economies
Developing Countries and Newly Industrialized Countries
Bulgaria
Malaysia
Ukraine
India
Poland
China
Romania
Phillipines
Russia
Mexico
Estonia
SA
Israel
SriLanka
Ireland
Bangladesh
Japan
Vietnam
UK
Chile
Switzerland
Thailand
Germany
Indonesia
Sweden
Jordan
Australia
Egypt
New Zealand
Brazil
Canada
Argentina
Austria
KOREA
Denmark
Singapore
US
Taiwan
Latvia
Hong Kong
Lithunania Slovenia Hungary Czech Greece
Appendix Table 2. Variables Required for Constructing Network Readiness Index for the Global Information Technology Report 2006-07(Inputs and Output data for working out technical efficiency measures) ICT Environment(Input)
ICT Readiness (Input)
ICT Usage (Output)
Residential telephone connection charges
Personal Computers
Venture capital availability Financial Market Sophistication
Lowest cost of broadband
Internet bandwidth
High-Tech Exports
Quality of management schools
Availability of New telephone lines
Intensity of Local Competition
Business telephone connection charge
Availability of online services
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Financial Analysis of the ICT Industry
ICT Readiness (Input)
ICT Environment(Input)
ICT Usage (Output)
Property Rights
Computer
ICT use and government efficiency
Secure Internet Servers
E-government readiness index
Extent of Business internet use
Availability of Scientists and Engineers
E-particiation index
Availability of cellular phones
Tertiary enrollment
Govt. procurement of Adv. Technology
Capacity of Innovation
State of Cluster Development
Government privatisation of ICT
Firm-level technology absorption
Burden of Government Regulation
Local supplier quality.2006
Foreign technology licensing
Extent and Effect of Taxation
Business monthly telephone subscription
Broadband Internet subscribers
Number of procedures to start a business
University/Industry Collaboration
Mobile telephones
Effectiveness of Law making bodies
Company spending on R&D
ICT pervasiveness
Laws relating to ICT
Availability of specialized training services
Government success in ICT promotion
Judicial Independence
Extent of staff Training
Internet users
Quality of scientific research institution
Residential telephone monthly subscription
Telephone lines
Buyer Sophistication 2006
Quality of Competition in the ISP sector
Internet access in schools
Efficiency of Legal Framework
Quality of educational system
Electricity production
Quality of math and science education
Internet hosts
Government ICT Vision
Number of days to enforce a contract
Quality of public schools
Number of procedures to enforce a contract
Monthly broadband subscription charge
Intellectual Property protection
Cost of cellular phone call
Freedom of press Time required to start a business US utility patents Technological Readiness
Appendix Table 3. Technical Efficiency of the ICT Sector across 52 Countries 2006-07
COUNTRIES2006-07
Fi(y,x | C,S) Input Oriented Technical Efficiency
Fo(x,y) | C,S) Output Oriented Technical Efficiency
ICTENVIRONMENT (Input)
ICTREADINESS (Input)
ICTUSAGE (Output)
India
0.84
1.19
3.83
4.57875
3.848667
China
0.85
1.18
3.414286
3.941667
3.431333
Taiwan, China
0.91
1.1
5.015714
5.2825
5.228
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Financial Analysis of the ICT Industry
COUNTRIES2006-07
Fi(y,x | C,S) Input Oriented Technical Efficiency
Fo(x,y) | C,S) Output Oriented Technical Efficiency
ICTENVIRONMENT (Input)
ICTREADINESS (Input)
ICTUSAGE (Output)
Israel
0.93
1.08
4.963214
5.160833
5.25
Ireland
0.82
1.22
4.972857
5.51
4.733333
Philippines
0.83
1.21
3.455357
3.849167
3.335333
Mexico
0.87
1.15
3.549286
4.407083
3.734
Japan
0.86
1.17
5.239643
5.33125
5.09
Malaysia
0.85
1.17
4.452857
5.239583
4.512667
Poland
0.88
1.13
3.348571
3.81875
3.480667
Russian Federation
0.89
1.12
3.353214
3.336667
3.36
South Africa
0.79
1.27
3.953929
4.543333
3.681333
Nepal
0.78
1.28
2.953929
2.734583
2.533333
Sri Lanka
0.84
1.19
3.172143
3.63875
3.154
Pakistan
0.85
1.18
3.057857
3.807917
3.158
Bangladesh
0.86
1.16
2.678214
2.533333
2.56
Estonia
0.97
1.03
4.532143
5.232083
5.205333
United Kingdom
0.91
1.1
5.3225
5.22
5.4
Vietnam
0.85
1.17
3.076071
3.827083
3.186
Ukraine
0.73
1.37
3.2075
4.185417
2.89
Switzerland
0.88
1.13
5.5025
5.793333
5.568
Hong Kong SAR
0.94
1.07
5.138929
5.101667
5.416667
Chile
0.91
1.09
4.006786
4.530833
4.296
Germany
0.88
1.14
4.985714
5.503333
5.114667
Kyrgyz Republic
0.76
1.32
2.762143
3.42
2.542667
Latvia
0.86
1.16
3.896429
4.6975
4.042
Lithuania
0.91
1.1
3.857143
4.6625
4.21
United Arab Emirates
0.96
1.05
3.843214
4.602083
4.397333
Thailand
0.83
1.2
3.808929
4.80875
3.869333
1
1
5.458571
4.8
5.92
Slovenia
0.92
1.08
3.786786
4.992917
4.332
Australia
0.82
1.21
5.301429
5.315
4.934
New Zealand
0.81
1.23
5.033214
5.20625
4.653333
Hungary
0.83
1.2
4.195
4.834167
4.115333
Czech Republic
0.83
1.2
3.893929
5.038333
4.004667
Indonesia
0.69
1.44
3.493929
4.598333
3.01
Korea, Rep.
0.98
1.02
4.539643
5.406667
5.296
Jordan
0.83
1.21
3.606786
4.251667
3.564
Canada
0.87
1.15
5.311071
5.196667
5.173333
Greece
0.78
1.27
3.867143
4.57625
3.62
Kazakhstan
0.87
1.15
3.388571
2.975833
3.185333
Sweden
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Financial Analysis of the ICT Industry
COUNTRIES2006-07
Fo(x,y) | C,S) Output Oriented Technical Efficiency
Fi(y,x | C,S) Input Oriented Technical Efficiency
ICTENVIRONMENT (Input)
ICTREADINESS (Input)
ICTUSAGE (Output)
Romania
0.83
1.2
3.406429
4.596667
3.544
Kuwait
0.82
1.22
3.660357
4.415
3.589333
Egypt
0.88
1.13
3.233929
3.841667
3.418
Brazil
1
1
3.118929
4.412917
3.976667
Bulgaria
0.83
1.2
3.210357
4.160833
3.287333
Argentina
0.87
1.15
3.147857
4.305417
3.446
0.9
1.11
4.881429
5.508333
5.180667
0.92
1.09
5.1025
5.828333
5.508
Austria Singapore Bahrain
1
1
2.865714
4.382083
3.668
Denmark
0.93
1.08
5.467857
5.69375
5.792667
US
0.81
1.23
5.678214
5.581667
5.181333
0.866538
1.159615
Average
Appendix Table 4. Technical Efficiency of the ICT Sector across 45 Countries 2002-03
COUNTRIES2002-03
Fi(y,x | C,S) Input Oriented Technical Efficiency
India
0.75
China Taiwan, China
Fo(x,y) | Output Oriented Technical Efficiency C,S)
ICT Environment (Input)
1.33
3.98
0.77
1.3
0.93
1.07
Israel
0.78
Ireland Philippines
ICTREADINESS (Input)
ICTUSAGE (Output)
4.35
3.33
3.49
4.5
3.12
4.88
5.82
5.22
1.28
5.27
5.81
4.6
0.83
1.2
4.86
5.31
4.5
0.84
1.19
3.33
3.43
2.99
Mexico
0.98
1.02
3.24
3.97
3.67
Japan
0.83
1.21
4.79
5.56
4.51
Malaysia
0.76
1.32
4.24
4.95
3.64
Poland
0.93
1.07
3.56
4.2
3.79
Russian Federation
0.69
1.45
2.88
3.78
2.3
South Africa
0.87
1.15
3.86
4.23
3.73
Sri Lanka
0.68
1.47
3.39
4.29
2.68
Bangladesh
0.89
1.13
2.37
2.81
2.4
Estonia
0.91
1.1
4.28
5.29
4.51
United Kingdom
0.87
1.15
5.24
5.72
5.08
Vietnam
0.78
1.28
2.61
3.9
2.37
0.8
1.25
2.77
3.58
2.58
0.87
1.15
4.94
5.73
4.87
Ukraine Switzerland
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Financial Analysis of the ICT Industry
COUNTRIES2002-03
Fo(x,y) | Output Oriented Technical Efficiency C,S)
Fi(y,x | C,S) Input Oriented Technical Efficiency
Hong Kong SAR
ICT Environment (Input)
ICTREADINESS (Input)
ICTUSAGE (Output)
0.9
1.11
4.71
5.46
4.8
Chile
0.86
1.17
4.04
4.5
3.88
Germany
0.89
1.12
5.18
5.56
5.14
Latvia
0.84
1.19
3.66
4.41
3.54
Lithuania
0.74
1.35
3.57
4.33
3.05
Thailand
0.76
1.31
3.68
4.49
3.24
Sweden
0.93
1.07
5.26
5.95
5.53
Slovenia
0.9
1.11
3.89
4.75
4.04
Australia
0.9
1.12
4.89
5.35
4.88
New Zealand
0.83
1.2
4.66
5.12
4.32
Hungary
0.76
1.32
4.24
5
3.67
Czech Republic
0.85
1.18
4.18
5.04
4.08
Indonesia
0.79
1.26
3.01
3.72
2.76
1
1
4.5
5.6
5.22
Jordan
0.72
1.38
3.64
3.95
2.93
Canada
0.87
1.15
5.3
5.87
5.17
Korea, Rep.
Greece
0.8
1.25
3.79
4.13
3.39
Romania
0.59
1.69
2.75
3.35
1.88
Egypt
0.79
1.26
3.06
3.57
2.76
Brazil
0.92
1.09
4.17
4.72
4.32
Bulgaria
0.71
1.4
2.87
3.84
2.38
1
1
3.47
3.7
3.84
Austria
0.84
1.19
4.95
5.44
4.64
Singapore
0.93
1.08
5.22
6.41
5.58
Denmark
0.94
1.06
5.05
5.62
5.32
0.87
1.15
5.83
6.06
5.49
0.837556
1.207333
Argentina
US Average
Appendix Table 5. Malmquist index on Productivity Change(Malmquist), Efficiency Change(EC) and Technical Change(TC) between Base Period 2002-03 and Current Period 2006-07 Mo(y,x | C,S) Malmquist Output Oriented Index: Total Factor Productivity Change \
EC(Efficiency Change)
TC(Technical Change)
1.12
1.04
(X1,X2,Y1)
India
1.17
China
1.16
1.1
1.05
Taiwan, China
1.02
0.97
1.05
Israel
1.25
1.19
1.05
Ireland
1.02
0.98
1.04
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Financial Analysis of the ICT Industry
Mo(y,x | C,S) Malmquist Output Oriented Index: Total Factor Productivity Change
EC(Efficiency Change)
TC(Technical Change)
Philippines
1.04
0.98
1.05
Mexico
0.92
0.88
1.05
Japan
1.09
1.03
1.06
Malaysia
1.18
1.13
1.04
Poland
0.99
0.95
1.04
Russian Federation
1.39
1.29
1.08
South Africa
0.95
0.91
1.04
Sri Lanka
1.3
1.24
1.05
Bangladesh
1.06
0.97
1.09
Estonia
1.12
1.07
1.05
United Kingdom
1.11
1.04
1.07
Vietnam
1.17
1.09
1.07
Ukraine
0.97
0.91
1.06
Switzerland
1.06
1.02
1.05
Hong Kong SAR
1.11
1.04
1.07
Chile
1.11
1.07
1.04
Germany
1.02
0.98
1.04
Latvia
1.07
1.03
1.05
Lithuania
1.28
1.22
1.05
Thailand
1.14
1.09
1.05
Sweden
1.19
1.07
1.11
Slovenia
1.08
1.02
1.06
Australia
0.98
0.92
1.06
New Zealand
1.03
0.98
1.05
Hungary
1.14
1.09
1.04
Czech Republic
1.03
0.98
1.05
Indonesia
0.93
0.88
1.06
Korea, Rep.
1.02
0.98
1.05
Jordan
1.2
1.15
1.04
Canada
1.07
1
1.07
Greece
1.02
0.98
1.04
Romania
1.49
1.4
1.06
Egypt
1.16
1.12
1.04
Brazil
1.16
1.09
1.07
Bulgaria
1.24
1.16
1.07
Argentina
0.92
0.87
1.06
Austria
1.12
1.08
1.04
Singapore
1.03
0.99
1.04
Denmark
1.04
0.99
1.05
US
1.01
0.93
1.08
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Financial Analysis of the ICT Industry
Mo(y,x | C,S) Malmquist Output Oriented Index: Total Factor Productivity Change Average
EC(Efficiency Change)
TC(Technical Change)
1.044
1.054889
1.101333
Appendix Table 6. Regressing Total Factor Productivity Change on Initial Level of Technical Efficiency and Global Competitiveness Index 2007-08 Total Factor Productivity Change(SER01)
Dependent Variable: SER01 Method: Least Squares Date: 02/26/08 Time: 23:55 Sample: 1 45 Included observations: 45
Variable
Coefficient
C
Std. Error
t-Statistic
Prob.
1.887967
0.126594
Initial Level of Technical Efficiency(Input Oriented) in 2002-03
-1.06844
0.148062
-7.21616
0
Global Competitiveness Index 2007
0.023115
0.021548
1.072743
0.2895
R-squared
0.569414
Mean dependent var
1.101333
0.54891
S.D. dependent var
0.119385
Adjusted R-squared
14.91353
0
S.E. of regression
0.080183
Akaike info criterion
-2.14468
Sum squared resid
0.270029
Schwarz criterion
-2.02424
Log likelihood
51.25527
F-statistic
Durbin-Watson stat
2.118489
Prob(F-statistic)
27.7708 0
Appendix Table 7. Regressing Total Factor Productivity Change on initial level of technical efficiency, export/GDP ratio, Globalization index, twelve pillars of competitiveness Dependent Variable: SER01
TFP Change(SER01)
Method: Least Squares Date: 02/26/08 Time: 21:57 Sample: 1 45 Included observations: 45
Variable
Coefficient
Std. Error
t-Statistic
Prob.
C
2.495475
0.30713
8.125139
0
Initial Level of Technical Efficiency
SER17
-1.29793
0.163866
-7.9207
0
Globalization Index
SER18
-0.00046
0.001733
-0.26335
0.7941
Exports/ GDP
SER19
0.000147
0.000341
0.431665
0.6692
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Financial Analysis of the ICT Industry
Dependent Variable: SER01 HE
SER04
FMS TR
TFP Change(SER01) -0.09719
0.05486
-1.77166
0.087
SER05
-0.05107
0.042919
-1.18992
0.2437
SER06
0.206449
0.059697
3.458289
0.0017
BSOPHIST
SER07
0.014245
0.064894
0.219511
0.8278
INNOVAT
SER08
-0.02424
0.049405
-0.49055
0.6274
INFRAS
SER09
-0.02302
0.030451
-0.75592
0.4558
MACROST
SER10
0.009916
0.030465
0.325476
0.7472
MS
SER11
-0.00219
0.021043
-0.10419
0.9177
INST
SER12
-0.00962
0.043858
-0.2194
0.8279
HEALTH
SER13
0.009098
0.044989
0.20223
0.8411
GME
SER14
-0.0344
0.048011
-0.7165
0.4794
LME
SER15
-0.03935
0.051976
-0.75707
0.4551
R-squared
0.740812
Mean dependent var
1.101333
Adjusted R-squared
0.606749
S.D. dependent var
0.119385
S.E. of regression
0.074866
Akaike info criterion
-2.07449
Sum squared resid
0.162542
Schwarz criterion
-1.43212
Log likelihood
62.67609
F-statistic
5.525856
Durbin-Watson stat
1.828422
Prob(F-statistic)
0.000043
Appendix Table 8. Regressing Total Factor Productivity Change on initial level of technical efficiency and Broadband policies(First Principal Components) Dependent Variable: SER01
TFP Change(Ser01)
Method: Least Squares Date: 02/26/08 Time: 22:41 Sample: 1 45 Included observations: 45
Variable
Coefficient
Std. Error
t-Statistic
Prob.
C
2.046724
0.120958
16.92091
0
Initial Level of Technical Efficiency in 2002-03
SER17
-1.12875
0.143761
-7.85155
0
Broadband policies(PC1)
SER34
0.000612
0.000291
2.105852
0.0412
R-squared
0.599865
Mean dependent var
1.101333
0.580811
S.D. dependent var
0.119385
0.077295
Akaike info criterion
-2.21802
Adjusted R-squared S.E. of regression
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Financial Analysis of the ICT Industry
Dependent Variable: SER01
TFP Change(Ser01)
Sum squared resid
0.250932
Schwarz criterion
-2.09758
Log likelihood
52.90553
F-statistic
31.48233
Durbin-Watson stat
2.005031
Prob(F-statistic)
0
DEA Equations DEA is a LP (Linear Programming) Problem (using simplex method): LP Primal Problem is- Maximize ratio of weighted outputs to weighted inputs subject to the condition that such ratio for each decision making unit is less than equal to one. The solution are the weights of both outputs and inputs. Weights are assumed to be greater than zero and universally applied. Such exercise is repeated for each decision making unit. We most of the time work with the dual of this primal problem because apart from working out input oriented technical efficiency of the decision making unit, it gives how much orientation in inputs (scaling down) is needed for each DMU to maximize the ratio of weighted outputs to weighted inputs and thereby reach the best practice frontier and also its peer group (the latter exercise not done in the study). Weights can help us to determine the orientation of inputs and outputs (answers what needs to be done). The value of the primal and dual objective function comes out to be same due to duality theorems. If technical efficiency of each decision making unit works out to be one then he is on the ‘best practice frontier’. If technical efficiency is less than one say .89 and one uses input oriented technical efficiency then the concerned DMU needs .11 units scaling back in its inputs to reach the best practice frontier. Output oriented technical efficiency of 1.28 would mean that 28% scaling up of output is required to reach the best practice frontier. We in this study simply work out input oriented and output oriented technical efficiency measures. Appendix Table IX gives the necessary equations to estimate the technical efficiency using input and output orientation. Mamquist index which estimates productivity changes over two year time period(yt+1/xt+1)/(yt/xt) in the study also uses four DEA exercises considering t and t+1 as base year periods(see Onfront manual for clarification). The Malmquist index(geometric mean based on t and t+1 time period as base) uses concept of distance function(reciprocal of technical efficiency) and index numbers to work out productivity change based on host of outputs and inputs. If the value is greater than there is obviously an improvement in productivity. The mathematical formulation of DEA model is presented in the following section as given by Stavarek (2005). The Primal Problem
max h0 u ,v
∑ (u , v) = ∑v x y =1
t =1
u r yr 2
t
fr
Subject to:
131
Financial Analysis of the ICT Industry
s
∑U r =1 M
r
yr 3
∑v x t
t =1
≤ 1 j = 1, 2,... j.., n
fr
ur ≥ 0, r=1,2…,s
(3)
vy ≥ 0, I=1,2…,m
(4)
where h0 is the technical efficiency of DMU0 to be estimated, ur and vi are optimal weights to be determined, yrj is the observed amount of output of the r th type for the j th DMU, xij is the observed amount of input of the i th type for the j th DMU, r indicates the s different outputs, I denotes the m different inputs, and j indicates the n different DMUs. The weights ur and vi in the objective function are chosen to maximize the value of the DMU’s efficiency ratio subject to the less than unity constrains. These constrains ensure that the optimal weights for DMU0 in the objective function does not imply an efficiency score greater than unity, either for itself or for any of the other DMUs. The DEA model mentioned above is a fractional linear program in which the numerator has to be maximized and the denominator would be minimized simultaneously. To solve this kind of model, it is converted into linear form by following a transformation developed by Charnes and Cooper (1962) for fractional programming. It allows the introduction of a constant which is given in Equation 5 s
åv x
1 t
t -1
=1 (5)
This means the sum of all inputs is set to equal one. The obtained linear programming problem that is equivalent to the linear fractional programming problem (Equation 1 to 4) for DMU s can be written as:
min z 0 = Q0 l
n
ål y f -1
j rj
³ yro , r = 1, 2,......, s
ur ≥ 0, r=1,2…,s vy ≥ 0, i=1,2…,m
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Financial Analysis of the ICT Industry
The input-oriented VRS for the DMU0(dual of the primal problem)
n
Q0x fo - å lj x tj ³ 0, i = 1, 2,......, n j =1
λj ≥ 0, j= 1, 2, …….,n where the technical efficiency of DMU0 is denoted by Ө o. and λj indicates weight of the j th DMU. Moreover, λ=(λ 1, λ 2, …, λ n) λ 0 0, is the vector of weights obtained by individual DMUs which can determine the peer group identified by particular DMU for emulation. The DMU with technical efficiency Ө j < 1 is considered as inefficient, the efficiency Ө j = 1 shows the efficient DMU placed on the efficiency frontier. The non increasing-returns-to scale (NIRS) technology is constructed by restricting the process operation levels as satisfy 1/2
é d t (u , x ) d t +1 (u , x ) ù m(ut , x t , ut +1, x t +1 ) = êê 0 t t +1 t +1 x 0 t +1 t +1 t +1 úú d0 (ut , x t ) úû êë d0 (ut , x t ) for all j, so that observed process can be radially contracted but not expanded. The variable-returnsto-scale (VRS) technology is constructed by adding the restriction d0t +1 (ut +1, x t +1 ) éê d0t (ut +1, x t +1 ) d0t (ut , x t ) ùú x m(ut , x t , ut +1, x t +1 ) = ê ú d0t (ut , x t ) êë d0t +1 (ut +1, x t +1 ) d0t +1 (ut , x t ) úû
1/2
,
resulting in increasing returns as scale at low levels of input. By construction, efficiency indexes calculated under the assumption of constant returns to scale are no higher than those calculated under the assumption of NIRS, which in turn are no greater than those constructed under the assumption of VRS (see Fare et al. [1994] for details). Appendix Table 9. GDP per capita growth data in percentage change (2002-05) along with ICT productivity, ICT efficiency change and technical change between 2002-03-2006-07 GDPPERCAPITAGROWTH
TFPGROWTHICT
EFFGROWTHICT
TECHGROWTHICT
Countries
22.87243
17
12
4
India
30.99754
16
10
5
China
6.028316
25
19
5
Israel
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Financial Analysis of the ICT Industry
GDPPERCAPITAGROWTH
134
TFPGROWTHICT
EFFGROWTHICT
TECHGROWTHICT
Countries
8.826227
2
-2
4
Ireland
10.83498
4
-2
5
Philippines
5.450652
-8
-12
5
Mexico
6.552429
9
3
6
Japan
12.70527
18
13
4
Malaysia
13.24087
-1
-5
4
Poland
24.24691
39
29
8
Russian Federation
9.052277
-5
-9
4
South Africa
13.91849
30
24
5
Sri Lanka
12.00508
6
-3
9
Bangladesh
27.44541
12
7
5
Estonia
5.99892
11
4
7
United Kingdom
21.26252
17
9
7
Vietnam
28.83885
-3
-9
6
Ukraine
1.593552
6
2
5
Switzerland
17.51044
11
4
7
Hong Kong, China
13.58504
11
7
4
Chile
2.466498
2
-2
4
Germany
30.48765
7
3
5
Latvia
29.08501
28
22
5
Lithuania
15.66666
14
9
5
Thailand
7.150263
19
7
11
Sweden
11.14874
8
2
6
Slovenia
5.678655
-2
-8
6
Australia
5.154865
3
-2
5
New Zealand
14.05811
14
9
4
Hungary
14.16898
3
-2
5
Czech Republic
11.55843
-7
-12
6
Indonesia
10.67277
2
-2
5
Korea, Rep.
12.8594
20
15
4
Jordan
4.893757
7
0
7
Canada
12.47148
2
-2
4
Greece
19.63844
49
40
6
Romania
6.448304
16
12
4
Egypt, Arab Rep.
Financial Analysis of the ICT Industry
GDPPERCAPITAGROWTH
TFPGROWTHICT
EFFGROWTHICT
TECHGROWTHICT
Countries
3.550441
16
9
7
Brazil
18.4738
24
16
7
Bulgaria
25.86208
-8
-13
6
Argentina
3.82824
12
8
4
Austria
14.36939
3
-1
4
Singapore
4.894218
4
-1
5
Denmark
7.493237
1
-7
8
United States
Appendix Table XI: Impact of ICT Productivity on GDP Per Capita Growth Dependent Variable: SER05(GDPPERCAPITAGROWTH) Method: Least Squares Date: 03/17/08 Time: 23:58 Sample: 1 44 Included observations: 44 Variable
Coefficient
Std. Error
t-Statistic
Prob.
C
11.37581
1.603896
7.092611
0.0000
SER02(ICTPRODUCTIVITY CHANGE)
0.186145
0.101960
1.825677
0.0750
R-squared
0.073525
Mean dependent var
13.29649
Adjusted R-squared
0.051466
S.D. dependent var
8.245593
S.E. of regression
8.030608
Akaike info criterion
7.048787
2708.608
Schwarz criterion
7.129886
F-statistic
3.333096
Prob(F-statistic)
0.075015
Sum squared resid Log likelihood Durbin-Watson stat
-153.0733 2.075773
135
Section 2
Tools and Techniques
137
Chapter 7
The Promise and Potential of Streaming Media Technology Mindy Anneli Lassila Indian and Northern Affairs Canada, Canada
ABSTRACT Information is a valuable commodity, but only if it is shared. Through diversified technologies, the dissemination of information has been made possible for a number of government organizations around the world, but for some, developing efficient and effective e-government systems poses a variety of unique challenges. Key demographic and economic variables, such as income, education, language, human resources and lack of appropriate products and robust regulatory frameworks for information and communication technologies (ICTs) drive the policy questions surrounding electronic commerce in government operations. These variables are important because they are the most likely to have a differential impact on the consequences of delivering new and progressive ICTs to various segments in developing countries. Described and discussed are the advantages and limitations of streaming media technology, a form of new ICT, and the comparative benefits it has in both developing and developed countries. Indian and Northern Affairs Canada (INAC) serves as a point of reference, as for the role and impact ICT-specifically streaming media–can play-within a government sector. With limited resources, INAC, a Canadian federal government department, has improved access to information and enhanced communication by successfully executing streaming media technology in-house. The implementation of streaming media technology at INAC has resulted in a fundamental transformation in the nature of information and communication exchange within the organization. DOI: 10.4018/978-1-60566-671-6.ch007
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
The Promise and Potential of Streaming Media Technology
INTRODUCTION Governments throughout the world are taking on new roles and responsibilities. With increasingly challenging mandates, governments at all levels require better access to information and the ability to disseminate their decisions and policies to citizens. The potential of e-government as a development tool hinges upon three prerequisites - a minimum threshold level of technological infrastructure, human capital and e-connectivity - for all. Egovernment readiness strategies and programmes will be able to be effective and “include all” people only if, at the very minimum, all have functional literacy and education, which includes knowledge of computer and Internet use; all are connected to a computer; and all have access to the Internet. The primary challenge of e-government for development therefore, is how to accomplish this. (UN World Public Sector Report 2003: E-Government at the Crossroads, 2003).
The Canadian government strives to be accessible and scores highly internationally in its approach to e-government. Much of this has been made possible by developments in ICT, such as the Internet and mobile devices. ICTs open up vast possibilities for improving dialogue between government authorities and the populations they serve. As a result of the collective efforts of dozens of government departments and agencies in Canada, 130 of the most commonly used Canadian federal government services are online and can be accessed through the federal portal. With almost 600 million interactions between citizens and the federal government in 2004 – compared to 150 million in 2001 – e-government is now a key channel for the delivery of public services in Canada and represents almost a third of the total number of transactions (Petrov, 2005).
138
Indeed, the introduction of streaming media technology was expected to do no less than virtually transform the information society at INAC. The ability to access points of interest by way of audio and/or video over the Internet and/or Intranet in real-time (live webcast) or pre-recorded content (on-demand webcast) was an exciting communications distribution method for the department to undertake. What used to be a “nice to have” technology when it was initially implemented has evolved to become a delivery mechanism INAC often relies on to interact with clients both internally and externally (i.e., INAC employees, other government departments, Aboriginals, academics, historians, journalists, teachers, students, children, etc.). Important messages, seminars, panel discussions, conferences and online learning tutorials are a few of the more popular events/initiatives which are webcast. However, it’s not enough to simply deploy streaming media hardware applications within the organization – in order to ensure quality delivery and a scalable solution that will support future growth, proper testing and infrastructure assessment strategies are essential (Rayburn, 2005). The process of implementing this type of technology also involves improving co-ordination and collaboration, clarifying roles and responsibilities and ensuring that the necessary skills and tools are available. Finally, streaming media services should be evaluated regularly over time using both a technological and value added approach.
BACKGROUND Information Communication Technologies (ICTs) Each day, new technologies impact an increasing number of citizens around the world. An imperative of development today is the deployment of ICTs for the attainment of economic advancement and social cohesion. ICT is any technology that
The Promise and Potential of Streaming Media Technology
enables communication and the electronic capture, processing, and transmission of information (Parliamentary Office of Science and Technology, 2006). Examples of such technologies include personal computers, digital television, email, and mobile phones. A well managed ICT helps organization’s save time, money and resources, improve communication with current users, reach new audiences, manage information securely and provide a greater range of services delivered in more innovative ways. In fact, during the last few years, media usage patterns have drastically changed in favour of ICTs due to an increase in Internet speeds, growth in broadband, and a decrease in technology adoption times (Kavenik, 2006). Thus, governments around the world are increasingly turning to ICTs in order to improve efficiency of information exchange and integration of service capacity. Ideally, ICTs can contribute to a better relationship between governments and citizens, by increasing information flows, transparency and accountability (Osterwalder, 2003). Furthermore, Internet access to government related information and communication conveyed through written text, graphics, or streaming audio and/or video has the ability to directly improve people’s health, knowledge and living standards. Valuable information can be searched for and retrieved via these delivery mechanisms in a convenient and individually tailored way. What’s more, the Internet can increase people’s ability to participate more actively in the social, economic and political life of their community, through the opportunities to make contacts and to interact with others in matters of importance.
ICT in Developing Countries Radio, television and print media have been the standard forms of ICTs in many developing countries. However, in recent years ‘new’ ICTs, such as mobile phones and the Internet have become more affordable and accessible to an increasing number of people worldwide. The most rapid growth is
in mobile phone usage. Total (fixed and mobile) telephone access in developing countries increased from 2% in 1991 to 31% in 2004. Internet usage has also grown rapidly: from 0.03% of developing country inhabitants in 1994 to 6.7% in 2004 (Parliamentary Office of Science and Technology, 2006). Digital networks have the ability to transcend distance widening access to the same set of information and knowledge in a remote village in a developing economy as is available to users in the premier city of a developed country (United Nations, 2005). The value of information and adopted knowledge within developing countries is an important aspect of their future growth potential. Detailed analysis of experience around the world reveals ample evidence that used in the right way and for the right purposes; ICTs can have a dramatic impact on achieving specific social and economic development goals, as well as play a key role in broader national development strategies (Accenture, Markle Foundation, & UNDP, 2001). However, in order to fulfill the potential of ICT in a nation’s development, it is necessary to focus available resources on user needs and on cost effective applications. Furthermore, the creation and maintenance of useful local applications and content, coupled with the ability of the public to understand and use these applications is just as vital (Osterwalder, 2003).
Streaming Media Streaming media, a form of new ICT, has improved access to information and knowledge sharing. Streaming refers specifically to the technical process of delivering a webcast to a user’s desktop through a compatible media player. The word reflects how the technology works: content is not downloaded and stored on the user’s computer. Rather, it just “streams” through in real time, vanishing as it goes. (Online Broadcasting Corporation, 2004). In other words, audio/video is compressed and transmitted via the Internet and/or Intranet. Media files play on the user’s
139
The Promise and Potential of Streaming Media Technology
Figure 1. General streaming media model
system as they arrive, alleviating the delay of waiting for the entire file to download before it can be viewed. The array of baseline tools for accessing streamed audio and video has expanded to include mobile devices. Mobile devices can range in complexity and functionality from a basic wireless telephone with a data connection to the Internet to a high-end Personal Digital Assistant (PDA) that supports Web browsing. In order to enable streamed audio/video, these devices must include media players, video display screens of adequate size and sufficient processing power. Essentially, there are two types of media streams, on-demand and live. On-demand streams are stored on a server, and are available via a web browser at a user’s request, creating a sense of empowerment. Users are in charge of when to start, pause, skip and replay information. Live streams on the other hand, are only available at the particular time and day the event/message occurs. However, live streams can be archived and made available for future viewing at the user’s convenience. Although not as popular, there are mock-live streams, which are pre-recorded webcasts delivered on a specific day and time. These types of webcasts provide organizations with more flexibility in terms of speaker availability and scheduling. Streaming generally consists of the following sequence of events (see Figure 1). An audio and/or video source (i.e., camcorder, digital video camera,
140
microphone, etc.) is remitted into an encoder. The encoder compresses the file and transmits it to a server. The server receives the file and streams it to clients. The clients, or “players,” decode or decompress the file for viewing purposes. There are two major methods of delivering streaming audio and/or video content over the Web. The first method uses a standard Web server to deliver the audio and video data to a media player. The second method uses a separate streaming media server specialized to the audio/video streaming task. While Web server streaming can be an effective interim solution, a streaming server is more efficient and flexible and provides a better user experience (Microsoft Corporation, 2008). Designed specifically for delivering live and ondemand webcasts, media servers are optimized for delivering large media files. Furthermore, they are programmed to adjust the bit rate for each client stream according to bandwidth that is currently available. As a result, playback is likely to be smoother and uninterrupted by periods of buffering. In 2004, INAC reached a point where they were serving countless streams to countless users worldwide. In order to handle the higher level of traffic, the department decided to invest in a dedicated media server. A specialized server resulted in better network throughput, thus enabling INAC to deliver higher quality audio/video to their audience, make more efficient use of the department’s network bandwidth and support a larger number of visitors.
The Promise and Potential of Streaming Media Technology
Figure 2. Unicast streaming model
INAC is currently delivering webcasts via unicast streaming (see Figure 2), meaning the server creates a separate connection to each client. Unicast streaming is well suited for the delivery of on-demand media but can have issues when synchronization of live content is a necessity, as with important Ministerial announcements. This is because the same content is being delivered simultaneously to a number of clients, individually. Consequently, this can result in network congestion causing visitors to experience buffering delays. INAC is currently reviewing the possibility of developing an internal multicast network environment, in which the server does not create a separate connection per client (see Figure 3). Instead, the server delivers the content to an Internet Protocol (IP) address on the network allowing any client on the network to receive it. Therefore, if 10 clients access the media stream at the same time, the bandwidth consumed would be the same as if it were being delivered to one. Due to security issues regarding multicasting, and the need for specific ports on the router to be open in order for the stream to occur, INAC is only looking into implementing this type of delivery through it’s Intranet, eliminating any threats from outside users. Multicasting is an efficient and
useful technology, however, enabling this type of network takes time and technical expertise. It is most popular with institutions that have a large Internet access capacity.
STREAMING MEDIA: PROMISE AND POTENTIAL Digital networks have the potential to broaden and enhance access to information and communications for remote rural areas and poorer neighbourhoods, to strengthen the process of democratization under transitional regimes, and to ameliorate the endemic problems of poverty in the developing world. With connectivity as the umbilical cord, enthusiasts hope that the Internet will eventually serve multiple functions as the world’s favourite public library, school classroom and medical database, post office and telephone, marketplace and shopping mall, channel for entertainment, culture and music, daily news resource for headlines, stocks and weather, and heterogeneous global public sphere (Norris, 2001). Streaming audio and video over networks such as the Internet, local area wireless networks, home networks, and commercial cellular phone systems
141
The Promise and Potential of Streaming Media Technology
Figure 3. Multicast streaming model
has become a reality and it is likely that streaming media will become a mainstream means of communication (Zeng, 2004). The unique strength of the Web as an outlet for audio and video has pushed the application of streaming media technology up an astounding growth curve. Streaming video in its various forms is being used for everything from recruitment, to entertainment, to awareness, to instruction. In fact, a study conducted by Pew Internet & American Life Project (Pew Internet & American Life Project, 2008) indicates that the number of visitors to video-sharing web sites increased by 45% in 2007 (see Figure 4). It is interesting to note that the oldest demographic group has had the largest increase (70%) in accessing video sharing sites. Additionally, those in lower income brackets have also experienced a significant increase (48%) in video usage. It is clear to see that the demographics of those accessing audio/video on the Internet is evolving. As high quality video has become more available and reliable on the Web, many prestigious companies and government organizations around the world have taken the leap, and deployed streaming technology in their environments. However, the benefits of streaming are not fully realised as many countries have inadequate infrastructure and human capacity to support it.
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While the capacity to distribute and view digital information is increasing each year, the cost of new ICT services, such as streaming, is rapidly decreasing. This ongoing process is likely to result in many inexpensive digital communication systems, which may be available for a large number of people in developing countries in the near future (5 to 15 years) (Gural, 2001). Much of these decreasing costs are attributed to an increase of competitors in the field. For example, the cost associated with streaming video has fallen from thousands of dollars to hundreds of dollars over the last few years as more companies are embracing the need for this technology. With advances in computer networking combined with modern operating systems, streaming media has become practical and affordable for many people worldwide. These days, it’s reasonably simple to create and implement streaming media online. A majority of the challenge lays in understanding the range of choices and directions the streaming media industry has to offer. Nowadays, decent digital camcorders are being sold for less than $200 CDN. Using a $20 CDN webcam can also work in recording short messages. Many computer platforms also come equipped with free video editing and encoding software. However, if these tools are unavailable, there are inexpensive audio and
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Figure 4. Demographics of Internet users who have visited video-sharing sites
video editing and encoding applications out there to help in making web ready videos for streaming purposes. Fortunately, a new online service from Europe, which requires no software downloads or lengthy registrations, allows users to immediately start transcoding video files into just about any video file format requested. All video encoding and conversion is done online without utilizing any of the local processing power or physical storage space of local computers (Good, 2007).
Streaming Media in the Government The initial step in creating a streaming media solution is to identify the business cases for audio and/or video in the organization. Does strong need for streaming audio and/or video exist? Each year, government organizations generate increasing amounts of important information. For most government institutions, streaming audio and/or video is an excellent medium for keeping people informed about events, services and discussions held at meetings. Moreover, video streaming or webcasting through the Internet has given new opportunities for transparency and accountability in governments. By using video streaming, citizens
get an unfiltered view of the decision-making process independent of time and geographical distance (Berntzen, 2006). Streaming media is the perfect conduit for citizen-government partnership to promote public value, and therefore, inclusion. It gives viewers the sense that they are part of the event. It adds a more personal touch. Seeing other participants, or hearing their voices, provide a presence and potency that text alone cannot match (Klass, 2003). Discussions at INAC regarding the implementation of a dedicated in-house streaming media unit began in early 2000. The key objectives for bringing the service in-house were to cut down on costs associated with audio and/or video, improve access to information and enhance communication. The Streaming Media unit has developed, consulted and implemented a number of streaming media solutions for numerous directorates within the organization. Several directorates have used streaming media to either replace a meeting or to convey information (i.e. training modules, convey policies, general corporate messages). One project entitled “Connecting Youth in Canada”, which was very successful, targeted high schools, educators and other government departments. The project en-
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compassed a series of five, 30 minute live webcasts streamed from Aboriginal communities across Canada (some remote). The project was aimed at getting Aboriginal and non-Aboriginal youth aged 14 to 17, talking about issues and concerns that matter to them. A discussion was held in each of the communities on a specific theme, featuring a panel of students from the chosen community. Viewers were able to ask the students questions and express their thoughts via e-mail, and students were able to respond to questions and comments in real time via online video. For many viewers, the webcasts uncovered several facets on the lives of Aboriginal youth living in different parts of Canada, dispelling myths and helping them learn about Aboriginal peoples and their culture and history. This project was particularly interesting, in that remote communities across Canada, with various bandwidth connections were able to participate in the discussions on a national scale, as the webcasts were made available at various quality and compression levels. This way, students with high bandwidth connections could view the higher quality webcasts, while those with lower bandwidth connections could access the more compressed versions. In any organization, employees have a stake in receiving important announcements from their executives. Today, this communication occurs primarily through physical meetings, via email, or by posting documents on the corporate Intranet. Most companies are not realizing the full potential of video (Malloy, 2007). Video is now a medium unto itself, a completely decentralized digital, electronic audio-visual technology of tremendous utility and power (Sterling, 2007). In larger organizations where employees may not have the opportunity to attend meetings, or in areas of high turnaround, video can prove to be very beneficial. Video places a face to the name. In several instances, employees may be unaware of the “who” in upper management, creating a sense of disconnect. Although the name is familiar, the face is not. Video provides
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the opportunity for employees to virtually attend missed meetings and gain insight into “who” their top level executives are. Furthermore, employees can participate in meetings occurring live, if their schedules or current location prevents them from attending in person. Because video is much more visually appealing than text, employees may be more willing to access the information. INAC has delivered numerous video messages from senior management. Several video messages from former and present INAC Ministers have been delivered via the Internet and Intranet (i.e. National Aboriginal Day, Aboriginal Awareness Week, International Polar Year, etc.). Amid busy schedules and costly travel expenses, it is not always possible for Ministers to attend each and every conference; thereby, video technology is rapidly emerging as the next best alternative. It is important for both employees and the pubic to visually see and/or hear their Minister and feel connected to him or her in some manner, in which case audio/video is a great means for doing so. The Streaming Media unit also hosts a monthly video newsletter on the departmental Intranet web site. The purpose of the newsletter is to provide employees with a basis for understanding streaming media in regards to current trends, developments, issues and challenges both internal and external to the department. Ultimately, it is an excellent medium for showcasing events and disseminating useful information to all departmental employees including regional partners in various time zones. Employees can access events occurring live, or events that have been pre-recorded from the convenience of their desktops. The United Kingdom Parliament has also dedicated an audio/video section on their website depicting live and archived coverage of all UK Parliament proceedings taking place in public, including debates and committee meetings of both Houses. Furthermore, the UK Parliament has commissioned a number of films (i.e. Scrutiny Uncovered, The General Election Explained, You’ve got the Power, etc.) explaining its role
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and the way in which it works (United Kingdom Parliament, 2008), providing citizens the opportunity to learn about their government and to use that knowledge to better serve their communities thus becoming active participants through civic engagements. Incorporating an audio/video component may prove to be exceptionally valuable in various areas of the country, as discussions with communities in the region of Devon, southwest of England suggest that there are many citizens who feel unrepresented and isolated from the local democratic process (Phippen, 2007). Heightening the level of interaction between citizens and the local authority by enabling public access to Parliament proceedings via audio/video, could however, relieve these negative feelings. Engaging citizens in the political life of their community through audio/video segments creates genuine public forums and helps open the government, thus giving citizens a sense of belonging. Viewers feel like they have a virtual seat in the House of Commons and more importantly the ability to access unfiltered information regarding policies and decisions that affect them.
Streaming Media in Developing Countries Rapid expansion of the Internet holds substantial promise for developing nations, which can greatly benefit from the Internet’s communication and information delivery capabilities, such as streaming media. Streaming media technology has the potential to tackle a wide range of health, social and economic problems. A streamed video can act out real-life situations, demonstrate appropriate behaviour, or simply present information in a more lively way. Educational videos spanning various topics (i.e. public health awareness, community development, globalization, life skills, etc.) can be of utmost value to those in developing countries as they have far fewer schools and teachers, fewer doctors and nurses than in developed countries.
Based in New York and Ahmedabad, India, Video Volunteers and local NGOs are helping rural communities in India voice their issues to a global audience through a “Community Video Unit” initiative. The initiative empowers communities to take action around critical issues that are relevant to development and to voice these concerns via video. Each month a community distributor travels to 25 villages to screen the video, lead a discussion and instigate any follow up action. A number of video magazines have been produced which have reached approximately 130,000 people living in 200 slums and villages. Different segments of the magazine may include community news, opinion polls, success stories, legal tips, local culture and music, etc. The aim of the initiative is to create community ownership and participation. Video volunteers are currently working to create opportunities to leverage these voices into the mainstream media by channelling their media on the Internet and on their recently launched online site Channel 19, dedicated entirely to community-produced content. (Video Volunteers, 2008)
Implementing Streaming Media Technology Most developing country governments around the world are promoting citizen awareness about policies and programmes, approaches and strategies on their web sites (United Nations, 2005). These countries are the most likely to solidify their online presence even further by venturing into higher and more mature areas of e-service delivery, such as streaming media. When considering the internal development and deployment efforts of streaming media, an organization must initially look into the existing systems currently available. It is wise to focus on technologies that can work under current conditions and make the best use of limited resources. Today, businesses and consumers face a major bottleneck in terms
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of how to create and integrate content with existing infrastructure, inhibiting widespread use of streaming media for the immediate future (Days, & Halliday, 2004). Internet access should be present, or planned for implementation. Although many developing countries are faced with slow data transmissions, the software applications for on-demand and live webcasting of seminars, lectures and peer-to-peer collaboration via Internet and/or Intranet have become possible under conditions of low-bandwidth connectivity. Bandwidth is everything when it comes to streaming media. It is the available bandwidth which determines an end user’s success or failure in receiving streaming content. In areas where true streaming media is not feasible, various alternatives exist, such as low frame rate video compression, photo sequences, audio only webcasts, and/or the use of CD-Roms and DVDs. Providing the best possible streaming video experience over low bandwidth networks is a major challenge. Transmitted images may be significantly blurred, even unrecognizable. Now and for the foreseeable future, the ability to view high-quality streaming requires a broadband connection. Companies can still stream audio to the average user, but streaming video to 56K (i.e. dial-up modem) users is limited as smaller video sizes, lower frame-rates, and buffering all lead to a low-quality experience. However, a low frame-rate video compression strategy may be a great solution, until advances in connection speeds are implemented within lower bandwidth areas. A research project conducted by Jue Wang and Michael F. Cohen presented a real-time framerate video compression system that allows the user to do face-to-face communication through an extremely low bandwidth network (real-time coding of face video at a low frame rate, one frame per 2-3 seconds). At the encoder side, the system is able to automatically select only a few good frames from the original sequence with high visual quality and compress and transmit
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them (Cohen, & Wang, 2005). Another option for those who receive poor quality video due to insufficient bandwidth is to replace the video with an alternative format such as a sequence of photos. Photos employ a much higher image quality as opposed to low resolution video that breaks up several times per minute. With audio content accompanying the photos much like a slideshow presentation, viewers still experience the visual element but in a different manner. Providing the same information to those who lack connectivity, on the other hand, is difficult if not impossible. However, audio/video information can be made available on CDs and/or DVDs to help alleviate this issue. In Nairobi, Kenya a video initiative entitled “Women’s Voices” demonstrates how ICT empowers women living in poverty stricken areas by giving them a voice in public policy decision making. The women participants were educated in the use of digital video equipment, scripting, shooting and editing. They were then able to present the condition of their communities through video and audio capacities. This initiative led to direct and sustained contact with political representatives and those in control of civic services. Additional benefits from the project consisted of increased participation in the political process, and the women involved were able to secure a contract with a local television network to regularly supply short news briefs from their villages. The group has also produced Women’s Day celebrations, World Aid Day events and several Practical Action-EA documentaries. The videos have been since transferred to CDs and have been distributed worldwide. (Intermediate Technology Development Group, 2007). Successfully targeting connection bandwidths of potential viewers is essential for producing streaming media. Streaming presentations should never consume all of a viewer’s connection bandwidth; extra bandwidth is required in cases of
The Promise and Potential of Streaming Media Technology
Table 1. Maximum streaming rates Target Audience
Maximum Streaming Rate
14.4 Kbps modem
10 Kbps
28.8 Kbps modem
20 Kbps
56 Kbps modem
34 Kbps
64 Kbps ISDN
45 Kbps
112 Kbps dual ISDN
80 Kbps
Corporate LAN
150 Kbps
256 Kbps DSL/cable modem
225 Kbps
384 Kbps DSL/cable modem
350 Kbps
512 Kbps DSL/cable modem
450 Kbps
786 Kbps DSL/cable modem
700 Kbps
network overhead, error correction, resending lost data, etc. Table 1 recommends maximum streaming speeds for common network connections. If an organization decides on capturing, encoding and hosting their own streaming content, they will require a video camera (analog or digital), a sufficient amount of network bandwidth, an encoder with a video capture card, audio and video editing software, a video deck, a hard drive with a significant amount of storage capacity, a media server, and a back-up preferably in the form of a DVD drive, where media files can be archived to. In turn, the organization will need to hire and/or train personnel to operate the equipment. Although certain programming languages such as Java and XML are becoming essential to building streaming media applications, most streaming media can be developed with desktop tools by creative teams as opposed to software engineers. In a streaming media environment, the team can widely vary between self-taught members and those with academic credentials. Essentially, a streaming media production team requires a multi-disciplinary team including of content authors, graphic designers, web developers, video production people, and IT staff to run the network, servers and security systems. While the aforementioned roles are both distinct and essential, one individual may be responsible for
several of them. When INAC initially implemented their Streaming Media unit, there was only one full time employee responsible for the coordination, management and facilitation of events. As demand grew, so did the unit. However, due to limited resources, the team is still relatively small, but extremely functional under various operational conditions. The critical question to consider is whether the requisite talents and personnel exist within an organization to develop their own elearning or if outsourcing is the most appropriate path (Kruse, 2004).
Accessibility Concerns Internet accessibility has become a global issue as it affects countless people. In more and more countries across the world, it is becoming required for government and other public service web sites to be based on standards and follow accessibility guidelines (Johansson, 2008). Both content authors and end users are affected by issues surrounding accessibility. Content authors want to ensure that their information is being delivered as a “complete package” to end users, and end users want to receive the “complete package” regardless of any perceptual disabilities they may have. The Streaming Media unit at INAC ensures that their sites are based on web standards and are accessible
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to everyone. All live and on-demand webcasts hosted on the corporate Internet/Intranet sites are presented in both Official Languages (English and French) either through simultaneous interpretation or voice over technologies. Text equivalents are also available and are used by screen readers, search engines and people accessing the streamed media without the aid of a sound system. For increased accessibility, INAC is looking into the integration of captions, which are text equivalents of auditory information from speech, sounds effects and ambient sounds that are synchronized with multimedia presentations. Overall, organizations must conduct user testing with a variety of end users, platforms, browsers, and assistive technologies to ensure that streaming content is accessible to the widest array of users. In addition, competing technologies vying to control standards is another obstacle for audio/ video streaming. Not all media players support the same types of streaming media. Formats used within a corporate network vary extensively (i.e. Windows Media, RealMedia, Quicktime, MPEG, Adobe Flash, etc.). Occasionally, updates in the form of advanced codecs are released, which generally produce higher quality video at lower bandwidths. Comprehension regarding which players are installed in a managed desktop environment can help in reaching out to a specific target audience. However, supporting more than one format can help in further alleviating this issue. Although this approach requires additional resource allocation, it enables a larger number of users to access the content.
Security Concerns One of the major concerns INAC had prior to the implementation of streaming media was in regards to how safe the technology would be when considering security, privacy, and duplication of audio and/or video productions. The corporate firewall, a type of security, is designed to protect INAC’s internal computers
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and network from outside influences. All external traffic passes through the firewall when communicating with the Internet. The firewall allows those inside (internal employees) to send commands out, such as requesting a Web page, but it will not allow two way interactions, which would give external applications control over the internal environment. However, the media player program used at INAC to deliver streaming media content requires a two-way connection to function properly. Without two-way communication, users cannot fast forward through a clip or have their systems notify the INAC media server that they can accept a higher bandwidth stream. The Streaming Media unit has configured their proxy services to deal with this issue (i.e. numbered ports in the firewall are either opened or closed controlling traffic), allowing the media player to contact the Internet through a two-way connection while still providing protection to the rest of the system. Over the years, the Streaming Media unit has incorporated various measures to protect confidential and sensitive audio/video content from falling into the wrong hands or being distributed to unauthorized users. Although there is currently no official Digital Rights Management (DRM) strategy in place, several inexpensive concepts have been applied to audio/video projects to protect the information. The Streaming Media unit ensures that copyright information is clearly visible on all CD-Roms and DVDs, which are distributed externally. Furthermore, detailed copyright statements are posted on the corporate Internet and departmental Intranet, which protect any audio and/or video content residing on these sites. Other low-level security measures utilized include: •
•
hiding IP addresses of content and providing the information to target audience members only providing clients with re-director files to access content, as these files link directly
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•
to the media server which is controlled solely by the Streaming Media unit branding media content
Although the above methods have been effective, a solid DRM strategy which provides highlevel security measures needs to be implemented to ensure that Ministerial audio/video requests and highly sensitive/confidential conference productions at INAC are fully secured.
Monitoring and Evaluating Usage No matter how large or small an organization’s streaming media infrastructure is, a strong framework for monitoring and evaluating usage is essential. A streaming server has reporting capabilities that provide useful information about each transaction, which is stored in a log file. A typical log file contains the time and date of content access, the IP address of the viewer, the name of the file requested, and how much of the file was sent. This information is useful as an aggregate number to determine how much bandwidth is being used. It is also beneficial for comparison purposes to other metrics available, as well as for creating visual counterparts in order to track trends over time. Knowing how long users accessed media content for is another integral part of planning and managing streaming media content. These numbers reflect behavioural preferences, which enable organization’s to make well-informed decisions regarding future projects (i.e. duration of clips, topics of interest, content management, marketing strategies, etc.) Overall, these reports help in determining the appropriate level of technology and service for specific initiatives and further enhance online viewing experiences on an organization’s web site.
FUTURE TRENDS Developing countries have made considerable progress in expanding information technology tools and putting in place physical networks (United Nations, 2005). In fact, the number of Internet users worldwide grew by 2000% between 1996 and 2006 (IDC, 2007), and will continue to grow as technological advancements occur. The era for spending thousands of dollars to implement systems that deliver high-speed Internet and broadband services may be coming to an end as research and discussions regarding Broadband over Power Line Communication (BPLC) systems increase. Broadband Power Line Communications (BPLC) is a powerful emerging technology for internet access and has the potential to make a real impact in developing countries. BPLC has the capability to provide voice, television, video on-demand and data over IP protocols using existing electrical infrastructure to transmit the services. In advanced countries it is competing with TV cables, telephone lines and optical fibre. In a country like Tanzania where penetration of TV cables, telephone lines, and optical fibre are far less compared to the power lines, BPLC for internet and related information and communication technology (ICT) access for municipalities, rural and urban areas is an obvious choice (Anatory, & Theethayi, 2007). BPLC is being deployed in developing countries like Brazil, Algeria, India and Niger, for IP and VoIP – only services (Carcelle, 2007). Although the technology for BPLC has not matured and has yet to be developed further, it has the potential to make streaming media a reality in less advanced areas. Another exciting new advancement in developing countries is the deployment of wireless networks. In developing countries, mobile technologies potentially deliver education without dependence on an extensive traditional communications infrastructure, leapfrogging some of the intervening development phases encountered in developed countries (Kukulska-Hulme, & Traxler,
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2005). For example, in an office environment various processes need to be fulfilled in a specific sequence for the network environment to exist (i.e. computer purchasing followed by configuration, installation, wiring, etc.). Mobile technologies have the advantage of bypassing many of these procedures, simultaneously saving time and money, ultimately helping to eliminate the digital divide. Each year, mobile technologies improve, dramatically increasing data capabilities, further opening doors to the acceptance of streaming media in developing countries. In fact, in various developing countries a range of government strategies (i.e. cutting taxes on mobile phones, liberalising markets) has increased ICT uptake (Parliamentary Office of Science and Technology, 2006). According to preliminary results from The CMO Council’s Global Mobile Mindset Audit, mobile device users in developing areas surpassed users in the most developed countries and regions in every mobile use category (BtoB, 2007). Despite being poorer than developed countries, these areas have found ways to grow their telecommunications sectors, which will most definitely have an impact on mobile streaming. Its success however, will greatly depend on how much consumers are willing to invest in the technology. The Council for Scientific and Industrial Research (CSIR), the University of Cape Town and East Coast Access have teamed up to develop a method for delivering smooth streamed videos over the Internet in developing countries where low network bandwidth and other infrastructure related issues produce jerky video. Currently, South Africa and other developing countries are characterized by limited internet access, with broadband available only at high cost to subscribed users. The ability to transmit live videos had immense potential for social transformation in developing countries where resources and expertise were scarce, says Keith Ferguson, a researcher at CSIR (Johannesburg, 2008). The goal of the project is to run a test of the video broadcasting platform within three years which
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will deliver smooth webcasts in varying network conditions, particularly those in low bandwidth environments which accounts for a majority of developing countries.
CONCLUSION Streaming media technology can have a powerful effect on productivity in almost every industry, driving innovation, cutting costs, and opening up new opportunities. As an industry, streaming media has survived the introductory phase and evolved to the point in which there are proven business models, a sufficient number of consumers ready to buy, and stable technologies to support the industry’s future growth (The INSIGHT Research Corporation, 2006). With a 29% growth rate over the next five years (Sachoff, 2008), streaming media technology is the next major wave of computing which will bring entirely new benefits to consumers worldwide as digital audio and video become as commonplace as text and graphics are on the Web today. Based on revenues derived from both network (enabling) and content (provisioning) services, INSIGHT’s research suggests that the total US streaming media market will grow at a compounded rate of 38 percent from about $900 million in 2005 to more than $6 billion in 2011 (The INSIGHT Research Corporation, 2006). Streaming media adds a dynamic aspect to a Web page that attracts a user’s interest and attention. Not only has the technology been offered up as a solution to a wide variety of issues for public, private and non-profit organizations, it has gained acceptance from professionals and managers alike who are willing to invest in the technology. It is no longer a question of whether e-government will be implemented. The strong desire to venture into higher and more mature areas of e-service delivery is imminent in various organizations in both developed and developing countries. Some governments are clearly well ahead of other governments, but the trend is moving directly
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towards the seamless use of ICTs for facilitating good government, civic participation and global development (Carvin, Hill, & Smothers, 2004). As developed countries move forward in their use of streaming media, late adopters in developing countries are able to learn from the successes and mistakes of the innovators and overtake them. However, any plan to introduce streaming media into a developing country organization needs to address a multitude of issues, many of which are generally non factors in more developed countries. Key factors include the existing physical and human resources infrastructure of the organization and its state of development and rate of growth. The state of the physical communications infrastructure is also crucial. Adequate international and local links may be neither present nor reliable; equipment may be difficult to obtain, maintain, and repair; electrical power may not be reliable. Computers and the related peripherals required for networking may be absent or inadequate (Sadowsky, 1996). To realize the productivity gains and social advantages that streaming media offers, a country’s capability to understand and use the technology must be heightened and a sense of security in accessing streaming media content must be felt. The effectiveness of streaming media as a tool to transmit information, promote collaboration and enhance knowledge transfer is significantly abated when an insufficient understanding of the technology exists. Where this lack of awareness is present, updated computer literacy and training in streaming media applications is required. Streaming media connects users on a deeper level, by reducing distance and bringing people together. However, like with all technological transformations, the state of e-government readiness and extent of e-participation needs to be addressed to ensure that the benefits of streaming media are fully realized and exploited by both developed and developing countries. If properly implemented, streaming media has the potential to help government organizations at all levels
maximize transparency, engage their constituents, manage public meetings more efficiently and improve public communications. In the near future, streaming media whether live or on-demand will truly be an industry imperative.
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Parliamentary Office of Science and Technology. (2006, March). ICT in developing countries. Retrieved on March 27, 2008, from http://www. parliament.uk/documents/upload/postpn261.pdf Petrov, O. (2005). E-government experience in the U.S. and Canada: How relevant is it to developing countries? Retrieved on October 8, 2008, from http://go.worldbank.org/XDSYI1P0S0 Pew Internet, & American Life Project. (2008). Demographics of Internet users. In E. SchumacherRasmussen (Ed.), Streaming Media Magazine, 5(1), 22. Phippen, A. (2007). Evaluating citizen attitudes towards local e-government and a comparison of engagement methods in the UK. In M. KhosrowPour (Ed.), International Journal of Cases on Electronic Commerce, 3, 58. Hershey, PA: IGI Global. Rayburn, D. (2005, February). Streaming media solutions in the enterprise environment: Testing strategies for successful deployments. Retrieved on April 2, 2008, from http://www.spirent.com/ documents/3657.pdf Sachoff, M. (2008). Streaming media to reach $70 billion. Retrieved on May 2, 2008, from http:// www.webpronews.com/topnews/2008/04/03/ streaming-media-to-reach-70-billion Sadowsky, G. (1996). The Internet society and developing countries. Retrieved on April 12, 2008, from http://www.isoc.org/oti/articles/1196/ sadowsky.html Sterling, B. (Ed.). (2007, January). Vernacular video. Retrieved on April 3, 2008, from http://blog. wired.com/sterling/2007/01/vernacular_vide. html
The INSIGHT Research Corporation. (2006). Streaming media, IP TV, and broadband transport: Telecommunications carriers and entertainment services 2006-2011, 7. Retrieved on October 10, 2008, from http://www.insight-corp.com/reports/ IPTV06.asp Tuoi Tre Online. (2007). E-government to serve citizens at their houses. Retrieved on October 7, 2008, from http://english.vietnamnet.vn/ tech/2007/08/734752/ United Kingdom Parliament. (2008). Video & audio (Parliament live). Retrieved on October 10, 2008, from http://www.parliamentlive.tv/Main/ United Nations. (2005). Global e-government readiness report 2005: From e-government to e-inclusion, 1-8. Retrieved on April 14, 2008, from http://unpan1.un.org/intradoc/groups/public/documents/un/unpan021888.pdf Video Volunteers. (2008, April). Community video empowers rural India. Retrieved on October 12, 2008, from http://southasia.oneworld.net/Article/ community-video-empowers-rural-india World Public Sector Report 2003: E-Government at the Crossroads. (2003). Retrieved on October 9, 2008, from http://unpan1.un.org/intradoc/groups/ public/documents/un/unpan012733.pdf Zeng, W. (Ed.). (2004, April). Introduction to the special issue on streaming media. IEEE Transactions on Multimedia, 6(2), 225–229. doi:10.1109/ TMM.2004.824219
KEy TERMS AND DEFINITIONS Bandwidth: Referred to as data transfer rate or the amount of data that can be carried from one point to another in a given time period. Bandwidth is usually measured in kilobits per second or megabits per second.
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Buffer: Space allocated on a system’s Random Access Memory (RAM) where data is stored temporarily until it is transferred to another part of the system. In streaming applications, buffers store video and/or audio data until there is enough information for the stream to be properly displayed Buffering: Commonly refers to a streaming media player when saving portions of a streaming media file to local storage for playback. Most streaming media players buffer a small fraction of a streaming media presentation before beginning to play it. Buffering also may occur in the middle of a presentation, when available bandwidth does not match the presentation’s target bandwidth Encoder: A software application or a device (hardware) used to encode – that is, compress and format digital audio and or/ video Encoding: A technical term used to describe the compression of media files into specific formats (i.e. Real Media, Quicktime, Windows Media, Flash, etc.) ICT: Information and Communications Technology, is the study or business of developing and using technology to process information and aid communications
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IP: Internet Protocol. IP specifies the format of packets, also called datagrams, and the addressing schemes. IP is something like a postal system. It allows the sender to address a package and drop it in the system, but there’s no direct link between the sender and the recipient Media Player: Is the software on the client computer that decompresses the streaming video or audio using a codec and plays it back on the computer screen. Streaming Media: The process of sending an encoded media stream (audio, video, graphics, text, etc.) to a remote audience via a local area network, wide area network or the World Wide Web. The file is usually transferred as a stream (constant flow of data) and the remote site can begin to view it before all the data has been completely received Webcast: The transmission of audio and/or video content (text and graphics can be included within the file as well) to Internet/Intranet users based on individual requirements. Webcasting is often referred to as broadcasting over the Internet.
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Chapter 8
Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems Peter Cissek University of Magdeburg, Germany Jorge Marx Gomez University of Oldenburg, Germany
ABSTRACT This chapter intends to reveal the benefit of predated notifications of personal actions for HR-planning and discusses the interrelated demands on ERP-systems. If e-government is implemented, one has to think of rearranging the government’s HR-structure in order to adapt to the new circumstances, too. This means to take advantage of modern HR-methodology in order to become more efficient in HR-administration. One possible way in improving human resource management (HRM) is using predated notifications of personal actions for HR-planning. Human resource planning (HR-planning) is a component of strategic enterprise planning. It is fully integrated into the enterprise-wide planning process, because HR-planning is not only determined by other planning areas, but it also determines them vice versa. So the more precisely and comprehensively HR-planning is done, the more accurate derived key figures, which are used in other planning areas, can be. Governments usually deal with a huge amount of personnel, so HR is one of the main tasks in administration. Predated notifications of personal actions usually are known in present, but will be started in the future. In contrast to planning a personnel action the predated one will take place with the highest possible probability. An example for making the difference more clear may be an employee’s retirement. It does not stringently depend on the employee’s age, but rather on DOI: 10.4018/978-1-60566-671-6.ch008
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Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems
the person’s individual decision to retire. As a general rule, an employee’s intention to retire is already known about half a year before it takes place. If this information is used in the planning process, the company will have enough time to estimate the loss of knowledge or the cost-savings that will be caused by the employee’s withdrawal. In huge companies, HRM typically is supported by ERP-systems. The functionality offered by the software depends on the company’s needs and may range from a simple keeping of personnel data to a complex module called human capital management, which is used for payroll accounting, talent management, employee self services, and many more. If the decision-making body considers the company’s personnel as business critical, a lot of employee-related data is collected and analyzed, ranging from master data to planning key figures. This chapter will emphasize the importance of efficient HR-planning for governments in order to improve their business processes. It can be seen as one of the goals of e-government. It will be pointed out how HR-planning can be improved by using predated notifications of personal actions, so that HR-divisions in governments can use advanced HRplanning right on from the beginning when preparing themselves for e-government.
INTRODUCTION E-Government has been invented in order to improve governmental business processes with the help of information and communication technology (ICT). The main objectives are costreduction, increase of process-quality and lowering lead-time. But improvements do not have to focus on governmental business processes only. Governments will work more efficiently, if all administration tasks are optimized, too. And one of the main tasks in administration is HRmanagement. The optimization potential in the HR-sector can be imagined if one takes a look at how many full-time employees are deployed in the German Federal Land Nordrhein-Westfalen and its communes. The population living in NordrheinWestfalen in 2007 was about 18 millions of people (NRW, 2007). In 2007 there have been 188.425 employees with a full-time contract for administration tasks (NRW, 2008). For comparison, the Daimler AG in Germany producing MercedesBenz cars among others had 272.382 employees all over the world in 2007 (Daimler, 2008). An efficient human resource management is vital for companies as well as for governments, which act with view to offer a high-performance and high-
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quality governmental service at optimal cost. A more precise HR-planning will definitively lead to a more efficient use of personnel, no matter if governments or companies are concerned, as both have to face the same challenges in HRM. With the need for a more precise enterprisewide planning the HR-planning must be optimized, too. The improvement can be achieved by collecting and analyzing systematically pre-dated notifications of personal actions and using this data to enhance HR-planning. ERP-systems are applied to collect the actions that will take place in the future, so the data is fully integrated and can easily be used in the planning process. In the following the importance of pre-dated notifications of personal actions will be highlighted and it will be shown how the data can be used for an ERP-system-based HR-planning. The findings will lead to a better use of HR-resources, in governments and companies. Thus, governments have the opportunity to make one more steps towards a higher sophisticated e-government through improvements in HR-management. Governments can have an effect on the efficiency of their HR-planning with the choice for an enhanced ERP-system and take advantage of a more efficient HR-planning-module
Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems
and -process. When dealing with e-governmental readiness, it is necessary to emphasize that the customer-view (or citizen-view) is not the only perspective that has to be considered. This research indicates that the optimization of general administrative tasks in governmental business processes is one of the tasks governments must work at in order to become ready for e-government or to use e-government more intensively. And HR is one of these administrative tasks every government is faced with. What is more, now and in future HR will become a vital division of governments, like IT and Financials. This research uses the awareness that HR has to be taken into consideration if a government or a company wants to improve it’s HR-management and concentrates on a specific part of HR-planning and HR-controlling, the predated notifications of personal actions.
HUMAN RESOURCES PLANNING Human resource management is defined by Scholz (Scholz, 2000) as “the systematical analysis, evaluation and organization of all personnel aspects in a company”. The main task of HRM is deriving HR-goals from the company’s strategic objectives and also assuring the achievement of these objectives (Drumm, 2006). HRM is more than just collecting personnel data. It must not be isolated from other business data used in the company, although personnel data often is considered as severely critical as far as privacy is concerned. Looking at a company’s manner when dealing with its employees one can suggest what kind of HR-philosophy is dominating. Saying it backwards, it means that HRM guidance is determined by HR-philosophy, which makes a statement about the importance of HR in the company (Müller-Christ, 2005). HRM may have different guidelines. It depends on the decision, whether the employees must be just administrated, or they are joint venturers, who expect a wide supply of services (Müller-Christ, 2005). As an
example two different enterprise concepts will be presented. On the one hand a bakery with a lot of chain stores. This type of company needs to administrate a lot of homogenous, lowly trained employees. On the other hand a law firm with highly trained experts, who demand a service from the personnel office. Human resources have to subordinate to strategic objectives in the same way as other divisions of the company (Schanz, 2000). The main objectives for HRM can be harmonized with HR-philosophy and derived from economic and social aims (Olfert, 2006). Although companies may differ from each other, they have to solve the same primary problems in HRM. Kossbiel specifies them as availability and effectivity of human resources (Kossbiel, 1994). A definition strongly influenced by functional economic thoughts says that the main objective of HRM is offering the required personnel in all sectors of the company, in the exact number, with best skills, at the right time and with regard to long-term profitability and objectives of both, the company and the employee (Freund 2003). Finally all this points to the conclusion, that HRM is an interdepartmental function, which affects all other sectors of the company. Simultaneously HRM aims for decentralized tendencies. Therefore coordination, communication and harmonization of strategic HR-objectives are vital to a sustainable success of the company (Reichard, 2001). An important part of HRM is HR-planning. It includes all activities that are used for planning the quantity and quality as well as the personal actions, which have an impact on the HR-structure (Müller-Christ, 2005). Kolb says, HR-planning “is the systematic anticipation of future actions concerning a company’s personnel” (Kolb 1998). The main objective is to assign strategic enterprise aims to HR and to prepare the personnel systematically for future requirements with the use of personal actions, so that the target achievement will be maximized (Schanz, 2000). Important constraints are given by the law, so that not all action alterna-
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Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems
Figure 1. Roadmap for HR-planning
tives may be permitted (Olfert, 2006). Finally the effectiveness and availability of human resources has to be maximized (Kossbiel, 1999). HR-planning can be divided into quantitative and qualitative HR-planning, followed by the planning of personal actions. The whole process is known as the planning part of human resource management (HRM). Quantitative HR-planning deals with the number of employees or headcount (HDCNT) and the full time equivalent (FTE) in relation to time and space. Qualitative HRplanning is about the employees’ occupational aptitude, depending on time and space as well. Planning of personal actions means describing the process of turning the actual performance into the target performance as far as the personnel sector is concerned. HR-planning is not just one activity; it is just an aggregation of many tasks. These tasks are
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planning the demand, the acquisition, application, development, leadership, disposal and the costs of HR, for example (Reichard, 2001). The different tasks are highly interlocked between each other, what leads to the conclusion that only an integrated and comprehensive view of the HR-sector can lead to the point (Albert, 2002). External and internal factors must be considered in the planning model in order to adapt objectives and actions to real world conditions (Drumm, 2006). A roadmap for HR-planning (see Figure 1) has been proposed by Müller-Christ (Müller-Christ, 2005). With subject to HR-political guidelines the personnel inventory planning is prepared. Changes in the production-planning or recurrent events like the close of the second quarter are often the inducement for the HR-planning process. Besides pointing out the reason for starting to plan again, the identification of determining rules of the
Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems
objects to be planned and constitution of planning parameters like planning horizon, factors, allocation base and the planning and estimation methods take place (Springer 2006). When all basic conditions for the planning process are set, current and future HR-requirements can be listed and arranged into homogeneous taskgroups (Springer 2006). Ideally each task in the company can be represented by a job by connecting the specification of service to a position in the organizational hierarchy (Jetter, 2003). Generally speaking the specification of service is dynamical and must be connected to a timeline, because it changes very often. Therefore it is suggestive to aggregate the specifications into time slots, in which they are unaltered (Edinger, 2008). From the prepared data the qualitative and quantitative target-values can be derived. A statistical analysis of job descriptions provides an indication of how many employees have to work at what kind of job in the company. The number of employees usually is described in headcount (HDCNT) or full-time-equivalent (FTE), the quality of performance in the job is given by the required qualifications (Drumm, 2006). In HR-structures with homogenous descriptions of job performances the number of work places is estimated by statistical methods. Modelled on job descriptions the target value for the headcount is calculated for one or more points in time. For the computation data from many sources, internal and external, is used, like work plans, job descriptions, absenteeism analysis and employment law (Scholz, 2000). The way of how the target value for the headcount is computed is decisive to how the actual headcount has to be calculated. This is made for assuring the comparability of actual and target values and to develop and monitor personal actions, which have a stake in the actual headcount. The actual headcount represents the current HR-structure and is updated as well as the target headcount, because it is influenced not only by planned personal actions, but also by several factors (Olfert, 2006).
Factors in detail are demographical changes, job training, changes in the work schedule, absenteeism and retirements (Schanz, 2000). In general these factors are known before they happen, so updating the actual headcount in advance is possible. Therefore in addition to the estimation of the actual HR-structure a prediction of how it will look like in the future and what kind of measures are needed to work against factors must take place (Reichard, 2001). When the actual and target values for HR are computed, a comparison of the headcounts reveals how much employees are needed to achieve the company’s objectives. Planning the demand determines how the actual HR-structure has to be changed in order to fulfil the company’s requirements, in other words: how many employees with what kind of qualification are when and where needed to meet the production and performance plans (Schanz, 2000). Planning the demand is also called the pivotal unit of HRM (MüllerChrist, 2005). It is the fundament for the whole HR-planning and determines all other HR-sectors (Springer, 2006). Demand planning is connecting production and sales planning with HR-planning. It determines, if the number of employees has to be increased, decreased or unchanged in every division of the company, so that the personnel capacity is used with a maximum benefit in the short, middle and long term. Demand planning means not only to estimate the headcount that will be used productively, but also the amount of employees that serve as a buffer to compensate absenteeism (see Figure 2). What is more, the demand for replacement of existing jobs and filling new ones (or dismissing employees) has to be planned, too (Drumm, 2006). In order to ensure the required headcount for the creation of value in the company measures have to be implemented to match actual and target values. Neither actual nor target headcount are constants, both can be changed using personal actions (Drumm, 2006). For example, the target headcount can be reduced by implementing more
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Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems
Figure 2. Computing the net demand (Adopted from Müller-Christ 2005)
efficient production techniques. What personal action is applied to change the headcount depends on the objective and the action’s characteristics. Characteristics are the type and intensity of the action, the costs and the period of time it affects the headcount. Secondary effects like influencing the employees’ motivation must be evaluated, too, even if they are not intended. Not taking into consideration secondary effects can even lead into a devaluation of intangible assets (Jochmann, 2007). Hence a simulation of a personal action’s effects is vital. The results from demand planning are handed over to personnel acquisition (Springer 2006). All agreed personal actions must be monitored with the aid of key figures in order to make a prompt reaction to irregularities possible. Unexpected changes are most likely as all planning data is future dated and most of it has been only estimated. Thus expressive, subject-oriented key figures must be defined in advance. They replenish
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HRM through making a comprehensive view over HR-development in the whole company possible (Hentze, 1993).
PRE-DATED NOTIFICATIONS OF PERSONAL ACTIONS From the actual point of view future events can only be anticipated. If the level of abstraction is low enough, all statements about future evens are uncertain. The more precisely a future event is predicted; the more difficult it is to reach the objectives. Uncertainty for future events can be distinguished between two kinds: uncertainty if an event will occur and uncertainty what it will be like. In the quantity of all possible predictions about future events and their effects on HR pre-dated notifications of personal actions are those with the highest probability and very precise description of the effects that will take place when the action is
Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems
Figure 3. Pre-dated personal action implemented in a decision tree
executed. There is a clear cause-and-effect-chain when we talk about pre-dated notifications with a probability of occurrence of 1 (unity). Pre-dated notifications are no plan-values, but they affect them and thus are highly valuable for the HRplanning process. A pre-dated notification is a future event with a maximum probability of occurrence, which is started with input-data and whose action has a deterministic effect on the environment. Actions can be executed simultaneously or sequentially, but they all have the probability of occurrence of 1 (unity). The cause-and-effect-chain and the probability can be modelled as a deterministic process, which can be implemented in any other decision process. Figure 3 illustrates a pre-dated personal action implementation in a decision tree. Furthermore, as many events can take place inside the process-chain of a pre-dated notification, it is not a Bernoulli experiment. As pre-dated notifications are no planning values, they must be handled differently in creating scenarios, too. The accrual from planning happens through versioning: a plan can have many versions; pre-dated notifications have only one valid version. The action is started always under the same conditions and causes every time the same effects. Therefore, pre-dated actions are constant events in
a planning process. Input-parameters and outputdata make pre-dated personal actions flexible, so that an implementation into different processes or even into dynamic scenarios is quite easy. The deterministic workflow guarantees a comparability of all planning versions with the same pre-dated notification of a personal action. A pre-dated notification of personal actions is distinguished by a functional description of the starting events and the following effects on personal data. By this means a catalogue of personal actions can be created in order to define pre-dated notifications of personal actions correctly. Listing the complete input-data is vital, so that all uncertain values of parameters are excluded right from the beginning. The creation of a catalogue means also, that personal actions which are not mentioned inside this catalogue must not become a pre-dated notification of personal actions and must be regarded separately. An employee’s decision to change its full-time job into a part-time one will serve as an example for a pre-dated notification of a personal action. A correct pre-dated notification defines the employee, the beginning-date of the action and the new FTE. A false pre-dated notification of a personal action is entering a probable FTE and not the constant target value (see Table 1). This
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Table 1. Correct and false pre-dated personal action employee
personal action
Beginning
new FTE
correct pre-dated personal action
10000001
work-time reduction
01.01.2008
=0,5
false pre-dated personal action
10000001
work-time reduction
01.01.2008
=(0,5*0,8)+(0,62*(1-0,8))
may happen if one wishes to emphasize that the employee still does not know, how much part-time he wants to do in the future. Pre-dated notifications of personal actions are derived from personal actions, because in fact they are an anticipation of changes made to the HR-structure and have identical work flows. Therefore pre-dated notifications can be turned into a personal action without making any severe change to the process or the existing data. The main characteristic is the fact that pre-dated notifications are not approved yet and will not be turned into a productive event until the decision-maker decides it to become a regular personal action. This is the main difference: a personal action is turned into reality at once, a pre-dated one changes its status from pre-dated into productive or is copied and set productive. In terms of EPR-systems this means, that the date difference between entry-date and beginning date indicates, if the personal action was pre-dated or not. None or a small difference indicates that there is no pre-dated notification of personal actions. But regular personal actions cannot be analyzed later easily, because one has to inspect the beginning-date and the entry-date to identify a pre-dated notification, what will become very complex in modern ERP-systems, as the entry-date is not a common data field for functional (i.e. HR) analytics. And if the entry-date is higher than the beginning date, we talk about personal actions that were started retroactively, because one has forgotten to execute them in the right time, for instance. These actions may not be considered as pre-dated as well. What is more, not all personal actions are in the catalogue of pre-dated notifications. Finally, using only the
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entry-date and the beginning-date is not suitable to identify pre-dated notifications. Like personal actions pre-dated notifications are approved by the HR-division in advance. The decision making process with the HR-division, the managers and the affected employees as key players usually has successfully ended before. Although the process takes more time when all affected actors are involved, this procedure assures that the pre-dated notification will take place with a maximum probability and does not has to be reversed. An exemplary set of personal actions shows (see Table 2) what kind of actions can suite as pre-dated notifications. How much value is added by the successful implementation of pre-dated notifications depends on how many personal actions are started in the company on average. If there are only a few employees, the number of personal actions will be low and no methodical collection of this data is needed. Objectives provided by the top-management of a small company are very detailed and the data the management uses is almost completely operative. Most personal actions are decided directly by the CEO and included into the plans, whereby an analysis of pre-dated notifications of personal actions is not of interest. But if a company has so many employees, that it applies decentralized management techniques, the organizational distance between the decision-makers and the basic staff is big enough to turn pre-dated notifications into useful information. The benefit for HR-planning is the opportunity to improve the updated actual values and to analyze pre-dated notifications of personal actions in order to make predictions about the number of
Integration of Predated Notifications of Personal Actions for HR-Planning in ERP-Systems
Table 2. Pre-dated personal actions personal action
description
Employment
A person becomes an employee. Usually the decision has been made months before the action takes place.
Dismissal
An employee leaves the company at a point in time in the future. More often than not this is known a few months before the employee is dismissed.
Retirement
An employee leaves the company at a point in time in future and will get a retirement pay from that date on. Usually a retirement is known about one year before.
training course
An employee will take part in a professional training. Although this is not mandatory a personal action, it may be worth analyzing it together with personal actions.
organizational change
An employee is being relocated in future. This action has to be prepared carefully, so it is known a few months before.
take-over of trainees
A trainee has been doing well during his apprenticeship and will be taken over. Often one can make this decision before the trainee has written his final exam.
partial retirement
An employee wishes to take part in a partial retirement program. The beginning date is know years before, as the contract has to be changed completely for that purpose. The working-phase and the retirement-phase typically take five and more years.
maternity leave
The employee will become inactive for a period of time, or he will be active again. The time period is known before about half a year.
Salary change
An employee’s salary has to be changed, because he will take part in a project team, what for he will earn more money.
pre-dated personal actions in the future. Clear-cut information about changes in headcount and the employees’ master data are highly planning relevant, because they are as precise as the existing personal master data. Thus they can be analyzed in the same way and the same level of detail as existing data collected in the past and can be used for HR-planning without any constraint. The integration factor is most important: using pre-dated notifications of personal actions one can exactly predict how an employee’s master data will be affected. This information can be used for example to forecast the loss of knowhow through the dismissal of an employee before he really leaves the company. Thereby the HRdivision is able to start counter measures, so that the loss of knowledge will be compensated in the organizational unit. In a more complex scenario all effects of the dismissal can be simulated like cost-changes, different span of control, organizational effects, qualification profiles, changes in absenteeism or even the contribution to profit. If pre-dated notifications are analyzed through a longer period, trends can be educed from the col-
lected data, which can be used to make even the target values more accurate and an evaluation of how many pre-dated notifications really became personal actions. Using pre-dated notifications of personal actions for operative analysis is possible, too. Career planning, for example, can be monitored with the use of data gained from pre-dated notifications. The according personal actions are organizational changes, changes in contract or professional training. If these pre-dated notifications are considered, an employee will be asked to join conferences which will be useful for his career. The other way around one could monitor whether an employee is still developing his skills and moving forward his career by analyzing his pre-dated notifications of personal actions. This offers the opportunity for the HR-division to act before too much time has passed and it will be too late for any action.
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INTEGRATION OF PRE-DATED NOTIFICATIONS OF PERSONAL ACTIONS INTO ERP-SySTEMS Today’s companies use ERP-systems in order to support the main divisions like financials, material management or HR. The more sophisticated the software is, the more functions it offers. In the majority of cases an ERP-system’s HR-component offers master data collection, payroll accounting and computation of personal actions. Superior software offers even routines for HR-planning and employee self-services (Haßmann, 2003). A HR-module’s level of complexity depends on a company’s demands. The more challenging the demands are, the more complex the software is. ERP-systems like the SAP ECC 6.0 HCM-module offer the function to enter personal actions and to execute them, what finally gives way to make the system change an employee’s master data (Edinger, 2008). Changes in data mostly result from so-called personal actions, which are implemented in programming routines. These routines use inputdata, compute the data according to the selected personal action and generate output-data. So it is a complex program that causes changes of the data in the data base. Although most of the personal actions needed by HR-administrators are already available in the software in terms of ready-to-use routines and functions, they are rarely used to record pre-dated notifications of personal actions. More often than not the only data that implicates a future action is the valid-from-date of the personal action. What is more, employee-self-services (ESS) have to be used more intensively in order to reduce administration tasks as far as pre-dated notifications are concerned. The capture of pre-dated notifications of personal actions must be identical with the collection of personal actions in order to use the data comprehensively for HR-planning. The only difference in the records is a label that identifies them as pre-dated notifications of personal actions. But
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data that belongs to pre-dated notifications must not have any impact on productive processes, the payroll accounting for instance. Although predated notifications are events that will happen almost for sure, the data must be stored separately and the actions must not be applied to productive data until the process has been approved by the management. Pre-dated notifications can be collected manually or generated automatically by the system. The advantage of manual input of data is the precision and the complete supervision over the process and the data. Disadvantages are not only the manual effort, but the more complex workflow and the appointment of the dates. If the process is not reliable enough, events may not be recorded correctly and thus personal actions will be incorrect. Automatic collection of data and pre-dated notifications on the other hand is suitable only if the events require almost the same data and have an identical process every time. Thus flexibility is low or will cause a much more complex process, if it has to be guaranteed. But in some cases like taking over trainees or the retirement of an employee automatic generation of pre-dated notifications may be easy to implement. Pre-dated notifications of personal actions must be converted into real personal actions without any barriers, so that the manual effort gets as low as possible. Ideally a reminder exists, which provides information to a clerk in the HR-division about pre-dated notifications, which will be actual soon. The system can also generate suggestions for personal actions to be started like the replacement of a job position. A workflow-integration could suite perfectly here. When applying a pre-dated notification the data record should be copied, and not changed. This procedure ensures that pre-dated notifications can be differed from regular personal actions and analyzed later on. If a pre-dated notification is not to be activated, the data should not be deleted from the system. The records can be used to evaluate how many pre-dated notifications were turned into productive
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personal actions in the past. This monitoring will provide information about how reliable pre-dated notifications really are. Today large-scale enterprises use a data warehouse for enterprise-wide reporting. The newest trend is to integrate planning functions into the data warehouse. Even existing planning routines are transferred from the ERP-system to the data warehouse in order to generate scenarios and to make plans on a higher scale. In this case redundancy may be eliminated through service-orientedapplication-programming. The programming routines needed for planning functions are offered by a service, which runs on the ERP-system and computes values for the data warehouse, which calls it, for instance. However it should be examined if all functions are needed to be transferred to a data warehouse.
until personal actions will be delegated, too. The HR-module is an essential component of an ERP- and also of a governance system. It is not only an operational system, but also a data source for reporting systems like data warehouses. Future trends in e-government analytics indicate the necessity of a data warehouse-based reporting for statistical analysis and data mining (Nandan and Gopi Chand, 2007; Sharma, 2008). This kind of reporting will use HR-data, too. As reporting becomes more and more transparent, especially in e-governance, data quality is most important. It is obvious, that the higher the data quality is, the more precise reports and analyses will be. In case of e-governance many of the reports concerning the government are public, so especially in this case reports must be reliable, transparent and updated. And public interests focus on how efficient the work is done, too. An enhanced HR-planning will contribute to this very well.
FUTURE TRENDS Today personal actions usually are collected and maintained by the HR-division. It is a service the HR-division offers to the company’s employees. This will certainly change soon. With employee self-services and delegated HR-planning a new approach has been started, which will lead into a decrease of personnel maintaining personal actions and master data. These administrative tasks will be taken over by the employees themselves or the mid-level management. Like employee selfservices, which made HRM more efficient and cost-optimized, personal actions will be the next outsourced task. In future the HR-division will only authorize personal actions; the employees will deal with the maintenance themselves. Many surveys described how positive the impact by ESS on HRM is. Costs for Standard HRprocesses will decrease by up to 50%, personnel needed for administration tasks will be reduced by up to 40% (CEDAR, 2002) and lead time will be reduced by up to 50% (Hunter Group, 2000). With these KPI-values it is only a matter of time
CONCLUSION There cannot be a single answer for challenges of today’s governmental processes. E-Government is just one measure of many. What is more, the implementation of e-Government forces to adapt all other structures in the government to the new strategy, ICT and HR for example. As far as HR is concerned it is necessary to analyse the HR-structure in governmental departments and anticipate changes that will take place because of e-Government. The implementation of e-Government will lead to different requirements: on the one hand many jobs will become dispensable, because the work can be done more efficiently with less effort; on the other hand the employees will be faced with a broader field of activity, i.e. dealing with an enterprise portal and workflows. The government’s HR-system must meet all the requirements which result from the suddenly dynamic structure in business processes and job
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descriptions. If a new HR-system will be introduced in HR-division of a government, it will be one of the few leading vendors. This assumption results from the fact, that the headcount in a government will be more than 100.000 employees (see 188.425 employees with a full-time contract for administration tasks in the German Federal Land Nordrhein-Westfalen (NRW, 2008). This amount of people necessitates a powerful HR-system. When evaluating the different systems available on the market, one should also take the ability to deal with pre-dated notification of personal actions into consideration. The significance of pre-dated notifications of personal actions for HR-planning is high enough to be considered seriously. In the planning process they improve the target values because the data added to the process is comprehensive and precise. Thereby the operative processes are supported very well and tendencies can be recognized early. Pre-dated notifications are usually known some time before they shall take place, but they are rarely used for the planning process. Standard ERP-systems do not offer the function to work with pre-dated notifications of personal actions. The planning process, which is supported by ERPsystems, thus is not enhanced by the data from pre-dated notifications. But the data would be very useful, as it can be fully integrated into the data model without great efforts, because pre-dated notifications of personal actions are quite similar to existing personal actions. On the contrary the information about pre-dated notifications is used in reports and planning processes. But the source for the data is not the integrated ERP-system, but a bunch of Excel-sheets. The process is not integrated as well and becomes very error-prone. The effort to consolidate the data is enormous in this case, even if the planning is done only once a year. Finally this will lead to not regarding the data from pre-dated notifications as important anymore. Thereby the benefit of integrated pre-dated notifications is often higher than assumed by
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the IT-director. Even if the planning values for headcount gets about 30 FTE more precise, with an average earning of 50.000€ (employer’s share for social insurance included) the saved costs are 1.500.000€ high. If we take a look at more expensive job titles on the executive levels the cost savings will be much higher, projects will run better and will not be delayed because of the leak of information about personal actions. ERP-systems as the central software product in a corporate information systems landscape must offer the option to use pre-dated notifications of personal actions. The benefit for the customer is much higher than the costs to implement the functionality. Governments wanting to become ready for e-government should also take a close look at the ERP-system they want to introduce and find out if it supports pre-dated notifications of personal actions when building up or improving their HR-management system. What is more, the organizational structures have to be prepared for an enhanced HR-controlling and HR-planning, because an ERP-system is not a final solution, but only a tool which makes efficient HR-management possible. Not until the business processes are redesigned and set up-to-date, governments will be completely ready for e-government.
REFERENCES Albert, G. (2002). Betriebliche personalwirtschaft (Operational HR-management). Ludwigshafen, Germany: Kiehl Verlag. CEDAR. (2002). CEDAR HR-portal studie. Mitarbeiterportale-Warum investieren? (CEDAR HR-portal survey. Employee portal–why invest in it?). Paderborn, Germany: Universität Paderborn. Daimler. (2008). Daimler-der konzern im überblick (Daimler–the company at a glance). Stuttgart, Germany: Daimler AG.
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Drumm, H. (2006). Personalwirtschaft (HR-management). Berlin, Germany: Springer Verlag. Edinger, J., Krämer, C., Lübke, C., & Ringling, S. (2008). Personalwirtschaft mit SAP ERP HCM (HR-management with SAP ERP HCM). Bonn, Germany: Galileo Press. Freund, F. (2003). Praxisorientierte personalwirtschaftslehre (Practically oriented HReconomics). Stuttgart, Germany: Kohlhammer Verlag. Haßmann, R., Hatton, J., & Krämer, C. (2003). Personalplanung und-entwicklung mit mySAP HR (HR-planning and HR-development with mySAP HR). Bonn, Germany: Galileo Press. Hentze, J., & Kammel, A. (1993). Personalcontrolling (HR-controlling). Stuttgart, Germany: UTB Verlag. Hunter Group. (2000). The Hunter group’s 2000 HR self service survey companies. Mitarbeiterportale-warum investieren? (Employee-portal–why invest in it?). Paderborn, Germany: Universität Paderborn. Jetter, W. (2003). Effiziente personalauswahl (Efficient HR-selection). Stuttgart, Germany: Schäffer-Poeschel Verlag. Jochmann, W., & Gribig, R. (2007, May). Personalcontrolling als unterstützung eines strategischen HR-Managements (HR-controlling as a support for a strategic HR-management). Personalcontrolling. Kolb, M. (1998). Personalmanagement (HRmanagement). Berlin, Germany: Gabler Verlag. Kossbiel, H. (1994). Überlegungen zur effizienz betrieblicher anreizsysteme (Considerations about the efficiency of operational incentive systems). Die Betriebswirtschaft, 54. Jg.
Müller-Christ, G. (2005). Skript zur vorlesung personalmanagement (LN for the lectures HRmanagement). Bremen, Germany: Universität Bremen. Nandan, T., & Gopi Chand, M. (2007). Application of analytics in e-governance–a next level. School of Management Studies. MNNIT, Allahabad, India. NRW. (2008). Personal des öffentlichen dienstes (Personnel in public service). Düsseldorf, Germany: Landesamt für Datenverarbeitung und Statistik Nordrhein-Westfalen. Olfert, K. (2006). Personalwirtschaft (HRmanagement). Ludwigshafen, Germany: Kiehl Verlag. Reichard, C. (2001). Personalmanagement (HRmanagement). Handbuch zur Verwaltungsreform, 2. erweiterte Auflage, Opladen. Schanz, G. (2000). Personalwirtschaftslehre (HR-management). München, Germany: Gabler Verlag. Scholz, C. (2000). Personalmanagement (HRmanagement). München, Germany: Vahlen Verlag. Sharma, M. K. (2008, June). Applications of data mining in e-governance data warehouse. E-gov. Springer, J. (2006). Skript zur vorlesung personalmanagement (LN for the lectures HR-management). Aachen, Germany: RWTU Aachen.
KEy TERMS AND DEFINITIONS Human Resource Management (HRM): Human resource management is defined by Scholz (Scholz, 2000) as “the systematical analysis, evaluation and organization of all personnel aspects in a company”. The main task of HRM is deriving HR-goals from the company’s strategic
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objectives and also assuring the achievement of these objectives (Drumm, 2006) Human Resource Planning (HR-Planning): HR-planning is an important part of HRM. It includes all activities that are used for planning the quantity and quality as well as the personal actions, which have an impact on the HR-structure (Müller-Christ, 2005). Kolb says, HR-planning “is the systematic anticipation of future actions concerning a company’s personnel” (Kolb, 1998:pp#). The main objective is to assign strategic enterprise aims to HR and to prepare the personnel systematically for future requirements with the use of personal actions, so that the target achievement will be maximized (Schanz, 2000). Important constraints are given by the law, so that not all action alternatives may be permitted (Olfert, 2006). Finally the effectivity and availability of human resources has to be maximized (Kossbiel, 1999) Personal Actions: Personal actions are a bunch of functions to change data in a database consistently. They are implemented in programming routines. These routines use input-data, compute the data according to the selected personal action and generate output-data
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Pre-Dated Notification: A pre-dated notification is a future event with a maximum probability of occurrence, which is started with input-data and whose action has a deterministic effect on the environment. Actions can be executed simultaneously or sequentially, but they all have the probability of occurrence of 1 (unity) Time Slot for Master Data: An employee’s master data often changes in a period of time. This can be his address or bank account number, but also his assignment to an organisational unit or his status. For time-dependency each dataset has a valid-from and a valid-to date. Time slots define the temporal validity of master data restricted by the valid-from and valid-to date of each dataset Employee Self-Services (ESS): Employee self-services have been invented in order to make HR-administration more efficient by transferring administrative workload to the employees. Commonly an enterprise portal is used as user interface, which is directly connected to the database. Employees are allowed to maintain certain master data themselves, like address or vacancy-dates. ESS made administrative HR-processes faster up to 50% (Hunter Group, 2000)
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Chapter 9
Enhancing Accessibility to E-Government Processes Stefan Richter Institute for Software Systems in Business, Environment, and Administration, Germany Norbert Kuhn Institute for Software Systems in Business, Environment, and Administration, Germany Stefan Naumann Institute for Software Systems in Business, Environment, and Administration, Germany Michael Schmidt Institute for Software Systems in Business, Environment, and Administration, Germany
ABSTRACT Many governmental institutions have started to provide their customers with access to governmental documents by electronic means. This changes the way of interaction between authorities and citizens considerably. Hence, it is worthwhile to look at both the chances and the risks that this process of change implies for disabled citizens. Due to different laws or legal directives governmental authorities have a particular responsibility to consider also the needs of handicapped persons. Therefore, they need to apply appropriate techniques for these groups to avoid an “Accessibility Divide”. This discussion is built on the observation that governmental processes are mostly based on the exchange of forms between authorities and citizens. Authors state that such processes can be distinguished into three scenarios, with the use of paper as means of transport on the one end and complete electronic treatment at the other end. For each scenario there exist tools to improve accessibility for people with certain disabilities. These tools include standard technologies like improved Web access by magnifying characters, assistive technologies like document cameras, and more sophisticated approaches like integrated solutions for handling forms and government processes. This chapter focuses on approaches that provide access to governmental processes for people with visual impairments, elderly people, illiterates, or immigrants.
DOI: 10.4018/978-1-60566-671-6.ch009
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Enhancing Accessibility to E-Government Processes
Additionally, it sees a chance to enable electronic government processes in developing countries where the citizens have less experience in handling IT-based processes. The main part of the chapter describes an approach to combine scanned images of paper-based forms containing textual information and textto-speech synthesis yielding an audio-visual document representation. It exploits standard document formats based on XML and web service technology to achieve independency from software and hardware platforms. This is also helpful for conventional governmental processes because people within the group of interest stated above often also have problems to access non-digitized information, for instance when they have to read announcements within public administration offices.
INTRODUCTION In recent years much effort has been spent in Human Computer Interfaces to improve access for handicapped persons to computer systems (Muller et al. 1997). To a major extent these activities are enforced by legislative constraints that exist in the US, e.g. the Americans with Disabilities Act (United States of America, 1990) as well as in the European Union (European Commission, 2000), and in its member countries, like in Germany (Bundesrepublik Deutschland, 2006, Bundesrepublik Deutschland, 2002). However, in most countries these efforts have not yet reached their final destination. To a large amount these realizations allow the user only to download particular forms, to print them, and to send it back to the governmental institution after some information has been inserted. While for the web based information systems accessibility aspects are often considered in e-Government platforms, for the procedure of forms filling support for disabled persons is often missing. In many cases it is necessary to process printed documents, yielding a point of media disruption which is difficult to handle for many users with particular handicaps. In this chapter, authors want to evaluate possible scenarios and interim steps while implementing electronic processes in authorities. Thus, more is necessary then supporting electronic forms. They want to take a look at the e-Government sector and the efforts to make it accessible. To clarify
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the special needs we must have a closer look on the impairments and corresponding assistive tools. Therefore, this chapter discusses in more detail an approach to build interfaces to governmental forms. This exploits different computer science techniques e.g., from the fields of document analysis, language processing, and distributed systems to develop a solution. Its document representation is based on XML structures and communication is implemented by using web services, which guarantees independence from software and hardware platforms. In most cases when people speak about documents, they have in mind governmental forms, which are used to provide and to maintain information that is necessary to execute governmental processes. This research affirms the stringent necessity of making e-Government processes available for almost all people to lead them to an autonomous and self-determined life.
BACKGROUND Regarding accessibility to e-Government processes, at first it has to consider the processes that already occur in general ( produces new knowledge within a group Collective innovation => incorporates new knowledge within a group Therefore, collective innovation = collective learning (Adopted from Behnken, 2005). However, collective learning process does not always bring the result that may be termed as innovation. A collective learning process need to be adapted, coordinated and articulated according to the demand of the community.
Blended Learning In the early days of electronic mediated learning the sole application of technology-oriented concepts was used to be propagated, but majority of current approaches cover hybrid forms of educational methods. The idea of blended learning is to effectively join traditional face-to-face education with technological elements to offer a variety of methods and channels for learning. Blended learning links the effectiveness and flexibility of e-learning with the social aspects of collaborative learning. Blended learning aims at
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the improvement of learning processes to reach individual learners within the community using all appropriate educational methods. This form of learning integrates virtual components with traditional classroom education. Furthermore, combining face-to-face learning with synchronous and asynchronous forms of e-learning as well as collaborative and self-paced elements aims to compensate drawbacks of the single approaches of learning (Hamburg, Lindecke & ten Thij, 2003; Schmidt, 2005; Hauge & Ask, 2008). Figure 3 and Figure 4 are illustrating two forms of blended learning.
Online collaborative learning can be used for the development of tools and systems to support group communication, particularly important in building online learning communities. These tools may include: •
•
•
Online Collaborative Learning Online collaboration involves interaction between learners and educators through any effective means, and it could be intranet, or the Internet. This interaction can occur in one of the following modes: • •
Synchronous interaction (on-line interaction with the educator using the Internet) Asynchronous interaction (off-line interaction with the educator through other group members, or at their own convenience, or by email) (Kumar, 2008).
Group Web discussion and navigation (In a group they visit HTML based Web pages, explain among themselves and navigate) Group Web discussion for streaming contents (In a group they visit audio-video based contents and they discuss among themselves) Online Peer Review (A form of task to measure the learning process, and it can be carried out among the groups. A group leader can present, or all can present individually, depending on the task, or the depth of the content) (Chong, 2001).
Demanded Learning with Collective Innovation As stated earlier, collective innovation generates knowledge within the community, and the performance of a collective innovation depends largely on the extent of synergetic knowledge exchange and on the final quality of the learning capacity. In this aspect, the basic influences are the range of
Figure 3. Different aspects of blended learning (Adapted from Phan, 2007)
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Figure 4. A format of blended learning (Adopted from Kumar, 2008)
existing knowledge, the depth of the knowledge acquisition processes and the degree of interaction. However, personal influences may produce positive results among the participants to enable individual openness to share knowledge and to learn collectively. This sort of influence grows further through collective learning within vibrant and interactive networks (Behnken, 2005). Collaborative learning may comprise of demand driven knowledge development, inclusion of indigenous technology providing local level solutions, preservation of environment by providing eco-friendly solutions, techniques to improve livelihood reducing poverty, institutional development to promote grass roots development. Demanded learning at the grass roots will be effective in solving localized problem locally, acquire knowledge to assist each other in times of routine or emergency life sequences, given the facts that much of the remotely located people merely dependent on their everyday livelihood or may be unaware of the current demand or may be in lack of proper support (skills and infrastructures)
during the learning sessions. Furthermore, this sort of learning can create skilled group of personnel ready to support local industry, small and medium scale enterprises, local departmental stores, chain shop outlets, phone-fax stores, or VOIP-based service providing points. This human resources can act as enabler of economic uplift in the nearby societies and in effect, can act as guiding agents for improved governance.
Learning by Interaction With the help of regular face-to-face interaction community participants under a same network are able to estimate and understand the behavior of their partners. Through positive experiences trust establishes, confidence grows and personal commitment develops. Furthermore, based on regular interactions a common institution may be built up. This sort of common interactions in the form of collective approaches form common framework of action, that can be seen as an enabler of thought and action embedded in the habits of the group.
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Incorporating mutual expectations of behavior and an allowed regulation, the actor within a group learn gradually how to act and react. Community leaders can also act as informational manipulators by reducing the subjective uncertainty to a level where people are enabled to perform and build the minimum level of trust necessary to be encouraged to share knowledge and become innovative. Their coordinating function is the basis for a capacity to act collectively within the community or network (Elsner, 2000; 2003).
Collaborative Learning through Social Engagement Most of the major decision making processes are being taken from the core government system and they take the top-to-bottom route. Whenever community people looks for a related search, they hardly find the proper content or could trace the location of the content. They could be land-records, rule to establish a small trading house, submit tax, or pension policy, apart from complex nature of societal problem like bio-diversity, land degradation, or ecological unbalance. People residing at the remote peripheries of the societal system, or geographical boundaries are always kept outside of these sort of decision making processes, and the result is that they are unaware of the laws/ rules/ gazettes/ proclamations, thus compounding the problem of lawlessness within themselves. If they were been engaged in the policy making processes from the very beginning, then they could draw a boundary between what the law is or at least what would be the consequences of not abiding the law. Programmes of such nature of immediate social need, including medium and long term implementation could be sought out at community based outlets through collaborative learning processes engaging the community people, and bringing them socially and mentally nearer to the system. This way, they would be easily aware of any upcoming future policies, feel comfortable with the
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outcome of those policies, and at the same time feel confident to make steps in taking decision at right direction. Multi-purpose village centers, or tele-centers can act as the outlet of this sort of collaborative learning process, and slowly the community people can attain a benchmark from where they can provide economic output.
Collaborative Learning using Wi-Fi Mesh With the increasing and unprecedented adoption of wireless technologies in developed and developing countries alike (Keegan, 2003), wireless technologies are revolutionizing the learning processes, thus transforming the traditional ways of learning and teaching into ‘anytime’ and particularly, ‘anyplace’ learning. Contemporary studies also reinforce the advantages of using wireless technologies in learning environments, including supporting group work on projects, engaging learners in learning-related activities in diverse physical locations, and even enhancing communication and collaborative learning in the traditional classroom (Barker, Krull & Mallinson, 2005). Educator, being located at a single point can take classes of several classrooms through very low cost wireless intranets. Moreover, the use of wireless technologies in learning impacts learner motivation, collaboration and mobility, which results in benefits for learners, parents and educators. Those benefits are perceived to outweigh even the difficulties encountered when integrating wireless technologies in learning. The following parameters are the limiting factors in this process: limitations of the connecting devices (wireless devices, servers, routers, switches, hubs, computers), pedagogical issues (skills of the educators handling equipment and the learning process), safety and security concerns (data backup, in-time delivery, proper login), training and support issues (regular and emergency maintenance, training of the trainers), as well as cost considerations (high cost of some connecting
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devices) (Barker, Krull & Mallinson, 2005). Figure 5 shows a wireless mesh connecting outlets at the village level covering a single or multiple region. The server could be located at a national location, or a district location, depending on the nature of the mesh (depend on geography, population base, etc.) and complexity of the network (depend on distance, number of outlets, etc.). Impact of wireless technology in collaborative learning through its portability, flexibility, availability, collaboration, and motivation would strengthen the grass roots empowerment. Initial invest might seem a bit high in cases, but in the longer term will be economical in terms of their huge benefits (such as, tele-health, e-commerce, consumer commodity, SME activities, and others can easily be incorporated within the network, apart from collaborative learning) and low maintenance costs.
Collaborative learning may take many other forms of implementation, depending on the demand, cost, locality and geography. However, a few of the methodologies of collaborative learning will be discussed next.
Methodologies of CL At the rudimentary stage, collaborative learning through community driven networks may take two directions, such as the formal education (science, non-science) and non-formal education (skill development programmes). Theme of formal education can accommodate traditional syllabuses of accredited national curriculum, because at the end of the day, this sort of learning need to be recognized by national institutes for future job seekers passed through this process. Without
Figure 5. Wi-Fi Mesh used for collaborative learning (Source: Author)
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being very ambitious, formal education can take place up to grade eight of national curriculum of a country. However, successful participants from this theme may be given opportunity to higher and studies and research, depending on their mental capabilities and demand of the country. On the other hand, non-formal theme may include basic nursing, medical health supervisor, machine operator, welding technician, electronic technician, automobile mechanics, skills needed at the readymade garments industries, and other related skill development curriculum acting as problem solver (leading to provide economic benefit) of the livelihood. This would reduce the number of jobless youths within the community, create more descent law and order situation, and eventually lead to more civilized society with better governance and sustained economic growth. Methods of collaborative learning system are becoming largely dependent on ICT based dissemination processes. Some common and mostly used techniques are: •
•
• •
•
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E-groups- the simplest one way mass dissemination technique (sometime creates spamming); Blogs- a recent method of open discussion platform (often given too much impersonations) BSS- the oldest platform of common consequences (not interactive); Moderated e-discussions- popularly adopted in recent days to reach at generic consensus utilized in researches to generate reports, create research documents, reach any consensus; Virtual seminars- similar to the previous one, but, can be made more interactive through web-techniques and utilization of recently developed utilities (recently becoming very popular in formulating common (Rahman, 2005b). Figure 6 illustrates a simplified format on methodologies of collaborative learning leading to improved
e-governance through empowerment of community participants.
Technologies of CL Technology offer opportunities to transform learning system, but by itself it is not necessarily going to direct better outcomes for common citizens. This transformation process needs to be linked to various other perspectives, as such, design of a pragmatic learning system, execution of it, and up-gradation of the system as per requirement of the society, especially emphasizing the role of technology. In this context, not only Governments but also all the relevant stakeholders or actors should come up with a better strategy or approach. There must be some kind of consensus, to uphold the benefits of ICT for knowledge development of common people. Collaborative learning is one of them, through which common members of the community can be incorporated in knowledge acquisition processes and thereby overall society development. Furthermore, it has been observed that the bottoms-up approach increases the adaptation sequences in the learning processes that emerge out of a demand driven environment (e-Asia, 2007; Panitz, 1997; 1998; Thomas, Howell, Patricia & Angelo, 2001; Venkatesh & Small, 2003; Boud, Cohen & Sampson, 2001; Cohen, 2005). Following those contexts and consequences, multi-channel delivery systems are always better and should be adopted in the learning processes. In terms of providing higher education through quality digital content has perpetually remained challenge to the academics and researchers, especially when they are being used in open technology platform with interoperability. Moreover, for promoting quality learning through collaborative approach demands formation of appropriate content repositories, geographically inter-connected distributed databases, user friendly access tools, online forums, knowledge banks and interactive but easy access (e-Asia, 2007).
Collaborative Learning
The technologies enabling work-based collaborative learning may include; •
•
•
•
Computer mediated (personal computers, educational computer conferencing systems, video conferencing, teleconferencing, satellite transmission, etc.) On-line interactions (Semantic Webs, Internet, intranet, chatting, messaging, Wiki, etc.) Off-line contents (CDROM, television, video-tapes, radio and films, email, blogging, etc.) Audio-visual-graphics (audio, video, graphics, multimedia) (Rahman, 2005a; 2007; Bélanger, 2001).
In this aspect, proficient utilization of network resources (TCP/IP, Internet, WWW) in dissemi-
nating knowledge-based information in on-line and off-line environment formulates a concrete platform of collaborative learning sequences. There are four technical parameters that are of prime concern in distributed learning platform, namely, Network Infrastructure, File Server, Support Servers (email, egroups, newsgroups, chat/blog/messaging), and Web Server (Rahman, 2005a). Furthermore, Effective utilization of information and communication technology has led the educators to avail means of innovative methodologies to reach out the learners at the outskirts of conventional education arena. Initially intended for dropouts, or residuals of the underdeveloped society, the distant mode of education, at its concurrent diasporas, is no longer lies among them, but, has achieved overwhelming success in consolidating even the core stakeholders of the society. At the same time, standardizing course
Figure 6. Methodologies of collaborative learning (Source: Author)
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curricula by panel of experts and implementing the learning techniques in distributed networking aspects optimizes the resource management (Rahman, 2005b). Regarding the uses of technology in the computer supported collaborative learning environment, the following usage are typical: •
•
• • • •
Creation and manipulation of common virtual spaces (community based social networks); Multiple forms of representation (such as, village information center, multi-purpose village information center, tele-center, knowledge center, etc.); Uninterrupted communication channel (flexible process); Diversity of access points (main node, subnodes, sub-sub-nodes); Interactivity (easy interaction through various easily operated tools) Socialization (improvement of knowledge capacity) (Cogburn, 2003).
However, starting from the design stage to the implementation stage, and along the way need assessment, removing impediments from various stages and even at the post implementation, the sustained operation of collaborative learning process may face various challenges, especially that is targeted to empower the community people at the grass roots.
Challenges Due to the complexity of societal problems, especially in a developing country, attentions were drawn not only for providing more specialized knowledge, which remains necessary as a source of inspiration for innovation, but also for methods to apply knowledge in the right way for solving real life problems. For solving problems that occurs locally, almost always an integration of different types of knowledge is demanded and that is
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something a higher education system organized to a large extent along traditional disciplinary lines are not effectively prepares for. Therefore, there is a need for both the ‘traditional’ way of knowledge development in which research is organized in a disciplinary way, and a new way of knowledge development within the context of appropriate applications. There comes the non-traditional learning processes, and collaborative learning could act as an important element of learning. These situations demand transdisciplinarity, heterogeneity, diversity in terms of their input from different stakeholders and a more direct influence on providing economic value to the society. This means that there is a need for whole out efforts for proper knowledge development processes in which a broad range of actors are involved, especially at the grass roots (Kuhlen, 2003; van Dam-Mieras, 2004). Education is now recognized as the catalyst for achieving the primary goals of development: alleviation of poverty, reduction of inequity, improvement of health and nutrition, population control, social well being, environmental protection, nurturing democracy, and economic growth are among them (UNESCO, 2001). Computer Supported Collaborative Learning (CSCL) can be a tiny solution to those communities, especially where highly educated teachers are not available and technically equipped classes are almost impossible (Bruns & Takahashi-Wetch, 2006; WSIS, 2005). However, empowering marginal and community people through this form of learning will remain a challenge for many years to come, due to a variety of reasons. These could be high initial investments, low cost recovery opportunity, lack of long term subsidy, lesser investment flow from the entrepreneurs due to non-business focus, low acceptability due to financial scarcity, low adaptability due to cultural differences, and many other seen and unforeseen reasons. Moreover, in terms of using cellular phones and PDAs for collaborative learning, Thornton & Houser (2004) report that some learners had
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difficulty hearing the audio on both PDAs and cellular phones, and learners suggest headphones would be required when studying in trains, buses and other public places. In addition to these, Thornton & Houser (2004) find few serious technical limitations to the widespread use of wireless technologies in learning. According to the Becta research, possible weaknesses include small screens, not ‘rugged’ enough for school use, data input (especially free texts) takes time, costs of software and accessories, and the necessity to charge the batteries quite regularly (Perry, 2003; Barker, Krull & Mallinson, 2005). Before discussing the future research issues in the aspect of collaborative learning for empowering community people, a few cases have been discussed below:
Case-1 A country in South Asia with 141.822 million populations living in 147,570 Sq. Km in a deltaic region faces regular natural calamities like, flood, tsunami, draughts, and tidal weaves. This country, Bangladesh has a literacy rate of 51.69 and a lone distance education provider, the Bangladesh Open University (BOU). In spite of potential acceptance, government support and huge demand at the grass roots, BOU could not able to create sufficient scope to facilitate this huge population base. However, there are a few NGOs who are working relentlessly in this sector. BRAC10 is one of them. This NGO (the largest in the World) is providing primary (pedagogy and non-formal11) through over 50,000 village schools and contributing largely to increase the literacy rate. Government has also taken several female student literacy programme12 since 1993 and included special incentive based programme where female students are given free studentship till grade 12. In spite of all these, it is a surprising fact that the drop out rate at primary level (till grade five) remains at around 30%, while it increased to over 50% at secondary level (grade nine and ten).
Hence, there are immense scopes of conducting mass scale literacy programme up to the primary level leading to secondary level, reaching out the grass roots population. Furthermore, with 450,000 Internet users as of August, 200713 (0.3% of the population, according to ITU14) Bangladesh is lagging far behind the World class standard in the technology arena. To uphold the goals of Education For All (EFA)15 and Millennium Development Goals16 a programme was initiated in early 2000 with the assistance of the World Computer Exchange, USAID and UNDP. It was a project component of the Sustainable Development Networking Programme (SDNP), a UNDP funded programme through which the project tried to put forward several educational components related to collaborative learning and capacity development. Some others include, establishment of multipurpose village information centers, establishment of public use cyber centers (pioneer in Bangladesh), establishment of content based web portal/ information bank/data bank for common use, establishment of the longest Wi-Fi based radio link connecting several organizations including the largest Agricultural University, establishment of a national Internet exchange (lone in the country), hosting of the F-root server in Dhaka, and various other innovative projects with novel concepts and ideas. Keeping all these in mind, in a tiny spike, a program has been initiated in a rural corner of Bangladesh to enclave grass roots communities as part of the life long learning processes. The members of the society will be given traditional and non-traditional education, depending on their demands, aspirations and capabilities through a technology mediated educational institution. By clustering them into smaller groups, a micro-credit program will run to empower them economically and socially. Different categories of project (education, health, environment, technology) will run throughout the year for their skill development and knowledge building. Furthermore, adopting
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appropriate technologies, like introduction of solar power (cooking, water logging, lamps, machineries), wind mills (water logging, electricity) community people will be assisted to carry out their tasks rapidly and easily with limited impact on the local environment and resources. Finally, the surrounding communities will be taken under a Wi-Fi mesh to form a knowledge building network (continued education, self employment, information bank, data mining, improved livelihood, capacity development, market research, food security, basic health promotion, social development, increased governance and sustained advancement) with the intention to propagate knowledge beyond the peripheries. Established in 1998, the project (SDNP, www. sdnbd.org) started its operation literally from December 1999 and it launched several innovative programmes in Bangladesh. The first component was launching of free cyber centers at public places (July 2000), and with the assistance of the National Press Club the project opened about 15 cyber centers throughout the country (between 2000 and 2004). Establishment of local content based web in local language was another milestone of this project (http://www.mdgbangla.org/). Later on the project started building its own information infrastructure to link several educational institution and build agricultural information based network comprising those institutions and local NGOs, that evolved as multi-purpose village information centers (MVICs, http://www.sdnpbd. org/sdnp/mvic/). Among others, establishment of the first Internet exchange (in 2004) in Bangladesh (http://www.bdix.net/) was another achievement of SDNP and this exchange is emerging as the national data center, as it also hosted the F-Root server. Currently, about 26 largest ISPs are connected to the BDIX. As the project (SDNP) closed its operation in Bangladesh in December 2006, the project has been transformed into a Foundation, namely the Sustainable Development Networking Foundation (SDNF) in January 2007. SDNF kept a few
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of those initiative intact and looking forward to continue their operations as long as they can sustain. However, to keep the educational and capacity development activities getting forward, another initiative has been established following the international pattern of SchoolNets, and SchoolNet Foundation Bangladesh has started its operation in Bangladesh since January 2007. SchoolNet Foundation (www.schoolnetbd. org) would like to carry out the continuation of SDNP School programme (www.sdnbd.org/ school_programme/), the Telemedicine activities (www.sdnbd.org/telemedicine/, capacity development activities in terms of providing traditional and non-traditional training at school and college levels for extending knowledge networking at the grass roots (www.icmsbd.org), and a few other activities as relevant to the community development processes. In addition to these, a micro-credit component is in progress, which will only focus on providing financial support for continuing education (primary and secondary). Finally, efforts are there to establish a non-traditional ICT based University in the country, focusing the majority participants of the community.
Case-2 This case is not a project, rather an innovative development of software to enhance collaborative learning at the primary level of education. In terms of computer use in schools or rural kiosks, it is always observed that the student-tocomputer ration is very high. Very often one can see that more than five or six students are using one computer. This is mainly due to insufficient funding. In these cases, one student controls the mouse, while others act as passive onlookers without operational control of the computer. Therefore, learning capacity does not equally distributed over the participants. One student becomes more familiar with the computer, while others are not. Even, if the operation is being carried out on rotation basis, due to increasing number of education,
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a majority of the learners remain deprived of the learning opportunity. Sometimes, this makes them ignorant of the lessons in the practical sessions. The accurate technical solution is to provide each child with a mouse and cursor on screen, thus effectively multiplying the amount of interaction per student per computer for the cost of a few extra mice. Despite both the concept and the implementation appear to be unique to date, for the specific application to computers in education in resource-strapped communities, with previous work restricting studies to two mice, or for largely non-educational applications, a recently developed software allows multiple colored cursors to co-exist on the monitor, along with two sample games with some educational content. Initial trials with both single-mouse and multiple-mice scenarios suggest that children are more engaged when in control of a mouse, and that more mice increases overall engagement of the participating students. However, this unique feature of using multiple mouse in a computer deserves attention of researchers in this aspect, especially researching in pedagogy for computers in collaborative learning (Pawar, Pal & Toyama, 2006).
Case-3 The Gravina’s Collaborative System (GraviCS) of Gravina, Italy supports collaborative learning to develop process-scenarios in an argumentative, interactive governance environment. It was developed, for the local authority of Gravina, to support decision making in environmental planning as part of a large regional project. That project aims at preparing a preliminary expert analysis for the Apulia territory in creating some Regional Natural Parks. In accordance to the formal procedure, the regional authority organizes public meetings which are not only looked as a consultancy process, but also are searching for political consensus among stakeholders. During such meetings, a preliminary agreement on park infrastructures and management norms is ratified.
In the case of the Gravina’s Natural Park (one of the proposed Regional Natural Parks in Gravina), a national financial support permitted the realization of a information system for managing and assisting the weak phase of the public meetings. The environmental planning domain is comprised of multiple, geographically dispersed, participants of diverse professional or private backgrounds, interests, preferences and viewpoints. Therefore, the system required intuitive and easy-to-use interfaces across an Internet based platform. The developed prototype, GraviCS, focuses on distributed and asynchronous collaboration and allows the participants to surpass the requirements of being in the same place and at the same time. Moreover, this system is based on a web platform that provides relatively inexpensive access and it has intuitive interfaces for easier navigation by inexperienced users. The software is divided into two main modules. The first one, represents the web interface of the system, and the second one enables limited access (by self-registration of participants). The system was developed with such intention that it can be used to assist users not only during the process of setting up of the natural park, but also during the subsequent management of the area. The system may support the entire process of decision making by proving a forum (a platform of collaborative learning) in which participants can establish defined protocols through dialogues, and consequently, they can interact in a structured dimension (Celino & Concilio, 2005).
Other Cases In terms of engaging participants across different countries in collaborative learning, a wide range of programmes and projects on ICTs in education in Africa have activities that involve one or more African countries in varying numbers. These range from high-level intergovernmental, multi-stakeholder programmes, such as the NEPAD e-Schools initiative, to institutions focused
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on networking African schools and universities such as the African Virtual University (AVU), to collaborative learning projects that directly involve learners and educators from schools in several African countries (for example, the Global Teenager Project (GTP) and the International Education Resources Network (iEARN). •
•
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iEARN (International Education Resources Network (iEARN), www.iearn.org) is one of the largest and oldest global networks of educators and learners that use ICTs in a diverse range of collaborative learning projects. All iEARN projects are designed, initiated, and run by educators and learners. Its network in Africa involves learners and teachers from schools in 29 countries; The Global Teenager Project (www. globalteenager.org) is an initiative of the Dutch-based International Institute for Communication and Development (IICD). It was launched in 1999, especially to promote the use of ICTs in the classroom. The project focuses on collaborative learning among secondary school students and educators from around the world through a safe, structured virtual environment known as “learning circles.” So far, the project involves about 3,000 teachers and students from 200 classes in over 29 countries. Majority of the participants are from Africa, involving learners, teachers, and schools from 12 countries; SchoolNet Africa (www.schoolnetafrica. net) is an NGO-based in Senegal that promotes education through the use of ICTs in African schools. SchoolNet Africa functions as a network of SchoolNet organisations operating in over 33 countries on the basis of regional programmes on ICT access, training of trainers, and collaborative learning. Till date SchoolNet Africa has produced a range of research reports on the experiences of African countries on the use of ICTs in schools (Farrell, 2008).
FUTURE TRENDS A collaboratory is not simply formation of a group of learners, not it is simple application of ICTs, it is more than an elaborate collection of concurrent ICTs; it is a new networked organizational form that includes social processes, collaboration techniques, formal and informal communication, and agreement on norms, behaviors, ethics, principles, values and rules within the network. To date, most collaboratories have been applied largely in the field of basic or applied sciences like, physics, mathematics, upper atmospheric research, and astronomy and have been applied recently to additional areas of research such as bio-diversity conservation, ecosystem management or HIV/AIDS. Since the emergence of these collaboratories, a substantial and growing knowledge base has emerged to help communities to understand their development and application of their knowledge in science and industry (Teasley & Wolinski, 2001; Cogburn, 2003). Furthermore, with transformation of the global economy towards a more knowledgebased, innovation-oriented, ICT-mediated, and geographically-distributed form, it has become increasingly important for higher education and research institutions to equip learners with additional skills. These skills include an interdisciplinary approach like; livelihood problem identification and solving; self organization, self control and motivation; capacity to acquire, manage and disseminate knowledgeable information; increased participation in cross-national and cross-cultural negotiations; adaptability to work under a diversified collaborative environment; and ability to work in geographically distributed virtual scenarios. Among older theories, Tiffin & Rajasingham (1995) suggest that the balance between human-interaction and computer-interaction is a critical factor in the success of a virtual learning environment. In similar context, Brown & Duguid (2000) suggest that this balance is even
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more important when the learning environment becomes more complex, vibrant, and geographically distributed. They stated that, these learning teams are further challenged by the adoption of a “stakeholder” perspective in the global-system (i.e., global and multi-national corporations, developed country national governments, developing country national governments, intergovernmental organizations, and non-governmental organizations). They also argued that learning is a social process, and that “peer networks” are an equally important resource to higher education institutions and research institutions. Along this perspective, Hiltz (1990) finds that “collaborative learning” enhances student ratings of virtual courses. Thus further, Cogburn (2003) anticipated that learners engaged in virtual teams (Global Syndicates) that evolve into “learning communities” will have more collective and individual success in their working environments. Therefore, future collaborative learning sequences should be able to synchronize the above mentioned situations and proceed accordingly. In terms of successfulness of any system, evaluation is a must. Taking into account the input in an established learning environment, the collaborative learning system constructs an illustrative knowledge graph that is composed of the ideas expressed within the system, as well as their supporting arguments. Moreover, through
the integrated feedback mechanisms, participants are continuously informed about the status of each item they learn and reflect further on them according to their requirements and interests on the outcome of the learning. In addition, this approach aids group sense-making and mutual understanding through the collaborative identification and evaluation of varied opinions. Such an evaluation can be carried out through either argumentative discussion or e-voting. Figure 7 illustrated an outcome scenario in G2G (Government-toGovernment) situation. This has been adopted from Karacapilidis, Loukis & Dimopoulos (2005), but the author argues that in other situations like, G2C, C2G, C2C, or individual-to-individual, the outcome would remain the same. Future research can be carried out to observe any dissimilarity or further improvement when the collaborative learning is being utilized to empower marginal communities. Furthermore, a system with a shared webbased workspace for storing and retrieving the messages and documents of the participants, using the widely accepted XML document format, exploitation of the web platform renders, among others, low operational cost and easy access to the system. The core of the system maintains all the items (messages and documents), which may be considered as a knowledge base, appropriately processed and transformed, or even re-used in
Figure 7. Outcome of an e-collaboration system (Adopted from Karacapilidis, Loukis & Dimopoulos, 2005)
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future discussions. Archival of documents and messages being asserted in an ongoing learning takes place in an automatic way that is upon their insertion in the knowledge graph. On the other hand, retrieval of knowledge is performed through appropriate interfaces, which aid users explore the contents of the knowledge base and exploit previously stored or generated knowledge for their current needs. In such a way, this approach builds a “collective memory” of a common community (Karacapilidis, Loukis & Dimopoulos, 2005). However, further research need to be carried out to filter, separate, assemble, and represent in suitable format to different users with diversified patterns and natures. The assessment of online collaborative learning presents new opportunities and challenges, both in terms of separating the process and product of collaboration, and in the support of skills development. Macdonald (2003) has explored the role of assessment with respect to the process and products of online collaborative learning. He conducted a qualitative case study on two UK Open University courses that have used a variety of models of online collaborative assessment. He also put forwards a number of recommendations for the assessment of online collaborative learning that may lead to further future research.
RECOMMENDATIONS AND CONCLUSIONS The understanding of empowerment through knowledge development (towards knowledge communications and capacity building) is always critical, as appropriate knowledge and information do not simply exist. They have to be acquired, nurtured and transformed. Similarly, the element of the society for whom the knowledge development processes are to be devised, their active participation within the processes has also to be ensured. Knowledge and information in all areas are not the same, they are localized and thereby, knowl-
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edge development processes should incorporate localized and indigenous inputs. Furthermore, adequate safeguard should be taken for their dissemination, so that they are uniformly and used collaboratively (Kuhlen, 2003). In this aspect, learning is an important component to not only build a knowledge base among the community participants, but also learning through a collaborative process would strengthen the country’s information economy. Moreover, it is essential that the government and private sector ensure appropriate skills are taught through primary, secondary, and tertiary education and at the same time on-the-job training need to be conducted to meet the local industry needs. Additionally, the demand for personnel with IT knowledge (perhaps ICT knowledge), experience and qualifications from the workplace is growing fast, as the workplace is gradually applying computing skills to improve their efficiency in this competitive world (Kelegai & Middleton, 2002). Therefore, learning should not be restricted to individuals and specific perimeters; rather it should take the form of group learning or collaborative learning and should not remain under any comprehensive boundaries. Furthermore, as the information society is transforming into knowledge societies, the very concept of “knowledge” has to be revisited. Knowledge should go beyond the peripheries and become a collective process involving the entire scope of the society. A collaborative learning network should incorporate promotion of distributed intelligence, ubiquitous networks, information sharing, information literacy, open access, public goods in public domain, multilingualism, and localized content. There should be a collaborative cognition through a robust communication system. Pitsis, Kornberger & Clegg (2004) argued that this sort of collaborative cognition should include collaborative learning, collaborative knowledge management, knowledge transfer, collaborative memory and collaborative communication. The
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ultimate purpose is collaborative learning, which can be transformed into the intellectual assets of collaborative knowledge management. Towards this end, participants communicate, making sense of each other, in a collaborative memory. However, (Fagan, Newman, McCusker & Murray, 2006) argued that, they may not necessarily be coming to agreement on a single shared sense of the information, there may still be cultural diversity in understandings, but vibrant communication can reduce the knowledge gap. What it means to the end is a commitment to knowledge transfer and knowledge acquisition in specially designed processes for sharing knowledge, capturing knowledge and empowering them through the acquired knowledge. Certainly, one of the issues is the use of ICT within the class room or outside the class room, and to innovate traditional educational practices. A interrelated aspect is the importance of human capital. ICT related knowledge jobs require continuous update of knowledge, and at the same time ICT seems to provide technologies for facilitating diversified modes of learning, including the collaborative learning. Literature, however reports many failures especially if the new opportunities are implemented in mere traditional educational situations (van der Meulen, 2003). Successes require incorporation of accurate selection of learning material (based on the demand of the society), appropriate designing (interactive, or non-interactive), indigenous technology (wired, or wireless), and adequate dissemination (synchronous, or asynchronous), as they are vital to the communicative aspects of ICT that are being utilized for collaborative learning. In recent days, a range of implementation models and approaches are being adopted for the use of ICT in learning. The integration of ICT in learning includes project-based, inquiry-based, individual and collaborative learning models. Moreover, learners studying in the non-formal sector are increasingly required to undertake subjects and courses online or via a blended delivery
mode of face-to-face and online learning. Online courses may include audio-visual methods, such as interactive multimedia courseware and online assessments like providing tasks, and taking tests and quizzes. Assessment of the learning may take place through a computerized learning management system, enabling facilitators or educators to track, assess and quantify electronically submitted assignments. Specially, in primary and primary education, learners may undertake project-based learning via Internet-based projects and specially developed online curriculum content (Robbins, 2004; Naidu & Jasen, 2007). As stated earlier, common participants of the society or community may take part in specially design courses of non-formal category, as per their interests and requirements. Finally, the ability to learn collectively is a significant source of competitive benefit. The benefit goes to the individual, his/her family, his/ her community, and his/her nation. According to Boekema, Meeus & Oerlemans (2000), learning is the key for competitive advantage. Despite the financial resources would stay as a decisive booster of innovation, but the synergetic complementation of core competencies (formal education) and knowledge of various backgrounds (non-formal education) are increasingly becoming an essential element of innovation capability (Behnken, 2005), and an important component of an empowered community.
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UNESCO. (2001). Monitoring Report on Education for All, UNESCO, 2001. Utsumi, T. (2005a). Global E-Learning for Global Peace with Global University System, In Ruohotie, P. (Ed.) Communication and Learning in the Multicultural World, University of Tampere, Finland Utsumi, T. (2005b) Global University System with Globally Collaborative Innovation Network, Global University System, Finland van Dam-Mieras, M. C. E. (Rietje) (2004). Learning In a Global Society, The Hague Conference on Environment, Security and Sustainable Development, Peace Palace, The Hague, 9-12 May 2004. van der Meulen, B. (2003, June). Integrating Technological and Societal Aspects of ICT in Foresight Exercises . Technikfolgenabschätzung, 12(2), 66–74. Venkatesh, M., & Small, R. V. (2003). Learningin-Community: Reflections on Practice, Springer, 2003. WSIS (2005). Report of the WSIS Education, Academia and Research Taskforce, 2005.
ADDITIONAL READINGS Alexander, S. (2001). E-learning experiences, Education + Training, Volume 43, Number 4/5, pp. 240-248. Boekema, F., Meeus, M., & Oerlemans, L. (2000). Learning, Innovation and Proximity: An Empirical Exploration of Patterns of Learning: a Case Study. In: Boekema, F. (Eds): Knowledge, Innovation and Economic Growth: the Theory and Practice of Learning Regions, p. 137-164.
Tu, C.-H. (2004). Online Collaborative Learning Communities, Libraries Unltd Inc., USA.
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Boyd, H., & Cowan, J. (1985). A case for selfassessment based on recent studies of student learning. Assessment & Evaluation in Higher Education, 10(3), 225–235. Chang, C. Y., Sheu, J. P., & Chan, T. W. (2003). Concept and Design of Ad Hoc and Mobile classrooms. Journal of Computer Assisted Learning, 19(3), 336–346. doi:10.1046/j.02664909.00035.x Chavan, A. (2004, November). ‘Developing an Open Source Content Management Strategy for E-government’. Proceedings of the 42th Annual Conference on the Urban and Regional Information Systems Association, Nevada. Coppola, N.W., Hiltz, S.R. & Rotter, N.G. (2002). Becoming a Virtual Professor: Pedagogical Roles and Asynchronous Learning Networks, Journal of Management Information Systems, spring, Volume 18, Number 4, pp. 169-189. Daniels, S. E., & Walker, G. B. (2001). Working through environmental conflict—the collaborative learning approach. Westport, CT: Praeger, 2001. Dringus, L.P. & Terrell, S. (1999). “The framework for DIRECTED online learning environments”, The Internet and Higher Education, 2(1), 1999, 55-67. Gee, X., Yamashiro, A., Lee, J. (2000). Pre-class planning to scaffold students for online collaborative learning activities. Educational Technology & Society 3(3). Goodfellow, R. (2001). Credit where it’s due. In D. Murphy, R. Walker, & G. Webb (Eds.), Online Learning and Teaching with Technology: Case Studies, Experience and Practice (pp. 73-80). Kogan Page.
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Heinecke, W., Dawson, K., & Willis, J. (2001). Paradigms and Frames for R & D in Distance Education: Toward Collaborative Learning. International Journal of Educational Telecommunications, 7(3), 293–322. Lanzara, G. F., & Morner, M. (2004, 2-3 April). ‘Making and Sharing Knowledge at Electronic Crossroads: the evolutionary ecology of open source’. Proceedings, The Fifth European Conference on Organizational Knowledge, Learning, and Capabilities, Innskbruck. Lea, M. (2000). Computer conferencing: new possibilities for writing and learning in Higher Education. In: M. Lea & B. Stierer (Eds.) Student writing in Higher Education: new contexts. Open University Press, UK. Lin, B. & Hsieh, C. (2001). “Web-based Teaching and Learner Control: A Research Review”, Computers and Education 37(3-4), 2001, pp. 377-386. Markkula, M. (2006). Creating Favourable Conditions for Knowledge Society through Knowledge Management, e-Governance and e-Learning, A Proceedings of FIG Workshop, Budapest, Hungary, pp.30-52. Oliver, R. & Omari, A. (2001). “Exploring Student Responses to Collaborating and Learning in a Web-Based Environment”, Journal of Computer Assisted Learning, 17(1), 2001, pp. 34-47. Robertson, J. (2004). ‘Successfully deploying a content management system’. Step Two Designs Pty Ltd, www.steptwo.com.au. Roschelle, J. (2003). Unlocking the learning value of wireless mobile devices. Journal of Computer Assisted Learning, 19(3), 260–272. doi:10.1046/j.0266-4909.2003.00028.x
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Rovai, A. P. (2000). Building and sustaining community in learning network. The Internet and Higher Education, 3, 285–297. doi:10.1016/ S1096-7516(01)00037-9 Salmon, G. (2000). E-moderating: the key to teaching and learning online. London: Kogan Page. Schellens, T., & Valcke, M. (2006). Collaborative Learning in Synchronous Discussion Groups: What about the Impact of Cognitive Processing. Computers in Human behaviour, University of Cape Town, Cape Town, South Africa Sorensen, E. K., & Takle, E. S. (2001) Collaborative Knowledge Building in Web-based Learning: Assessing the Quality of Dialogue, The Proceedings of the 13th World Conference on Educational Multimedia, Hypermedia & Telecommunications (ED-MEDIA 2001). Suthers, D. (2001). Towards a systematic study of representational guidance for collaborative learning discourse . Journal of Universal Computer Sciences, 7, 254–277. Thornton, P., & Houser, C. (2004). Using Mobile Phones in Education. In Proceedings of the IEEE International Workshop on Wireless and Mobile Technologies in Education (WMTE), Taiwan, March 23-25. p.3. Vonderwell, S. (2003). An examination of asynchronous communication experiences and perspectives of students in an online course: a case study. The Internet and Higher Education, 6, 77–90. doi:10.1016/S1096-7516(02)00164-1 Woolgar, S. (Ed.). (2002). Virtual Society?- technology, cyberbole, reality. Oxford University Press Zurita, G., & Nussbaum, M. (2004). Computer supported collaborative learning using wirelessly interconnected handheld computers. Computers & Education, 42(3), 289–314. doi:10.1016/j. compedu.2003.08.005
Zurita, L., & Bruce, B. C. (2005). “Designing from the users side: reaching over the divide” Submitted to the Computer Supported Collaborative Learning (CSCL) Conference 2005, Taipei 30 June, 4 July
KEy TERMS AND DEFINITIONS E-Learning: A form of learning that is enabled by the use of digital tools and content, involving interactivity between the learner and their educator or peers17 utilizing a network (LAN, WAN or Internet) for delivery, interaction, or facilitation18. e-learning can be any technologically mediated learning using computers whether from a distance or in face to face classroom setting (i.e., computer assisted learning)19. This form of learning can be used to deliver online courses and/or establish online learning communities, and it supports flexible learning anywhere, anytime for anyone20 Distance Learning: A form of learning where the instructor and the students are in physically separate locations. The learning process can be either synchronous or asynchronous21 by which technology is used for mainly continuing education in various ways where the participant does not have to physically be in the place where the educator initiates the learning22. It is a type of education where students work on their own at home or at the office and communicate with faculty and other students via e-mail, electronic forums, videoconferencing and other forms of computer-based communication23 Cooperative Learning: It is an instructional method that allows students to work in small groups within the classroom, often with a division of assignment of specific tasks24, and it is an instructional strategy in which small, usually heterogeneous groups of students work collaboratively to learn25. Cooperative learning was proposed in response to traditional curriculumdriven education26
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Experimental Learning: This form of learning is learning by doing27, or acquired through workplace28, or based on experience29. Experiential Learning is the process of making meaning from direct experience30. It is the process of acquiring skills, knowledge and understanding through experience rather than through formal education or training31. This process of learning involves the student in his/her learning to a much greater degree than in traditional (pedagogical) learning environments32. It addresses the needs and wants of the learner and is seen to be equivalent to personal change and growth33 Lifelong Learning: It is the process of acquiring knowledge or skills throughout one’s life via education, training, work and general life experiences34. Lifelong learning is a form of continuing education, and act as an essential means of accelerating assimilation of new technologies35. Usually, these are non-credit instruction of a community service nature other than recreational and leisure time36. This form of learning encompasses all learning activity undertaken throughout life, with the aim of improving knowledge, skills and competencies within a personal, civic, social and/ or employment-related perspective37 for professional development with a broad concept where education is flexible, diverse and available at different times and places is pursued throughout life38 Online Learning: Online learning is an option for learners who wish to learn in their own environment using technology and/or the Internet39. It is a form of learning conducted via a computer network, using the internet and the World Wide Web, a local area network (LAN), or an intranet40. Online learning can comprise of any learning experience or environment that relies upon the Internet/WWW as the primary delivery mode of communication and presentation41 Distributed Learning: Distributed learning is a term used to describe educational experiences that are distributed across a variety of geographic settings, across time and across various interactive
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media (Dede, 2004). It is a culture of learning in which everyone is involved in a collective effort of understanding. Distance learning is characterized by four characteristics, such as the diversity of expertise among its members who are valued for their contributions and given support to develop, shared objective of continually advancing the collective knowledge and skills, emphasis on learning how to learn, and incorporate mechanisms for sharing what is learned (Utsumi, 2005a, b)
ENDNOTES 1 2
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en.wikipedia.org/wiki/Learning http://en.wikipedia.org/wiki/Collaborative_learning http://www.geocities.com/Athens/ Crete/4060/dictionnaire_etrusque.htm http://www.cpa.ie/povertyinireland/glossary.htm http://www.yhdenvertaisuus.fi/english/ what_is_equality/definitions_and_concepts/ http://www.novonordisk.com/old/press/ socialreports/1998/intro/glossary.html http://www.health.nsw.gov.au/publichealth/health-promotion/abouthp/glossary. html http://www.rain.net.au/community_wellbeing/community_wellbeing001.htm Bangladesh Bureau of Statistics data, 2004 The Bangladesh Rural Advancement Committee (BRAC) is today one of the largest NGOs working in primary education. Non-Formal Primary Education Programme (NFPE) The Female Secondary School Assistance Project, Female Secondary Education Stipend Project, Higher Secondary Female Stipend Project http://www.internetworldstats.com/asia/ bd.htm
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International Telecommunication Union UNESCO UNDP www.stiltonstudios.net/glossary.htm www.iqat.org/glossary.php www.usd.edu/library/instruction/glossary. shtml www.qmg.com.au/page/glossary www.delmar.edu/distancelearning/student_success/glossary/glossary-d-f.htm http://capso.tamu.edu/glossary.html www.west.asu.edu/achristie/545/webgloss. htm www.nagc.org/index.aspx http://jeffcoweb.jeffco.k12.co.us/isu/gifted/ Glossary.doc http://en.wikipedia.org/wiki/Cooperative learning www.unesco.org/education/educprog/lwf/ doc/portfolio/definitions.htm www.waveproject.com/glossary/glossary. html/english/e/ www.teach-nology.com/glossary/terms/e/
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http://en.wikipedia.org/wiki/Experiential learning www.warwick.ac.uk/fac/soc/conted/SocratesAPEL/uk/glossuk.htm www.nald.ca/adultlearningcourse/glossary. htm http://hagar.up.ac.za/catts/learner/ameyer/ glossaryoflearningtheory.htm www.dest.gov.au/sectors/training_skills/ policy_issues_reviews/key_issues/nts/glo/ ftol.htm www.et.teiath.gr/tempus/glossary.asp www.pbcc.cc.fl.us/x3922.xml www.projects.aegee.org/educationunlimited/ www.evaluateit.org/glossary/index.html www.northislandcollege.ca/students/glossary.htm www.southbank.edu.au/site/tools/glossary/ M-Q.asp www.usd.edu/library/instruction/glossary. shtml
This work was previously published in International Journal of Information Communication Technologies and Human Development, Vol. 1, Issue 2, edited by S. Chhabra and H. Rahman, pp. 1-27, copyright 2009 by IGI Publishing (an imprint of IGI Global).
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Section 3
Applications and Services
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Chapter 12
Knowledge Management for E-Government Applications and Services Penelope Markellou University of Patras, Greece Konstantinos Markellos University of Patras, Greece Eirini Stergianeli University of Patras, Greece Eleni Zampou University of Patras, Greece
ABSTRACT The Web is revolutionizing the way citizens and businesses interact with government agencies and organizations. Nowadays, a wide spectrum of governmental services is available online in order to facilitate end-users and provide them with effective Web-based experiences. In this chapter, authors argue that the usage of knowledge management (KM) would greatly assist e-government applications and services. The basic aim is to point out the necessity of designing and implementing efficient KM e-government applications in order to improve public sector quality. In this framework, firstly it gives e-government and KM basic definitions. Then the chapter provides a review of literature and all these foundations upon which it is envisioned and then demonstrates the close relationship between the two issues. The chapter continues with the presentation of a characteristic KM conceptual model for e-government services. It examines the most interesting applications in the area, and finally demonstrates the barriers, the arising opportunities, and the key challenges regarding e-government and KM. DOI: 10.4018/978-1-60566-671-6.ch012
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Knowledge Management for E-Government Applications and Services
INTRODUCTION In recent years, the world has witnessed the rapid evolution of the Web, a development environment that allows easy access, sharing, interchanging and publishing of information. In this context, the significance of governing and administration has been considerably altered. Not only because intense pressures and expectations that the way of governing should reflect new methods of work, but also the necessity for more “open” governments to citizens and businesses. Governments have realized that their information resources are not only of value in themselves. They are valuable economic assets, the fuel of the knowledge economy. By making sure that the information they hold can be readily located and passed between the public and private sectors, taking account of privacy and security obligations, it will help to make the most of this asset, thereby driving and stimulating national and international economy. The governments take advantage of Information and Communication Technologies (ICTs) and the continuing expansion of the Web and started strategies to renew public administration, eliminate existing bureaucracy and therefore reduce costs (Riedl, 2003; Tambouris et al., 2001). Electronic government (e-government, e-gov or EG) allows an economic approach of democratic processes. However, ICTs can achieve more than this. They redefine public administration processes by altering the relations between services’ providers and public, public and private sector, and government and citizens. New forms of governing make their appearance, reflecting the continuously altered organizational and economic structures, with important effects in the way that we “exist” as citizens. It is clear that e-government does not concern only online services and the better support of citizens and businesses, but comprises a new set of technologically advanced processes and tools, that promote the interaction between the public and the government. All economic sectors have been greatly affected
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by e-government novelty. Many public agencies and organizations (e.g. Ministries, Municipalities, other local authorities, etc.) provide online services such as the following: •
• •
•
Publication-dissemination of information for citizens, private sector and other public authorities. Gathering of information through usable online forms (e.g. for subsidies). Direct reaction to specific users’ requests (e.g. legislation on a specific problem, downloading application forms, consulting from specialists). E-services integration, etc.
Furthermore, a large amount and a wide range of knowledge is required to achieve the above. However, explicit and particularly implicit or tacit knowledge comprise important challenges in the area. Knowledge Management (KM) may be defined as leveraging of knowledge for attaining objectives of productivity and competitiveness of a national economy. At the level of a government, knowledge management for government (KM4G) may be defined as leveraging knowledge for improving internal processes, for formulation of sound government policies and programmes and for efficient public service delivery for increased productivity. Finally, knowledge management for e-government (KM4EG) may be defined as management of knowledge for and by e-government for increased productivity. KM4EG is a management tool for government decision makers and its programme implementers (Misra, 2007). This chapter attempts to highlight the linkage between KM and e-government applications and services. Emphasis is given on the current trends and opportunities. In this framework, the chapter examines national and international literature, relevant e-government issues, in order to depict the current state and also to conclude some specific developing considerations. Specifically, its
Knowledge Management for E-Government Applications and Services
aim is to point out the necessity of designing and implementing efficient e-government applications. Authors strongly believe that the vision of an electronically modernized public sector will be realized if a series of key strategic aspects will be considered, as well as international best practices and experiences. Within this context, they discuss e-government and KM basic issues. They investigate the role, the potentials and the impacts of e-government, emphasizing on significant peculiarities and priorities. Then, they present a representative KM conceptual model for e-government services. This research continues with specific examples of KM e-government applications aiming at the improvement of the quality of provided services. Finally, the chapter examines the potentials and barriers of the area and demonstrates the arising opportunities and the key challenges.
political conduct of government (Elmagarmid & McIver, 2002). According to E-governance Institute (2004) “E-governance involves new channels for accessing government, new styles of leadership, new methods of transacting business, and new systems for organizing and delivering information and services. Its potential for enhancing the governing process is immeasurable.” Another quite broad definition, which incorporates its four key dimensions that reflect the functions of government, that is, e-services, e-democracy, e-commerce, and e- management, is the following “E-government is the use of information technology to support government operations, engage citizens, and provide government services” (Dawes, 2002, p.1). E-government can be distinguished into four basic models: •
BACKGROUND
Government-to-citizen (G2C): relates to the relationships between governments and citizens. It mostly deals with law and democracy issues. Government-to-business (G2B): relates to the relationships between governments and businesses. It mostly deals with cooperations, common activities in national and international level. Government-to-government (G2G): relates to those activities, which will improve and upgrade governments’ services. Government-to-employees (G2E): relates to the relationships between governments and employees and indents to provide internal efficiency and effectiveness in areas such as supply-chain management, financial management, and knowledge management.
Although the literature relating to e-government area proliferates, its definition and its various models are still unclear among researchers and practitioners of public administration. In this framework, firstly it is intended to present the most prevailing definitions and models of egovernment. Then, the section continues with the presentation of KM definitions, KM types and KM importance and benefits. Following gradually a sequence of technological levels and incorporating with a KM strategy, coordination, and know-how, a public organization can successfully realize the vision of e-government, provide reliable online information and services to its users and improve its efficiency and effectiveness.
•
E-Government Definition and Models
The types of e-government can also be categorized based on the following four citizen-centred groups for the delivery of governmental e-services (Ndou, 2004; Markellou et al., 2007):
Digital government (DG) or electronic government (e-government, e-gov or EG) may be defined as the process of using ICTs to enable the civil and
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•
•
•
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Individuals/citizens: government-to-citizens (G2C), building easy to find, easy to use, one-stop points-of-service that makes it easy for citizens to access high-quality government services. Using the Web for accessing services organized by the needs of citizens such as benefits, loans, recreational sites, educational material, social services, and filing taxes. Businesses: government-to-business (G2B), reducing government’s burden on businesses by eliminating redundant collection of data and better leveraging ebusiness technologies for communication. Using the Web for accessing services in different areas such as regulation, economic development, trade, permits/licenses, grants/loans, and asset management. Inter-governmental: government-togovernment (G2G), making it easier for states and localities to meet reporting requirements and participate as full partners with the federal government in citizen services by sharing and integrating federal, state, and local data, while enabling better performance measurement, especially for grants. Other levels of government are anticipated to see significant administrative savings and be able to improve programme delivery because more accurate data is made available and shared across agencies and levels in a timely fashion. Intra-governmental: internal efficiency and effectiveness, adopting commercial best practices in government operation in areas such as supply-chain management, financial management, and knowledge management. Agencies must be able to improve effectiveness and efficiency, eliminating delays in processing and improving employee satisfaction and retention. This category has recently been identified as government-to-employees (G2E).
E-Government Levels The development of a robust e-government infrastructure demands a staged approach, which goes from the immature to the mature, where the latter offers full integration with public administration and will have required the fundamental re-think and change of government and its constituent components. An advantage of having a staged approach is the ability to generate momentum that can then be maintained (Irani et al., 2005). The process of implementing an e-government system passes through different stages until it reaches its highest potential stage. The normative literature is in agreement that there are different stages in e-government provision. An evolutionary perspective where the information systematizes, grows and evolves with confidence, acceptance and resources is one advocated, with governments going through a number of stages before reaching maturity. The approaches can be divided into concepts that focus on aspects of development, i.e. simple information portals, providing communication facilities, transaction process, and finally, fully realizing the integration of government systems. There remains a lack of consensus regarding how many stages of maturity an e-government system goes through. Some researchers believe that only three stages are necessary, others that four, five, six or even 13 stages are required. The various models found in the literature on egovernment stages (or levels) and their perceptions are provided in Table 1.
Knowledge Management Definitions KM term was first introduced in a 1986 keynote address to a European Management Conference (APQC, 1999). The concept has been used since then mostly by organizations in order to gather, organize, share and analyze their knowledge (resources, documents, people skills, etc.), make decisions, and produce goods and services. There
Knowledge Management for E-Government Applications and Services
Table 1. Levels of electronic government Level
Perception (Howard, 2001) Level 1: Publish
Online information about government’s news and activities.
Level 2: Interact
Enables citizens to have simple interactions with the government e.g. e-mail, chat rooms, etc.
Level 3: Transact
Offers citizens full transactions over the Internet, e.g. applications for programmes, subsidies and services, purchase of licenses and permits, etc. (Baum & Di Maio, 2000)
Level 1: Information
Online delivery of government services. One-way communication between government and citizens.
Level 2: Interaction
Simple interaction between citizens and government.
Level 3: Transaction
Services that enable transactions of value between citizens and government.
Level 4: Integration
Integration of services across the agencies and departments of government.
Level 1: Cataloguing
Creating Web sites and making government information and services available online.
(Layne & Lee, 2001)
Level 2: Transaction
Enables citizens to interact with their government electronically.
Level 3: Vertical Integration
Focuses on integrating disparate at different levels.
Level 4: Horizontal Integration
Focuses on integration of government services for different functions horizontally. (United Nations – DPEPA, 2002)
Level 1: Emerging
Creating a government Web site with limited/static information.
Level 2: Enhanced
Updating information regularly.
Level 3: Interactive
Provides users with reasonable levels of interaction enabling them to download forms.
Level 4: Transactional
Enables users to complete safely and securely online transactions e.g. obtaining visas, licenses, passports, birth and death records, etc.
Level 5: Seamless or Fully Integrated
Provides services across administrative and departmental lines with the highest level of integration. (Deloitte Research, 2000)
Level 1: Information Publishing
Creates Web sites by departments and agencies. One-way communication.
Level 2: Official Τwo-Way Transactions
Enables customers to have electronic interaction with government services such as renewing television licenses and paying parking tickets.
Level 3: Multi-purpose Ρortals
Enables customers to obtain government services and information from a single point.
Level 4: Portal Personalization
Provide customers with opportunities to customize portals according to their needs and preferences.
Level 5: Clustering of Common Services
With portals becoming better, government departments will disappear where government will seek to gather common services to hurry the process of delivery.
Level 6: Full Integration and Enterprise Transformation
Government departments will disappear others will appear; some departments will keep the same names but become entirely different internally. (Markellou et al., 2007)
Level 0: Internal Organization
Includes the supply of hardware/software infrastructure for office applications, as well as the necessary network interconnection.
Level 1: Electronic Protocol
Refers to the computerization of authority’s documents with the passage from the conventional protocol (manuscript) to the electronic one (file).
Level 2: Business Process Reengineering
Includes a feasibility study of documents’ flow re-planning, internal processes interrelation and specifications, planning and implementation of the applications that need modifications.
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Knowledge Management for E-Government Applications and Services
Table 1. continued Level
Perception Level 3: Intranet
Gives to employees the ability to use their departmental Intranet applications or other departmental applications without having installed them into their personal workstation.
Level 4: Automated Protocol
Provides segregation of the incoming and outgoing documents and a separation of internal and external registrations from the authority’s point of view in order to distribute documents.
Level 5: Unified Identification of Internal Users
Deals with the study, design and implementation of single sign-on, which will correspond to one single internal user.
Level 6: Portal
Deals with the implementation of a portal addressed to citizens presenting information on the public sector without the need of user authentication. The citizen can be served by visiting a onestop shop.
Level 7: Unified Identification of External Users
Deals with the study, the design and the implementation of single sign-on, which will correspond to one single external user/citizen.
Level 8: Portal Upgrade with Applications Adjusted to Every User
Provides a central point of data accumulation and interconnection with several different applications and systems used by various participants, located in different sites.
Level 9: Digital Signatures
Develops digital signature processes, supported by cryptographic methods.
Level 10: Smart Cards
Constitutes an advanced and secured authentication pattern, taking advantage of the characteristics of smart cards, in order for the citizen to use the portal and includes personal data encryption.
Level 11: Translation
Copes with the adaptation of e-applications to multicultural environments and provides functionalities which satisfy multicultural and multi-linguistic requirements.
Level 12: Digital Television
Target is the citizen to access the portal via DTV, leading to the ultimate stage of e-government where each citizen (native and nonnative) accesses e-services through his television.
Level 13: Satellite Communication
Provides the capability of sending information to the portal, in order to promptly inform the citizens, as well as of discussing with other executives and the citizens on vital governmental issues.
are several different and sometimes quite vague statements that claim to be definitions of KM and there are different perspectives on what KM is. This lack of consensus has led to major criticisms in the field. It is important to make distinctions between data, information, and knowledge in order to clear up confusion on the differences and relationships in this continuum. In general, “data” are symbols or raw facts out of context, and thus not directly nor immediately meaningful. For data to be of value, however, they must be processed (put in a given interpretive context) to obtain “information”, which decision can be made. “Knowledge” is perceived as meaningful information (Cong & Pandya, 2003) or information in action (O’Dell & Grayson, 1998). Alternatively, Davenport and Prusak (1998) defined knowledge as a fluid mix of framed experience, values, contextual information and expert insight that offers a framework
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for evaluating and integrating new experience and information. Knowledge results from making comparisons, identifying consequences, and making connections. Some experts include “wisdom” and insight in their definitions of knowledge (Figure 1). Wisdom is the utilization of accumulated knowledge (Cong & Pandya, 2003). The effort of defining KM is also difficult because there are multiple interpretations. Many definitions are available in the literature (Halawi et al., 2006) and few of most representatives are the following (Table 2):
Knowledge Types: Explicit and Tacit Knowledge is intangible, dynamic, and difficult to measure, but simultaneously it has been recognized as an essential component of any proactively managed organization. The key points of KM include converting data, organizational insight, experience
Knowledge Management for E-Government Applications and Services
Figure 1. Continuum from data to wisdom (Adopted from Cong & Pandya, 2003).
and expertise into reusable and useful knowledge. This knowledge mainly classified into two types: explicit and tacit. Explicit or articulated knowledge can be captured, written down and codified in documents or databases, so it is more easily transmitted. It is expressed or documented in a formal and systematic way, frequently in words and numbers, and can be easily processed, communicated and shared with others. This type of knowledge includes management directives, executive orders, policy manuals, reference guides, patents, instruction manuals, written procedures, best practices, lessons learned and research findings. Explicit knowledge can be farther categorized as either
structured (documents, databases, spreadsheets, etc.) or unstructured (e-mails, images, audio, video, etc.). On the other hand, tacit, unarticulated, implicit or informal knowledge is more personal, experiential, context specific, and hard to formalize and distribute. In other words, it is the knowledge that people have in their minds. This is the reason why this knowledge is difficult to write down, communicate and share with others. However, it is considered as more valuable, and underlies many competitive capabilities for organizations since it provides context for people, places, ideas, experiences, etc.
Table 2. Knowledge management definitions. “Knowledge management applies systematic approaches to find, understand, and use knowledge to create value.” (O’Dell, 1996) “Knowledge management is a mindful strategy of getting the precise knowledge to the right people at the precise time and helping people share and place information into action in methods that attempt to develop organizational performance.” (APQC, 1999) “Knowledge management is a cross-disciplinary field drawing from a wide range of technologies such as cognitive science, expert systems, artificial intelligence and knowledge-based management systems, computer-supported collaborative work (groupware), library and information science, technical writing, document management, decision support (business intelligence) systems, semantic networks, relational and object databases, simulation and organizational science.” (Barclay & Murray, 2000) “Knowledge management seeks to increase organizational capability to use knowledge as a source of competitive advantage. The field has risen to prominence along with the “knowledge worker,” who is someone who does work which involves knowledge which is socially complex, causally ambiguous, and tacit. Relevant theories include social capital theory and the resource-based view of the firm. Practitioner approaches to knowledge management emphasize ways of creating, diffusing, using, and evaluating knowledge.”(Sillince, 2007)
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Knowledge Management Importance and Benefits
•
The question that arises by many governments, businesses and individuals are two “Why KM is so important?” and “What are the potential benefits of KM?”. First of all, it is significant to understand that knowledge is a power source for every business. So, the list of benefits to be reaped from KM is endless. These benefits, in an organizational setting, can occur at two levels: (a) individual and (b) organizational (Cong & Pandya, 2003). At the individual level, KM offers many opportunities to employees to enhance their skills and their experience and at the same time team’s collaboration and coordination. By working with other people and sharing knowledge, employees can learn through an interactive and constructive process, thereby they can improve personal performance and open better career development possibilities. At the organizational level, KM provides major benefits for an organization (Cong & Pandya, 2003; KIKM, 2005):
•
• •
•
• •
• •
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Develop and implement new business models (e.g. virtual networks). Improve performance through increased efficiency, productivity, creativity, learning, quality, and innovation. Improve decision-making, streamline processes, have better knowledge transfer, reduce re-work, encourage knowledge re-use and mitigate risk. Lower operating costs. Build more profound and personalized relationships with the customers, and improve their service and support. Enhance the flow of knowledge, have higher data integrity and greater collaboration. Produce and conserve new value (e.g. intellectual property assets), generate new wealth and increase revenue.
Enable sustainable growth, extend the global reach, richness, and scope and open new markets. Better prepare for and anticipate the future.
From the above, it is clear that KM can offer a wide range of benefits. In no case, we are suggesting that this list is exhaustive and complete or that all of these could be realized simultaneously by an organization. Our scope is to show the opportunities that are opened for organizations, depending on their needs and strategy. We strongly believe that KM can help organizations to be more intelligent, adaptive, accelerating, responsive, dynamic, flexible and productive.
KNOWLEDGE MANAGEMENT FOR E-GOVERNMENT Governments possess large repositories of information and databases. These sources of knowledge are coming from ministers, legislators, civil servants, documents, files, agenda, records of proceedings, minutes, government orders (GOs), notifications, laws, rules and regulations, archives, embedded in physical systems, and citizens and non-citizens (e.g. tourists). One of governments’ primary operations is to exploit these sources and improve decision-making process. E-government consists of a unique tool to this direction, since it supports electronic workflow, allows the cooperation between different departments, employees and public and helps in their efficient management. Recently, the importance of KM is becoming increasingly recognized in egovernment domain. KM running in e-government environment relates to knowledge creation, knowledge acquisition, knowledge integration, knowledge analysis, knowledge processing, knowledge storing, knowledge application, knowledge sharing and distribution and knowledge reviewing in order to increase organization’s efficiency and
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quality of services. In this context, knowledge management for e-government (KM4EG) can be defined as management of knowledge for and by e-government for increased productivity. KM4EG is a management tool for government decision makers and its programme implementers (Misra, 2007). The governments’ challenges created by the new knowledge economy that KM would address are according to (OECD, 2003; Cong & Pandya, 2003): 1.
2.
3.
4.
Governments are increasingly facing fierce competition in service delivery and policy making at both national and international level. Knowledge has become an important element of public sector competitiveness and the effective functioning of governments relates to effective acquisition and dissemination of it. Public and private sectors produce and deliver goods and services such as education, science, security and knowledge that are increasingly intensive in intangible capital. At the same time, as customers demand and receive more customization from knowledge-oriented private organizations, they would also expect similar benefits from the public sector. Civil servants’ retirement and frequent transfer of staff across various government departments create the challenge for knowledge and institutional memory preservation, as well as the need for new employees’ training. Public organizations should start KM initiatives as soon as possible in order to face up the problem of capturing and retaining tacit knowledge of their employees and in next phase of training and passing this knowledge on to new staff.
KM is based on the idea that an organization’s most valuable resource is the knowledge
of its staff. Technology is also necessary but in collaboration with human and cultural aspects of KM (skills, values, attitudes). A KM strategy is, therefore, about moving the organization and its staff towards maximizing awareness of existing knowledge (i.e. appreciation of what is “known” already) while minimizing what knowledge remains either inaccessible (because of where it is) or “unknown” (because it hasn’t been thought of yet) (EKM&KB Group, 2008). In this framework, KM has the potential to actually strengthen government effectiveness and competitiveness in the continuously changing environment. Governments should take urgent action in order to catch the opportunities offered by globalization, the knowledge-based economy, and new ICTs developments. Towards this direction, Misra (2007) has proposed Ten Guiding Principles for introduction of KM in e-government domain (see Table 3).
Modeling E-Gvernment Knowledge Management Many researchers have proposed a variety of KM methodologies, frameworks, technologies, models, and perspectives to help understand the concept of KM (Cong & Pandya, 2003). The most of them are designed for the private sector. However, there are few, which are concerning exclusively the public sector. A representative KM conceptual model for e-government is proposed by Zhou & Gao (2007) and depicted in Figure 2. This model is composed by three independent but mutually supporting sub-systems: (1) a knowledge-collection sub-system, (2) a knowledge organization sub-system and (3) a knowledge application sub-system. The first sub-system consists of the input system of the model and performs three basic KM processes: knowledge recognition, knowledge acquisition and knowledge accumulation. Knowledge recognition is the first step in KM. Both explicit and tacit knowledge should be
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Table 3. Ten guiding principles for introduction of KM in e-government domain (Adopted from Misra, 2007). Guiding Principle 1
Develop a KM strategy for the organization.
Guiding Principle 2
Proceed step-wise, from simple to the complicated.
Guiding Principle 3
Do not re-invent wheel. Make use of existing knowledge and insights.
Guiding Principle 4
Make use of ICTs.
Guiding Principle 5
Make use of people, process and technology (PPT) model.
Guiding Principle 6
Prepare a simple and modular knowledge sub-plan incorporating KM strategy.
Guiding Principle 7
Include KM sub-plan in the e-business plan of Ministry/Department.
Guiding Principle 8
Secure top management support to KM sub-plan.
Guiding Principle 9
Demonstrate results.
Guiding Principle 10
Review the implementation of KM sub-plan from time to time.
Figure 2. Knowledge management conceptual model for e-government (Adopted from Zhou & Gao, 2007).
identified, be transparent in order to create and lay the foundation for applications. Knowledge acquisition refers to access to knowledge from the external of the organization and to make it easy to use for the organization (e.g. knowledge from databases, Internet and networking forums,
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blogs, search engines, network data mining, etc.). Finally, knowledge accumulation is the process of precipitating and storing the knowledge assets in a suitable form for conducting knowledge application and innovation. The second sub-system is the core of KM
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model and the bridge connecting knowledge collection sub-system with knowledge application sub-system. Its function can directly influence the success of the entire KM system. It includes knowledge classification, knowledge depot and knowledge map. Knowledge classification is the basis of the effective application of knowledge and is very useful for administrative tasks (retrieval necessary knowledge, improvement of knowledge searching efficiency and finding or creation of new knowledge through knowledge mergers and knowledge decomposition). Knowledge depot is the government’s electronic information databases. It makes the organization’s information and knowledge orderly, be conducive to the sharing and exchange of knowledge, the collaboration and communication among organizations. Knowledge map is the navigation system of electronic knowledge resources, which provides a learning environment and the road, to help staff and community users quickly find the necessary knowledge resources and show the distribution of resources of the whole e-government knowledge. Knowledge map is a guide to the knowledge depot, as well as the key link constituting the KM system. The third sub-system is the output system of the KM model, associates the results of the other two sub-systems, creates new knowledge, cleans up and organizes related information, and provides it to users. It involves knowledge sharing, knowledge exchange, and knowledge creation. Knowledge sharing means that e-governments’ information and knowledge are as open as possible, so that people can access and use them. This process is very conducive to the progress of the whole learning organization. Knowledge exchange is a key point of KM process since it creates an efficient mechanism for exchanging and communicating knowledge. Knowledge creation is the process of knowledge conversion. It occurred through the interaction between visible knowledge and implicit knowledge.
Knowledge Management Applications The new e-government world aims to make public management more transparent, efficient and democratic, overcoming organizational and functional boundaries. KM emerges as a significant cross-government catalyst towards this direction for implementation and establishment new government-wide initiatives, applications, tools, resources and best practices. KM efforts are no longer merely an option but rather a core necessity for governments’ organizations and agencies anywhere in the world, if they have to compete successfully. Therefore, KM will increase government mission performance, promote continuous improvement in government services and better connect to the citizen constituency. In this section, we focus on few but important applications where we believe that KM will greatly impact.
Semantic E-Government Portals Web portals serve as integrated gateways for public authorities, through which millions of users can access information, services, and other available applications. However, traditional and current approaches often fail to provide users with the type of information or level of service they require. Limitations concern the ability to create, access, search, extract, interpret, process and maintain information resources. These in their turn lead to high maintenance costs and overheads, limited ability for third parties to re-use the information, problematic nature of adding new types of information, etc. The Semantic Web technologies have the potential of overcoming these limitations and enabling the design and implementation of semantic portals. The Semantic Web is a W3C initiative and according to Berners-Lee et al. (2001: pp.36) comprises “an extension of the current Web in which information is given well-defined meaning, better enabling computers and people to work
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in cooperation”. The capability of the Semantic Web to add meaning to information, stored in such way that it can be searched and processed as well as recent advances in Semantic Web-based technologies provide the mechanisms for semantic knowledge representation, exchange and collaboration of Web-based applications (Anderson & Whitelock, 2004). Semantic portals are considered as the next generation of Web portals and allow improved information sharing and exchange for a community of users. The resources of these portals can be indexed by using domain ontologies (Brase & Nejdl, 2004). This allows navigation, search, query and reasoning to fully utilize both textual and semantic information leading to more precise results. Moreover, it allows to easy update the portal structure, as well as possibilities to share and reuse since it separates portal content from structure and provides rich structural links (Reynolds & Shabajee, 2001). For example, intelligent agents that observe citizens behaviour (e.g. visited Web pages, interactions with specific public servants, etc.) can attempt to provide feedback and links to suitable information, resources, and services to assist the citizens.
of this knowledge can scale to realistic information retrieval (IR) scenarios. Therefore, the traditional keyword search can be enhanced by adding semantic information based on metadata and ontologies. In this way, simple Web pages can be transformed to intelligent, semantically annotated Web pages where searching for a particular information, product or service will be comprehensive and precise.
Personalization Personalization features as one of the most promising approaches to alleviate the information overload problem and to provide online users with tailored experiences. Recent Web technological advances help online companies to acquire individual customer’s information in real-time and with low cost. Based on this information, they construct detailed profiles and provide personalized services. The most common provided personalized services are the following: •
Semantic Search Applications Recently, we have witnessed tremendous interest and substantial economic exploitation of search technologies. However, the representation of user queries and resource content in existing search applications is still almost exclusively achieved by simple syntax-based descriptions of the resource content and the information need such as in the predominant keyword-centric paradigm. On the other hand, recent advances in the field of semantic Web technologies have resulted in tools and standards that allow for the articulation of domain knowledge in a formal manner at a high level of expressiveness. At the same time, semantic repositories and reasoning engines have advanced to a state where querying and processing
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•
Personalized content: Typical applications of such adaptations are optional Web pages’ explanations, additional information, personalized recommendations, step-bystep driven presentation or information, and more. Techniques used for producing such adaptations include adaptive selection of Web page (or page fragment) variants, fragment colouring, adaptive stretch-text, and adaptive natural language generation. Personalized structure: It refers to changes in the link structure of hypermedia documents or their presentation. Techniques deployed for producing this kind of adaptations comprise adaptive link sorting, annotation, hiding and unhiding, disabling and enabling, removal/addition. Adaptations of structure are widely used for producing adaptive recommendations (for information, navigation, help, etc.),
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•
as well as constructing personal views and spaces. Systems attempt to provide pathways through materials by matching domain ontologies with dynamically evolving user models. Personalized presentation and media format: In this type of personalized output the informational content ideally stays the same, but its format and layout changes (for example from images to text, form text to audio, from video to still images). This type of adaptations is widely used for Web access through PDAs or mobile phones, or in Web sites that cater to handicapped persons.
Thus, Web sites have now the opportunity to improve their performance by addressing the individual’s needs and preferences, increasing satisfaction, promoting loyalty, and establishing one-to-one relationships.
Recommendation Systems Recommendations systems (RSs) comprise the most popular forms of personalization. These systems take advantage of users’ and/or communities’ opinions in order to support individuals to identify the information or products most likely to be interesting to them or relevant to their needs and preferences. Semantic Web technologies and KM are foreseen to greatly affect these systems. Next generation personalization and recommendation systems integrate semantic and ontological knowledge into the various steps comprising personalization process i.e. data acquisition, data analysis and personalized output (Markellou et al., 2004). An example can be the following: an e-government Web site could recommend alternative information, resources or services based on citizen’s searching and navigating patterns. In a formal setting, it could post the specific query and timetable to recommend a plan of action.
Semantic E-Learning Traditional teaching and learning methods have had to adapt to keep up with ICTs in modern society. E-learning stands for all forms of Webbased learning and uses computer and computer networks to create, store, deliver, manage and support online learning courses to anyone, anytime and anywhere. It provides a configurable infrastructure that can integrate learning materials, tools, and services into a single solution to create and deliver training or educational materials quickly, effectively, and economically. Recently, emerging Semantic Web technologies have changed the focus of e-learning systems from task-based approaches to knowledge-intensive ones. Semantic e-learning is the “e-learning based on the Semantic Web technologies that can easily provide learning materials in a common format and therefore enhance personalized learning” (Cao & Zhang, 2006: pp.68). In this context, e-learning systems have the potential to develop descriptions of their processes, as well as rules in order to create content-based and logic-driven information and knowledge value. These advanced e-learning applications provide high quality content, efficient structuring, and full support for the varied tasks of all the user profiles participating in a typical distance learning scenario. Specifically, depending on the knowledge background of the learner, his strengths and weaknesses, as well as the preferred learning style and the progress made so far, the system decides what and in which way the content should be presented next. Possible parameters are different learning paths through the content, different ways of presentation of the same content (e.g. with or without audio) or offering a different set of functions which the user interface of the learning system provides to reduce complexity. To achieve this, methods and techniques from various scientific domains and application areas are used. The most well-known are Knowledge Management, Data Mining, Web Mining, User
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Modeling, User Profiling, Artificial Intelligence and Agent Technologies, etc. KM technologies provide significant opportunities to enhance e-learning applications by extending its reach to wider communities (Mohamed et al., 2008). E-learning is expected to provide communication channels not only between learners and the content but also between learners themselves, tutors and parents. For this reason, KM techniques can be used to provide logistic means for the transfer of educational knowledge. This includes facilitating learners’ monitoring and intercommunications management between learners and tutors.
Online Communities Online communities involve a domain of knowledge defining a set of issues, a community of people who care about this domain, and the shared practice that they develop to be effective in their domain (Wenger et al., 2002). These communities are typically categorized as communities of purpose and require advance tools to support their communicative needs. The introduction of online communities has proved to be a quite promising concept for e-government, allowing the improvement of both the quality of online services and the attractiveness of Web-based environments. Moreover, online communities can be used for e-learning purposes. Ideally, within the context of a learning community, knowledge and meaning are actively constructed, and the community enhances the acquisition of knowledge and understanding, and satisfies the learning needs of its members. Communities can counteract the isolation of the independent learner and the associated dropout quota. Members of a learning community may be students, lecturers, tutors, researchers, practitioners and domain experts (Markellou et al., 2005).
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Transactions E-governments models aim at reducing government’s burden on businesses/citizens/public authorities by eliminating redundant collection of data and better leveraging EG technologies for communication. It uses the Web for accessing services in various fields e.g. regulation, economic development, trade, permits/licenses, grants/loans, asset management, etc. Emerging semantic technologies enable the critical requirement for transparent exchange of information and knowledge, enhance the collaboration of the service-executing processes, as well as the interaction of the process supporting application systems.
FUTURE TRENDS In the fast changing global economy, private and public sectors are more and more concerned about creating, maintaining, sharing and (re)using the knowledge assets for their efficiency and competiveness. KM comprises the systematic efforts for coordination of an organization’s people, organizational structure, processes and technology in order to add value through reuse and innovation. There are many barriers that affect the success of KM implementation in the e-government domain. Internal barriers originate from organizational cultures, structures, infrastructures, etc., while external barriers are outside the immediate control of the organization (Chong, 2005). First of all, KM should be a conscious management decision of the governments’ administration since this is responsible for every activity at every level. This can affect the organizational structure, technological infrastructure, and decision-making processes of the government that are essential for effective creation, sharing and use of knowledge. It is also responsible for identifying organizational strengths and weaknesses as well as analyzing the opportunities and threads in the external environment (Singh & Kant, 2008).
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Another important barrier that should be considered relates to technological infrastructures. ICTs lack could be hinder the implementation of KM. Therefore, its role couldn’t be ignored. ICTs provide the platform where KM efforts will use and enable the organization to manage (collect, define, store, index, link, retrieve, maintain, etc.) “hidden” knowledge in a more systematic and dynamic way. Many applications and tools could be used towards this direction such as business intelligence, data mining, portals, customer management systems, workflow, etc., and the selection of the appropriate technological solution comprises critical factor for the success of any KM application. Despite the previous barriers, KM mail also fail due to lack of methodology and lack of organizational structure. Methodology relates to every activity that should be take place during the KM implementation and often a step-by-step approach is followed. Organizational structure includes division of labor, departmentalization and distribution of power which is necessary to support the information and decision process of the organizations (Singh & Kant, 2008). Other barriers include skill and knowledge deficits, risk, suspicion, privacy concerns, social exclusion and digital divide, as well as technical, data, structural, and cultural barriers. From the above, it is clear that the following activities should be undertaken by governments in order their KM efforts to be successful: •
•
•
Assignment of clear responsibilities for KM and e-government policy, strategy, and monitoring of all processes. Development of a KM strategy and a clear action plan in order to accelerate the integration of ICTs within and among governments’ organizations and agencies. Implementation of KM methodologies, applications and tools combined with top level political support.
•
Performance evaluation of KM activities.
CONCLUSION In recent years, the focus of ICTs is shifting to the applications to help universities, businesses, governments, and other organizations improve and transform their current practices. In this direction, new methods and the technologies supporting those methods are widely adopted. Among the emerging technologies in this competitive digital economy is KM. The vision is to enable ICT architectures and technologies to support information and knowledge transparent exchange and re-use among e-government systems, businesses and citizens. Even though research on KM in the public sector is just beginning, evidenced by little discussion in the current literature, these technologies have the potential to provide a number of benefits over the traditional approaches including improved performance, effective representation and reasoning, maintaining, sharing and re-using of knowledge resources. More and more governments all over the world are realizing its importance for running the public sector and starting to practice it. Many issues, challenges, and opportunities arise in the field. Public sectors have to face these by taking a proactive attitude and make it happen in order to reap the benefits. To succeed in this attempt, special considerations to lack of awareness, public and private sector difference, and the need for a generic KM framework to be developed should be taken into account (Cong & Pandya, 2003). Finally, a higher level of political priority, as well as the intensive use of ICTs as part of a broader strategy for socio-economic development are necessary in order to realize the potential of applying KM techniques in e-government domain.
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KEy TERMS AND DEFINITIONS Explicit Knowledge: Also called articulated knowledge. It is the knowledge that has been or can be captured, written down, codified, and stored in certain media (documents or databases). It can be readily processed, communicated and shared with others. Explicit knowledge can be farther categorized as either structured (documents,
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databases, spreadsheets, etc.) or unstructured (emails, images, audio, video, etc.). Knowledge Management: Strategies and processes of consciously and comprehensively identifying, capturing, structuring, analyzing, storing, distributing, and using an organization’s intellectual assets (resources, documents, and people skills) to enhance its performance and competiveness. KM it is based on two critical activities: (1) capture and documentation of individual explicit and tacit knowledge, and (2) its dissemination within the organization. Ontologies: An explicit formal specification of how to represent objects, concepts and other entities that are assumed to exist in some area of interest and relationships holding among them. Systems that share the same ontology are able to communicate about domain of discourse without necessarily operating on a globally shared theory. System commits to ontology if its observable actions are consistent with definitions in the ontology. Personalization: It is a set of techniques and services that aim to solve the information overload problems Web users face, by providing them with what they want or need, without having to ask (or search) for it explicitly. Personalization includes any action that adapts the information or services provided by a Web site to the knowledge gained from the users’ navigational behavior and individual interests, in combination with the content and the structure of the site. Recommendation System: It is a program which attempt to predict items (news, products, services, Web pages, etc.) that a user may be interested in based on various information e.g. demographics, transaction history, navigation, etc. Semantic E-Learning: E-learning based on Semantic Web technologies that can easily provide learning materials in a common format and therefore enhance personalised learning. Semantic Web: An extension of the current Web, proposed by Tim Berners-Lee, in which
Knowledge Management for E-Government Applications and Services
information is given a well-defined meaning. The Semantic Web would allow software agents, as well as humans, to access and process information content. The most prevailing Semantic Web technologies are: XML, URIs, RDF, Web services, ontologies and intelligent agents. Tacit Knowledge: Also called unarticulated, implicit or informal knowledge. It is integral to the entirely of a person’s consciousness, is acquired
largely through association with other people, and requires joint or shared activities to be imparted from on to another. It is considered as particularly valuable, and underlies many competitive capabilities for organizations since it provides context for people, places, ideas, experiences, etc.
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Chapter 13
E-Participation
Informing and Transforming Local Government Decision Making Peter Demediuk Victoria University, Australia Rolf Solli University of Gothenburg, Sweden
ABSTRACT Citizen participation in government decision making through online and other electronic technologies has been termed e-participation, and has the potential to facilitate better decisions, better citizens, and better government. The chapter examines the extent to which progressive e-participation practice interacts with local government decision making and contributes to the espoused benefits of citizen participation. The international case studies indicate that e-participation can inform the intelligence, design, and choice phases of decision making and transform the way future local government decisions are made by formalising new inclusive processes and building community capabilities and motivation. E-participation can positively contribute to community capabilities, political relevance, better problem identification, and more relevant solutions, but the initiatives studied were costly and resource intensive. These e-participation initiatives provide robust examples of utilizing progressive information communication technologies because of the novel ways in which technology is applied, and due to the significant affect on information flows and decision making.
INTRODUCTION Citizen participation in local government decision making has become a dominant theme for public sector management and governance (Department of
Communities and Local Government, 2006), along with the question of how Internet and electronic channels of engagement might facilitate an increased public involvement in the work of government and provide a better connection between citizens and democratic institutions (Macintosh, 2007a, 2007b; Tolbert & Mossberger, 2006). Citizen participation
DOI: 10.4018/978-1-60566-671-6.ch013
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
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in government decision making that is facilitated by online and other electronic technologies has been termed e-participation (Macintosh, 2007a), and a key issue is how it can inform and transform local government decision making. The theory suggests that citizen participation provides significant benefits to institutions and society through: empowering individuals; strengthening public spirit and social capital; playing an important educative and capacity-building role in the community; promoting relevance in the political system; and providing better problem identification and more efficient and effective solutions (Box, 1998; Roberts, 2004; Thomas, 1995). But there are gaps in our knowledge of how e-participation initiatives can contribute to these factors in practice (Demediuk, 2007; Macintosh, 2007a, 2007b). The objective of this chapter is to describe e-participation activities that occur as part of Swedish and Australian initiatives to involve citizens in local government decision making, and consider if and how electronic channels of engagement facilitate the benefits espoused by the theory of citizen participation. Firstly the background to citizen participation in government decision making and the role of the Internet and electronic communications in such initiatives is examined. Secondly, the nature of the Swedish and Australian community engagement activities is described. Thirdly, the effect of these eparticipation activities is discussed in relation to each of the benefits that community engagement can theoretically provide. Finally, future trends and areas for further research are examined and conclusions from the cases are drawn in order to inform practice.
BACKGROUND The idea of community engagement initiatives that allow citizen participation in decision making has a history inexorably tied to democracy
itself. A modern wave of public sector reforms are described as heading towards local community governance, and have brought an increased role for engagement between government institutions and the public, and a wider scope for citizens to influence government decision making (Roberts, 2004). Whilst rational decision making remains a central theme, citizens become more involved as local actors in the work of government, and this necessitates a community-based performance management which consists of rational decision making by governments that is attuned to, and influenced by the community. This new localism is especially appealing at the local government level due to the closeness of the public and the services that councils provide – and so it is more practical to know communities better, make performance more visible, and ultimately give local people more power (Department of Communities and Local Government, 2006). This ideal of ‘local governance’ is evident in practice but it has travelled and been translated in different forms - for example: in legislated ‘best value’ local government reforms in countries like Australia and the UK; in voluntary agendas in Swedish local governments that carry no particular or official ‘reform mark’; and in more established participatory budgeting initiatives in South America (Demediuk, 2007; Solli, Demediuk, & Sims, 2005). For example in the UK increasing the involvement of local communities in local government decision making is now seen simply as a part of good management so as “ … to enable communities to have a say in issues that matter most to them” (Department of Communities and Local Government, 2006, p. 2) and reflects “ … the idea of reshaping public services around citizens and communities who use them – consulting, involving and encouraging them to have a say about the sort of services they want” (Department of Communities and Local Government, 2006, p. 17). Corresponding calls for citizen participation in decision making have come from a host of other countries such as Sweden the
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USA, Canada, Australia and international bodies (Demediuk, 2007). Forces for this expansion of interest in community engagement include: a recognition of limitations of governments and markets; citizens becoming more knowledgeable and motivated and demand increased responsiveness, openness and accountability from governments; the insistence on alternative sources of community ‘voice’; the potential value-adding role of citizens; expectations and action by government officials in facilitating engagement; more inclusive governance systems; legislative requirements for engagement; and technology expanding the availability of information (Box, 1998; Roberts, 2004; Thomas, 1995). Rationales for community engagement concern the maintenance of democratic values, the strengthening of individuals, societies and institutions, and improved policy and service delivery (Box, 1998; Roberts, 2004; Thomas, 1995). But despite the growing body of theory and practice there are gaps in our knowledge about how citizen participation impacts on government decision making, and the factors that moderate the interaction (Department of Justice Canada, 2001). In particular, there is a need to explore the operation and influence of e-participation on government decision making (Demediuk, 2007; Macintosh, 2007a, 2007b). The first step in such an exploration is to determine what phases or processes are encapsulated in the idea of ‘decision making’, and the second step is consider how e-participation practice interacts with these dimension of decision making. A decision is a selection between alternative choices, and decision making is how “ … an organisation differentiates itself, and by doing so, recognises what it is doing. No more, but no less” (Luhmann, 2005, p. 83). Decision making can be conceptualised as a three phase process – intelligence, design and choice. In the intelligence phase, information from the external and internal environment is used to identify “ … new conditions that call for new actions”(1977, p. 40).
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Intelligence therefore uncovers issues or questions that require solutions, and is thus about ‘problem’ (in a wide sense of the word) representation. In the design phase alternative courses of action are sought which can address the problem identified in the intelligence phase. In the choice phase, a course of action is selected for its efficiency and effectiveness in solving the decision problem. In addition to examining the intelligence-designchoice phases, Simon argues that an examination of decision making must also consider learning and adaptation since the “assessing the outcomes of past actions as part of a repeating cycle that that leads again to new decisions” (Simon, 1977, p. 40). “New technology has the potential to enable (community) involvement in complex and demanding issues and allow participants to lead discussions according to their own priorities”, and facilitates new forms and increased scope of consultation whilst improving the transfer, analysis and reporting of information. The technology revolution has increased the information available to citizens about their context and activities which affect them and expanded the capacity of organisations to give and receive information from the public. E-government technologies like on-line discussions, email, bulletin boards and e-voting provide more opportunities for two-way interaction between the institution and the public and thus facilitate the involvement of citizens in the decision making of governments. Technologies expand participation by connecting citizens to each other as well as to public officials (Macintosh, 2007b). Technology can improve trust by improving interactions between the institution and citizens and through better responsiveness (Tolbert & Mossberger, 2006). But there are claims that the potential for IT however is not realised or leveraged by governments to the extent that it could or should be - nor by the public (Demediuk, 2007). These claims are explored in the next section in an analysis of e-participation initiatives at the two governments.
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The Swedish case is based on depth-interviews whilst participant-observation activities informed the Australian case. Though this research has a clear limitation of not providing representative information about e-participation practice in local governments since it examines two councils in particular contexts, the issues that arise can inform debate about good practice and alternative responses, and provide issues for further research (Silverman, 2000).
Sweden – your Choice Sigstad Kommun (council) used a deliberative referendum (known locally as a Radslag) to allow the community to democratically decide on decision options. A Radslag does not present a blank canvas for comment or allow for the generation of a ‘wish list’ by the community, but asks citizens from different groups, backgrounds or interests to choose between highly specified alternatives that the public officials believe are economically, legally, socially and environmentally balanced and responsible. The alternatives provided for citizens to vote on are few and concrete, for example close a road or not, or construct high density or medium density housing in a particular area. The politicians of the Kommun have committed to implement the community’s decision in the referendum. The minimum age limit for Radslag voting is set at 16, and people who the council considers are concerned with, or affected by, the decision are contacted by postal mail and also electronically and urged to participate in the debate and vote. The Internet frames two pillars of Sigstad Kommun’s Radslag initiative to increase community participation in decision making: the interactive chat sessions between stakeholders that facilitate debate; and the e-voting designed to encourage greater influence by a wider number of citizens. Each prospective voter receives an envelope in the mail that contains information brochures on the context of that Radslag and the choice of options, paper voting forms with a return stamped
envelope, and instructions about how to vote using an individual Internet code supplied. So voting allows the option of making a traditional choice via printed ballot paper and return letter or using a secure electronic submission. Where earlier Radslags ended up with a 60/40 paper to Internet voting ratio, later referendums moved towards 40/60 in favour of the electronic medium. Internet chats with the inhabitants were used to discuss referendum issues along with more conventional meetings and innovative ways of describing the decision alternatives such as the baking, presentation, and consumption at public meetings in the town square of cleverly decorated gigantic cakes which represented the two road construction options.
Australia – A City Speaks Bay City council in Australia held a full-day forum of community members and stakeholders (business owners, landlords, and visitors) to construct a ten-year Community Plan. In excess of 800 participants from a variety of demographic backgrounds attended the full-day Saturday forum in a large auditorium. An important force for this engagement initiative was a realisation by politicians that the community needed a stronger voice in the work of government for the dual purposes of community strengthening and informing decision making. Bay City advertised the event extensively in various conventional media and on its relatively heavily trafficked website, and potential participants were sent, by email or post. On the day participants were dispersed randomly with ten each to a table. Each table was lead by a facilitator and had a keyboard linked to a wireless local area network for entry of issues and opinions by table members. In addition, each participant was supplied with a personal computerized keypads akin to a television remote control, which they used to vote or supply information about their demographics. As an issue from the agenda was raised for
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discussion and comment, each participant at a table in turn had a couple of minutes to speak, and what they said was summarised and clarified by the facilitator and keyed into the database by the table members who volunteered to do the data inputting. For example, table members had the opportunity to add to the issues previously listed for consideration in the plan (which had been discerned through citizen surveys during the year). A central clearing house of experts received the themes from the participants at each table. These experts were dubbed the ‘theme-team’, and they synthesized the ideas that came from the participants at the various tables into common themes, and these were projected onto giant screens that could easily be viewed by all. So for example, the original list of ten main ideas for the community plan put forward by the council expanded to almost twenty items and these were projected onto the large screens - which were soon referred to as the ‘score boards’. Using their personal computerized keypads, each participant ranked their priorities among the themes by voting for each. Votes were displayed on the large screen displays, the priority order of themes was reset accordingly, and the new top ten themes for objectives emerged. Significantly, almost half of the councils originally proposed objectives were displaced by new ones proposed by participants and affirmed by their voting. Through the large screen displays, everyone knew what was happening in the whole room, not just at their table. Once the main themes for the council plan were determined in this iterative process, actions to achieve these ten objectives were elicited, voted-on, prioritized and displayed using the technology. There were continual snacks, drinks and food provided, but the tasks of eliciting, voting-on, and prioritizing ideas did not cease between 9 am and 4.00 pm and as participants left the forum they were handed a draft copy of the 2007-2017 Community Plan and received an emailed of the same in the following week.
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Benefits of Effective Community Engagement Instrumental arguments given in support of community engagement initiatives indicate a meansends relationship between citizen participation and outcomes for individuals and society in terms of better decisions, better citizens and better government flowing from more involvement of citizens in the work of governments (Demediuk, 2007). But when governments design community engagement initiatives, decisions must be taken about the nature and extent of electronic technologies to be built into engagement processes, and these choices need to be founded on some concrete evidence of the contribution that the technologies can make in reaping the benefits sought from the citizen participation. Whilst there are a number of comprehensive descriptions in the literature about the technicalities of e-participation practice, and general arguments about the benefits that can flow from community engagement, there are gaps in the knowledge of the ways in which e-participation directly contributes to these benefits in real-world settings (see for example Demediuk, 2007; Macintosh & Whyte, 2008). To help illuminate this gap, in the following section major potential benefits that are advocated for community engagement initiatives are discussed, and the role and contribution of e-participation in these is examined with reference to experiences from the Sigstad and Big City cases.
Citizen Participation Empowers Individuals People who are able to participate in community activities, including community decision making, are generally happier and healthier than those who do not. By linking relatively powerless individuals to a societal group involved in decision making processes, participation can empower those individuals by connecting them with society and giving them a political voice. Thus citizens are
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able to maximise their own potential as social beings and gain a sense of belonging, feel valued by society (DVC, 2007), and develop their human capital (Cuthill & Fien, 2005). So by participating, the citizen can “ … derive the personal benefits of edification or perhaps fulfil a sense of civic obligation.” (Fung, 2006, p. 69). Participation in government decision making shares power and creates a significant new tier of political representation, promotes the empowerment and the advancement of civil society, and can help develop community leadership (Department of Justice Canada, 2001). In the Bay City case, citizens who attended the program were totally empowered by the technology because it facilitated by giving each an equal voice and an equal vote. Because this forum was not a venue for speeches and arguments, but one where ideas and preferences were logged electronically, those who might not normally be heard were heard. Participants on the day remarked at how empowered they had felt, and even if their preferences had been outvoted, were satisfied in that they had their say and that the process was transparent. Hence the technology is the form of data entry, electronic voting and large screen displays provided empowerment, transparency and a basis for compromise and understanding in a way that transcended the experience of politicians, managers and participants. The lack of attendance at the forum by the young population cross-section was not a failure of marketing and communication, but due to nature of the event being bound by attendance at a physical venue and for a prolonged period of time. Put simply, if younger generation can perhaps never be enticed in sufficient numbers along to a physically-bound event. Empowerment of younger people might rely on real-time options where they could add their ideas and preferences and view proceedings using the Internet from a remote site. Currently Email is extensively used as a oneto one communication between and within the key stakeholder groups: politicians, managers in
debating the merits of the Radslag alternatives. Groups and individuals with particular points of view have started to more actively use mailing lists, newsgroups and forums like ‘weblogs’. The interactive internet chat rooms (one-to-one; oneto-many and many-to-many communication) are now, and will continue to be the principal vehicles for debate – a view supported by the community surveys. In the Sigstad case the technology provided a cost-effective way, from the point of view of individuals and the government institution, to empower people by giving them a right to vote. In particular, young people seized the opportunity offered by electronic means to engage in the front-end debates and cast votes. The Internet is the medium favoured and inhabited by the young, and younger aged participation in the Radslags outstripped any prior involvement by these segments that had ever been experience by the kommun previously. The availability of e-voting in support of e-participation has been instrumental in the extremely high levels of engagement with the Radslags, and it is expected that a significant majority of voting in future referendums will be via the Internet. This means that people do not have to make the physical effort of finding, retrieving, completing and posting ballot papers – and can easily operate when they are out of the Kommun, their homes or their offices. The ease of access and process in electronic discussion and voting helped sustain interest of all participant groups across many Radslags run by council from 2005 to 2008 and so the empowerment was not a fleeting one, but a sustained phenomenon.
Citizen Participation Strengthens Public Spirit and Social Capital Participation can promote connections within society and build consensus (Department of Justice Canada, 2001, p. 9). The interactions between stakeholders that characterise engagement activities helps citizens to develop a public spirit, a regard for the greater good, a more holistic
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appreciation of the needs of the community and a preparedness for decisions that preference the public interest rather then individual concerns (Box, 1998; Thomas, 1995). This allows citizens to live a virtuous and value-adding life within their democracy whilst working for the benefit of the community as a whole. By providing opportunities for participation, local governments can increase the appetite of citizens for civic activity. In contrast to the adversarial tenor of representative democracy, participative initiatives are a co-operative process. Social capital can be conceptualised as the resources available within communities as a consequence of networks of mutual support, reciprocity, trust and obligation, and participation by individuals in community affairs can develop the social capital necessary for effectively building and maintaining democracies (Cuthill & Fien, 2005; DVC, 2007) (Cuthill & Fien, 2005; DVC, 2007). Resources that make up the social capital serve as an asset for individuals that can be leveraged for individual and societal benefit. By working through governance networks, where governance refers to structures and processes of decision making, “ … communities can turn their assets into specific outcomes” (DVC, 2007, p. 6). So “Like other forms of capital, social capital can be realised in tangible outcomes that are quite different than created the capital in the first place” (Leonard & Johansson, 2007, p. 1). These outcomes are things like better productivity or less crime (Leonard & Johansson, 2007, p. 1) and better facilities and services of increased employment opportunities (DVC, 2007). Involving the community in decision making about policies and implementation can attract a commitment by citizens to be proactive (DSE, 2005), for example in applying their own knowledge, financial or physical resources to an identification of problems and application of solutions to an issue that was previously seen as the domain of government. In marshalling the resources of the public, more effective responses
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can be made to a particular issue, or the government has an opportunity to divert scarce resources to other matters. In the Sigstad case, the public discourse made available by internet chat sessions at the very least made participants alive to the concerns and issues facing others. Indeed, post Radslag surveys by the kommun have suggested that many citizens changed their voting intention after better understanding the ideas and context of others, and voted for the community good rather then their own concerns. In addition, public officials at Sigstad strongly believe that the ability of more people to network more often over a wider range of matters through the power of electronic means is likely to be related to increased measures of social capital that have been detected in annual community surveys since 2005. In the Bay City case, the technology has taken the ‘heat’ out of the public discourse by providing equitable access and avoiding ‘grandstanding’ by powerful and articulate individuals and groups. In that way, a meeting that uses technology to capture ideas and feature points of view and emphasis can provide a fairer, more respectful, civil, reflective, and co-operative context in which the trust and cooperation that fuel public spirit and social capital can more fully be realized. The social capital and public spirit enabled by technological solutions are aligned to a new collective accountability emerging where politicians, managers, citizens and other stakeholders become accountable and therefore mutually responsible. At the end of the ideas and voting part of the forum, people were asked to leave their deliberative groups and join discussion groups centred around particular themes that had emerged from the meeting (for example: environmental action; creating community gardens; utilising and maintaining the small laneways; or supporting disaffected youth). The effect of this last and rather separate phase of the forum was to ‘kick-off’ community alliances and networking activities and this has led to interest groups who now have their own websites (for example for a
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community garden and a water-recycling project) and electronic channels of communication to sustain the initiatives.
Citizen Participation Plays an Important Educative and CapacityBuilding Role in the Community By participating in decision making processes, citizens learn new skills and knowledge that expand and refine their capabilities so increase the preparedness and ability of the public to engage in future initiatives (Box, 1998; Roberts, 2004). The improved in capabilities and motivation can add-value to future decision making because the public are in a position to provide more robust information exchange, analysis and debate and see issues from a more holistic community-wide perspective (Box, 1998; Thomas, 1995). The nurturing of education for citizens can be about technical issues, contextual issues or how to engage. For example, participation in a project or program can give citizens a better understanding of the constraints and context facing the government decision makers, and thereby promote a more informed, realistic and rational public input, or it can provide citizens with opportunities to learn more about the technical aspects of a decision case such as planning or environmental laws or examples of good practice, and also give citizens confidence, experience and expertise in methods of participation, how to construct and deliver arguments and how to obtain leverage community, political and administrative support (Box, 1998; Roberts, 2004). In Sigstad the kommun has invested heavily in technology infrastructure and training to facilitate interactive debates and access to e-voting and relevant information on the organisation’s website. Local libraries and community centres are rostered to open in order to allow citizens to use their substantial instructional support and equipment resources. Citizens from migrant and more economically marginalised groups who do
not have their own computers, and those with a lack of experience in technological use have made heavy use of these support services for instruction and access to the technology. In the instruction process the participants have been run through the basics of Internet searching and access and in how to set up and use email accounts. When these ‘learning’ participants are actually engaging in on-line debates they tend to cluster around one PC in small groups. Here the group chats amongst themselves in the physical environment, while communicating electronically with other stakeholders. The experience is that not only the use of the Internet in interactive chat rooms has secured an effective channel of engagement for these previously marginalised groups, it is: providing new technical, communication and problem solving skills; widening the participants knowledge base and motivation towards future community engagement initiatives; and adding to social capital with the physical and virtual networking which occurs. The online debate gives the stakeholders, and particularly previously marginalised groups, a high level of ‘voice’ and the prospects at least for a high level of ‘influence’ plus the ability to carry over new skills to things like Internet banking, contacting their children, friends and relatives in Sweden and overseas by internet, and giving then access to the bountiful resources of the world-wide web. Therefore the Sigstad model for building e-participation mechanisms into engagement initiatives and heavily resourcing them is heavily geared towards educative and community capacity-building outcomes. In contrast, the technology applied in the Bay City case was more aligned to letting the community leverage the capacities they possessed rather than on developing new capabilities as at Sigstad.
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Citizen Participation Promotes Relevance in the Political System Public participation is seen as tied to the very future of current systems of local government if they are to have a proper purpose in modern times. The empowerment of citizens, improved accountability of governments, higher trust in authority and perceptions of political and bureaucratic legitimacy that flow from participatory initiatives can provide an increased measure of freedom and control that makes for stronger public to government relations (Department of Premier and Cabinet, 2005) and adds to the stability of the political system (Roberts, 2004). As a consequence of participation, the public might become less difficult to govern or divisive and community engagement can be used by governments to monitor their reputation and status (DSE, 2005). Citizen participation connects the community with the work of government and can increase the interest of people in governance and, therefore, involvement of people in the debates and voting that underpins the validity of democratic systems (Thomas, 1995). There is an argument that citizen participation does nor replace representative democracy, but works as a complimentary corrective to disengagement of the public in conventional representative systems. Surveys in Sigstad have demonstrated that the accessibility to government decision making and action which technology has afforded the population through the Radslags has translated to increased interest in local government and its work. Since the Radslags were introduced voting turnout at local elections has increased (reversing a downward trend), and there are far more applications from people to form and join committees that advise government. In Bay City, attendance and interaction in local area council meetings has increased dramatically since the technology enabled planning forum.
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Citizen Participation Provides better Problem Identification and Better Solutions Citizen participation activities are an important tool for government for a robust assessment of what the community wants from their local services (Department of Premier and Cabinet, 2005), and “ … public participants may be able to frame problems and priorities in ways that break from professional conceptions yet more closely match their needs, values and preferences” (Fung, 2006, p. 73). Citizens have important knowledge about local problems as residents, consumers or experiences such as being a victim of crime (Burton, 2003). Therefore where information from citizens assists in identifying and framing the problem it is more likely that subsequent decisions taken by government about whether or how to react with policy and action will reflect a more robust and timely understanding of community needs, wants, values and preferences (Burton, 2003; Fung, 2006). By harnessing a wider pool of knowledge, citizen involvement can potentially produce better informed decisions with efficiency and effectiveness benefits flowing to society (Thomas, 1995) and provide a equitable distribution of resources (Roberts, 2004). In particular, community engagement gives early notice of important and emerging issues (DSE, 2005). Citizen participation activities can help to improve the efficiency and effectiveness of policy and implementation in assets and service delivery (Department of Justice Canada, 2001; Department of Premier and Cabinet, 2005; DVC, 2007). Once problems have been identified and prioritised for action, the public participation offers greater scope for common sense responses in government decision making that are creative and innovative (Department of Premier and Cabinet, 2005). Better information flowing from a wide range of actors in the participation activities can help fuel more realistic or creative solutions to problems and produce better and more timely
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decisions (Burton, 2003). Citizen participation can assist in creating decisions that can be successfully implemented, since fresh inputs can break away from professional pre-conceptions or outmoded wisdom that are imbedded in public officials or organisational processes and routines (Fung, 2006) and the community has a sense of owning the solution (DSE, 2005). Community engagement can detect and respond to issues that are important to the community and facilitate appropriate responses, thereby offering the possibility of long-term financial benefits (Department of Premier and Cabinet, 2005). In the Bay City case, technology allowed for an unfettered collection of views from the large number of diverse participants about problems to be addressed and related objectives and activities to be built into the ten year plan. What transpired was that the original ten objectives proposed as a point of departure by public officials was radically expanded by the participants to a larger and more nuanced list, and the prioritization by the community of these objectives was quite clear and deterministic. In the same way, the participants proposed and voted on activities that could be meet the objectives, and many of the strategies and solutions agreed to at the forum had either not been contemplated by the public officials, or had been felt by councillors or managers to be outside the realms of possibility or community acceptance. The result is that a number of bold new initiatives were committed to through the electronic theming and voting process that was felt to be impossible to achieve in conventional oratory-based meetings. By contrast to Bay City, the Sigstad case was little short-term emphasis on using technology for the identification of problems and solutions since the voting was bounded by ‘acceptable’ alternatives generated by public officials. However the new ability of many citizens in Sigstad to access information and converse via the Internet and the new community networks formed are expected to provide stronger community inputs into future problem and solution identification.
FUTURE TRENDS The e-participation strategies used in the Sigstad and Bay City cases have been seen by peers and other local governments and peak local government bodies in Sweden and Australia as substantial, significant and successful cutting edge initiatives. The Bay City community planning forum has set a new benchmark in the scale and cost of participative activities and in the centrality of electronic mediums to the achievement of positive outcomes in terms of problem and solution identification and the creation of shared understandings and a common vision. The Sigstad case in Sweden has also set new standards in using electronic participatory mechanisms to facilitate capacity building and democratic interest outcomes. In both cases, the innovative and successful characteristics of the quite different approaches and outcomes have generated interest by other councils, peak institutional bodies and central governments for replication or adaptation of these approaches. Key areas for future research include an examination of which electronic approaches are best suited to facilitating the many varied potential benefits of community engagement and how less resource rich councils can adapt the technologies used by Sigstad and Bay City to their contextual needs and resources. Bay City imported hardware, software and theme experts from the America Speaks organisation in the United States to operationalise their e-participation, and an issue for research is the degree to which home-grown or locally-sourced technological and human resources can be substituted to achieve more affordable or lower-scale iterations. Sigstad’s sophisticated internet-based informational, dialogue and voting processes depend on costly database and security artefacts, and future research could examine whether some aspects of the security are necessary (such as the requirement to sign into on-line discussions) and if more cost effective approaches or shared-resourcing options (amongst a number of councils) are available and viable.
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CONCLUSION Both cases of e-participation initiatives are examples of utilizing information communication technologies that are progressive in their application and in their affect on communities and institutions. Sigstad kommun in Sweden used a mix of technologies in its community engagement initiatives including Internet bulletin boards and information portals, official chat rooms, and e-voting technologies. Some members of the community used existing skills and equipment whilst others were supplied with training and infrastructure through libraries and community centres. Technology provided cost-effective communication channels that maximised interaction between all societal groups and public officials. The e-participation aspects of the engagement improved accessibility and supported an increased interest by the community in the work of government and a desire to be involved in the democratic processes like voting and advisory committees. E-participation facilitated community strengthening and capacity-building as stakeholder groups formed networks, developed social capital, and honed communication, negotiation and associated skills, and gained experience in leveraging power and accessing information through information technologies. The technology enabled discourse that led to a deeper sensitivity and understanding by individuals for the position and constraints of other parties concerned and helped capture and balance an influx of new, improved or more palatable ideas. E-participation provided a means of accessibility and transparency that increased institutional and process legitimacy. The main thrust of Sigstad’s e-participation was to do with community strengthening and an awakening of interest of the community in the work of government, and was less about problem and solution identification. However the front-end cost to the kommun were high, and the training and infrastructure provision is not necessarily affordable in less affluent councils. In relation to Simon’s (1977) intelligence-
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design-choice-learning and adaptation phases of decision making, choice features heavily, without much recourse to citizen involvement with intelligence and design in the short term. But the fascinating observation is that in the longer term, the community capacity building that has occurred from this e-participation initiative can enrich the quality and quantity of citizen input into future intelligence and design processes because of expanded community capabilities. So in fact the learning and adaptation noted by Simon is not just an institutional phenomena, but is also embedded in the community and thus becomes an asset that can be leveraged in the future and provide a conduit for intelligence and design and more robust participation in choices. Bay City council used large scale in-situ e-voting technologies combined with pre- and post-forum communication via Internet bulletin boards and information portals. The thrust of the e-participation was to capture and balance an influx of new, improved or more palatable ideas. E-participation enabled discourse that lead to a deeper sensitivity and understanding by individuals for the position and constraints of other parties concerned and provided a means of accessibility and transparency that increased institutional and process legitimacy. The impacts of e-participation for planning and implementation are profound as evidenced by a new 10 year community plan with a clear consensus and major revision to the document originally proposed by public officials. In contrast the Sigstad e-participation mechanisms which were focused on educative and capacity building dimensions, Bay City technologies were designed to facilitate the leveraging of extant capabilities. The Bay City e-participation initiative was an expensive large-scale exercise that relied on technology and a phalanx of experts who were able to theme the feedback from hundreds of participants as the meeting progressed through its stages. Bay City’s approach was all about maximizing public input into each of Simon’s (1977)
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intelligence-design-choice phases. The table conversations generated the intelligence, table participants proposed alternatives and the choice was made by majority vote via electronic means. Bay City attempted to further include citizens in the learning and adaptation phases in decision making by having follow up neighbourhood meetings shortly after the planning day, and a large-scale public review meeting one year afterwards. So whilst Sigstad and Bay City both used innovative e-participation strategies, they were playing for quite different outcomes. In retrospect both councils believed that the initiatives were extremely cost-effective and provided a significant benefit in increasing institutional legitimacy. Other councils could learn a great deal from the experiences at Sigstad and Bay City, but the caveat is that both e-participation strategies were costly and resource intensive and perhaps out of the realm for many other councils without significant co-operative sharing of technologies and associated human resources or some redefinition of scope and scale of the objectives sought and the e-participation technologies applied.
REFERENCES
Demediuk, P. (2007, November). E-participation in local government decision making: A Swedish case study. Paper presented at the Web Conference, Melbourne. Department of Communities and Local Government. (2006). Strong and prosperous communities: The local government white paper. London: Department of Communities and Local Government, UK Government. Department of Justice Canada. (2001). Evaluation and citizen engagement. Ottowa: Department of Justice Canada. Department of Premier and Cabinet. (2005). Guidelines for community engagement using information and communications technology (ICT). Perth: Department of Premier and Cabinet, Government of Western Australia. DSE. (2005). Book1 an Introduction to engagement. Melbourne: Department of Sustainability and Environment, State of Victoria. DVC. (2007). Indicators of community strength at local government area level in Victoria 2006. Melbourne: Department of Victorian Communities, State Government of Victoria.
Box, R. C. (1998). Citizen governance: Leading American communities into the 21st century. Thousand Oaks: Sage.
Fung, A. (2006). Varieties of participation in complex government. Public Administration Review, (Special Issue), 66–75. doi:10.1111/j.15406210.2006.00667.x
Burton, P. (2003). Community involvement in neighbourhood regeneration: Stairway to heaven or road to nowhere? Centre for Neighbourhood Research Paper 13. Retrieved from http://www. neighbourhoodcentre.org.uk/research/cnrpaperspdf/cnr13pap.pdf
Leonard, R., & Johansson, S. (2007). Policy and practices relating to the active engagement of older people in the community: A comparison of Sweden and Australia. International Journal of Social Welfare, 16, 1–9. doi:10.1111/j.14682397.2007.00476.x
Cuthill, M., & Fien, J. (2005). Capacity building: Facilitating citizen participation in local governance. Australian Journal of Public Administration, 64(4), 63–80. doi:10.1111/j.14678500.2005.00465a.x
Luhmann, N. (2005). The paradox of decision making. In D. Seidl & K. H. Becker (Eds.), Niklas Luhmann and organization studies. Copenhagen and Malmö: CBS Press and Liber.
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Macintosh, A. (2007a). Challenges and barriers of e-participation in Europe? Paper presented at the Forum for Future Democracy. Retrieved from www.sweden.gov.se/democracyforum Macintosh, A. (2007b). E-democracy and the new way forward? Paper presented at the Forum for Future Democracy. Retrieved from www.sweden. gov.se/democracy forum Macintosh, A., & Whyte, A. (2008). Towards an evaluation framework for e-participation. Transforming Government: People . Process and Policy, 2(1), 16–30. Roberts, N. (2004). Public deliberation in an age of direct citizen participation. American Review of Public Administration, 34(4), 315–353. doi:10.1177/0275074004269288 Silverman, D. (2000). Doing qualitative research. Thousand Oaks: Sage. Simon, H. (1977). New science of management decision. Englewood-Cliffs: Prentice Hall. Solli, R., Demediuk, P., & Sims, R. (2005). The namesake: On best value and other reformmarks. In B. Czarniawska & G. Sevon (Eds.), Global ideas. Copenhagen: Liber–Copenhagen Business School Press. Thomas, J. C. (1995). Public participation in public decisions. San Francisco: Jossey-Bass. Tolbert, C., & Mossberger, K. (2006). The effects of e-government on trust and confidence in government. Public Administration Review, (3): 354–369. doi:10.1111/j.1540-6210.2006.00594.x
KEy TERMS AND DEFINITIONS Citizen Participation: refers to involvement of the public in decision making by governments. Alternative terms include public participation, citizen involvement and public involvement.
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Community Engagement: refers to the initiatives taken by governments with the specific purpose of working with people to address issues affecting their well-being. Community engagement refers to the overarching activity, and citizen participation is what happens, to some degree or another, within the engagement in relation to citizens influencing government decision making about policy and implementation. Alternative terms include community consultation or public consultation. E-Government: refers to the use of the internet and electronic technologies as platforms for exchanging information, providing advice and services, and generally transacting with citizens, businesses, other agencies and stakeholders. Three main modes of e-government are primary delivery models are: Government-to-Citizen or Customer (G2C); Government to Business (G2B); Government to Government (G2G); and Government to Employees (G2E). Alternative terms include egovernment or electronic government. Electronic Theming: refers to the process where data inputs from multiple sources are evaluated for common ideas which are holistically incorporated into themes which then provide aggregated information for consideration, debate or decision making. E-Participation: refers to citizen participation in government decision making that is facilitated by online and other electronic technologies. Alternative labels include eparticipation or electronic participation. E-Voting: refers to electronic means of voting that uses technologies such as the internet, specialised kiosks, scanning technologies or digital telephone networks to enable voting in elections or on other issues. An alternative term is electronic voting. Radslag: Swedish term for a deliberative referendum where the public votes on prescribed alternatives for government policy or implementation.
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Chapter 14
E-Democracy Jo-An Christiansen Athabasca University, Canada
ABSTRACT This chapter presents a review and analysis of e-democracy conceptual models, terminology, methodologies, case studies, outcomes, future issues, and research opportunities. A critical assessment of credible research studies is provided to support a determination as to why and how information and communication technologies (ICT) can be utilized to expand the role of citizens in providing input to government representatives. The approach envisioned involves deliberation by citizens on issues of concern with subsequent dialogue between citizens, the government, and elected officials. The chapter addresses e-democracy in the context of governments seeking to utilize ICT to support a means of communication with citizens.
E-DEMOCRACy This research essay is a critical review and synthesis of extensive research on e-democracy (electronic democracy) as a means to strengthen the democratic relationship between citizens, their government and elected officials. E-democracy is founded on citizen participation through information and communication technologies (ICT) in order to support legitimate representation of citizens in a democratic society. It is based on providing an online opportunity for DOI: 10.4018/978-1-60566-671-6.ch014
citizens to obtain information about issues and express their position. The approach envisioned involves deliberation by citizens on issues of concern with subsequent dialogue between citizens, the government and elected officials. The goal is to use ICT to improve representation and decision-making through strengthened democratic participation.
BACKGROUND E-democracy is based on providing citizens with the opportunity to have their voices heard. Consultation
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with citizens by elected officials is important to support legitimate representation in a democratic society. A long-term goal of the government in a democracy is to represent and serve the citizenry. E-democracy, as an extension of democracy, is an integrative framework between the government and those it governs. Through online communications, society can be better reflected in the practices of public institutions that depend on communication with citizens for legitimacy. At its core, e-democracy is based on providing citizens with the opportunity to have their voices heard. It is through this communications process that respect is conveyed, positions are understood and an elected official can legitimately stand as a representative for constituents. Providing channels for democratic participation is in the interest of citizens, their government and elected officials. Citizens benefit from the enhanced means of communication providing the opportunity to express personal opinions, preferred actions, potential consequences, associated values, etc. The government that draws on citizens’ input strengthens its legitimacy and its capacity to govern. Elected officials that draw on their electorates’ input strengthen their ability to validly represent their constituents’ perspective.
DISCUSSION There is a wealth of information available delving into facets of e-democracy. E-democracy is based on consultation with citizens in order to support legitimate representation in a democratic society. The OECD calls for improvements in how governments facilitate engagement of citizens to strengthen democracy, and they provide valuable advice to this end. The OECD’s delineation of information provision, consultation and active participation provide a variety of methodologies to support open communications channels. The OECD’s influence is evident in the majority of relevant literature. In summary, authors discuss
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how ICT can support integrating society with governing organizations through the following activities: •
•
•
Information provision, such as government-to-citizen online communications, termed e-government, Consultation, such as government-to-citizen and citizen-to-government dialogue, termed e-consultation, and Active participation, such as multi-party communications, termed e-participation.
E-democracy is the use of technology “as a tool to provide people with the capacity to participate and influence decision-making” (Macintosh, 2004). An information system can serve as a tool to pursue the goal of supporting democracy. An information system is “a set of interrelated components that collect, manipulate, and disseminate data and information and provide a feedback mechanism to meet an objective” (Stair & Reynolds, 2003, p. 665). This integrative approach recognizes the capacity of information systems to be a driver and enabler of new organizational forms and functions. E-democracy is based on citizen engagement leading to participation to support legitimate representation in a democratic society. It provides an online opportunity for citizens to express their opinion. The legitimacy of democracy depends on communication between citizens and elected officials. E-democracy can be supported through such means as email, online feedback forms and online discussion forums.
Conceptual Models Model 1: E-Government E-government (electronic government) is based on a unidirectional communications flow. Egovernment is described as “the use of ICTs, and particularly the Internet, as a tool to achieve better government” (OECD, 2003). E-government
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Figure 1. E-government conceptual model
relates to how the government delivers information, services and programs. E-government can be modeled as a star topology (see Figure 1). Members of the public (P) receive communications from the government (G). The communication flow is unidirectional from the internal node to the external nodes. The unidirectional communications flow is one-to-many or one-to-one. This unidirectional communication is a monologue versus a dialogue. The government determines the content of the communications. E-consultation is based on bi-directional communications flow. Like the first model, this model is a star topology with members of the public (P) receiving communications from the government (G). However, in this model the communications flow is bi-directional, as shown in Figure 2 (i.e., both to and from the internal node and the external nodes). The communications flow is one-to-many or one-to-one, originating from either the internal or external nodes. The single internal node is reminiscent of centralization, but allows for mass participation. The communication exchange (both sending and receiving) decentralizes a degree of
authority. All participants, including the government, can speak and listen in this model. E-participation is based on multi-directional communications flow. It can be modeled as a mesh topology. The mesh has members of the public (P) sending and receiving communications from the government (G) and other members of the public. The communication flow is multi-directional with messages flowing both to and from all of the nodes (see Figure 3). The communications flow between nodes is one-to-one, one-to-many, or many-to-many. The fully connected mesh distributes communicative power equitably among all of the nodes. The mesh offers decentralization allowing for mass participation and decentralization of authority.
Digital Divide “Un-Model” The three models provide a taxonomy of e-governance. It is also important to consider individuals not reflected in this taxonomy. The digital divide can be defined as “the gap between individuals, households, businesses and geographic areas
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Figure 2. E-consultation conceptual model
Figure 3. E-participation conceptual model
at different socio-economic levels with regard both to their opportunities to access information and communication technologies (ICTs) and to their use of the Internet for a wide variety of activities” (OECD, 2001, p. 5). The democratic digital divide refers to the difference between
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citizens who choose to and those who choose not to use ICT to engage, mobilize, and participate in democracy (Norris, 2001; Muhlberger 2004). The digital divide may exacerbate social cleavages (Rogers, 2001; Muhlberger 2002, 2004). Democracy depends on citizens’ right to share a
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personal opinion on a public issue. E-democracy cannot be truly democratic if only a subset of the population can participate (Samuel, 2002). Future research is needed to determine the impact of the democratic digital divide on the political rights of individuals without Internet access.
detracts from traditional methodologies. Instead, it is a new method to reach new audiences to derive a richer pool of input to strengthen the validity and representation of decision-making. Clift (2002) provides various methods for online information provision and e-democracy (i.e., e-consultation and e-participation):
Democracy • A brief review of the term “democracy” will provide a basis for an analysis of e-democracy. The meaning of democracy can be derived from its literal meaning. The Greek “demos” means “people” and “kratos” means “rule.” Therefore, the literal meaning of democracy is rule by the people. In modern society, the “demos” is a government institution such as a parliament or congress. Democracy is based on a belief that the rights of individuals must be considered and represented. Fundamentally, representative democracy involves respecting an individual’s right to make decisions and transferring this position to governance institutions through a representative. An engaged citizenry is empowered through the knowledge that the perspective of the individual will be respected. E-consultation and e-participation support sharing perspectives utilizing ICT. It is through this process that respect is conveyed, positions are understood and an elected official can stand as a representative.
Methodologies E-democracy can take on various forms in order to engage citizens. Governments can show their willingness to accept citizen input through various methodologies. Information provision, feedback forms, email links, dialogue forums, etc. show the government’s willingness to involve citizens in deliberation and influence decision-making. Online and traditional face-to-face citizen consultation can coexist and provide valuable input from various stakeholder groups and individual citizens. E-democracy is not an exclusionary approach that
•
•
•
publishing reports online, providing questions and answers (information provision); providing online polls and surveys, processing online petitions, providing comment forms (e-consultation); online web forum, focus group or conference for dialogue amongst communities of practice or interest (e-participation); and developing email lists for notice of e-democracy initiatives.
Case Studies Evaluation of e-democracy pilot projects and case studies serve to establish best practices and determine the value of various e-democracy methodologies. In particular, this research is interested in the relative benefits of e-consultation in comparison to e-participation. As well, the social context of e-participation is of particular interest. For example, the proportion and impact of uncivil communications on discussion boards is an important consideration in evaluating the merit of e-participation. Details and evaluations from case studies in Canada, United States, United Kingdom, Europe, China, Korea and Australia will be described. Case studies offer valuable lessons to learn in order to evaluate e-democracy methodologies.
Canada The Canadian government’s Subcommittee on the Status of Persons with Disabilities conducted an online consultation pilot project between December 3, 2002 and March 3, 2003. The online
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consultation included an issue poll, a discussion forum for Canadians to share their experiences, and a discussion forum for Canadians to present their proposed solutions to the public policy issue under deliberation. The final report issued by Longfield and Bennett (2003) details that 1,700 Canadians participated in the online consultation. Almost 1,500 participated in the issue poll, 135 Canadians shared their stories, and 28 Canadians proposed solutions. The online consultation was deemed a success in that submissions were received from the target audience. In conclusion, “the Subcommittee strongly believes that online consultations represent the next step in the path towards greater participation by citizens in Canada’s democracy” (p. 12). The Quebec National Assembly conducted its first online consultation pilot project in 2000 and the second in 2002 (Bedard, Bolduc & Plourde, 2003). The first pilot project investigated the impact of free trade. Twenty-five responses were received online as compared to 39 received offline. The second pilot project questioned possible reforms of the electoral system. Thirty-eight responses were received online as compared to 160 received offline. The initial fear of being inundated with online responses was unfounded. The pilot projects were considered successful and a valid means to use ICT in the parliamentary process.
United States In the United States (US), the Minnesota eDemocracy initiative can be considered a success (Polat 2005). The Internet is used as a virtual public sphere. Online deliberation occurs in a forum bound by formalized rules for use. The discussion forum is carefully monitored (Ibid.). The website, founded in 1994 by Clift (2000), is the world’s first non-partisan and issue-neutral organization seeking to promote democratic participation through ICT. As Clift (Ibid.) characterizes, the Minneapolis Issues Forum is “the most active and dynamic online community issue discussion space
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in the world” (p. 20). Success is attributed to broad community participation, effective guidelines for use, and use of the services of a moderator. Clift (2003) describes two of the most important rules as being a two-postings per-day per-person rule and a requirement that each posting include the name and city of the author. He believes these guidelines for use have kept contending factions engaged in the dialogue. Beierle (2002, 2004) evaluated the online policy dialogue hosted by the Environmental Protection Agency (EPA). The dialogue brought US citizens together for two weeks in 2001. Initially, 957 citizens registered. At the time of closing, there were 1,166 citizens registered. Participants were provided with briefing material and asked to familiarize themselves with the issues under discussion. Participants were asked to contribute postings on a daily basis to the dialogue. The postings could start a new thread or reply to a previous posting (message) on the discussion board. Beierle evaluated the dialogue according to the deliberative democracy characteristics of broad and representative participation, informed, deliberative and credible. To evaluate the characteristic of representativeness of the participation, the following demographic factor should be considered. It was determined that 86% of participants are heavy Internet users (i.e., they use the Internet at least 10 times per week), while only 44% of the general US population fall into this category at the time of evaluation (2001). The characteristic of credibility relates to legitimacy of the forum and output of the dialogue. Beierle concluded that the dialogue met the criteria to some degree. The dialogue did not satisfy the criteria for a fully deliberative process. The aspect of reciprocity, with the reciprocating of messages in a conversation, was evident in the use of reply postings in a thread. This provided a minimal form of deliberation. However, deliberation extends beyond reciprocity to incorporate the shifting of personal opinions to form decisions of the group. The dialogue did not produce a set of recommen-
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dations through a deliberative, problem-solving, dispute-resolving and trust-building process. The dialogue did not empower participants in the public sphere as envisioned by proponents of deliberative democracy. AmericaSpeaks has undertaken numerous e-democracy initiatives since it was founded in 1995. Founders believe US citizens will participate, can effectively work through difficult public policy issues and will work towards the common good (Lukensmeyer & Brigham, 2005). A “21st Century Town Meeting” format is used. The town hall meetings use ICT to support a dialogue between citizens and public policy decision makers and decision-making processes. The process of democratic deliberation is considered important to revitalizing the practice of democracy (Ibid.). Upon evaluation, the AmericaSpeaks model was found to cultivate an egalitarian and inclusive environment; did not cultivate a reflective dialogue; over-emphasized consensus building to the detriment of minority viewpoints; weak in cultivating two-way exchanges between participants; and provided a means for participants to voice their frustrations or vent (D’Agostino, Schwester & Holzer, 2006). The model has proven beneficial in educating participants about public policy issues and the decision-making process (Shulman, 2004). Enhancements to bring the wisdom of diverse opinions to bear is sought, as facilitating the proliferation of “me, too” votes has limited value (Ibid.). It has been found that participants are often taking steps to limit their risk of rebuttal. Many participants want to submit a personal comment, not debate the merit of positions amongst a group of participants. Shulman (2004) determined, “many submitters of comments prefer not to have their comments rebutted and therefore submit on the last day or, with the advent of the electronic mode, even at the last minute” (p. 35). He questions the anti-deliberative effect of this practice. Various technological or procedural barriers to the practice are being considered. Although, he also questions how these procedural requirements to
participate in debate will affect citizens’ willingness to participate in the e-democracy process. He concludes that ICT offers promising opportunities to inform, facilitate, structure, and guide meaningful input through public participation (Ibid.). Zavestoski, Shulman, and Schlosberg (2006) also evaluated a US democratic deliberation initiative. They conclude that the online environment fails to overcome the non-deliberative, non-reflective and adversarial culture characteristic of the US regulatory process (also termed law-making process and rule-making process). Coglianese (2004) argues that use of e-participation dialogues is not appropriate in all cases. He studied the public participation process in relation to US rulemaking. He cautions against use in stating that some ICT “are not likely to alter public participation or government decision making all that much, while others may prove to be undesirable even if they do help engage the public or make government decision making more transparent” (p. 3). Generally, regulatory changes are undertaken following a public comment period and possibly the holding of meetings (e.g., workshops, public hearings, advisory committee gatherings, roundtable sessions, etc.). Citizens’ comments are normally the minority of all the comments received. Coglianese recognizes the merit of public participation to inform citizens, support a deliberative review of an issue, provide a means for citizens to expressing an opinion, and foster the value of citizenship. He recognizes the promise of new technologies to enhance public participation in decision making, but cautions that the process of participation needs to be accessible for citizens (e.g., clear information, easy-to-read format, support soliciting feedback, etc.). Stanley and Weare (2004) evaluated an experiment involving two online venues for citizens’ feedback. The traditional US docket website was supplemented with a website dedicated to the public policy issue under review and subject to citizens’ comments. The traditional US docket website provided a means for citizens to submit
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comments. One hundred individuals submitted 102 comments. The dedicated issue website provided an online discussion forum. One hundred and sixteen individuals submitted 339 signed postings. There were 177 postings submitted anonymously. Initially, the discussion forum was not moderated. In response to postings, a terms of use agreement was implemented and a moderator was staffed. Sixty-five postings were removed during the term of the discussion. In the end, 451 postings of the 516 total postings remained. The analysis of participation determined that new participants voiced opinions resulting a richer source of information for decision makers. The public policy website mobilized politically inactive citizens to expand the breadth of feedback decision-makers received.
United Kingdom The Local e-Democracy National Project (2005a, 2005b, 2005c, 2005d, 2005e, 2005f, 2005g, 2005h) piloted several projects and completed numerous project evaluations. This project arguable puts the United Kingdom (UK) in the lead for conducting and evaluating e-democracy initiatives (Ahmed, 2006). The Local e-Democracy National Project BBC iCan project (2005e) can be categorized as information sharing (level 1 in OECD’s three levels of communication and conceptual model number 1 presented in this essay). It commenced in October 2003 as a venue for civic knowledge sharing. In January 2004, the site had 4,615 registered users. In nine months, the user count more than doubled. In September 2004, the site had 9,847 registered users. The site is being redesigned to support econsultation so users can become involved in local council affairs. Users have requested the ability to participate in local decision-making. The Local e-Democracy National Project E-Petitioning in Kingston can be categorized as consultative (level 2 in OECD’s three levels of communication and conceptual model number 2
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presented in this essay). A petition is “a written instrument directed to some individual, official, legislative body, or court in order to redress a grievance or to request the granting of a favour” (2005f, p. 33). The project website allows for visitors to create a petition, read petitions, sign petitions, read background information, and exchange comments about petitions in a discussion forum. Rules of engagement describe the conditions of use. The pilot was launched in September 2004. The evaluation was done in March 2005. During the period, seven e-petitions and nine paper petitions were presented to Kingston Council. Nine e-petitions and 22 paper petitions were presented to Bristol Council. The total number of e-petition signatures was 173 in Kingston and 890 in Bristol. The main strength of e-petitions, like petitions, is believed to be a vehicle for citizens to express their opinion on an issue to progress to decisionmaking by the local authority. The Local e-Democracy National Project Ask Bristol project can be categorized as participative (level 3 in OECD’s three levels of communication and conceptual model number 3 presented in this essay). The e-participation website provides a wealth of information, supports open communications, encourages greater understanding of the decisions made by the local council and contributes to democratic renewal through participation (2005f). Users can suggest topics for discussion. Consultation topics are presented in discussion forums to support deliberative polling. Conditions of use are established for the discussion forum and unacceptable (abusive) postings will be removed. The number of registered users is 698 and 495 comments were posted in the ten-week period between launch and evaluation. Project organizers foresee communities of interest forming based on registered users adding their profile of interests and sharing these interests with other users. In the UK, the Hansard Society operates a moderated online policy discussion on its www. tellparliament.net website. Public policy issues and legislation under consideration by the UK
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Parliament are open for dialogue. Tellparliament. net is an UK example of e-participation (Ferguson, 2006). The deliberative online forums are open for postings for a timeframe of four to eight weeks. A moderator oversees the postings to the forum to ensure conditions of use are adhered to. At the conclusion of the forum, the transcript of postings is archived and a summary report is produced. The committee conducting the consultation receives a copy of the package. The same documents are published on the website along with any updates and feedback issued by the committee. TellParliament is not “politics as usual.” The majority of citizens engaged in the dialogue have never contacted their political representative or given evidence to Parliament. The e-participation initiative is successful in broadening the group engaged in discussions on public policy issues. The evaluation of the TellParliament concludes that, “the participants came away with an enhanced perception of their efficacy and the responsiveness of Parliament; on the parliamentary side there was recognition of the value in online consultation’s aggregative, asynchronous and innovative functions” (Griffiths & Howell, 2006, p. 10). The House of Commons Modernisation Committee concluded that the edemocracy initiatives: have generally been successful and have proved effective as a way of engaging members of the public in the work that we do and of giving a voice to those who would otherwise be excluded. We urge select committees and joint committees considering draft legislation to make online consultation a more regular aspect of their work. (Coleman, 2005, p. 4)
Europe Grönlund (2003) presents four European case studies of e-democracy initiatives. One case study is the Bollnäs Municipal Community Network. Bollnäs is a small town in central Sweden. The
25,000 residents can submit comments online to the town council and committees. An online dialogue started in 1998, but the results have been less than stellar. The discussions are shallow with the postings generally unsupported by argument. The case study on a Dutch city’s community network is similar to the Bollnäs example. Hoogeveen’s community network is named “Digitale Stad Hoogeveen.” It started in the spring of 1996 and now serves the 50,000 residents of the municipality (Jankowski and Van Os, 2002, 2004). The website provides an online forum with multiple discussions being hosted. One discussion was selected and analyzed for civility and equality. Of the 95 postings, 11 expressed intimidation and 11 included denigrating language. As a result of this incursion of uncivil discussion, some participants declined further involvement in the discussions. The issue of domination was also analyzed and found to exist. Five of the total 28 participants contributed the majority of the postings (Ibid.). The authors concluded that the discussions were “dominated by a small group of participants, were relatively narrow in the range of issues discussed, were limited in expression of mutual interest or reciprocity, and were low on the measures of quality employed (Ibid., p. 190). Fuchs, Bernhaupt, Hartwig, Kramer and Maier-Rabler (2006) evaluated the online presence of Austrian political parties and government. Of the eleven websites surveyed, only one website provided an online survey and another website provided an online discussion board. Eparticipation with many-to-many communication is not generally supported in Austria. One of the few political discussion boards is “politik-forum. at” that opened for postings in the spring of 2003. In May 2006, a total of 80,840 postings existed on the forum, as contributed by 2,300 registered users. Analysis of the postings determined: The most frequently found message style was the employment of values (42.4% of all postings). A certain degree of messages was polemical
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(17.8%), aggressive (15.5%), or cynical (13.5%) in character. Such messages violate norms of good communication that are needed for open and constructive dialogue. This result seems to affirm the hypothesis that the anonymity of behaviour in cyberspace can undermine the normative rightness of communication. (p. 26) Seventy percent of the postings employed one-dimensional arguments and lacked reasoning supporting the opinion being communicated. Over one quarter of the postings was normatively false, insulting, threatening, prejudicial or conveying hatred. Anonymity and a lack of interpersonal cues between participants are contributors to a general lack of respect for social norms for communication.
China Authoritarian governments can also seek participation of citizens through ICT use. Zheng and Wu (2005) describe how the Internet has changed the political context in China to enhance civic engagement and political participation. The authors speculate that Internet-based collective actions can lead to political changes in China. The Internet is one of the few venues where Chinese citizens can criticize public policy and contribute to political change. Social groups have successfully used the online venue to influence government policies and change policy practices. The authors conclude that online participation has promoted incremental political liberalization moving China a few steps closer to democratization (Ibid.). Survey data shows that “nearly 61% of Internet users in China think that by using the Internet, they can have more say about what the government does compared to 20% in the United States, 24% in Japan, and 26% in South Korea” (p. 525). The limited avenues for public participation in China are evident in the survey results.
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South Korea South Korea is similar to China in using the Internet to encourage public participation in political activities. Prior to democratization in 1987, South Korea was ruled by authoritarian regimes. South Korea’s citizens now enjoy freedom of expression, which has led to the online sharing of opinions and offline social mobilization (Woo-Young, 2005). Political participation is supported through an Internet newspaper titled “Ohmynews” and an online forum titled “Seoprise.” Ohmynews is an online newspaper based on contributions from citizen journalists and reform minded “netizens.” Seoprise is an online forum supporting the expression of political commentary. Opinions on public policy issues are shared with a goal of political reform. Both Ohmynews and Seoprise support interaction amongst participants through discussion boards. The author concludes that, “the online media are richly endowed with devices that facilitate citizen participation and exchange of opinions, both of which support the pursuit of political goals. … [T]he Korean case shows that online media are powerful tools for communicative or participatory democracy” (pp. 933-934).
Australia In Australia, e-democracy comprises of a range of Internet-based activities that aim to strengthen democratic processes and institutions, including government agencies. The Queensland Government (2003) is seeking to foster community involvement in government planning and public policy decision making. The Queensland Government (2004) aims to strengthen democratic processes and institutions through activities such as: 1.
Providing accessible, safe, secure, efficient and effective ways for people to interact with the government and each other on public policy issues;
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2.
3.
4.
Increasing the level of knowledge and understanding about democratic processes and public policy issues; Building the capacity and active participation of those involved in democratic engagement to contribute to public policy making; and Demonstrating the government’s responsiveness to public input and transparency of decision-making.
Strengthening Democracy through E-Participation Democracy can be strengthened through information sharing, dialogue and deliberation. In this context, deliberation is “the thoughtful exchange of views and the resolution of different opinions, not only between government officials and the public but among members of the public themselves” (Institute on Governance, 2005). It is “an unconstrained exchange of arguments that involves practical reasoning and potentially leads to a transformation of preferences” (Hansen & Anderson, 2004, p. 261). Representation requires deliberation on the part of individuals forming the collective will, and also on the part of the elected representative acting accordingly. Calhoun (2002) describes a deliberative democracy as a school of political thought that promotes reasoned debate among citizens. Benefits of this approach are perceived to be that a wider and more informed debate will result in improved rationalization and inclusiveness of decision-making. Calhoun also argues that such a debate will improve citizens’ moral reasoning, cognitive abilities, and public spiritedness. Dahlberg (2001a) characterizes deliberative democracy as reliant on inter-subjectivity. He considers a decision to be rational and legitimate if it rests upon the deliberative process by which participants’ will is formed. This type of decision differs from decisions that are merely expressions of “pre-given wills” (p. 168). Deliberative democracy provides the opportunity
for citizens to consider a breadth of information, participate in debate, and ideally reach a consensus (Hume, 2006). Citizen-centered government can be achieved by fostering a culture of learning, negotiation and collaboration (Ibid.). Bray and McLaughlin (2005) similarly call for a culture of “participation, evidence-based debate, mutual adjustment and accommodation” (p. 12). The deliberative process can be a lengthy process of discussion and contemplation. It has been proposed that a mini-populus should deliberate on a single policy issue for more than a year (Dahl as cited in Barabas, 2004). A deliberative poll is an attempt to speed the process through an intensive discussion within a representative group of individuals to quickly achieve group decision-making. Fishkin describes deliberative polling as “an attempt to harness social science to better consult the public. It attempts to realize two democratic values, representativeness and deliberation” (Fishkin and Rosell, 2004, p. 56). The structure of e-consultations and e-participations varies in the number of participants and the method of their interaction. Coleman and Gǿtze (2001) support a mediated, rule-based and moderated format of online policy deliberation in order to contribute to the democratic process. An alternative approach to this top-down model, is a bottom-up model driven by the needs of participants. A bottom-up approach affords citizens the right to determine the issues, pose the questions, define the processes, develop responses and determine recommendations. This “digital commons” form is much more unstructured and difficult to contain to a targeted area under study. To understand the limitations of e-participation, two social preferences will be discussed. The first preference is for individuals to converse with individuals having similar preferences. A rational and critical discourse in the public sphere is not realized when all of the participants are of like mind. Democracy is based on citizens having liberty to participate in the effective competition between various positions. The Internet can
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promote this competition between political arguments. According to Horrigan, Garrett and Resnick (2004), citizens do not merely seek information that reinforces their political beliefs. The authors believe US citizens have demonstrated a willingness to deliberate on material that challenges their views and that e-democracy can support a comprehensive understanding of political issues. The perspective of Horrigan, Garrett and Resnick on this issue differs from most other authors. As expressed by Polat (2005), the online discourse is a barrier to effective democratic participation due to being too fragmented and decentralized resulting in a cyber-discourse of mutually exclusive cybercommunities. A dense network that cross-cuts various perspectives on issues was not found by Papacharissi (2004). Wilhelm (2000) researched this issue in relation to online political forums. He found that over 70% of the postings on the forums demonstrated either strong support or moderate support for the forum’s dominant political perspective. Similarly, Witschge (2002) determined from empirical research that citizens congregate with others of similar background and having similar views on issues under discussion. The second preference is for individuals to abstain from interactions involving ambiguity, difference, disagreement and conflict (Witschge, 2004). Factors hindering participation in discussion forums include the fear of controversy and isolation, feelings of inadequacy, perceived lack of knowledge, unwillingness to challenge group norms, fear of contradicting the perspective of the vocal majority, and general unwillingness not to hurt another person (Ibid.). Diverse points of view can instigate contentious dialogue that is uncivil, critical, harsh and occasionally angry. Anonymity is connected with increased risk of uncivil behaviour including vigorous personal attacks and humiliation (Witschge, 2002). As Winner (2003) summarizes, “so far, the Internet seems far better for venting and flaming than for seeking democratic solutions” (p. 177). Norris and Curtice (2004) similarly found that activists domi-
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nate online opportunities for civic engagement. These activists often also participate in traditional channels to express their political will. As a result, Winner (2003) concludes, “the Internet has done little so far to affect the fundamental ways that society is governed” (p. 178). The two social preferences relating to eparticipation are formidable barriers to success. To review, the first preference is for individuals to converse with individuals having similar preferences. The second preference is for individuals to abstain from interactions involving ambiguity, difference, disagreement and conflict (Witschge, 2004). It could be argued that e-participation offers benefits that merit seeking methods to counter these two preferences. For instance, if e-participation was shown to increase the knowledge level and will to participate in future democratic activities, then one could consider means to counter the barriers. Muhlberger and Weber (2006) researched how readily and thoroughly citizens learn when participating in a deliberative dialogue, such as an e-participation initiative, as compared to informative reading. They created control groups with one participating in dialogue and one group who did not discuss the issue. The element of discussion was not found to increase the knowledge level of the participants. Nor did discussion lead to a change in the perspective of the participants in relation to the issue (Briand, 2006, p. 38). Reading and reflection produced the increase in knowledge level. Muhlberger and Weber (2006) conclude that: the study finds no evidence that online or faceto-face discussion significantly increased overall decision knowledge over just reading informative materials. … The findings do not demonstrate that deliberation does not affect knowledge, only that there is no evidence of an effect on factual knowledge above and beyond that of informative readings and individual contemplation of these readings. ... Nevertheless, the absence of additional learning from discussion, above the effects
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of readings, in the current study may indicate that readings are a more efficient way of conveying information than is discussion. (p. 26). Similarly, Briand (2006) concludes that, ” If the chief aim of a public deliberation is to engage and inform as much of the public as possible, then finding ways to get large numbers of people to read may have a broader impact on the issue than holding big-meeting deliberations” (p. 39). The argument that e-participation merits the difficulties encountered due to enhanced learning is false. E-consultation with its alignment with general personal preferences offers similar, if not greater, learning opportunities. The feedback process with e-consultation is to a greater extent well suited to personal preferences than e-participation.
Strengthening Democracy through E-Consultation Government institutions have not historically welcomed citizens’ direct input. As the Crossing Boundaries Political Advisory Committee states: “The challenge for politicians is to open up our political institutions and to make decisionmaking more transparent and inclusive by using the technology to find innovative ways to engage Canadians in the political process” (Valeri & Lenihan, 2003, p. 6). Furthermore, the Committee sees the government’s role expanding beyond the provider of information to also be a facilitator of new ideas. Citizens, like governments, often hesitate from participating in group discourses. Dahlberg (2001b) finds citizens prefer e-consultation’s direct dialogue to e-participation’s group dialogue. The availability of a group dialogue in the case of the UK Citizens Online Democracy initiative did not translate into its use. Overwhelmingly people preferred to communicate directly with their political representative. Research conducted by Papacharissi (2004) is helpful to understand
hesitancy with participating in e-democracy group dialogues. She observed an overabundance of venting personal feelings in online communication. Frequent occurrences of anger and conflict seemed to intimidate participants and discourage continued participation. Hurrell (2005) also studied the interactions between participants in an online consultation. The web-based discussion titled “Canadian Foreign Policy Dialogue” ran from January to April 2002. In contrast to Papacharissi (2004), Hurrell determined that the online discussion developed, maintained and enforced the norms of civil discourse. Of the 2,116 postings to the online consultation, only 60 were determined to be unacceptable for posting (e.g., off-topic, rude, libellous, etc.). The online discussion promoted understanding, tolerance and consensus building. The civil discourse helped to form civil norms and shared meanings on the public policy issue through a deliberative discussion. In a representative democracy the representatives must heed the perspectives of the electorate. E-democracy supports citizens sharing their perspective, and in turn representatives comprehending the will of citizens. ICT can facilitate online public participation through e-democracy methodologies to strengthen democracy. As expressed by Coleman, Gǿtze, the Crossing Boundaries National Council, the OECD and Clift - amongst others, the use of ICT can and should provide a means of strengthening the democratic relationship between the government and its citizens. A long-term goal of the government in a democracy is to represent and serve the citizenry through public institutions. E-democracy, as an extension of democracy, is an integrative framework between the government and those it governs. Through online communications, society can be better reflected in the practices of these institutions. Public institutions in a democracy depend on communication with citizens for legitimacy and integration. Providing channels for democratic participation is in the interest of both government
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and citizens. The government that draws on this input strengthens its legitimacy and its capacity to govern. Citizens’ increasing level of trust in government is associated with the provision of two-way interactivity applications provided in e-democracy (Welch & Hinnant, 2002). Barber (1984) prefers e-participation to e-consultation. He sees the online forum of eparticipation as supporting a deliberative debate. This multi-party dialogue is believed by Barber as necessary to strengthen democracy. I question if society is ready and willing to participate in an online forum supporting deliberative democracy. There are a few successful e-participation initiatives, such as the Minnesota e-Democracy Project. Rational critical debate can enlighten society. In the future, e-participation may evolve to take on more prominence. At the current time, e-consultation is preferred to e-participation. Dahlberg (2001b) shows that most e-democracy participants are not interested in participating in an online forum. The deliberative option of a group dialogue in the UK Citizens Online Democracy initiative showed the preference of participants. Overwhelmingly, participants chose direct dialogue with their political representatives, rather than participating in a group dialogue with other citizens. This research recommends that e-democracy not be limited to only special initiatives. The democratic dialogue through ICT tools can incorporate citizens on a continual basis. E-democracy, as on ongoing democratic dialogue, can be provided in addition to dialogue on specific issues. I recommend an avenue through e-democracy should always be available to maintain a level of dialogue between citizens, elected representatives and the government. As Clift (2003) states: a ‘Democracy Button’ should exist on all government sites. From there, citizens should be able to find explanations of government and agency processes and find out how they can affect those processes. … We must make a substantial investment to upgrade the information infrastructure of
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parliaments, legislatures, local councils, commissions, and task forces at all levels of government. We need systematic full access to legally public information. We need to create opportunities for citizen participation at each step and at every locale where official decisions are made. (p. 159) Government officials must consider the impact of not seeking public participation (Australia. Department of the Premier and Cabinet, 2002, 2003). Electoral success and authentic representation requires public opinions to be heeded. The perspective of accepting feedback only at particular points in time and only in relation to a specific public policy issue misses a critical point. All public submissions should be welcomed and valued, at any point in time. A wide range of prospective solutions is available for the asking. Blumler and Coleman (2001) summarize that: democratic participation will serve to strengthen representation by enabling elected representatives to access more readily the vast repertoire of experiences and expertise to be found amongst those they represent. … But realisation of this rich potential for democratic citizenship depends upon the existence of healthy and robust channels of public communication. (pp. 7-8).
FUTURE TRENDS Strong democracy relies on a dialogue between the government and citizens. Facilitating open communications through ICT is a future issue. As a democratic society, we need to discuss: the nature of democracy and how all our new technologies can be used to produce a more engaged and interactive citizenry. ... The challenge of governments in the next few years will be to set out mechanisms on how to embrace more of the public into the decision-making process. More
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importantly governments, especially the elected bodies, need to take a leadership role in engaging the public in a wide debate on how, or if, ICT can and should change our current dynamics of democracy. (T. B. Riley & C. G. Riley, 2003, pp. 4-5) There are numerous research opportunities and future issues within the domain of e-democracy. This research study touched on the issues associated with e-participation. The perspective of citizens seeking to participate in democracy by sharing their opinion must be respected. As well, the preference to not be challenged by diametrically opposed political views and potentially be subjective to uncivil dialogue is to be respected. Citizens have a right to share their opinion. The strength of our democracy depends on this communication. This research study has described the merit of e-democracy. Proceeding to develop e-democracy methodologies requires research into the benefits and barriers to adopting e-consultation and e-participation. As well, research should be undertaken into the cost/benefits for citizens, cost/ benefits for governments, and the impact of the digital divide. Resource usage (cost) and net benefit for citizens is a future issue as implementation of e-democracy is considered. Research into this issue will assist in clarifying the merit of citizens expending resources (time and energy). The cost of resource consumption is weighed against the perceived benefit of participating in an e-democracy initiative. Clift (2004) calls for qualitative and quantitative research projects measuring specific ICT-based strategies that are designed to achieve democratic goals. Research is needed to explore the online public sphere and potential for hosting deliberative democracy activities that are valued. We need to debate how to debate in the online environment. To date, e-consultation has added limited value. Citizens seem to prefer submission of comments rather than debate. Additional research is needed to determine how to improve
the human-computer interaction to achieve democratic goals. Citizens seem to prefer not to debate divergent political views. On the occasions where such a debate takes place, uncivil communications often transpires with substantial negative impact on the level of engagement of participants. Citizens have a right to be treated with respect. There is a research opportunity to determine the negative impact on citizens’ level of engagement, attributable to e-participation dialogues with impolite and uncivil communications. Future research is also required as the prevalence and impact of the digital divide. It is important to consider individuals who do not have access to e-democracy. Computer literate individuals with access to ICT may be a majority in many developed countries; however this elite group is a minority when the global population is considered. The digital divide contributes to the democratic divide. Access to political resources has implications for the efficacy of civic engagement. ICT promise to mobilize civic engagement and provide a public sphere for participation. This social benefit can alternatively be looked upon as a barrier. Depending on which side of the digital divide you are located, the balance of power may shift thereby further reinforcing global and social divisions (Norris, 2001). As Norris warns, “political resources available via the Internet will empower those with the resources and motivation to take advantage of them, stranding the disengaged farther behind” (Ibid., p. 217). Research is needed to determine the impact of the digital divide on the political rights of individuals without ICT access. As well, where access to ICT is available, research is needed to determine the level of ICT literacy. It is imperative that citizens have the skills to utilize ICT in an effective manner (Williamson, 2004). In summary, research is needed to determine what constitutes effectiveness in the context of public participation (Abelson, Forest, Eyles, Smith, Martin & Gauvin, 2003). The methodologies should be systematically assessed against
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evaluation criteria to determine the optimal approach for a particular society. The society under consideration can be, amongst innumerable permutations, a local community, province, nation, or all nations. Globalization is a future issue impacting e-democracy. The global society needs to find “an architecture of benevolent, civic interdependence” to democratize globalization (Barber, 2004). Research is needed to determine the net impact of the methodologies on the civility of society, citizen engagement in public participation, perception of government legitimacy, citizens’ level of trust in government, government accountability and transparency, and the perception of citizens’ influence over public policy decision-making. A richer body of research addressing theory and practice of e-democracy is needed. The collection of this research to be shared amongst a community of practice will also help promote the shared goal of engaging public participation (Eusko Legebiltzarra Parlamento Vasco, 2006).
subordinated to our democratic ends. The quality and character of our political institutions and the character of citizens will determine if ICT serves to strengthen democracy (Barber, 1998). The question of how ICT should be used to expand the role of citizens in providing input has been expressed in connection to various e-democracy methodologies. I subscribe to the summary provided by Macintosh (2004) as key objectives for e-democracy:
CONCLUSION
Barber (1984) would argue that the author should take a stronger approach to democratic participation. E-consultation, in his perspective, should give way to the stronger model of e-participation. A strong democracy requires an open exchange of opinions to determine the common interest. A stronger democracy requires greater civic engagement and civic participation to “thicken thin democracy with a critical overlay of participatory institutions” (Barber, 2003, p. xvi). The ultimate goal is to use ICT to improve representation and decision-making through strengthened democratic participation. E-consultation is an important development to support citizen engagement. It is through this communication process that respect is conveyed, positions are understood and an elected official can legitimately stand as a representative for constituents. Time’s person of the year for 2006 is you
The goal of this research study is to critically assess credible research to determine the why and how ICT can be utilized to expand the role of citizens in providing input to government representatives. The question of why ICT should be used to expand the role of citizens in providing input has been expressed in connection to political theory and the healthy functioning of a representative democracy. E-democracy provides citizens with a venue to share their perspective through ICT. Drawing on the concept of strong democracy, communication channels should be strengthened for the betterment of the democratic society. Edemocracy provides a means to achieve this goal. Providing an online means of communication can strengthen the partnership between government representatives and citizens. ICT must be
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1. 2.
3.
4.
Reach a wider audience to enable a broader participation. Support participation through a range of technologies to cater for the diverse technical and communicative skills of citizens. Provide relevant information in a format that is both more accessible and more understandable to the target audience to enable more informed contributions. Engage with a wider audience to enable deeper contributions and support deliberative debate.
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(Grossman, 2006). E-democracy can achieve this recognition of individuals as valuable contributors to the future of democracy. At this preliminary stage in the maturity of e-democracy, it is difficult to envision how quickly e-consultation and e-participation will become more commonplace. Numerous efforts from within various disciplines are required to facilitate the dispersal of e-democracy initiatives and recognition of the benefits associated with democratic participation. Simply put, ICT must be developed to facilitate democratic representation. Governments must direct financial and human resources to develop tools, pilot projects and evaluation exercises facilitating the input of citizens. Governments must provide tools to support online communications with citizens. Citizens must have access to computers and computer literacy skills to participate in e-democracy initiatives. The value of citizen engagement must be recognized and supported through the efforts of both governments and citizens communicating through e-democracy. The melding of democratic rights and ICT tools is an issue that holds tremendous potential for the betterment of society. The future of e-democracy envisioned by Clift (2004): will be determined by development of a cookbook, supported by research, with the best e-democracy recipes and notes on regional and cultural specialization. This cookbook will only feed citizens hunger for more meaningful and effective participatory governance if the cookbook is used in a kitchen of democratic intent. (p. 6) E-democracy holds tremendous potential for governments and the governed. ICT has profoundly changed the way we communicate. Furthermore, it has affected nearly every aspect of our existence to change our way of life (Buquicchio, 2007). The impacts of e-democracy and associated ICT tools are yet to be fully comprehended and are undergoing rapid technological change. With research and analysis, we can harness the potential and
take steps toward the perceived optimal outcome. Further research efforts are needed, projects need to be undertaken and evaluated, and evaluations need to be shared so that future initiatives have a better chance at achieving their goals. With the speed of technological change, e-democracy promises to bring innovative enhancements to relationships between citizens and their government and constituents and their elected representative (Micallef, 2007). The Internet is a powerful means to support citizens’ participation in a democratic society. Fenchurch astutely characterized the edemocracy context as follows: The Net is the world’s only functioning political anarchy but it could soon become a major tool for democracy. By allowing anyone, everywhere access to the information and opinions of anyone else, anywhere else, a morsel is being given to mankind with one instruction: “Eat Me”, so that we may grow. (Street, 1996)
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Grossman, L. (2006, December 13). Time’s person of the year: You. Time. Retrieved on April 7, 2007, from http://www.time.com/time/magazine Hansen, K. M., & Andersen, V. N. (2004). Deliberative democracy and the deliberative poll on the Euro. Scandinavian Political Studies, 27, 261–286. doi:10.1111/j.1467-9477.2004.00106.x Horrigan, J., Garrett, K., & Resnick, P. (2004). The Internet and democratic debate: Wired Americans hear more points of view about candidates and key issues than other citizens, they are not using the Internet to screen-out ideas with which they disagree. Retrieved on April 7, 2007, from http:// www.pewinternet.org/PPF/r/141/report_display. asp
Lenihan, D. G. (2002a). Realigning governance: From e-government to e-democracy. Retrieved on April 7, 2007, from http://www.crossingboundaries.ca/files/cg6.pdf Lenihan, D. G. (2002b). E-government, federalism, and democracy: The new governance (Changing Government No. 9). Retrieved on April 7, 2007, from http://www.collaborativegovernment.com Local e-Democracy National Project. (2005a). Barriers to e-democracy: Local government experiences and responses. Retrieved on April 7, 2007, from http://www.icele.org/downloads/ Researchreport.pdf
Hume, D. (2006). From the system to citizen: New directions for democratic renewal (KTA Centre for Collaborative Government, Crossing Boundaries National Council No. 6). Retrieved on April 7, 2007, from http://www.crossingboundaries.ca/ files/kta_vol6.pdf
Local e-Democracy National Project. (2005b). Democracy, what does that mean? Young people’s views on democracy on and off line. Retrieved on April 7, 2007, from http://www.bristol.gov.uk/ ccm/content/Council-Democracy/Consultations/ e-democracy.en
Hurrell, C. (2005). Shaping policy discourse in the public sphere: Evaluating civil speech in an online consultation. The Electronic Journal of E-Government, 3, 67–76.
Local e-Democracy National Project. (2005c). E-democracy survey 2005: Local authorities experiences of democracy on and off line. Retrieved on April 7, 2007, from http://www.icele. org/downloads/e-DemSurvey.pdf
Institute on Governance. (2005). Roundtable on the democratic deficit: Citizen engagement and consultation report. Retrieved on April 7, 2007, from http://www.iog.ca/publications/2005_dem_ deficit_roundtable.pdf
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Local e-Democracy National Project. (2005d). E-methods for public engagement: Helping local authorities to communicate with citizens. Retrieved on April 7, 2007, from http://www.icele. org/downloads/eMethods_guide.pdf Local e-Democracy National Project. (2005e). From the ground up: An evaluation of community focused approaches to e-democracy. Retrieved on April 7, 2007, from http://www.icele.org/downloads/Ground_Up_revised_pf1.pdf Local e-Democracy National Project. (2005f). From the top down: An evaluation of e-democracy activities initiated by councils and government. Retrieved on April 7, 2007, from http://www.icele. org/downloads/Top_Down_revised.pdf Local e-Democracy National Project. (2005g). MicroDemocracy: Citizen engagement toolkit. Retrieved on April 7, 2007, from http://www.icele. org/downloads/SwindonHowtoGuide.pdf Local e-Democracy National Project. (2005h). What works: Key lessons from recent e-democracy literature. Retrieved on April 7, 2007, from http://www.edemocracyworks.co.uk/resources/ what%20works.pdf Longfield, J., & Bennett, C. (2003). Listening to Canadians: A first view of the future of the Canada pension plan disability program. Retrieved on April 7, 2007, from http://cmte.parl.gc.ca/cmte/ CommitteePublication.aspx?SourceId=37532 Lukensmeyer, C. J., & Brigham, S. (2005). Taking democracy to scale: Large-scale interventions for citizens. The Journal of Applied Behavioral Science, 41, 47–60. doi:10.1177/0021886304272656 Macintosh, A. (2004). Characterizing e-participation in policy-making. In Proceedings of the 37th Hawaii International Conference on Social Sciences. Retrieved on April 7, 2007, from http://0-ieeexplore.ieee.org.aupac.lib.athabascau. ca/iel5/8934/28293/01265300.pdf?tp=&arnumbe r=1265300&isnumber=28293
Micallef, I. (2007). Presentation by Ian Micallef, President of the Congress Chamber of Local Authorities, at the Symposium on E-democracy. Retrieved on April 7, 2007, from https://wcd.coe. int/ViewDoc.jsp?id=1121503&BackColorIntern et=e0cee1&BackColorIntranet=e0cee1&BackCo lorLogged=FFC679 Muhlberger, P. (2002). Access, skill, and motivation in online political discussion: The democratic digital divide. In Proceedings of the Prospects for Electronic Democracy Conference. Retrieved on April 7, 2007, from http://insitesinfo.org/Paper/ muhlberger.pdf Muhlberger, P. (2004). Access, skill, and motivation in online political discussion: Testing cyberrealism. In P. M. Shane (Ed.), Democracy online: The prospects for political renewal through the Internet (pp. 225-237). New York: Routledge. Muhlberger, P., & Weber, L. M. (2006). Lessons from the virtual agora project: The effects of agency, identity, information, and deliberation on political knowledge. Journal of Public Deliberation, 2(1), 1–35. Norris, P. (2001). Digital divide: Civic engagement, information poverty, and the Internet worldwide. Cambridge: Cambridge University Press. Organisation for Economic Cooperation and Development (OECD). (2001). Understanding the digital divide. Retrieved on April 7, 2007, from http://www.oecd.org/dataoecd/38/57/1888451. pdf Organisation for Economic Cooperation and Development (OECD). (2003). The e-government imperative. Paris: OECD. Papacharissi, Z. (2004). Democracy online: Civility, politeness, and the democratic potential of online political discussion groups. New Media & Society, 6, 259–283. doi:10.1177/1461444804041444
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Perez, O. (2002). Global governance and electronic democracy: E-politics as multidimensional experience. In Proceedings of the Prospects for Electronic Democracy Conference. Retrieved on April 7, 2007, from http://insitesinfo.org/Paper/ perez.pdf
Shulman, S. W. (2004). The Internet still might (but probably won’t) change everything: Stakeholder views on the future of electronic rulemaking. Retrieved on April 7, 2007, from http://erulemaking. ucsur.pitt.edu/doc/reports/e-rulemaking_final. pdf
Polat, R. K. (2005). The Internet and political participation: Exploring the explanatory links. European Journal of Communication, 20, 435–459. doi:10.1177/0267323105058251
Stair, R. M., & Reynolds, G. W. (2003). Principles of information systems, a managerial approach (6th ed.). Boston: Thomson Learning, Inc.
Queensland Government. (2003). Engaging Queenslanders: An introduction to community engagement. Retrieved on April 7, 2007, from http:// www.getinvolved.qld.gov.au/share_your_knowledge/resources/documents/pdf/Intro_CE.pdf Queensland Government. (2004). E-democracy policy framework. Retrieved on April 7, 2007, from http://www.getinvolved.qld.gov.au/share_ your_knowledge/resources/documents/pdf/edemocracy_pf.pdf
Stanley, J. W., Weare, C., & Musso, J. (2004). Participation, deliberative democracy, and the Internet: Lessons from a national forum on commercial vehicle safety. In P. M. Shane (Ed.), Democracy online: The prospects for political renewal through the Internet (pp. 167-179). New York: Routledge. Street, J. (1996). Remote control: Politics, technology, and culture. Citizenship and Mass Communication. Retrieved on April 7, 2007, from http:// www.psa.ac.uk/journals/pdf/5/1996/stre.pdf
Riley, T. B., & Riley, C. G. (2003). E-governance to e-democracy: Examining the evolution (International Tracking Survey Report 2003 No. 5). Retrieved on April 7, 2007, from http://www. electronicgov.net
Valeri, T., & Lenihan, D. G. (2003). Finding our digital voice: Governing in the information age. The crossing boundaries final report and recommendations. Retrieved on April 7, 2007, from http://www.crossingboundaries.ca
Rogers, E. M. (2001). The digital divide. Convergence: The International Journal of Research into New Media Technologies, 7, 96–111. doi:10.1177/135485650100700406
Welch, E., & Hinnant, C. (2002). Internet use, transparency, and interactivity effects on trust in government. In Proceedings of the 36th Hawaii International Conference on Social Sciences. Retrieved on April 7, 2007, from http://0ieeexplore.ieee.org.aupac.lib.athabascau.ca/ iel5/8360/26341/01174323.pdf?tp=&arnumber =1174323&isnumber=26341
Samuel, A. (2002). From digital divide to digital democracy: Strategies from the community networking movement and beyond. In Proceedings of the Prospects for Electronic Democracy Conference. Retrieved on April 7, 2007, from http:// insitesinfo.org/Paper/samuel.pdf
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Williamson, A. (2004). Getting ready for e-democracy: A five-stage maturity model for community ICT. Paper prepared for the Australian Electronic Governance Conference. Retrieved on April 7, 2007, from http://www.public-policy.unimelb. edu.au/egovernance/papers/42_Williamson.pdf
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Winner, L. (2003). The Internet and dreams of democratic renewal. In D. M. Anderson & M. Cornfield (Eds.), The civic web: Online politics and democratic values (pp. 167-183). Lanham, MY: Rowman & Littlefield. Witschge, T. (2002). Online deliberation: Possibilities of the Internet for deliberative democracy. Paper prepared for the Euricom Colloquium, Electronic Networks and Democratic Engagement. Retrieved on April 7, 2007, from http://baserv.uci. kun.nl/~jankow/Euricom/papers/Witschge.pdf Witschge, T. (2004). Online deliberation: Possibilities of the Internet for deliberative democracy. In P. M. Shane (Ed.), Democracy online: The prospects for political renewal through the Internet (pp. 109-122). New York: Routledge. Woo-Young, C. (2005). Online civic participation and political empowerment: Online media and public opinion formation in Korea. Media Culture & Society, 27, 925–935. doi:10.1177/0163443705057680 Zavestoski, S., Shulman, S., & Schlosberg, D. (2006). Democracy and the environment on the Internet: Electronic citizen participation in regulatory rulemaking. Science, Technology & Human Values, 31, 383–408. doi:10.1177/0162243906287543 Zheng, Y., & Wu, G. (2005). Information technology, public space, and collective action in China. Comparative Political Studies, 38, 507–536. doi:10.1177/0010414004273505
KEy TERMS AND DEFINITIONS Democracy: is defined as “government by all the people, direct or representative form of society ignoring hereditary class distinctions and tolerating minority views” (Sykes: 1982). It is “a relationship between representatives and represented that depends upon communication for its effectiveness” (Coleman, 2005, p. 1). Perez (2002)
describes democracy as “an attempt to forge a legitimate system of governance for a pluralistic society” (p. 1) E-Consultation/E-Participation: are terms used to distinguish two forms of e-democracy. E-consultation involves government-to-citizen and citizen-to-government dialogues. With e-consultation, there exists two-way communications to support information provision and feedback. E-participation involves multi-party communications. With e-participation, there exists multi-directional communications, such as online discussion boards (online forums) E-Democracy: is “a government in which the supreme power is vested in the people and exercised by them directly or indirectly through a system of representation using information technology tools to facilitate, improve and ultimately extend the exercise of democracy” (Caldow, 2004, p. 1). It is the convergence of ICT and democratic processes. E-democracy is founded on citizen participation through ICT to support legitimate representation of citizens in a democratic society. It is based on providing an online opportunity for citizens to obtain information about issues and express their position. Through online communications, society can be better reflected in the practices of public institutions that depend on communication with citizens for legitimacy E-Engagement: is used as synonymous with e-democracy. E-engagement and e-democracy are both used interchangeably to refer to the process of citizens’ political engagement and participation through ICT in the public policy process. In a democracy, this participation supports legitimate representation. Including citizens in the decisionmaking process involves information provision, the opportunity to voice opinions through ICT with elected representatives and government officials, and possibly the opportunity to dialogue with other citizens E-Government: Involves government-tocitizen online services. With e-government, the government provides services and program sup-
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port through online means. E-government relates to who provides services and how the services are delivered. An example of e-government services is the ability to apply for government programs through online forms. E-government also relates to the government’s provision of information. The ability to research policy issues is an important element of a democracy. Information provision
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respects the desire of citizens wanting to learn about issues and generate knowledge. From this knowledgebase, citizens can contribute to e-democracy by participating in policy decisionmaking Representative Democracy: A form of government in which citizens exercise their rights of citizenship through elected representatives.
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Chapter 15
Local E-Government Management
A Wider Window of E-Governance Hakikur Rahman Institute of Computer Management & Science, Bangladesh
ABSTRACT Despite the popularity, potency and perfection of electronic government (e-Government), it is yet somehow remain in uncharted territory for many countries in terms of implementing e-governance at the local government level. However, technology possess the potential for improving the way government works, and utilizing the newly evolved technology many countries have been engaged themselves for improving the way their citizens work. Local and national governments are trying to realize this potential by finding ways to implement novel technology in spearheading its utilization to achieve the best services for their citizens. They include awareness raising, knowledge acquisition, social networking, and mobilization in planning, developing, implementing, and evaluating local e-government initiatives to draw inferences and recommendations learning from local e-government pioneers across the globe. This chapter has tried to draw a line of reference by put forwarding the importance of local e-government organizational structure, and their supremacies in terms of utilization of information and communication technology (ICT). Along this context, the chapter has attempted to synthesize a few prospective local e-government scenarios, focus on their adaptation of ICT, puts forward recommendations to improve local e-government for better utilization of information services.
INTRODUCTION Governments throughout the world are in quest of finding ways to deliver public services more efficiently and effectively. Incorporation of electronic DOI: 10.4018/978-1-60566-671-6.ch015
governance (e-governance) in the local governments tier is an option often discussed, although the expectations often differ. For example, some expect service delivery costs to be reduced, many hopes for equitable provision of public services and others anticipate better planning across a metropolitan area. Various social and political motivations
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may also be reasons for the change as well. This chapter is intended to look into various issues of e-government at the local government levels, study the parameters for promotion of e-governance at the grass roots to yield positive economic benefits. In this aspect, there are no straight forward way of improving the e-government system at the local government level, rather many factors control the system, including the structure of the government (tiers of the government system), local demographics (population, size, density), set of responsibilities authorized to local governments and the homogeneity of preferences within the area (Commonwealth, 2004; Fox & Gurley, 2006). Nowadays, local e-government management includes the extended use of information and communication technologies (ICTs) within government for purposes of improving service delivery to citizens or to enhance back-office operations. The implementation of ICT for overall development and advancement of e-government strategies are likely to have a strong bias towards cities and local towns where most of the citizens reside. However, it has been observed that, at the national level and in the advantaged localities (central cities, capital cities, and urban areas) ICT’s are extensively used to address only key business processes. The national e-government policy does not always apply in devotion to the local government level. Even they are being applied; the policy can not avoid duplication of efforts, problems of interoperability, and inability to leverage economies of scale and security. The key components that drive the local governance and ICT’s remain access, content, citizen service, and economic and social development, and for proper implementation of the ICT strategies, the need for these initiatives targeting marginalized areas has also remained not properly identified. Furthermore, in spite of the local governments differ considerably in terms of capacity, content, service delivery, and effectiveness; they have to be dynamic and developmental due to their involvement in local economic development.
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Local governments need to take the role of the key player in developing integrated rural-based, citizen-centric, information-driven, user-friendly, easily-accessible, and dynamic e-governance system (CPSI, 2005; Samarajiva & Zainudeen, 2008). Typical services at the local government level incorporates: •
•
• • •
• •
• • • • •
• • • • •
Adults’/children’s social care (basic education, pension scheme, retirement plan, primary health, child mortality) Economic development (small and medium enterprises, growth centers, consumer commodity, VoIP, call centers, telecenters, multi-purpose information centers) Health and Education (nutrition, medicare, continuing education) Highways (toll centers, growth centers, village markets) Housing and Building control (land use planning, rural and sub-urban planning, zone plans, construction, maintenance) Roads and footpaths (mapping, planning, zone-plan, implementation, maintenance) Architecture, building control and design (sustainable operational policies and planning, standardization of policies and rules) Traffic and transportation (operation and management) Art galleries, Leisure, recreation and museums (infotainment, culture) Car parking (design, planning, implementation) Cemeteries Environmental health (awareness campaign and promotional activities on ecosystem management) Fire service (safety and security) Libraries (knowledge building, knowledge promotion, social networking) Parks and open spaces Police service (law and order) Tourism (promotion of local heritage,
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• •
sustainable eco-tourism) Trading standards (law, policy, consumer association) Waste collection and disposal (solid waste management), etc. (LGAR, 2006; Wasukira & Naigambi, 2002)
In an underdeveloped country scenario, health and education make up about 75% of all services provided by local governments. Other areas include fiscal decentralization, financial management and accountability, good governance and civic education, infrastructure development, communication and information system, capacity building of local governments, partnership building, institutional strengthening, coordination and integration (Fukao, 1995; Wasukira & Naigambi, 2002). Governance at the local level matters, and e-governance is a better way of providing government services to the common citizens. However, the method by which governments govern their communities, nationally, regionally and locally, forms an essential element in determining the outcomes which contribute to the quality of life of those communities. In this aspect, good governance, which is governance that allows the collective aspirations of citizens to be fulfilled effectively and efficiently, depends on the way in which public institutions are designed and operate. This includes institutions which balance the ability for citizens to exercise influence with the capacity to allow elected representatives to exercise leadership. The approach in which local government institutions develop and deliver services, and the structure of the local government sector, are matters of concern to all who take an interest in how public sector organizations can achieve effective community outcomes (MDL, 2006; McNabb, 2006). This chapter provides a brief overview on local government, discusses about structures of local government in a few countries, tries to synthesize common issues on local government management,
looks into parameters related to e-government at the local government level and discusses on issues related to promotion of e-governance services through ICTs at the grass roots, including various aspects of e-government readiness. Furthermore, the chapter has put forward a few recommendations to improve the local e-government system. The chapter ends with a conclusion after giving some future research hints in the aspect of strengthening e-government system at the local government level.
BACKGROUND Local government can be defined as a city, county, parish, township, municipality, borough, ward, board, district, sub-district, or other general purpose political subdivision of a state or a country1. In other words, it is a county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments, regional or interstate government entity, or agency or instrumentality of a local government; a tribe or authorized tribal organization, or native village or organization; and a rural community, unincorporated town or village, or other public entity, for which an application for assistance is made by a state or political subdivision of a state2. In general term, local government encompasses counties, cities, towns, municipal corporations, and other bodies that govern territorial areas smaller than the state or province or division or other defined geographical boundaries. The authority of these governing bodies is limited to their territorial boundaries. Also, local government authority is limited to subjects of local concern, such as zoning, land management, housing and building codes, and, sometimes, animal control3. It is the lowest level of formal state institutions, such as district-level officials or local, publicly accountable decision-making and service-delivery organizations constituted in accordance with
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national laws (such as in local elections). Local government structures take different forms in different countries and vary in their levels of accountability to local people or to immediate upper-tier of governments4. Local governments in different countries are primarily composed of provinces, districts, subdistricts, municipalities, villages and other forms of localities varying by geography, norms, culture, laws, jurisdiction, national integrity, political will and many other parameters. Fox & Gurley (2006:2) supported this by stating, ‘Local government size varies dramatically around the world’. The number and size of municipalities differ widely across countries and the differences could have important implications for whether consolidation would be desirable and beneficial. In Sudan, Côte d’Ivoire and the United Kingdom municipalities average more than 125,000 people. Those in many European countries have less than 10,000 people. Countries in South Asia differ considerably from this picture comprising millions of people in a city corporations or urban townships. As the focus of the chapter is on local e-government management and local e-governance, efforts have been given here to broadly define these terms in terms of their implications with ICTs. On one hand, e-government refers to the use of new ICTs by governments as applied to the full range of government functions. Particularly, the networking potential offered by the Internet and related technologies (such as Local Area Networks, Wide Area Networks, Metropolitan Area Networks, Wi-Fi Meshes, and, especially mobile computing) has the potential to transform the structures and operation of the government5. It is the process of transforming the governance system, so that the use of the Internet and electronic processes are central to the way that government operates6, and treated as the umbrella term that refers to the conduct of public sector processes, outputs and services through computer-mediated networks7. On the other hand, e-governance can be seen as a network of interconnected organizations
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(physically or virtually) to include government, business entrepreneurs, nonprofits, and privatesector entities. In e-governance there are no distinct boundaries8 among these interconnections or integrations. As an essential building block for e-government, inter-organizational information integration is vital for one-stop shopping for citizens. Simultaneously, integration of local government systems is needed for effective human services, healthcare, public safety, economic development, and homeland security at the grass roots (CTG, 2003). Furthermore, one of the main objectives of establishing local authorities is to provide the public more opportunities to participate in the decision making process regarding the management and development of their respective governing areas. In this aspect, it is assumed that the powers given to the authority of local government in local councils on local authorities have to be exercised in a lawful manner (responsive, transparent, and accountable) in local context. Thus the local commissioner of local government becomes the key official in advising the central authority or immediate higher authority to effect the vested powers of the local government authority (UNESCAP, 1999; Socitm, 2003). Four major themes may act as key to run a local government authority; such as leadership, communication and coordination, immediate risk management, and trust, confidence and transparency (CTG, 2003; Chutimaskul & Chongsuphajaisiddhi, 2004; Anttiroiko, 2004). The local e-government system may comprise of an on-line resource designed to assist electronic access to government delivery intermediaries; provide homogeneous linkage to technology, policy and organizational management; promote inter-organizational integration at the local level to information system development, management and institutional partnership; accommodate subsidies, grants and other facilities to empower local communities with greater autonomies; deliver efficient, citizen-centric and cost-effective contents
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to accelerate participation and partnership-based e-services; integrate communities, societies, and localities to local, national, regional and global e-government initiatives; produce strategic plan to support efficient delivery of government services; identify level of organizational readiness at the local context to prepare for the effectiveness and efficient service delivery; and lead toward the ultimate goal of transformation to offer better citizen services at the grass roots (CTG, 2002; 2003; Austin City Council, 2008; Hoogwout, 2003; Kolsaker, 2005; Perotti & von Thadden, 2006). Before going to the next section on study of e-government structures in several countries, if one would like to broaden the mental image on the meaning and application of e-government, it can be found that the meaning has been evolved over time, and application has been shifted over demand. Basically, e-government is about transformation of the government processes through the use of information technology and the Internet, as defined earlier. But, application of e-government is related to transforming the government processes, as how governments work, share information, and delivers services to external and internal clients by harnessing ICT to improve relationships with citizens and business and among various arms of government. It is also related to increasing the operational efficiency and automation. Hence, e-government creates a better opportunity to rethink business processes and reengineer the system to enable to be offered electronically through an on-line resource (UK Government 2002; 2003; Ferguson, 2005; Labelle, 2005; US Government 2006; Austin City Council, 2008; Rahman, 2008). Countries often consider merging of local governments as a means to lower service delivery costs, improve service quality, enhance accountability, improve equity or expand participation in government (Fox & Gurley, 2006). But, concept of e-government is to make them more independent, provide more autonomy, offer them more power
to act within, and formalize their institutional framework by upholding all the benefits of local government through elected representatives. These are supplementary issues that need to clearly justified, attended, and solved by proper authorization, experimentation and validation. Scope of this chapter will restrain inclusion of similar disputed issues and their justifications. These will demand further extended research on these issues and other concerns that may rise during the investigation. Furthermore, at the local government level, the system should incorporate more than traditional ICTs, or mere transformation of the government system, but provide insight at the conjuncture of these transformations accompanying diversified nature of localities, cultures, habits, economies, issues, politics, autonomy, trust, accountability, transparency, corruption, and many more. This chapter has tried to synthesize these facts learning from experiences in contemporary information dynamics across different local government systems and puts forward the realization that e-government is not about straight-forward transformation of the government system; rather it encompasses logical, physical, organizational and managerial aspects of the information dynamics.
MAIN THRUST From a functional point of view, local e-government may be divided into two main areas; use of ICTs in performing basic administrative, service and democratic tasks, and strategic information system development on policies and related citizen-oriented assessments (Anttiroiko, 2002). In this aspect, ICTs, related telecommunication and other digital networks are considered to be a major driving force of building information societies and economies. These are being increasingly recognized as new factors in improving traditional governance practices. Furthermore, at the local level e-governance appropriate use
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of ICT can enhance and support economic and social development, particularly in empowering officials and municipal representatives by ensuring linkages and networking, and timely, efficient, transparent and accountable services. Thus, local e-governance means exploiting the power of ICT to assist in transforming the accessibility, quality, closeness, and cost-effectiveness of public services and to facilitate rejuvenating the relationship among clients, citizens, business and the public bodies who work for the benefit of the system (Open Society Institute, 2007). In addition to being close to citizens and business, local governments constitute the main (or even unique) representation of the government. The relationship of citizens and local authorities tends to be one based on proximity, as the interests of all parties clearly entwined regarding issues related to public services, urban development, school planning, environmental concerns, and even local politics. Moreover, it is at the local level that the impact of ICTs on the relationship between government and citizens can be most effective (Misuraca, 2007). The increased relationship is an important element to enhance the government service delivery mechanisms, and it advances further through appropriate utilization of information technologies. Thus traditional methods are being eventually transformed into electronic means. While electronic service delivery is the main thrust of e-government policies at all levels, greater community contact is usually seen as more practical and desirable at the local level. In recent times, greater focus has been given to local e-government where a significant amount of ‘citizen to government’ or vice versa interaction takes place. Therefore, most of the local governments today are under influence to provide efficient and effective e-government information and services as a result of increased accountability and performance management (Shackleton, Fisher & Dawson, 2004). The aim is to intensify consumer’s demand and choice, increase local
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competition, reduce the cost of service delivery at the local level, and better functioning of the government system. However, at the local level, authority, activity and functioning of the local government are imperative. So far, the thinking of governments on whether to consolidate the local governments differs across countries. In some cases the national government considers whether to mandate consolidation, often across the nation, and in other cases a local decision is made that would only affect governments within a single confined area. The level and authority affect decision-making processes, diverse expected goals and differ political motivations (Fox & Gurley, 2006). Thus division of executive orders, level of the local governments, carrying out of executive powers, and above all role of the executive authorities factors most in the realization, implementation and operation of local e-government systems. Similarly, interventions taken by various governments to accomplish e-government varies in nature, depending on ground reality, political perseverance, economic strength, cultural acceptability, technological readiness and human adaptability. Henceforth, local e-government relies much on more in-depth intricacy of the governance systems, including basic livelihood infrastructures and government structure at the grass roots. This chapter would like to derive recommendations to promote e-governance at the local government level by synthesizing e-government structures and ICT policies of a few countries across the globe. Countries were not selected by any defined criteria, but at random with emphasize on introducing ICT enabled services at the peripheries. At the same time, a few of them are still struggling hard to achieve the ultimate success of e-government. As this is not an analytical study, mathematical modeling has not been adopted; rather empirical study has been conducted. The organizational structure of the government system has been highlighted with their probable
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activities and at the same time, their preparedness in ICT readiness has also been put forwarded to provide a rational mapping. At the end of this section, a few recommendations were drawn from this study to promote e-government at the grass roots, emphasizing incorporation of information and communication technologies for the government service delivery.
Sri Lanka The organizational structure of local governance consists of three legal instruments: the Municipal Council Ordinance, the Urban Council Ordinance and the Pradeshiya Sabhas Act. At present there are 18 Municpal Councils, 37 Urban Councils, and 256 Pradeshiya Sabhas. Local governments used to be divided into wards. Wards have been discontinued under the new proportional system. The composition of a local council is based on the total population of a local authority area and not on a ward basis9. Note: Population is the indicator of local authority area, not geographic boundary. The Government of Sri Lanka first recognized the need for the development of ICT through the National Computer Policy of 1983 (COMPOL), and this was the first attempt from the government that was taken by the Natural Resources, Energy and Science Authority of Sri Lanka (NARESA) on the instructions of the then President. A committee appointed by NARESA produced the National Computer Policy Report. The acceptance of the COMPOL report by the Government gave rise to the establishment of CINTEC by Act No. 10 of 1984 as the “Computer and Information Technology Council of Sri Lanka”, to function directly under the then President. Later on, the Science and Technology Development Act No. 11 of 1994 changed the name to “Council for Information Technology” but retained the acronym CINTEC. The “e-Sri Lanka”, project launched in November 2002 was tasked to develop an ICT Roadmap for
Sri Lanka. The e-Sri Lanka roadmap resulted in the implementation of the ICT Act No. 27 of 2003, which resulted in the establishment of the Information and Communication Technology Agency of Sri Lanka, (ICTA), repealing the relevant section of the Science and Technology Act which established CINTEC. The ICTA has been operational since 1st of July, 2003. The mandate of the e-Sri Lanka policy is to build a national information infrastructure, create a framework for the promotion of software and ICT enabled industries, re-engineering the Government and developing ICT-based human resources10. Note: Information infrastructure development, re-engineering of the government, and human resource development are basic ingredients of local e-government development. Furthermore, e-Sri Lanka has initiated a multiprong program targeting to promote peace, equity and growth that has been illustrated in Figure 1.
Republic of Korea The local government in Korea consists of 248 separate units. The local political system of Korea is broadly distributed into two categories: the general and the special. In Article 117 Paragraph 2 of the Constitution, it is stipulated that the types of local governments in Korea ought to be decided by the law. Based on this provision, the Local Autonomy Act acknowledges the general local governments to comprise of two tiers: the upper-level local governments (i.e., metropolitan cities and provinces) and lower-level local governments (i.e., cities, counties, and districts). There are two levels of local government, Upper-level (provincial) local governments and Lower-level (municipal) local governments11. Note: There are four tiers in the government system. The South Korean government adopted the first Master Plan for Informatization Promotion in June 1996, following the enactment of the Framework
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Figure 1. Multi-dimensional approach of the e-Sri Lanka that assisted in growth of local e-government in Sri Lanka (Adopted from Dewapura, 2008).
Act on Informatization Promotion in August 1995. To advance the goals of the first informatization plan, the government also established a national organization for planning and implementation. Later on, in March 1999, the government formulated the second informatization master plan called ‘Cyber Korea 21’, and in order to overcome the Asian economic crisis and transform the Korean economy into a knowledge-based one Cyber Korea 21 provides a blueprint for the new information society of the 21st Century. Korea’s third informatization master plan, ‘e-Korea Vision 2006’, embodies the belief that the promotion of informatization in all aspects of the society will lead to an increased effectiveness of all socioeconomic activities, higher national performance, and elevated quality of life12. Prime objectives of e-Korea Vision 2006 were: to maximize the ability of citizens to actively participate in the information society by utilizing ICT; to strengthen global competitiveness of the economy by promoting informatization in all industries; to realize a smart government structure with high transparency and productivity through informatization
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efforts; to facilitate continued economic growth by promoting the IT industry and advancing the information infrastructure; and to become a leader in the global information society by playing a major role in international cooperation (Lallana, 2004). Note: informatization, smart government structure, increased transparency, partnership promotion, and information infrastructure development are ingredients of strengthened local e-governance. e-Korea Vision 2006 incorporates various strategic implementation plan to strengthen South Korean e-governance at the grass roots, which is being shown in Figure 2.
Philippines Local government in the Philippines has its roots in the colonial administration of Spain, which lasted in the Philippines for over 300 years. The establishment of Cebu City in 1565 started the local government system. The legislative initiative promoting local autonomy was strongly
Local E-Government Management
Figure 2. Various steps of e-Korea visioning South Korean local government (Source: http://www.mic. go.kr/eng/res/res_pub_sep_ekv_2002.jsp).
supported by academics and public servants, who spearheaded the necessary reforms in changing the government structure and organization of local governments, and included new tasks to enable local governments to address a changing environment. The struggle for decentralization over the past 50 years culminated in the proclamation of the Local Government Code in October 1991. The structures of local governments are both governed by the Local Government Code and by local ordinance passed by the local government concern13. Note: Structure of the local government is essentially needed to be defined for allowing authenticated proclamations to be disseminated at the grass roots. The Philippine government launched the National Information Technology Plan for the 21st Century in 1998. In July 2000, a Government Information Systems Plan (GISP) was approved and adopted as a framework and guide for all computerization efforts in the government through the Executive Order #265. The GISP aims to create a system of governance leading to: faster and better delivery of public goods and services; greater transparency in government operations;
increased capacities of public sector organizations; and proactive participation of citizens in governance. In 2003, the Information Technology and Electronic Commerce Council (ITECC), the country’s ICT policy-making body, envisaged that as an e-enabled society where empowered citizens have access to technologies would provide quality education, efficient government service, greater source of livelihood, and a better way of life. More specifically, the policy adapted to: provide on-line government services to stakeholders; develop an IT-enabled workforce; develop the country as a world-class ICT services provider; create an enabling legal and regulatory environment; and provide affordable Internet access to all segments of the population (Lallana, 2004). In addition to these, the Philippine government created an e-Government fund in 2003. Under the 2003 national budget, the e-Government fund amounted to around 4 billion pesos. Furthermore, the creation of the Commission on Information and Communications Technology (CICT) in 2004 as the government’s primary policy, planning, coordinating, implementing, regulating and administrative entity to promote, develop, and regulate integrated and strategic ICT systems
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and reliable and cost-efficient communication facilities and services that are essential elements of the local government management14.
Pakistan Local governments in Pakistan exist under the supervision of the various provincial governments, where provincial governments have simply delegated some of their functions and responsibilities to local governments by the promulgation of ordinances. It was a new model of local government pioneered to ensure direct participation of the people in managing their own affairs through representative’s bodies set up down to the village level. There were two separate laws for rural (i.e. Basic Democracy Ordinance 1959) and Urban Councils (i.e. Municipal Administration Ordinance 1960). It established a four tier hierarchical system of local council throughout the country, namely the Union Councils (for rural areas), Town Committees (for urban areas), Tehsil Councils, and or District Councils and Divisional Councils. The Tehsil Council was the second tier above the Union Council. It was mainly concerned with the development activities in the proclaimed areas15. Depending on the specific circumstances, the district administration have been reorganized/ re-grouped into the following Offices and SubOffices with designated offering of services, as shown in Figure 3. Pakistan Telecommunications (Re-organization) Act was enacted in 1996, and Pakistan IT Commission was established in 2000. Eleven working groups were created under auspices of IT Policy 2000 with emphasis on e-government16. The e-Government Program was launched in 2001 with three fold objectives: to encourage ICT’s for enabling information and services delivery to the citizens in a cost effective manner; to initiate measures for reengineering of work flow in government
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departments enabling electronic services delivery to citizens for bringing efficiency in operation; and to bring transparency in government functions and access to information17. Promulgation of Electronic Transactions Ordinance in 2002 was another milestone for promoting economic activities at the grass roots strengthening the local government. Furthermore, Telecom Deregulation Policy was approved in 2003.
Nepal Nepal has a two-tier system of local governance; with village development committee (VDC) and Municipality as the lower tier, and district development committee (DDC) as the higher tier. In the case of DDCs and VDCs, there is a provision of classification on the basis of differences in terms of transportation, communication, education and health facilities (including population in the case of VDCs), but such classification has not been completed as yet. Furthermore, the classification does not include the functional bases such as work responsibility, fiscal authority, fiscal attempts and discipline. However, a municipality may be established in any area having access to facilities such as electricity, drinking water supply, roads and transport, education and communication18. Note: Basic human infrastructures are essential elements of the local e-government. Nepal’s Information Technology Policy was developed in 2000 with the aim to put the country on the global IT map by 2005. Its objectives included: making IT accessible to the general public and increasing employment through this means; creating a knowledge-based society; and establishing knowledge-based industries. Nepal’s IT plan also identified 16 activities that constitute its IT policy. These include declaring IT a policy priority; providing Internet access to all of the country’s Village Development Committees; computerizing the system in all government offices; developing
Local E-Government Management
Figure 3. Services offered by various office and sub-offices under the local government (Source: UNESCAP, 2003).
– with private sector participation – IT parks; promoting e-commerce and e-health; and enacting necessary laws. The action plan for implementing the IT policy includes: participation of the private sector in infrastructure development; infrastructure development; human resources development; dissemination of IT; promotion of e-commerce, and promotion of e-governance (Lallana, 2003; 2004). Note: For the promotion of e-governance at the local level, ICT policy should incorporate development activities at the village level.
China In 1954, the First National People’s Congress made the law The Organizational Rules of the Local People’s Congresses and Local Governments. Local people’s congresses, local people’s administrative committees, local people’s courts and local people’s procuratorates at various levels were established according to this law. The local people’s congress was the local legislative body, exercising legislative power; and the lo-
cal people’s administrative committee was the executive body, exercising administrative power at the grass roots. The people’s committee at provincial level consisted of departments such as civil affairs, finance, planning, food, public security, culture, education, health, agriculture and forestry, transport, commerce, industry, supervision, labor, water conservancy, and sports. The people’s committee at the autonomous regions and municipalities or cities also had almost the same functional organs similar to those of the provinces. Local governments, according to the Constitution and the related laws, are divided into three main types: local governments at different levels, autonomous governments of nationality regions and governments of special administrative regions. At present, the organizational system of local government is divided into four levels as follows: Provincial level, City level, County level, and Township level19. Note: Local government structures are dynamic and need to re-evaluated and adjusted according to the local demand.
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China’s commitment to e-enable the country is supported at the highest levels and represents a significant national investment in technology. A clear objective is to make China a major participant in the global economy. China’s efforts to connect all major centres with fibre-optic cabling is another clear example of the enthusiasm with which ICTs are being rolled out in that country. Experimentation in bringing relevant ICT-enabled applications to the people in rural areas is also evidence of the concern that ICTs be relevant to the needs of rural dwellers (Labelle, 2005). China is now experimenting with several models of ICT access at the rural and community levels20. In China, access to information about health has been demonstrated to be a priority in some of the poorer provinces.
Bangladesh
signed to facilitate good governance, e-commerce, and as well as e-learning. The human resource development focus of the national ICT policy is to develop ICT professionals and engineers to meet the demand for skilled ICT workers that is growing world-wide, especially for the global software and ICT-enabled services market (Sayo, Chacko & Pradhan, 2004). The National ICT Policy was adopted in October 2002. The Policy aims at building an ICT-driven knowledge based society by the year 2010 (initial target was year 2006). Among fifteen priority areas22: agriculture and poverty alleviation, health care, e-government/ e-governance, e-commerce, ICT infrastructure, training and human resources development, environment, social welfare, and regional cooperation are found to encourage local government initiatives to be flourished. Furthermore, ICT Act 2006 has been enacted on October 08, 2006; and formulation of rules and regulations are still going on. Very recently, the government has taken an initiative to formulate the national ICT Roadmap for Bangladesh under the Economic Management and Technical Assistance Program (EMTAP), managed by Bangladesh Computer Council with assistance from the World Bank.
The rural/regional local government, as proposed by the latest commission on local government in 1997 has four tiers: Gram (Village) Parishads (being reconstituted in 2003 as Sarkers) (40,392); Union Parishads (4451); Thana/Upazila Parishads (469); and Zila (District) Parishads (64). Urban areas have a separate set of local governments. The Bangladesh Census Commission recognized 522 urban areas in 1991 (with a minimum population of about 5000 or more), but only about 269 of the larger urban areas among these have urban local governments. The six largest cities have a City Corporation status, while the rest are known as Pourashavas or Municipalities, which again are classified according to financial strength21. Note: There are four tiers of local government structure existed in the country.
ICT Spending
In Bangladesh, the focus of capacity-building through ICT is on socio-economic development. Provision of nationwide infrastructure under a national ICT policy, spearheaded by a National ICT task force chaired by the Prime Minister, is de-
Despite the ICT investment boom in late 1980s and early 1990s, there was a dip period during the new Millennium. However, after quickly recovering, total ICT spending grew in 2003 and continued to grow. Miller (2004) predicted that
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In addition to definitive local government structures and enactment of relevant ICT policies to promote grass root governance, national spending on ICT is also an important element for the establishment and growth of strengthened local e-government. Before going to the recommendation section, this study would like to put forward a few insights related to this issue that seems to be pertinent.
Local E-Government Management
Figure 4. Global ICT Spending in US$ Billions (Adopted from Miller, 2004)
Figure 5. ICT Spending as a Percent of World GDP (Adopted from Miller, 2004)
global economic growth will support continuous ICT spending growth at least through 2007 as shown in Figure 4. He forecasted that from the trough of $US 2.1 trillion U.S. dollars in 2001, total ICT spending will be increasing to over $US 3.2 trillion in 2007. However, when viewed as a percent of total gross domestic product (GDP), it is clear that the ICT build up during the second half of the 1990s reached its pinnacle in 2000 with total ICT spending accounted for 7.4% of GDP. As ICT spending declined and grew slowly, its share of GDP dropped to 6.8% in 2003. In 2004, ICT’s share of GDP fell a little more before increasing to approximately 6.9% in the last two years of the forecast interval (Miller, 2004). (Figure 5)
According to WITSA’s biennial study (Digital Planet: The Global Information Economy, 2004), ICT spending is expected to grow faster than the global economy at approximately 8 percent a year from 2003 through 2007. The global economy at large is projected to grow 7.6 percent annually over that time. The WITSA projection follows a drop-off in global ICT spending from 2000 to 2001, marking a significant rebound in the last two years. However, America is expected to relinquish its lead in per capita spending to second-place after Switzerland in 2007, when the two nations are projected to spend $4,147 and $4,282 per capita, respectively. Asia is projected to be a powerhouse of global growth in ICT spending during that time, growing at a compound annual rate of 9.3 percent
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from $568.2 billion in 2003 to $811.1 billion in 2007. Eastern Europe will grow fastest among world regions at a pace of 11.9 percent annually, but will top out at just $68.8 billion in 2007. North America is expected to see the slowest growth rate at 6.7 percent, while Africa ranks third for anticipated pace of growth at 8.8 percent, ahead of Western Europe at 8.7 percent, the Middle East at 8.3 percent and Latin America at 6.8 percent (WITSA, 2004). To strengthen the above predictions, budget allocations of fourteen countries of Europe are being shown in Table 1, where it can be seen that most of them are allocating double digit figures for their ICT spending. Furthermore, Digital Planet (2008) states that moderate global economic growth and increased penetration will support expanding ICT spending growth at least through 2011, albeit it at a more subdued pace than the past few years. From the trough of $US 2.1 trillion in 2001, total ICT spending will more than double to $US 4.4 trillion in 2011, a compound annual growth rate of 7.7%
(see Figure 6). Adding to these, when viewed as a percent of total GDP, ICT spending remained relatively stable from 2003 to 2006. From 2007 onward, ICT spending as a percent of GDP will trend downwards; reaching 6.3% by 2011 (see Figure 7).
Observations A three prong approach may simplify delegation of local e-government at the grass roots, such as a merit is made between access policies (aimed at improving access to ICTs for all citizens), content policies (directed to improve the use of ICTs in the city administration and semi-public domains) and infrastructure policies (to improve the provision of broadband infrastructure) (Berg, Meer, Winden & Woets, 2006). In this respect, incorporation of parties actively involved at the grass roots governance processes should be involved. Furthermore, to strengthen local e-government management at the grass roots, three dimensional approach, as suggested by Austin City Council (2008) need
Table 1. Local budget allocation of European Countries (Source: MDL, 2006) LOCAL BUDGETS IN RELATION TO GROSS DOMESTIC PRODUCT Country
Percentage of GDP
Austria
12.71
Denmark
19.90
Finland
18.00
France
5.54
Germany
8.12
Iceland
9.10
Latvia
12.45
Lithuania
13.10
Luxembourg
9.92
Netherlands
13.30
Norway
18.90
Sweden
27.50
Switzerland
10.80
United Kingdom
11.00
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Figure 6. Global ICT Spending (US$ Trillions) (Adopted from Digital Planet, 2008)
Figure 7. Global ICT Spending at a Percent of World GDP (Adopted from Digital Planet, 2008).
to be replaced by a four dimensional approach as shown in Figure 8. This study observes that a successful egovernment system should have the following characteristics: • • •
• • •
•
Able to meet realistic objectives of the egovernment system; Able to anticipate emerging technologies and respond accordingly; Able to contribute in policy formulation and implementation through grass root stakeholders; Able to set up a dependable information system; Able to resolve emerging paradox of knowledge superfluity; Able to keep updated with most recent information and present them in user-friendly format; Able to provide appropriate information at minimum effort and search;
• • •
•
• • • •
Able to produce knowledge from the acquired information; Able to accommodate open source technology; Able to produce confidence among stakeholders enabling atmosphere for attracting investment (local, foreign); Able to promote partnership among government, non-government and private entrepreneurs; Able to establish stable policies, planning and framework; Able to promote financial transactions leading to e-commerce; Able to promote competency among institutions; and Able to enhance education system leading to e-learning.
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Figure 8. Increased partnership at the local level incorporating all stakeholders (Adopted from CTG, 2002)
Observations related to logical infrastructure Recent studies indicate that governments are saving up to 70% on the cost for providing services by moving them online compared to the cost for providing the same services in traditional ways (face to face, telephone, mail, etc.). Moreover, this figure does not include costs incurred by the users for: taking a day off from work, driving, traffic congestion, fuel cost, parking, waiting in queue, hiring special staff to create, file, track and followup on business to government transactions. In this context, e-government portals have evolved to aid cities in reaching the transformation stage, which is the ultimate goal for local e-government development. A 2000 study by the Gartner Group included a model that has four stages of e-government development. The model considers the level of information technology used by the government to relay information online. Moreover, cities or municipalities can progress through the stages of development by expanding upon their service delivery modes (Ridley & Nolting, 2003; Austin City Council, 2008). An enterprise-wide approach, using standardized policies can aid in implementing cross-
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organizational solutions. Instead of launching new online services on an organization-by-organization basis, an enterprise-wide approach can be taken at the local level by aggregating services across organizations and accessible through a common web portal. There is now a significant and growing interest in using portal technologies to deliver e-government by bringing together in one easyto-use accessible place for all the information and services that government provides. A portal is a focal website that acts as a window to an array of online content. Portals are comprehensive and integrated to provide the most usability to a varied set of users with nominal clicks of the mouse button. In this way, a wider window of information will be open and promotion of e-governance will be accelerated. Furthermore, the web site could be made dynamic and user-friendly. As the Internet is expanding and evolving, web sites are becoming huge, interactive, and complex. With this increased complexity and hugeness, web content management is shifting from static to dynamic techniques. CTG (2000) has been engaged in establishing e-governance technologies for many years and currently bringing the latest thinking in dynamic web technology to a diverse audience
Local E-Government Management
of public sector information technology professionals via a presentation series entitled XML (eXtensible Markup Language): From Static to Dynamic Web. The series explains the challenges of cutting-edge Web site management involving content, layout, site map and style using XML. A simplified picture as shown in Figure 9 illustrates how the XML can convert content to more user friendly formats. Moreover, using electronic communication based social networks; different working groups can be established that can promote better interactions among the grass roots stakeholders and lead to increased e-governance activities at the local government levels. Figure 10 is showing a collaborative approach between the local government and the central government through forming working groups. The more this sort of interactive interactions could be increased, the more the e-governance process at the local level would widen.
Observations related to physical infrastructure In order to achieve maximum capabilities of ICT tools in E-government practice it is necessary to adjust their organizational structure and usage leading to: actual legal and socioeconomic context
in which strategic development planning process is to be performed; pragmatic demands that managing of local development has to be fulfilled; include all participants in local management process; and strengthen institutional capacities and procedures (Lalovic, Djukanovic & Zivkovic, 2004). However, it has been observed that only small percentage of the local governments could meet the criteria for effective e-government management including: leadership, strategic planning, performance measurement and market promotion. In order to be successful, local e-government objectives require strong leadership that champions e-government and works to increase acceptance among stakeholders. In addition to having a local strategy, individual organizations should also include local e-government approach in their strategic plans to ensure each employee is continuously looking for ways to improve processes and service delivery. Regular performance measures are also essential for evaluating whether the particular e-government system (segment of the system) is cost efficient, properly serving customers, and being used effectively (Austin City Council, 2008). Aiming at a fully functioning information system, the following basic technical preconditions should also be met: establishment of a local network connecting all the computers in the local administration, or at least one computer in each
Figure 9. Use of XML to create user friendly contents (Adopted from CTG, 2000)
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Figure 10. Organizational structure of small municipalities for cooperation with central government IT-management structure (Adopted from Open Society Institute, 2007)
organization or office should be in the network; configuring a central server to host the content, information and supporting software locally; and affordable Internet connection according to the needs of the local government network and its financial capacity. Large municipalities might use a dedicated line (broadband, fiber, ISDN or other available high speed connectivity), providing twenty-four hour connection with the Internet. Smaller local governments may afford to a more limited connection at affordable price. Central government may subsidize the entire operation for a while till the local e-government system becomes self sustainable. However, to implement a pragmatic information system at the local government level, the following information infrastructure could be thought as a pre-requisite: at least one computer in each department or office (simple PIII or PIV or even clones); one high-end computer (may be a Pentium V) functioning as server; personnel with minimum working knowledge on computer basics and Internet; an user-friendly operating system (perhaps, open source) and a operational manual; at least a team of experts (preferably local) to conduct the basic systemic analysis, install the model, and train the officials (train the trainers). Furthermore, depending on the governance structure, it has been observed that tiers of the government system may range from three tiers to four tiers. For sake of better governance, a five tier system may be sought of, as depicted in Figure 11.
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Observations Related to Financial Infrastructure It has been observed that the total ICT spending will enter a period of moderating growth through 2011. The slowing economies of developed nations will begin to cool their demand for ICT products. The weak US dollar will fuel ICT exports from the US, especially to emerging economies (WITSA, 2008). Moreover, WITSA (2004) forecasted, in terms of ICT spending: Bangladesh is expected to grow at the highest rate worldwide from 2003-2007, with an annual compound growth rate of 20 percent from 2003-2007; Iran ranks third with a rate of 14.5 percent; China is sixth at 13.9 percent; and India rounds out the top ten at 13.4 percent; China is projected to be the fastest growing top ten ICT spender, with a compound annual growth rate of 13.9 percent from 2003 through 2007; Second place South Korea is the only other top ten nation expected to grow at double digits, with a compound annual growth rate of 11.4 percent, more or less the forecast still persists. WITSA (2008) predicts, moderate global economic growth and increased ICT penetration will support expanding ICT spending growth at least through 2011, albeit it at a more subdued pace than the past few years.
Observations Related to E-Government Readiness It has been observed that, despite Bhutan (established Telecom Act in 1999, Bhutan Information
Local E-Government Management
Figure 11. A five tier local e-government organizational structure (Source: Author)
technology Strategy in 1999 and ICT Master Plan in 2001; UN E-government readiness index in 2008 is 0.307423), Nepal (established Telecommunication Regulatory Act in 1997, national Communication Policy in 1992, adopted Telecommunication Policy in 1999, IT Policy in 2000; UN E-government readiness index in 2008 is 0.2725), Bangladesh (established Bangladesh Telecom Regulatory Council in 2001, ICT Policy in 2002; UN E-government readiness index in 2008 is 0.2936), and countries in South Asia and Sub-Saharan region could not implement local e-government in practice. However, Singapore (established National Computerization in 1980, National IT Plan in 1986, Electronic Transaction Act in 1998, IT2000 in 1992, Connected Singapore Master Plan in 2003; UN E-government readiness index in 2008 is 0.7009) has taken lead in implementing local e-government system in Asia. On the other hand, Pakistan (established Pakistan Telecommunication Re-organization Act in 1996, Electronic Transaction Ordinance Promulgated in 2002; UN E-government readiness index in 2008 is 0.316), and Philippines
(established Public Telecommunications Policy Law in 1995, Electronic Commerce Act of the Philippines in 2000; UN E-government readiness index in 2008 is 0.5001) are struggling hard to implement e-government system at the grass roots. Their Digital Access Index (DAI) are 0.24 and 0.43 respectively (ITU, 2003). But, India (established National Telecom Policy in 1994, National Task Force on Information Technology and Software Development was set up in 1998, New Telecom Policy in 1999, Information Technology Act was notified and brought into force on 17 October 2000, Broadband Policy in 2004; UN E-government readiness index in 2008 is 0.3814) is leading in South Asia by achieving DAI of 0.32. Numerous grass roots manifestations are the stronghold of local e-governance in India. Following all these observations, one can infer that incorporating appropriate policies, promoting enabled ICT environment, and adopting empowered governance structures at the grass roots e-government can be promulgated broadly, and ultimately a balanced local e-government system will encourage increased e-services leading to
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e-democracy of a nation (with perfection in logical, physical, and financial accomplishments), as shown in Figure 12.
Challenges The relationship between local government structure and corresponding performance is theoretically and empirically intricate. Local government structure itself is multi-dimensional: fragmentation and deliberation may vary both vertically and horizontally. A structural change on any of the existing dimensions may have a number of theoretical effects and the net outcome may not precisely be predictable at all. However, the empirical evidence suggests that local government systems which are fragmented and deconcentrated are generally associated with lower spending and greater efficiency (MDL, 2006). Concurrently international organization and development practitioners identify coordinated portal solutions and extensive back office reorganization as key enablers of grass roots e-government, but in practice such substantive change requires a significant amount of planning, coordination, resources and time. Given the political commitment of delivering and being seen to deliver outcomes within an elected term, most of the time these requirements are being treated as luxuries. Moreover, the expectation that flexible ICT systems will join up associated organizations at a minimum cost with no disruptions to the existing services in a very short time may not be that easy practically. Therefore, local government is faced
with the challenge of constructing a generalized e-government platform which not only delivers its own services, but also works in partnership with a range of quasi-private agencies to provide services in combined efforts and low costs. It has also been a challenging fact that there may be a hidden motive that closeness to the community may not only encourage greater stakeholder participations, but also provide a useful means of exerting pressure for service improvements upon public sector managers, professionals and front line staff (Shackleton, Fisher & Dawson, 2004; Kolsaker, 2005). This discourages politicians to enter very closely into any system that are very near to the grass root participants. Additionally, a general lack of commitment is found with local e-government strategies (JuanaEspinosa, 2006), where political accountability is a process through which citizens elect their officials to account for their behavior and performance (Aucoin & Heintzman, 2000). Political accountability include ensuring representation of marginalized/vulnerable groups through reserved seats or quota systems; improving the quality of the electoral system with recall, write-in, and independent candidate options; establishing, monitoring, and enforcing transparent rules for financing local elections; reviewing and revising the role of campaign financing rules (that may favor centralized, established parties, and make it more difficult for local candidates or new parties to compete); and securing and strengthening the role of elected body (council) in overseeing local government operations. At the same time, political
Figure 12. Concept of Local E-government (Adopted from Open Society Institute, 2007)
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accountability measures allow for citizen-initiated legislation, referendum, or recall of elected public officials; establish procedures for public petitions to adopt, amend, or repeal an act, legislation, or executive order; empower citizens to demand public hearings on policy decisions and action; and institute citizen ombudsman offices in local governments (World Bank, 2007). With little or constricted support from the central government, local governments always struggle to provide citizens with adequate social services (USAID, 2006). To rectify this, local government authority should have more autonomy, in terms of administrative and financial aspects. Their ability to make, change, and enforce laws and regulations pertaining to local administrative affairs (i.e., on spatial and sector planning, environmental measures, and local economic development); enjoying a degree of autonomy over the local procurement process; control over local civil service and employment policies (World Bank, 2007) would remain as challenges due to many factors that need extensive study and research. Contrary to what is often thought, the biggest challenge when developing an information society does not lie in how to acquire the information technology together, but in shaping the organizational, legislative and fiscal framework of the local government to support the development of e-governance at the grass roots. The organizational model may offer the local governments a framework in which to carry out the decision-making processes and project management activities, related to e-government (Open Society Institute, 2007), but designing, adoption and implementation of technology model would remain as challenge in many countries. One challenge in implementing technology model is bridging the digital divide between urban and rural populations, men and women, and young and old. This requires innovative approaches to increase computer and information literacy, facilitate access to the Internet,
and demonstrate the economic value of using the Internet to citizens and businesses. Another challenge is the modernization of public sector infrastructure in terms of increased transparency and accountability, user-focused e-services, and increased efficiency and effectiveness. This challenge includes the development of e-government in local government and increased interactions among various levels of the government, as well as among service delivery agencies. Ensuring appropriate investment in local e-government with priorities remains other challenge from which the system should be evident that benefits are larger than costs (OECD, 2007a;b). Although the Web has become a major tool for delivering government services, many local governments have yet to obtain benefit from the cost savings and improved citizen communication and e-services due to improper financial and technical support, increased staff demands, and the difficulty of integrating e-government capabilities into existing information technology operations (ICMA, 2005). In general, public policy and decision-making at local level are relatively challenging and complicated tasks, which are basically characterized by un-structured decision support system and inadequate management, including un-structured data and processes. Moreover, due to the globalization of modern economy, social problems tend to become more and more multidimensional, and often cross the borders of a region or even a country. Therefore, the related issues have to be addressed through close collaboration among relevant public organizations from various administrative layers (e.g. central government organizations, regional administrations, prefectures, municipalities, local development organizations, employment organizations, social service delivery organizations, social security organizations, education organizations, research organizations, environmental organizations, civil society organizations, business associations, professional associations, etc.) and, more often, learning from
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success stories from other countries (international development agencies, UN agencies, international donors and partners, etc.). In addition to these, enhanced participation of citizens, enterprises and their associations in such tasks is highly desirable (Karacapilidis, Loukis & Dimopoulos, 2005).
FUTURE RESEARCH Better implementation of local e-government or local e-governance means utilizing the power of ICT to assist in transforming the accessibility, quality and cost-effectiveness of public service and to help revitalize the relationship among customers and citizens and the public bodies who work for their benefits. Planned e-governance and appropriate use of ICT at the local level can enhance and support economic and social development, particularly in empowering officials and municipal representatives by ensuring linkages and networking through timely, efficient, transparent, responsive, and accountable services. According to European researches (Open Society Institute, 2007) local governments in developed countries are offering up to 77% of public e-services. Often local government portal is the first step to reach even the central government services. Implementation of e-services and broadband strategy is another possibility to overcome problems of different social groups and remote areas. However, well-developed ICT infrastructure with intensive offering of e-services by the local government will remain as challenge for engaging large groups of active citizens into the decisionmaking processes and supporting development and implementation of proper e-democracy in the locality (Turner, 2004). Moreover, information society development at the grass roots is in large extent remains as an internal issue of local governments in comparison to the central government as local governments are more close to the citizens. Also, after decentralization of local government structures municipalities will be able to offer
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new, wider variety of services for their citizens. But, it may become a great challenge as a new comer to offer those services through progressive information and communication technologies, rather than the age old traditional way. These issues will need further attention and research in terms of developing new hardware platform, new software platform and new legislation. To meet the new requirements, an electronic platform needs to be developed, to: allow collection of personal information from the possession of national agencies to be available; allow different degrees of technological maturity among the various services; guarantee high levels of security; deliver high levels of availability; and publish open standards in terms of data format, information exchange, and levels of security. To address these challenges, designs have to be developed by incorporating technological, financial, organizational and institutional surroundings for implementing an integrated electronic services platform. Furthermore, to complement development of the integrated platform, procedures need to be redesigned, standardized, and digitized for a legally compliant process model with a highly calibrated defined structure (Inter-American Development Bank, 2006; Misra, 2008). Instead of local governments developing e-government applications in a potentially duplicative and isolated manner, central government should assist in promulgating standards and guidelines that encourage local government to collaborate on developing e-services and sharing databases and services across the network (OECD, 2007a;b). Future issues should also incorporate strategies to develop a robust broadband infrastructure with access to all, from all businesses, especially SMEs, to everyone in the community; ensure that the education and the skill base is there to develop and sustain the future workforce; tackle the ‘digital divide’ and ensure that the information society is open to all; create a business-friendly environment for e-commerce and e-business to develop and reach a critical mass, especially in terms of
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the digital content (Berg, Meer, Winden & Woets, 2006). In the future local e-government system, local autonomy should persist through participatory budgeting with enhanced participation from women and youth, NGO and civil society.
CONCLUSION The e-government system at the central should have a clear vision and priorities for local e-government; prepared for the emerging technologies; contain enough political will to lead the e-government endeavors; prioritize selection of e-government projects during implementation stage; competent in planning and managing them; able to overcome resistance from within the government; introduce appropriate monitoring, measurement, feedback and communication paths to follow up the progress of implementation; promote institutional relationship among all implementing partners, especially the private sector implementers; develop adequate human skills to manage the entire operational chain; and able to improve citizen participation in public affairs (Pacific Council, 2002). E-government is not something that the government can do alone. The private sector, in particular, entrepreneurs from the corporate sectors have a key role to play, from the vision/planning process through implementation, monitoring and evaluation. Citizens need to be treated as the e-government experts, as at the end of the day, e-government is meant to serve citizens. Hence it is critical, especially with projects designed to serve the public directly, to assess their requirements and solicit their input. Most importantly, e-government services should be piloted first with the full participation of local citizens before a government invests in or embarks on a sustainedscale, nationwide version of the project, despite the fact that this sort of project environment vary drastically from locality to locality. Without a form of prior pilot-and-citizen involvement scheme, local e-government project may be risky. Apart from proper designing, structuring,
and launching of an on-line resource, local egovernment initiatives involve much more than just a website. A June 2006 report, prepared for the Congressional Research Service by a research team from the University of Texas at Austin’s LBJ School of Public Affairs, identified a number of commonly-used factors that contribute to the functioning of state e-government initiatives. They were; appropriate strategies, adequate funding, authentic leadership, adoptive technology, and ample performance measurement (Austin City Council, 2008). Each stage of local e-government development should be built upon the previous one, until government reaches a new consensus for providing further improved e-services to citizens and businesses. Furthermore, local e-government programs need to be evaluated through public participation. This should be carried out keeping the fact that, access to public services locally is a necessary part of local e-government, but not sufficient. Rather, facilitating, encouraging, and intensifying openness and increased citizen involvement are fundamentals to local e-government. The entire evaluation process for judging the e-government system’s effectiveness or success needs to be carried out through participatory dialogues and interactions. Apart from these, transparent local e-government infrastructure (logical, physical, and financial) is a pre-condition for an effective e-government system at the grass roots. Finally, while talking about utilization of progressive ICTs for improving the local e-government systems, development of adequate human skill is extremely essential.
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Shackleton, P., Fisher, J., & Dawson, L. (2004). E-Government Services: One Local Government’s Approach, In Linger, H. et al. (Eds.) Constructing the Infrastructure for the Knowledge Economy: Methods and Tools, Theory and Practice, Springer, 2004 Socitm (2003). Managing e-government – a discussion paper, A Socitm insight publication, Socitm. www.socitm.gov.uk
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ADDITIONAL READINGS Anttiroiko, A.-V., & Savolainen, R. (1999). The role of local government in promoting IS development in Finland. Finnish Local Government Studies, 27(3), 410–430. Barber, B. (1984). Strong democracy. Participatory politics for a new age. Berkeley: University of California Press. Becker, T., & Slaton, C. D. (2000). The Future of Teledemocracy. Westport, CT: Praeger. Blank, J. L. T., & Knox Lovell, C. A. (2000). “Performance Assessment in the Public Sector.” In Public Provision and Performance: Contributions from Efficiency and Productivity Measurement (pp. 3-21), ed. Jos L.T. Blank. Amsterdam: Elsevier. Desai, N. (2005). Internet Governance: AsiaPacific perspectives Editor: Danny Butt (Foreword by Nitin Desai), UNDP-APDIP, Elsevier, 2005, 155 pages Gronlund, A. (2000). Managing electronic services. A public sector perspective. London: Springer. Gronlund, A. (Ed.). (2002). Electronic government: Design, applications & management. Hershey, PA: Idea Group Publishing.
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Gross, T. (2002). E-democracy and community networks: Political visions, technological opportunities and social reality. In A. Gronlund (Ed.), Electronic government: Design, applications & management (pp. 249-266). Hershey, PA: Idea Group Publishing. Harris, R., & Rajora, R. (2006). Empowering the Poor: Information and Communications Technology for Governance and Poverty Reduction - A Study of Rural Development Projects in India, UNDP-APDIP, Elsevier, 2006 Heeks, R. (2001). Reinventing government in the Information Age. International practice in ITenabled public sector reform. London and New York: Routledge. Available online at: http://idpm. man.ac.uk/idpm/rgia.htm. Lovell, C. A. K. (2000). “Measuring Efficiency in the Public Sector.” In Public Provision and Performance: Contributions from Efficiency and Productivity Measurement (pp. 23-53), ed. Jos L.T. Blank. Amsterdam: Elsevier. Macintosh, A., Davenport, E., Malina, A., & Whyte, A. (2002). Technology to support participatory democracy. In A. Gronlund (Ed.), Electronic government: Design, applications & management (pp. 226-248). Hershey, PA: Idea Group Publishing. Norris, P. (2001). Digital divide? Civic engagement, information poverty & the Internet in democratic societies. Consulted in May 28, 2003. Available online at: http://ksghome.harvard.edu/~. pnorris.shorenstein.ksg/book1.htm. Obi, T. (2007). (Ed.) E-Governance A Global Perspective on a New Paradigm Volume 1 Global E-Governancees, August 2007, IOS Press Stephens, G. R., & Wikstrom, N. (2000). Metropolitan Government and Governance: Theoretical Perspectives, Empirical Analysis, and the Future. New York: Oxford University Press.
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KEy TERMS AND DEFINITIONS E-Government: Refers to the use of new information and communication technologies (ICTs) by governments as applied to the full range of government functions. E-Governance: E-Governance is a network of organizations to include government, nonprofit, and private-sector entities Local Government: The lowest level of formal state institutions, such as district-level officials or local, publicly accountable decision-making and service-delivery organizations constituted in accordance with national laws (such as in local elections). It is a city, county, parish, township, municipality, borough, board, district, or other general purpose political subdivision of a state. Local Government Institutions: Local government institutions may comprise of municipal governments, boards of education, district health boards and a variety of other special purpose institutions. These institutions provide services needed by their residents, such as land use planning, roads, utilities, public transit, economic development promotion, education, health services, and infotainment. Local E-Government: Local e-government could be seen as the improvement, effectiveness and efficiency of local government in leading and delivering services to all communities through the use of ICTs with a vision of central and local government working in partnership to deliver better outcomes for people and places, including real challenges for local government in terms of political and managerial leadership, thus enhancing citizen engagement and participation for better service delivery E-Government Management: Management of e-government activities for improved socioeconomic environment, ideology, public affairs, social life, and promote innovation in sustainable e-government system for the government. In this aspect, information technology may effectively
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support the government’s innovation activities to establish e-government in innovative ways. Information Infrastructure: An information infrastructure is defined by (Hanseth, 2002) as “a shared, evolving, open, standardized, and heterogeneous installed base” and by (Pironti, 2006) as all of the people, processes, procedures, tools, facilities, and technology which supports the creation, use, transport, storage, and destruction of information. E-Government Structure: Different layers of the e-government services for the development of an electronic infrastructure to support e-protocol, e-applications / e-petitions and internal organizational function of the public organization.
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Google definition http://www.fema.gov/oer/reference/glossary.shtm http://from-feral2domestic.com/legal-terms. html http://www.idrc.ca/en/ev-105151-201-1DO_TOPIC.html http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTINFORMATIO NANDCOMMUNICATIONANDTECH NOLOGIES/0,,contentMDK:21035032~ pagePK:210058~piPK:210062~theSiteP K:282823,00.html www.agimo.gov.au/archive/publications_ noie/2001/11/ar00-01/glossary www.nrw.qld.gov.au/about/policy/documents/33/definitions.html
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http://en.wikipedia.org/wiki/E-Governance http://www.unescap.org/huset/lgstudy/newcountrypaper/SriLanka/SriLanka.pdf http://www.ifip.or.at/minutes/GA2005/ Rep_SriLanka1.pdf http://www.unescap.org/huset/lgstudy/newcountrypaper/RoK/RoK.pdf http://www.mic.go.kr/index.jsp http://www.unescap.org/huset/lgstudy/newcountrypaper/Philippines/Philippines.pdf Executive Order No. 269, ‘Creating the Commission on Information and Communications Technology’, available at http:// www.ops.gov.ph/records/eo_no269.htm http://www.unescap.org/huset/lgstudy/newcountrypaper/Pakistan/Pakistan.pdf http://www.apdip.net/projects/dig-rev/info/ pk/ http://www.apdip.net/projects/dig-rev/info/ pk/ http://www.unescap.org/huset/lgstudy/newcountrypaper/Nepal/Nepal.pdf http://www.unescap.org/huset/lgstudy/newcountrypaper/China/China.pdf Wang, D.D. ‘Note to the UNDP SURF-IT discussion list under the heading: ICTD practice note on rural poverty’, First draft, October 8, 2003. http://www.unescap.org/huset/lgstudy/newcountrypaper/Bangladesh/Bangladesh.pdf http://www.sdnbd.org/sdi/issues/IT-computer/itpolicy-bd-2002.htm http://www.itu.int/newsroom/press_releases/2003/30.html
This work was previously published in International Journal of Information Communication Technologies and Human Development, Vol. 1, Issue 2, edited by S. Chhabra and H. Rahman, pp. 48-76, copyright 2009 by IGI Publishing (an imprint of IGI Global).
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Chapter 16
E-Business Perspectives through Social Networks Mahesh Raisinghani Texas Women’s University, USA Elon Marques University of Dallas, USA
ABSTRACT This chapter is focused on some of the current research being conducted in the field of social network theory. The importance of studying the social network concepts is attached to a better understanding of individuals and how and why people interact with each other, as well as how technology and the Internet can affect this interaction. The social network theory field has grown significantly in the last years, and the use of the Internet and advanced computing technology has contributed to new research in this growing area. The first aspect to be covered is the social network theory and some applications for social networks. Also virtual communities, as well as the control over communications tools through social networks will be discussed. Finally, the technology side of social networks will be presented, as mobile social networks, internet social networking systems and e-business correlation, social network software and future trends of social networks. The main objective of this research is to illustrate the correlation between electronic (e-) business (of which e-government is a subset) and social networking.
INTRODUCTION: SOCIAL NETWORK THEORy A network is a set of objects or nodes mapped according to the relationship between these objects. For social networks, the objects refer to people or groups of people. A social network is a map representing the relationships among individuals, DOI: 10.4018/978-1-60566-671-6.ch016
indicating the ways in which they are connected according to their social familiarities. The networks of communication and interpersonal relationships that develop naturally within an organization form channels for the flow of organizational knowledge and can promote organizational learning, innovation and change management (Smith and McKeen, 2007). According to the Organization for Economic Co-operation and Development (OECD, 2008a),
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E-Business Perspectives through Social Networks
Table 1. 1996
2008
2020
Infrastructure
• Secure private networks (SWIFT) • BitNet • Infancy of the www
• Convergence • Mobile/ubiquitous internet • Broadband • Digital divide issues remain
• Ubiquitous broadband ? • Commoditized network ?
Information exchange
• EDI • ‘unsecured’ packet switching
• Web-based secured (https) • Open networks • Web 2.0 ?
• Two-tier internet ? (security, pricing)
E-government purposes
• Public spending • Shared data bases
• Public spending • Public sector reform • Better government • Governance • Economic development
• Public spending • Local vs central govt • Socio-economic efficiency • The death of e-govt ?
E-government drivers
• Public sector • IT departments • Finance/accounting
• Public sector (+ PPPs) • Reform/change agents • Government as a whole • Local governments
• Mostly PPPs and ‘franchise’ models • Internationalized • Localized
E-government concerns
• Security • Sharing of info resources and equipment
• Security/privacy • Institutions/enterprise architecture • Standards/interoperability • ROI
• Security/privacy • Innovation/change mangt • Transparency/Governance • Democracy/empowerment • Democracy/empowerment • Inclusion (worldwide) • Skills (worldwide)
Adopted from: http://www.oecd.org/dataoecd/42/57/40304889.pdf, e-leaders conference 2008 The Hague -6-7 March 2008, Where is egovernment going in 2020?, Bruno Lanvin, eLab, INSEAD
broadband plays a critical role in the workings of the economy and society. It connects consumers, businesses, and governments and facilitates social interaction. Hence, broadband policies are now a vital instrument to ensure the competitiveness of OECD countries and to address pressing societal concerns. The following OECD broadband statistics serve as a rationale for examining Internet based social networks and e-government readiness (OECD, 2008b): The United States is the largest broadband market in the OECD with 75 million subscribers. US broadband subscribers consistently represent 30% of all broadband connections in the OECD. The number of broadband subscribers in the OECD reached 251 million by June 2008, an increase of 14% from June 2007. This growth increased broadband penetration rates to 21.3 subscriptions per 100 inhabitants, up from 20%
in December 2007. Denmark, the Netherlands, Norway, Switzerland, Iceland, Sweden, Korea and Finland lead the OECD with broadband penetration well above the OECD average, each surpassing the 30 subscribers per 100 inhabitants threshold. •
The strongest per-capita subscriber growth over the year was in Luxembourg and Germany. Each country added more than 5 subscribers per 100 inhabitants during the past year. On average, the OECD area increased 2.7 subscribers per 100 inhabitants over the year.
Table 1 illustrates the developments in egovernment from1996-2008 versus 2008-2020. Social networks operate at many levels, such as youth, families, students, organizations, and are represented by some small groups of people, as
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Figure 1. Social network diagram [Adopted from PieSpy, 2005]
well as by entire nations. Their importance varies with problem solving scenarios, achievement of individual success and the way organizations run. Internet social networks is a category of the social network field in which individuals through a variety of internet application tools connect to other individuals, group of friends and business partners. [Wikipedia, 2005a].
BACKGROUND According to the social network theory social relationships are mapped by nodes and ties. Nodes are the individuals who act within the network and ties are the relationship between the individuals. In a network diagram the nodes are displayed as points and ties as lines, linking the nodes. Two nodes in the network are connected if they are directly linked to each other, or interact in some way. For instance, in the network from figure 1, there is a connection between mike-dinner and Bijan and between Mike-dinner and Ronwalf, but no direct connection exists between Ronwalf and Bijan. Analyzing the shape of the network helps to determine the network’s usefulness to
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its individuals. The network shape illustrated in Figure 1 shows the distinction between the three most popular individual network measures: Degree Centrality, Betweenness Centrality, and Closeness Centrality as will be discussed next (Orgnet, 2005). Degree Centrality is the measurement of the network activity using the concept of degree, or the number of direct connections a node has to other nodes. In figure 1 the nodes represented by Golbeck and Ronwalf have the most direct connections in the network, making them the most active nodes. They are called the ‘connectors’ or ‘hubs’. A common impression of networks is the more connections, the better. This assumption is not true and what really matters is where the connections lead and how they connect nodes which are otherwise unconnected. Betweenness Centrality has great influence on the flows of the network. According to the network from figure 1, while Ronwalf has many direct ties, Mike-dinner has few direct connections, even fewer than the average in the network. However, Mike-dinner has one of the best locations or highest betweenness centrality in the network because he is between two important constituen-
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cies. Mike-dinner plays an important role in the network, linking clusters of nodes, and also he is a point of failure because without him, Mhgrove and Bijan would be cut off from information and knowledge from Ronwalf’s cluster. Closeness Centrality measures the best visibility into what is happening in the network. Jordan has fewer connections than Golbeck, however the pattern of his direct and indirect ties allows him to access all the nodes in the network faster than anyone else. Jordan’s high closeness centrality gives him the shortest path to all other nodes and he is in an excellent position to monitor the information flow in the network. Many studies have been done about social networks and are being applied to many different fields (e.g., Acquaah, 2007; Christ et al., 2007; Golbeck and Hendler, 2006; Ioannides and Soetevent, 2007). The volume of researchers has considerably increased in this area and many corporations are realizing the importance of social networks as a powerful marketing tool and a strong way of communication between people and within corporations.
Applications of Social Network Theory The evaluation of the social capital of an individual connected on a social network to other individuals is an application of the Social Network theory. Social capital refers to the position of the node in the network and this member can draw resources contained by other members of the network. According to the French sociologist Pierre Bourdieu in “The Forms of Capital” (1986), there are three forms of capital: economic capital, cultural capital and social capital. He defines social capital as “the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition.” (Wikipedia, 2005b) Social capital has a considerable influence on
a person’s life, and can affect aspects such as job searches, potential for promotions, knowledge in general, channels of consumption and public opinion. The more mappings a person has, the more social resources his contacts can be extended to, and the more influence, knowledge and power the original person will control [Ethier, 2005]. Social network theory also has an important role in the social sciences. Sociometry is one of the methods of socio-psychology developed by the psychiatrist Jacob Levi Moreno and analyzes the interpersonal emotive relationships within groups. His methods can be used to identify informal leaders, social rankings and isolated individuals [Adit Software, 2005].
Virtual Communities on the Internet People wonder whether communities will persist in these stressful modern times, in a society of loneliness where people walk or drive by themselves. News about terrorist attacks and violence are guiding humanity to fear these patterns of isolation. Communities have existed throughout history and cooperation among individuals has always been fundamental for human evolution. In some way, individuals are always seeking communities in order to escape loneliness. Despite this universal behavior, the same people think that they are exceptions and that all the individuals around them are isolated and lonely. [Wellman, 2005] Virtual communities are groups of people or nodes on the network that come together through the internet to exchange ideas, knowledge and information. Basically there are four effective ways of building virtual communities on the internet and they are: web-based communities, email groups, newsgroups and real-time discussions forums. Social networks represented by Web-based communities are the most sophisticated mechanisms for building on-line communities, and are often the simplest for end users. Web communities allow some kind of advertisement and visual presentation of material which are typically omitted
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from email groups, newsgroups and discussion forums. [Dobney.com, 2005]
Control over Communication Tools through Social Networks Google acquired the social networking site Dodgeball.com as a strategy to improve its own social networking efforts. The idea was to gain more control over communication tools, including the mobile world, and to strengthen its ambition of being more of a Web portal than a search engine. Dodgeball (www.dodgeball.com) is a social network which enables the connection of its users to other nodes through their mobile phones, sending text messages that are relayed through a broadcast hub to multiple recipients. Google’s attempt to invest in social networking is not new and started with the Orkut web site (www.orkut.com). Orkut is a web-based social network which was designed by a Google engineer and currently Orkut has more then seven million people connected through thousands of communities. [Regan, 2005]
Mobile Social Networks The mobile phones or wireless PDAs (Personal Digital Assistants) are naturally ideal vehicles to study individuals and organizations. Habitually individuals carry a mobile phone and use it as main tollway for communication. Currently many manufacturers are opening their handset platforms to developers and the devices can be harnessed as networked wearable sensors. The information available from today’s wireless devices includes the cell phone user’s location by the cell tower ID, people’s closeness through repeated Bluetooth scans, regular communication calls and SMS, as well as application usage and phone status like idle, charging, and so on. Considering the phones as networked, their functionality is no longer solely related to logging devices for social surveys, but phones can also be
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used as a means of social network involvement, supplying introductions between two proximate people who don’t know each other. Massachusetts Institute of Technology is working on researches of a new infrastructure of devices which are not only aware of each other, but also have a sense of social curiosity. The concept is based on the assumption that the devices may be used to figure out what is being said by people, and even to discover the type of relationship between two individuals. According to Nathan Eagle from the Reality Mining project, underway at MIT’s Media Lab, “The mobile device of tomorrow will see what the user sees, hear what the user hears, and learn patterns in the user’s behavior. This will enable the device to make inferences regarding whom the user knows, whom the user likes, and even what the user may do next.” [Nathan, 2005] Within this context, the research being done by MIT emphasizes the social network aspects of the mobile devices. People through wireless devices will be able to be part of social networks more efficiently, creating new relationships with anyone carrying a mobile device. According to Search Engine Lowdown and search consultant Andy Beal, there are potential social network benefits of using mobile devices: “Can you imagine being able to tell your friends that you are at a local bar, provide them with a map -- or even a satellite view of the premises -- take a photo of your group and then add it to your mobile blog? All from your cell phone.” [Regan, 2005]
YASNs: Internet Social Networking Systems and E-Business Correlation The term “circle of friends” in online social networks started appearing in 2002, and became popular in 2003. An online circle of friends is a virtual community in which an initial set of founders send out messages inviting other members of their own personal networks to join the network
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represented by a website. New members repeat the process, increasing the total number of nodes and links in the network. Websites then offer features such as automatic address book updates, photo galleries, viewable profiles, the ability to form new communities and many forms of online social connections. Using the circle of friends technique, some internet social networking systems, also known as YASNS (Yet Another Social Networking Service), have been launched lately. Some examples are Friendster, Tribe.net, MySpace and LinkedIn. Currently there are over 200 social networking websites, and Friendster is one of the most successful examples of the circle of friends technique [Wikipedia, 2005a]. These tools are used for information gathering, meeting people, and/or finding services. The development of these sites has primarily been funded by private investment. As the popularity of these websites grew substantially, companies started to look closer and enter into the internet social networking arena, as in the case of Google launching Orkut and acquiring the Dodgeball mobile social network company. If Ebay goes in the same direction, social networks could be a possibility for expanding the horizon of e-commerce in the online auction web-sites. The benefits of social networks to marketing have been proven by many researchers. The patterns of relationships of social networks are fundamental to consumer behavior and can be used effectively for marketing strategies. As a major challenge, market strategists are looking for increases in the effectiveness of marketing strategies based on social networks. In order to reach the goal of effectiveness increase in the marketing strategies, scientists and researchers are collecting social network related data for further analyzing, and the study of social networks is beginning to be broadly used in marketing. One example of using social networks for the purpose of marketing is when the distribution of products and services is done through a network
of independent business people who take care of the distribution themselves or cause others to do it. It is important to notice that marketing strategists not only look to members of the network with the most social capital, but also to nodes which have access to others with a vast amount of social capital. Internet social networks have expanded the channels of integrated marketing communications, advertisement and public relations, as well as the marketing distribution strategy. Within social networks, the communication and relationship between the nodes has attracted the attention of marketing strategists as a niche to be explored. Many people in the network have relationships tied by common interests and behaviors. For example, when a group of members join a community at Orkut social network they have common ideas and thoughts. Within the community, a node with high capital social and betweenness centrality can influence other members to purchase goods or services from specific brands, using specific channels according to his/her marketing strategy. The power of influence is important in social networks and can lead to individuals or groups succeeding in some e-commerce activities.
Internet Social Network Software The “cc:” in the emails can be considered a start point for social software, when individuals send a message to a group of people within a network relationship. People are willing to use social software to advance personal interests and primarily to interact socially. Internet social software must include at least three basic features: support for conversational interaction between individuals or groups, support for social feedback and support for social networks. The conversational interaction between individuals is usually represented by instant messaging, discussion chats and collaborative teamwork spaces. When a member of a group in the network starts a discussion with a group, other
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members must be able to react and participate in the discussion. Support for feedback allows individuals or groups to rate the contributions of other members, in order to build digital reputations for the nodes of the network. Nodes with high digital reputations as well as high social capital have a great power of influence on other nodes. As example, sellers from eBay depend on feedback to maintain a good reputation and increase sales. Social software needs to support the circle of friends. For example, the proposed standard Friend Of A Friend (FOAF), is represented by an XMLbased approach to define the member interests, phone numbers, e-mails and degree and type of relationship this member has with other members from the network. The social software should be able to represent the map with all the ties between the nodes in the network. For example, Golbeck and Hendler (2006) present TrustMail, a prototype email client that uses variations on algorithms for inferring trust relationships between individuals that are not directly connected in the network to score email messages in the user’s inbox based on the user’s participation and ratings in a trust network.
FUTURE TRENDS OF SOCIAL NETWORK AND E-BUSINESS One of the future trends of YASNs is the emergence of hybrid web-based social networks and instant messaging technologies. The idea is to allow users to share blogs (weblogs), files and instant messages, creating a social network dynamically in real time, depending on where the users are currently located. Some arguments state the fear of social software following the same way of knowledge management software: much excitement at the beginning, then a slow death. According to the on-line communication and community specialist Lee Bryant, one of the reasons for the problem
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with knowledge management was the hijacking by software vendors. Bryant’s position regarding Social Network is that “Social Software tries to remove obstacles in the path of interaction to let people communicate and collaborate more effectively. In other words, to let people do what they do naturally, but in a better way” (Kaplan, 2005). Although Web-based tools offer various opportunities for advertising, distribution, marketing, and even direct payment, the companies are still trying to find the perfect magic recipe for reaching profits and some doubts still remain about the longterm value of social networking from a revenue perspective [Regan, 2005]. As all technologies and concepts evolve, social networking will fit new technologies which will be introduced to the society, and the internet will allow and contribute to the expansion of social networks in ways that were previously not possible.
CONCLUSIONS AND RECOMMENDATIONS Today, forward-thinking executives are using information technology to streamline and synchronize operating and management processes. Looking forward, some potential elements of the next-generation service agenda are as follows (Marson, 2007): 1.
2.
Listening to and Engaging Citizens and Clients: Government service strategies are based on regular research and consultation with citizens and clients, and on citizens’ priorities for improvement Next-Generation Service Policy: embodies a results-based approach to: external service; internal service; integrated, one-stop service; cost-effective channel management, and strikes a balance between excellence in service outcomes for clients and costeffectiveness for citizens
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3.
Improving Access for Citizens and Business: “No wrong door” across the public sector, underpinned by an e-data base (311, 211 etc) and N11-integration 4. Integrated Service Delivery and Integrated Channel Management: expanded one stop shopping, both “department stores” and “boutiques”. Focus on improving telephone service and on integrating T-service with E-service; Web 2.0 applications are applied to internal management, external service, and citizen engagement 5. Personalization and Customization: the Internet is used to personalize and customize service to individual client needs 6. Horizontal Governance and Service Collaboration: collaborative platforms and new governance arrangements are developed within and across governments 7. Internal Service Transformation: focused on cost-effective e-solutions, and on measuring and improving internal client satisfaction 8. The Service Value Chain: public organizations use the SVC concept to link, measure and improve employee engagement, service outcomes and public trust and confidence 9. Results Measurement and Benchmarking: shared ways of measuring service performance emerge internationally and benchmarking occurs across the public sector (e.g the CMT& MAF) 10. Training and Development: Public sector service delivery becomes a profession based on a growing empirical body of service management knowledge. Overall, the academic community and business practitioners can no longer ignore the consequences of the rapid “flattening” of the world due to IT facilitated globalization. E-Government is a burgeoning phenomenon across the globe with substantial investment being made to support improvements to infrastructures as well as
services to the citizen. Many of the emerging challenges facing its adoption are not technical or developmental but in fact center around political, managerial, and cultural information and communication technology issues, which are of course accentuated in the public sector. When they are successful, organizational transformation and change initiatives can be exciting and engaging experiences that achieve extraordinary outcomes. Such change efforts can lead to innovation and renewal in many areas. Better utilization of technology, more efficient process flow, and enhanced individual and team productivity are all potential benefits of positive change.
REFERENCES Acquaah, M. (2007). Managerial social capital, strategic orientation, and organizational performance in an emerging economy. [Chichester.]. Strategic Management Journal, 28(12), 1235– 1242. doi:10.1002/smj.632 Adit Software. (2005). Adit software–sociometry. Retrieved on July 9, 2007, from http://www.adit. co.uk/html/sociometry.html Boyd, S. (2003). Are you ready for social software? Darwin Magazine Web site. Retrieved on July 9, 2007, from http://www.darwinmag.com/ read/050103/social.html Christ, R. E., Berges, J. S., & Trevino, S. C. (2007). Social networking sites: To monitor or not to monitor users and their content? [Clifton.]. Intellectual Property & Technology Law Journal, 19(7), 13–17. Dobney.com. (2005). Online virtual communities. Retrieved on July 10, 2007, from http://www.dobney.com/Technology/virtual_communities.htm Epstein, D. (2004). Fast approximation of centrality. Journal of Graph Algorithms and Applications, 39-45.
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Ethier, J. (2005). Current research in social network theory. Retrieved on July 9, 2007, from http://www.ccs.neu.edu/home/perrolle/archive/ Ethier-SocialNetworks.html Golbeck, J., & Hendler, J. (2006). Inferring binary trust relationships in Web-based social networks. [New York.]. ACM Transactions on Internet Technology, 6(4), 497–504. doi:10.1145/1183463.1183470 Ioannides, Y. M., & Soetevent, A. R. (2007). Social networking and individual outcomes beyond the mean field case. [Amsterdam.]. Journal of Economic Behavior & Organization, 64(3/4), 369–380. doi:10.1016/j.jebo.2006.06.017 Kaplan, E. (2005). Social software and e-learning. Retrieved on July 10, 2007, from http://www. learningcircuits.org/2003/dec2003/kaplan.htm Marson, B. (2007). The future of e-governmenta citizen-centred perspective. Treasury Board of Canada Secretariat, Canada. Retrieved on October 18, 2008, from http://www.oecd.org/ dataoecd/42/39/40305179.pdf Nathan, E. (2005). Using mobile phones to model complex social systems. Retrieved on June 26, 2007, from http://www.oreillynet.com/pub/a/ network/2005/06/20/MITmedialab.html OECD. (2008a). OECD broadband statistics. Retrieved on November 6, 2008, from http:// www.oecd.org/document/54/0,3343,en_2649_3 4225_39575670_1_1_1_1,00.html OECD. (2008b). Broadband growth and development in OECD countries. Retrieved on November 6, 2008, from http://www.egov.vic.gov.au/index. php?env=-categories:m11-1-1-8-s-0&reset=1 Orgnet. (2005). An introduction to social network analyzes. Retrieved on June 25, 2007, from http:// www.orgnet.com/sna.html
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PieSpy. (2005). PieSpy social network by jibble Web page. Retrieved on May 26, 2007, from http:// www.jibble.org/piespy/ Regan, K. (2005). Google boosts its social network with dodgeball.com buy. Retrieved on June 25, 2007, from http://www.macnewsworld.com/ story/43099.html Smith, H. A., & McKeen, J. D. (2007). Developments in practice XXVI: Social networks: Knowledge management’s “killer app”? [Atlanta.]. Communications of the Association for Information Systems, 19, 35. Wellman, B. (2005). “The network community” an introduction to networks in the global village. Retrieved on May 26, 2007, from http:// www.chass.utoronto.ca/~wellman/publications/ globalvillage/in.htm Wikipedia. (2005a). Social network. Retrieved on May 22, 2007, from http://en.wikipedia. org/wiki/Social_network#Introduction_to_social_networks Wikipedia. (2005b). Social capital. Retrieved on July 9, 2007, from http://en.wikipedia.org/wiki/ Social_capital
KEy TERMS AND DEFINITIONS Betweenness Centrality: This has great influence on the flows of the social network. It is one of the best locations or highest betweenness centrality in the network because it is between two important constituencies and is a point of failure because without it, the others would be cut off from information and knowledge from the cluster. Closeness Centrality: This measures the best visibility into what is happening in the social network. Social Network: A map representing the relationships among individuals, indicating the ways
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in which they are connected according to their social familiarities. The networks of communication and interpersonal relationships that develop naturally within an organization form channels for the flow of organizational knowledge and can promote organizational learning, innovation and change management. Sociometry: One of the methods of sociopsychology developed by the psychiatrist Jacob Levi Moreno that analyzes the interpersonal emotive relationships within groups. Social Networking Sites: Online communities for expanding users’ business or social contacts by
making connections through their mutual business or personal connections. Socio-Technical Design: Design to produce information systems that blend technical efficiency with sensitivity to organizational and human needs. Virtual Organization: An organization that uses networks to link people, assets and ideas to create and distribute products and services without being limited to traditional organizational boundaries or physical locations.
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Section 4
Case Studies
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Chapter 17
eGovernance:
ICT and the Essential Roles of Knowledge Management and Learning Organization Behaviour for Good Governance Jaro Berce University of Ljubljana, Slovenia Sam Lanfranco York University, Canada
ABSTRACT This chapter explores how to formulate an ICT-enabled eGovernance action plan, including the necessary components of (a) a knowledge management (KM) strategy, and (b) the adoption of a culture of learning organization (LO) behavior. This strategy is based on lessons learned from a model designed and tested on data from 140 Slovenian public agencies. Slovenia, a small transition economy newly admitted to the European Union, faces both its own demands and the demands of the EU for good governance. Slovenia offers lessons relevant for both developed and developing countries. There are three progressively complex stages when integrating information and communication technologies (ICT) into the operations of government. They start with the elementary process of integrating ICT into previously paper based governmental administrative systems (iGovernment), proceed to the online provision of government services to others (e-government), and finally arrive at online efforts to enhance accountability, consultation and transparency as part of good governance (eGovernance). This chapter concludes with the argument that successful eGovernance works hand-in-hand with e-democracy, whereas failed eGovernance will position eDemocracy as a force in opposition to the behaviour of Government. DOI: 10.4018/978-1-60566-671-6.ch017
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
eGovernance
INTRODUCTION Information and Communication technology (ICT) continues to be a powerful force in transforming the ways in which societies and economies operate. The widening use of ICT is having profound impacts on patterns of living, communicating and work. There are three stages in the integration of ICT into the operations of government. The first step, of course, is the task of securing adequate funds, expertise and knowledge to perform the technical integration of ICT into governmental structures and processes. Beyond those constraints of resources and expertise, the organizational challenges begin. The first stage and moderate challenge (iGovernment) consists of using ICT to migrate previously paper-based internal governmental administrative systems to an electronic format. The second stage (eGovernment extends ICT integration into the provision of government services to the public, business and others. Central to both of these challenges is organizational change; adapting internal practices, and organizational structures. Administration and management structures are expanded to include the electronic space as part of their work venue, and to substitute electronic processes for existing paper and manual processes. These first two stages focus in enhancing the efficiency and effectiveness of government, and of government services. Both involve significant changes in work processes, if not on organizational structures. The third stage involves extending the use of ICT for eGovernance, defined as the use of ICT to enhance government accountability, consultation, and transparency as part of government’s responsibility to the governed. This goes beyond enhancing the efficiency and effectiveness of internal and external government structures and processes, and services, and alters power relationships between the government and the governed. It starts with how government is organized and operates and goes to the very heart of the relation-
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ship between the government and the governed. A basic requirement for a democratic system is a dynamic interplay between the government and the governed. This requires a commitment on the part of the government, as well as demands a high level of organizational and behavioral agility. With expanded electronic venues the dynamic interplay of eGovernance demands a government that is adept at internal knowledge management (KM) and embraces and embodies a culture of learning organization (LO) behavior. Figure 1 captures these relationships For the past two decades ICT has emerged as an integral element of changing organizational structures and social processes. This has accelerated with the rapid growth of social networking applications, applications that have profound implications for eDemocracy. However, ICT absorption capacity by governments has advanced less quickly. This is particularly true for governments in developing and transition economies. Part of this lack of progress is explained by resource constraints. A significant hindrance is the lack of an understanding with respect to how to deploy ICT to facilitate improved government structures, processes and accountability. All too often the focus is on in-house efficiencies, at the expense of the effective implementation of this new infrastructure for iGovernment, eGovernment, eGovernance, and ultimately democracy. This chapter addresses two essential elements in the formulation an eGovernance action plan, hopefully an action plan that complements the forces for democracy. Both elements are essential to iGovernment and eGovernment strategies. It focuses on the roles of Knowledge Management (KM) and Learning Organization (LO) behavior within the expanded workspaces of an ICT-enabled electronic venue. This KM/LO/ICT model was designed and tested on data obtained from a survey of 143 Slovenian public agencies, representing a 50% response rate on sample of 288 agencies. Slovenia is a small transition economy newly admitted to the European Union. It offers an ex-
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Figure 1. eGovernance model with its ICT/KM/LO building blocks
cellent case study with lessons learned relevant to both developed and developing countries. The chapter reviews the lessons learned with regard to the roles of knowledge management and learning organization behaviour in the context of Slovenia’s experience. The chapter draws on the results of analysis of the Slovenian survey data but does not provide detailed descriptions of the data collected, the analytical tools used, or the statistical results obtained. Berce, et. al. presents a detailed description of that research in a paper on knowledge management and organizational behavior (Berce, Lanfranco & Vehovar 2008). The purpose of this chapter is to assist in the development of eGovernance strategies, based on the Slovenian research findings. It is useful however to give a brief picture of the research techniques used in the initial research. In social and economic research, variables are often inter-correlated in a relatively complicated manner. For the research questions of interest a multivariate approach was used, designed to reveal the structures and relationships that underlay the data. The research used pattern recognition techniques in order to test for relationships within the data. (Gonzalez, 1987) defined pattern recognition as follows:
“A pattern is a qualitative or quantitative description of an entity of interest, while a pattern class is a set of patterns that share some common properties. The subject of pattern recognition deals with techniques for assigning patterns to their respective classes- automatically and with as little human intervention as possible.” A Block Relationship Theory (BReT) model was used, since it was well suited to the purposes of this research (see: Gonzalez, 1987). The BReT model allowed empirical testing, making it possible to study important relationships within an organization, and offer some explanatory conclusions about those relationships. The explanatory BReT variables used in the research are similar to the blocks graphically represented in Figure 1 and were the operational block variables within the BReT analysis. Variables are combined into different groupings that specify special studied segments in an organization. The grouped blocks of (exogenous) variables in this research were detected as important for iGovernance, eGovernment, eGovernance, and for knowledge management (KM) and learning organization (LO) behavior. For the purpose of the research, and to assist
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in the visualization of variables and their relations within the BReT model the computer program LISREL was used to estimate a structural equation model of multivariable linear relationships among exogenous (explanatory) variables and dependent variables. This produced estimated correlation coefficients (“weights”) for the pre-defined relationships. For an introduction to LISREL see Boossma, & Hoogland’s article (Boossma & Hoogland, 2001) and the work of Jöreskog, Sörbom & Du Toit (Jöreskog, Sörbom & Du Toit, 2000). The BReT model used the LISREL program to estimate a “covariance structure” model involving 150 connections and linear structural equations. It was built through several iterations, and the model in this form fit well with the collected data. Positive coefficient values demonstrated that the proposed block connectivity improved the model. For example, LISTREL analysis showed that the impact from the iGovernment intervening variable, via the digitalization of documents, had an important influence on eServices and hence eGovernment. Tests on the adequacy of the model, in terms of the number of tested relationships and the size of the data set validated the use of the model for data interpretation. The proposed KM/LO/ICT strategy for eGovernance in this chapter builds on the results of this Slovenian research. The proper handling of knowledge management and learning organization components emerges as an essential element for an effective action plan. Together KM and LO facilitate the learning and feedback loops that contribute both to the successful implementation of ICT within government, and the use of ICT to forward governance. This drives eGovernance toward its ultimate objectives as outlined by the OECD: strengthening democracy and human rights, promoting economic prosperity and social cohesion, reducing poverty, raising the capacity to learn, enhancing environmental protection and –last but not least – deepening public confidence in government administration (OECD, 2003).
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The converse is likely to hold. ICT implementation in the absence of a KM/LO strategy may strengthen the power of government, but at the expense of the OECD objectives, and produce a conflict between the government and the eDemocracy efforts of the governed.
BACKGROUND: ICT AND THE TECHNOLOGy CONTExT Much of the economic and social progress of the past five centuries has been technology driven. Part is from the technology itself (e.g. power sources to augment human power). Much has been the result of how society adjusts and adapts to new technologies (e.g. transportation promoting the emergence of mega-cities). However, the distribution of that progress, on both the economic and political fronts has been very uneven. The differential absorption of technological capacity, the technology gaps between developed and developing countries and the gaps between the haves and the have-nots remain large (World Bank, 2008). ICT is the latest wave in the march of new technologies, soon to be joined by bio and nano technology. All are a powerful force for transforming the ways in which societies and economies operate. However, ICT has significant differences from previous technologies, differences that are evident in the speed of global diffusion and patterns of penetration. The technologies of the electrical grid have been well known for a century, yet many parts of the world are poorly served by electricity, or not serviced at all. Digital cell phone technology, while dependent on minimal access to electricity, has spread across the globe at a speed unmatched by any previous technology. Internet access, increasingly by wireless link, is quickly following phone access. The reasons include low cost access, a positive and quick return on investment, and minimal skills for use. Wireless technology provides for low marginal cost coverage. Equipment costs have fallen rapidly, and capable
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learners in classroom or in self-directed learning readily master technical knowledge, possibly by distance instruction. As the widening use of ICT has profound impacts on living, communicating and work, ICT increasing permeates the perspectives of other disciplines (e.g. economics, politics, sociology, etc.). The impact of ICT is moving deeper and deeper into substantial economic and social science domains, where it transforms organizational structures and processes. Some have argued “ICT doesn’t matter anymore” (Carr, 2003). In this chapter authors argue that people are at the threshold of major society structural and process changes as a result of the diffusion of ICT. In particular, to understand the demands on modern public administration one cannot avoid studying the emerging role of ICT, its driving role to improve eGovernance and its supporting role as a platform for eDemocracy. When the role of ICT is conceptualized, the emphasis is frequently only on its technological aspects and omitting other impacts (Geldof, 2005). Within modern public administration the flow of information services and applications cannot be understood from only a technical prospective. Previous “paper oriented” activities are now being replaced by ICT supported processes. This calls for new organizational principles, where activities and services are provided through flexible and complex multi-organizational structures (Druker, 1999). ICT advances enable disbursed information to be assembled into accessible complex organizational knowledge repositories. The initial promise of ICT is the new quality of service as it re-organizes knowledge and effectively incorporates intelligent access to and use of the data (Vehovar, 2006). ICTs technological aspects are only one component of what is needed for a proper and effective ICT implementation. Other aspects relate to the broad array of organizational structures and supporting activities, within that organization’s mission and vision. In this context, two
essential additional components are knowledge management (KM) and its emerging principles; and adopting a culture of learning organization behaviour (LO). Individually, KM and LO, as well as ICT, are already well explored. However, they are rarely handled simultaneously and in an interactive fashion. This chapter addresses that challenge: how to conceptualize the interaction of KM, LO, and ICT, to understand their impact on the specific outcome of organizational behaviour in the public sector, i.e. with an ultimate focus on eGovernance. The main objective of a previous study (Berce, 2004) was to build a representation of the relations between KM, LO, ICT and governance. That work serves as background for the eGovernance capability graph model that is presented in this chapter.
THE ICT-ENABLED KM/LO VENUE This section integrates KM, LO and ICT as a step in the construction of the eGovernance strategy presented in this chapter. From the technical viewpoint, ICT is a mixture of hardware, software, and communications facilities linking access to hardware, applications, and information across time and space. This is less important than the conceptual viewpoint of ICT. Within the conceptual viewpoint ICT is an expanded organizational and process space. Activities and structures in literal time and space are joined by structures and processes in virtual (electronic venue). The ICT revolution will adjust organizational structures and social processes, and living and working will adjust to life within this expanded literal/ virtual venue. Work on the expanded role of ICT on business and administrative processes has been underway since early 1970’s, when the process of massive computerization began. The corresponding social and economic dimensions have been researched and considered only with some time delay
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(Vehovar, 2006). The introduction of personal/ desktop computers in the 1980’s, linked through the Internet in 1990’s, further increased the role of ICT, and heightened the importance of the accompanying social contexts. There was early recognition of the important of ICT for the supportive and innovative aspects of governance in organizations (Marsick & Watkins, 1994). Today ICT advances have become a permanent force bringing continuous (sometimes unpredictable) changes to public sector services delivery, management practices and governance. The emerging roles of online social networking applications such as YouTube, Facebook, LinkedIn, Google Groups, Wikis and various applications have reduced the cost of collaborative networking, within and without formal organizations. Their impact on societal issues including governance and democracy will be considerable. Knowledge management (KM) though long practiced is a relatively new formal discipline. The emergence of its link to ICT is a nature outcome of ICT’s support for access to information and facilitation for collaborative activity across time and space. KM as a disciple emerged within corporate culture with a milestone being the “Initiative for Managing Knowledge Assets” study undertaken in 1989 by a consortium of US companies working on a platform for managing knowledge (Barclay, 2007). Since then, the idea has expanded beyond private sector corporate knowledge management, beyond knowledge and innovation management in the corporate setting. It now encompasses socio/economic political and cultural processes at all levels from the local to the global. Networking venues for KM include communities of interest, concern and practice of all sorts and all levels. Organizational interest in KM grew from several concerns; one being that much of an organization’s knowledge was bound up in individuals and poorly shared as in input in organizational processes; another was that much of the knowledge was ‘tacit’ and not in explicit forms easy to capture and share. For a window on the use of ICT to promote
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KM one only has to search on communities and groups within online applications such as the longstanding listserv, majordomo and mailman applications and the more recent groupware, wiki, and social networking applications. Some are free, some are open source, and others allow uses to add applets, opening the applications to user/community improvement. As an interesting landmark event, underscoring the importance of KM, is that failed knowledge management was identified as a major factor in the February 2003 Columbia space shuttle disaster (Verton, 2003) Scholarly papers and books on knowledge management began to appear in the early 1990’s with Senge’s The Fifth Discipline (Senge, 1990) and Sakaiya’s The Knowledge Value Revolution (Sakaiya, 1991). The first KM textbooks appeared by the end of the decade. The KM concept continues to receive increased attention as knowledge tends to replace resources as the central ingredient in economic progress. With particular regard to organizational knowledge, in contrast to individual or societal knowledge, Larry Prusak, the Executive Director of the IBM Institute for Knowledge-Based Organizations argues “In the emerging economy, a firm’s only advantage is its ability to leverage and utilize its knowledge”(Letiche & Rosen, 2003). One of the challenges in dealing with KM is that it relates to variables and attributes that are hard to standardize and evaluate (Pierce, 2003). These variables include contents, relations, processes, procedures, infrastructures, networks, institutions, modus operandi, and organizational linkages (Lundvall & Johnson, 1994). Knowledge only has meaning in context. The challenge of KM is not just to index or categorize (warehouse) knowledge but to also nurture a dynamic relationship between knowledge capture and access in relation to context. Getting this right links KM to the culture of learning within an organization or a process. Learning organization (L0) behaviour generally distinguishes between two different processes
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of organizational dynamic that are associated with elementary LO behaviour. Beck (Beck, 1997) identifies them as: •
•
Adaptive learning: Internal changes that have been made in reaction to changed external environmental conditions. Proactive learning: Organizational changes that have been made on a more planed basis. This “learning into action” goes beyond simply reacting to external environmental changes.
ICTs have an important impact on learning organization behaviour. They help amass and make accessible vast quantities of information. More important, they can centralize or/and decentralize teaching and learning at the individual and the collective level. This can radically broaden the access to learning and centralize learning in organizational process. The growth of interest in KM in the 1990’s carried with it a parallel interest in learning organization behaviour. A culture of LO behaviour relates to the idea that organizations continually expand, and make use of, their collective knowledge and skills in the pursuit of desired organizational deliverables. Within a LO culture, new and expansive patterns of thinking are nurtured, collective aspiration is “set free”, and people/groups are encouraged to see challenges and opportunities within “the big picture” (Senge, 1990). In successful LOs, however groups are constituted, individual learning is continuous and knowledge is shared. The organizational culture supports learning. Employees, or community members, are encouraged to think critically and take risks with new ideas. Within the corporate (and public administration) context, employees’ contributions are valued to be (Marsick & Watkins, 1994 and Geldof, 2005). Pedler, Burgoyne, and Boydell define the task of a LO as facilitating the learning of all its members, in support of the continuous transformation of itself in pursuit of
the organizational mission and vision (Pedler & Boydell, 1996). The purpose of learning organization behaviour is to promote information exchange between employees, and create a more knowledgeable workforce. A LO culture seeks/demands a very flexible organizational structure where people will accept and adapt to new ideas and changes through a shared vision (Blair, 1996). Within a LO culture these must be incentives to carry out such behaviour. The growing importance of how to capture, retain and use organizational knowledge underscores the importance of a learning organization culture as a vehicle for managing knowledge (Senge, 1990). Several studies have developed methods for assessing knowledge management through the LO environment. There is continuous ongoing activity in the area of knowledge management, for example the Gruteen Knowledge Conferences (http://www.gurteen.com) lists of ongoing KM events. Perkmann suggests the measurement of the value of knowledge from two perspectives: (a) a macro view that quantifies the intangible assets of an organization and (b) a micro view where individual knowledge projects can be assessed and quantified (Perkmann, 2002). Others frame KM to include the active creation, transfer, application and re-use of tacit individual knowledge, as well as codified explicit collective knowledge. Both KM activities are supported by new approaches, relationships and technologies (Riley, 2000). For both tacit and explicit knowledge, ICT can be used to increase the speed of innovation and decision-making, as well as responsiveness to organizational objectives and priorities. ICT’s electronic venues can assist the effective implementation of a LO culture. If knowledge is explicit then it can be managed, measured, and codified. If it is tacit knowledge, it must be fostered and shared and can only be learned in a collaborative setting if it is to survive within the organization. Although tacit knowledge
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is central to organizational knowledge creation, its nature renders it “highly personal and hard to formalize, making it difficult to communicate or to share with others” (Nonaka, Takeuchi, 1995). To capture tacit knowledge requires motivated individuals. Much of KM/LO/ICT research focuses on the value (or yield) of tacit knowledge. Others add “pleasure”, the satisfaction from sharing, as a complementary element for learning organization behaviour Either way, a strengthened LO behaviour is integral to KM in the pursuit of organizational objectives. Applying the ideas of KM, LO, and ICT to governance treats government as the structures and organizational process by which a given community is governed. Governments may be autocratic or democratic, and eGovernance can serve either objective. The interest here is in democratic governments, working in harmony with broad participation by the governed in eDemocracy. When ICT is used for autocratic ends eDemocracy is likely to be a countervailing force from below. Beyond the use of ICT for efficient and effective operation of government lies the realm of governance. Here eGovernance is understood as use of ICT in the strategic exercise of economical, political and administrative authority to manage the nation’s affairs at all levels. In a democratic setting this includes the management of those affairs with due input from and attention to the wishes of the citizen electorate. Some see governance as blurring the boundaries and responsibilities between the government and various stakeholders in society (Ewalt, 2001). Here, authors argue that eGovernance has more to do with opening a collaborative space than blurring boundaries. This is consistent with Peters and Pierre’s suggest that governance is grounded in particular (democratic) political theory, and that “public management” is a form of organizational theory (Peters & Pierre, 1998). This chapter takes governance to be the long-standing responsibilities and shared accountability for good government in
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a democratic society. Since time immortal there has always been a blurred boundary between the authority and responsibilities of ‘the state’, and other societal stakeholders such as the private sector, the ‘church’, civil society and non-profit/ third sector actors, in conducting the affairs of society. The OECD view of governance sees effective public governance as helpful for strengthen democracy and human rights, promoting economic prosperity and social cohesion, reducing poverty, raising capacity to learn, enhancing environmental protection and deepening confidence in public administration (OECD, 2003). The International Teledemocracy Centre (http:// itc.napier.ac.uk) view is that eGovernance should support communication between government and civil society. Clift (Clift, 2003) and Vikas (Vikas, 2003) argue that ICT supported eGovernance can strengthen the activities and initiatives of government administration as they relate to the traditional objectives of governance. This chapter takes an all-encompassing view of governance and explores how the concepts ICT, KM, and LO are interlinked to deepening and broadening governance through eGovernance, in the support of the OECD list of objectives. The measurement and evaluation of ICT utilization, knowledge management, and learning organization behaviour poses major challenges. Berce presented a general overview in the context of social, economical, and technological issues in the course of the dissertation research (Berce, 2004). Slovenian government data on Information Communication Technology (ICT information: ICT), Knowledge Management (KM), and learning: organization (LO) behaviour, and their influence on governance in the public sector, was used to build a picture of the relations between each component using a BReT model and LISREL program pattern recognition approach. Berce’s work used an interpretive method for the inter-relations of KM and LO on eGovernance,
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and how the ICT-enabled venue influences those relationships (Berce, 2004). A system for measuring intangible constituents is a task that cannot be entirely done by direct means. For the Slovenian research the task was carried out by the means of two approximation methods. One involved the qualitative dimension: policies, programs and implementation strategies to promote KM and LO activities with ICT support. The other involved the quantitative dimension: the creation of statistical measures for monitoring and evaluating eGovernance initiatives based on ICT, KM and LO practices. This was used to construct an eGovernance capability graph model (below) that serves as a basis for the development of an action plan for good eGovernance.
APPLyING THE KM/LO/ICT MODEL The objective is to construct an operational model that can assist in analyzing the relationships between ICT, KM, LO, and diverse social, economic and technological factors. More specifically, the objective is to examine the relationships between ICT, KM and LO culture within the context of their influence on public administration in the pursuit of eGovernance (Berce, 2004). The ultimate aim is to identify and assess the factors that contribute to the improved eGovernance in pursuit of improving good governance (factors such as inclusion, democratic participation, etc.). The conceptual model was designed, tested and applied using data obtained from a survey of Slovenian public sector organizations. This included ministries with constituent office(s), government offices, local government offices and municipality offices. Cooperation from within the government resulted in very good response rates. Fifty-three of fifty-eight national government units replied. Municipal offices were less motivated to respond, with forty-four responses and a 23% response rate. The resulting 97 responses, slightly weighted in favor of national responses, provided a good basis for analysis.
Information from respondents was obtained by mail questionnaire, targeted to public institution managers. Help from two governmental offices (Office for the Organization and Development of Slovenian Administration, and Office for Local Autonomy) was contributed significantly to response rates.
TRANSFERABLE LESSONS AND FUTURE TRENDS This chapter has used the terms ‘ICT’ and ‘ICTenabled venue’ when talking about eGovernance. It makes some use of the terms ‘Information Society’, ‘Information Society Technologies’ and ‘knowledge society’. These terms are in wide use but they remain ill-defined socio-technical concepts. In general they refer to a society where information (or knowledge) is the scarce essential factor in socio-economic progress, and where ICT (information society technologies) are the key technologies underpinning social processes in an information society. The Slovenian study started out with a model of information society relationships that served as a basis for the questionnaire and data collection. The empirical data was used to conduct a series of statistical tests whose results were used to analyze the relationships between a selected set of Slovenian social, economic and technological variables and Slovenia’s public sector. The relationship between ICT and good eGovernance was of central interest and pursued by focusing on a set of basic propositions.: 1.
ICTinformation: ICT stimulates administrative efficiency: The scope of ICT and its impact on the quality of processes and results, and organizational processes potentially leads to good public administration support for eGovernance. Although efficienc was not directly measured
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in the study, some guidelines emerged through pattern recognition within the data, from correlation tests, and with reference to the theoretical model. At present basic ICT information: ICT infrastructure is well deployed within Slovenian public organizations (Internet penetration is almost 100%, more than 80% of staff has an email). It is used to support tasks and processes that predate the arrival of the ICT infrastructure. ICT solutions have been implemented on top of already established organizational structures. In a sense, a certain level of iGovernment has been achieved. Pre-existing tasks and processes were mainly “just automated”. The fact that pre-existing structures and processes need to be adapted to the potentialities of ICT information: ICT before, or as, ICT services are effectively deployed is not yet widely accepted in practice. Slovenia’s original organizational structures (hierarchy, centralization, information and knowledge hoarding, poorly develop knowledge management knowledge: management responsibility, a weak learning organization culture, etc.) were electronically assisted, but not transformed, in light of the capacities of ICT (there is no knowledge officer). This transfers pre-existing “literal” administrative problems to the “virtual” digital venue. Centralized hierarchically organized institutions are prone to resist process changes and impede quality improvements and efficiency gains. The application of ICT and eServices alone, in the absence of complementary strategies that address hierarchy, knowledge management and learning behaviour can only go so far in increasing the quality of services and barely impact on improved governance. Research results showed that the low iGovernment and learning organization impacts (t value 0.83 and 057 respectively), and high eGovernment and Knowledge management (t value 3.93 and 2.13 respectively) limit the promise of ICT for eGovernance, in the absence of KM and KO behaviour.
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Analysis of the model used for Slovenia suggests that a vision of the whole change environment, including new approaches to knowledge managementknowledge: management and networking and learning organization behaviour, all supported with ICTinformation: ICT tools, is necessary if the desired effects and progress are to be obtained with regard to good governance. 2.
ICT does not automatically stimulate the effectiveness of eGovernance: The Investments in ICT information: ICT hardware, accompanying components and training are very costly. To achieve desired effects requires supplementary and complex processes involving organizational change that significantly influences the role and deployment of ICT within the organization.
Misunderstanding the role of ICTinformation: ICT, and underestimating the impact of other social factors (knowledge management knowledge: management, organizational attitude toward knowledge and information sharing, etc) and economic factors (budget and financing of ICT, etc) will lead to false hopes and wrong ideas about how to achieve effective eGovernance. The research showed that these two sets of factors play a major role in effecting good eGovernance. The proper financing of the purchase of hardware, software and programming services demands a well-developed system for the permanent training of employees. Budgetary support showed that half of institutions are spending less then 1% for ICT, and 22% spending between 2-3%. Training should cover the field of ICT information: ICT and both professional and intra-personal and managerial topics in order to obtain results related to KM and LO culture. One third of OECD institutions have more than five days of training per year. In Slovenia only half of government offices report five days or more for training courses. The figures were less for lower levels of government.
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The model results showed that nurturing proper technical skills, and knowledge management and learning organization culture training, significantly stimulates the optimization of the complementary effects of KM and LO, and, through the proper utilization of ICT, influences good eGovernance. 3.
The efficiency and effectiveness of eGovernance with regard to policy, planning and program delivery significantly increases with the application of the principles of Knowledge Management and Learning Organization behaviour.
Learning organization: It was not possible to directly measure the efficiency and effectiveness of eGovernance with regard to policy planning within the study. The study did not estimate rates of return on various inputs, nor did it evaluate citizen/customer satisfaction with the various features of eGovernance. However, useful and interesting insights were obtained through statistical analysis and data mining applied to the survey results. The data revealed that there is a very low level of interaction on strategy planning between top management (boards) and ICT information: ICT professionals. Less than seventeen percent of CIO are members of boards. Issues concerning ICT security and protection, defining eServices, internet-related subjects (web construction, content and services, web updating, etc) are rarely dealt with at board meetings. Senior management treated the arrival of ICT-enhanced processes much as they would have treated a retrofit of an organizations heating or cooling system. It was a change in technology and they anticipated efficiency gains but little in the way of impact on organizational structures or processes. From the data analysis the impact of Knowledge Management and Learning Organization learning: organization strategies on eGovernance was detected. Rewarding staff for knowledge and information sharing cooperation between profes-
sions and an assigned responsibility for KM, when deployed, play an important role in the use of ICT to achieve good eGovernance. Only forty percent of Slovenian organizations reported KM/ LO rewards for their staff. The capacities of the ICT-enabled digital venue do not have a strong impact without the accompanying organizational changes driven by top down attention to knowledge management knowledge: management and a learning organization culture, and incentives to adapt the new technologies. 4.
A strategy involving a strong inter-linkage of all the relevant factors (social, economic, technology) and their appropriate adaptations are necessary components of better eGovernance.
The application of ICT to eGovernance involves also recognizing the ‘human dimensions’ of the challenge. Only forty percent of respondents felt that there was an organizational understanding of what KM is about. Dealing with knowledge (personal/organizational, explicit/tacit), sharing knowledge and information, adopting learning organization behaviour, and addressing other organizational challenges needs to be backed up by economic resolve, i.e., by rewarding behaviour, and by providing adequate budget and financing. When testing for the importance of the responsibility for KM, there was a statistically significant correlation (at 0.05 level /2-tailed/). Good governance via eGovernance may be forwarded by ICT deployment, but the technology alone provides neither the road map nor the fuel. If any one element is missing, effective and efficient eGovernance is hampered. Well-developed basic ICT information: ICT services (e-mail, e-calendar, etc) have a significant correlation (0.01 level, 2-tailed; 0.05 level, 2-tailed) with collective staff knowledge, and are an enabling factor that, in combination with KM and LO, can propel eGovernance in the overall pursuit of good governance and democracy.
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Good eGovernance can work hand in hand with eDemocracy. Both are vital to the successful deployment of ICT for the achievement of overall societal objectives. It is important to recognize that failed eGovernance will likely foster opposition between the forces of eDemocracy and the authority of government. Good eGovernance promotes access, process, awareness, communication and involvement. It opens up iGovernment to greater public access makes access to information widely available to stakeholders. It promotes eGovernment and provides information on how to gain access to government policies and services. Bad eGovernance can only fuel, but not stop, opposition eDemocracy. The pursuit of eGovernance by a government committed to KM within a LO culture will promote awareness, communication and involvement on the part of society’s stakeholders and the offices of government. Information about the political process, about services and the choices available, and about the time horizons for decision- making can facilitate societal involvement. ICT-enabled community access venues (social networking applications) can promote an exchange of learning experience, views, information and knowledge of mutual interest beyond the venues of the government. As desirable as this involvement may be, and though it may facilitate opportunities for involvement in the development of information and knowledge for good governance, there is no assurance that this will occur simply because of the deployment of ICT-enabled eGovernance. Just as within the public sector, there is a need for a strategy of knowledge management and learning organization culture within societal groups. Only with such public participation in the policy discourse will there be successful eGovernance.
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The eGovernance Capability Graph/Model It is useful to visualize what has been presented above. Starting with a posited set of relationships between ICT, KM, LO and eGovernance a visual capability graph can be constructed. The model references Slovenia and uses some standardized OECD elements to construct the ICT axis, augmented by attention to iGovernment and eGovernment stages An OECD eGovernment Project defined four stages of eService delivery, based on an Electronic Service Delivery model developed by the Australian National Audit Office). They include: • •
•
•
Stage 1: Information – website that publishes information about service(s). Stage 2: Interactive information – stage 1 + the ability for users to access agency database(s), and to browse, explore and interact with that data. Stage 3: Transactions – stages 1 + 2 + the ability for users to enter secure information and engage in transactions with the agency. Stage 4: Data sharing – stages 1 + 2 + 3 + the ability for the agency, with the user’s prior approval, to share with other government agencies information provided by that user.
The KM axis used a series of benchmarks, or developmental milestones, to rank progress in knowledge management. The LO axis used a set of challenges (obstacles) and milestones to measure progress toward a learning organization culture. Assent on the vertical ICT axis, starting with iGovernment, was measured in terms of the OECD stages ICT services in support of government activities. The capability graph is populated with data gathered from the survey of Slovenian public agencies (Berce, 2004). The capability graph depicts the multidi-
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Figure 2. eGovernance capability graph
mensional conceptual model used to examine the introduction of ICT (the digital venue), and the development of Knowledge Management and Learning Organization learning: organization behavior within government in this case Slovenian public administration. The OECD view of service segmentation starts somewhere beyond iGovernment, stops somewhere short of full eGovernment, and barely ventures into the eGovernance domain. The vertical axis on this capability graph starts with iGovernment and culminates with eGovernment. Reflecting on the Slovenian data (to 2004) Slovenian organizations tended to employ the digital venue mainly for internal use as iGovernment. Knowledge Management and Learning Organization learning: organization initiatives are recognized and outlined in a proposed Slovenian public administration “Action plan” (below), an action plan that makes use of this multidimensional approach. This method helps to capture all the hu-
man and organizational factors that are important for delivering good eGovernance, and goes beyond the more narrow infrastructure approach to ICT information: ICT focused actions plans for public administration iGovernment, eGovernment, and –eventually- eGovernance. The trap of an ICT infrastructure approach to governance is one that can put top-down eGovernance initiatives at odds with bottom up eDemocracy. This is illustrated by the ongoing problems with electronic voting machines in the United States (Wikipedia, 2008). It is notable that the concerns were greatest in 2004 when voter margins were narrow and vote count accuracy was more crucial and less in 2008 where voter margins were decisive. Commentators have noted that the failure rates for electronic voting machines in the United States are such that if that failure rate applied to microwave ovens, cell phones, or computers, there would be a consumer outcry in the marketplace. The same applies to security
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issues (hacking) of these machines and lack of standardization. There have been weak responses from the government and growing displeasure from the citizenry. The situation is complicated by the fact that machine selection is a state decision and not a single national decision, with the result that there is little knowledge networking or shared learning behaviour across the various jurisdictions. This is further evidence that organizational structures impact ICT deployment effectiveness, and ineffective eGovernance can pit eDemocracy against eGovernance.
CONCLUSIONS: BUILDING AN EGOVERNANCE ACTION PLAN The elements for building an eGovernance action plan draw from the overall results of the Slovenian research and are compatible with the organization of the eGovernance capacity graph. Some of the elements of the plan may seem overly obvious, but a quick reflection on the US voting machine problems underscores the need to be as explicit as possible about seemingly obvious elements for an effective action plan. From the start an eGovernance action plan must stress the need for a strong understanding, at all levels within government, of the linkages between Social, Economic and Technology factors that drive ICT use from iGovernment through to good eGovernance. It must explicitly recognize that these factors will in turn impact on the evolution of government administration itself. Most likely this will involve an explicit program to train and sensitize staff to the skills and attitudes needed, as well as to the likely impacts on organizational structures and processes. It will also involve explicit rewards for ICT/KM/LO behaviour. This is essential for (a) individual buy-in to the process, and (b) feedback as to what does or doesn’t work, and for innovative ideas from the front lines of government service. The linkages involve understanding where each
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of the following fit into an eGovernance strategy that containes within it subordinate (initial) iGovernment and eGovernment strategies. •
Knowledge management (KM): Initial training and attention must be given to what constitutes KM, the importance of explicit and tacit knowedge, and what ICT-enabled venues are being deployed to facilitate both knowledge management and knowledge networking to put that knowledge to use. As well, there have to be incentives for the use of the new strategies for knowledge management and networking. • Learning organization culture and behaviour (LO): It has long been recognized that continuous learning is essential in most modern work settings. However, much of the focus has been on individual learning and individual skills. In survey and interview results from 140 managers by McDougall and Beattie (McDougall, 1998), twenty-one identified a positive learning climate as a precondition for the individual learning necessary for organizational learning. There is an increased emphasis on organizational learning and organizational capacity (skills). Nowhere is this more obvious in government as cross-cutting concerns about the environment, energy, security, and health (to list a few) challenge government to respond effectively. Learning moves from a human resource management issue to an organizational capacity issue. Capacity derives from how organizational units have embraced a culture of learning, and where capacity is more than the sum of individual skills and abilities. Just as governmental units have to learn to think in new ways about knowledge management in the face of ICT-supported KM techniques, their strategic plans have to develop a mission and vision with regard to their own learning or-
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ganization culture and how it will function in an ICT-supported electronic venue. • Mission, Vision, & Committment: The KM and LO components of a sound eGovernance strategy make it abundently clear that there has to be high level buy-in by those in authority in government, and that the buy-in has to be backed up by resource committements that go beyond ICT infrastructure. Commitment only makes sense when there is a defined and shared vision and sense of mission. Building that shared vision and mission is both a challenge and an opportunity. It cannot be dictated by top government officials, but it can be built as part of an initial stock taking of how ICT infrastructure is serving iGovernment, eGovernment, and eGovernance. This is a challenge within the structures of government, and at the eGovernance level a challenge in the relationship between the government and the governed. This calls for independent in-depth examination of the current status of KM/LO and ICT with regard to better iGovernment and eGovernment. With that baseline assessment can come the development of systems for determining priorities and measuring outcomes. Part of that stock taking should also be designed to involve organizational units and staff with regard to the intended uses of the baseline data. The deployment of KM, LO, and ICT strategies needs to be tied to responsibilities for key actors, as well as rewards for achievements. This requires explicit time lines and budgetary support. The absence of time lines signals a lack of urgency, and the absence of proper budget support signals a shallow commitment to the undertaking. • Beyond the above and at a more detailed level an eGovernance action plan must address the following issues: ◦ Collaboration between ICT information: ICT staff, management, employees, and administrative units over the
•
ICT deployment strategy, and (important) its impact and the social and organizational process issues. ◦ Not pushing too hard, and risking information overload or staff alienation during the change process. ◦ Knowledge management and knowledge networking strategies that build a culture and awareness among employees and across government, a culture that stresses creating, sharing and using knowledge to function properly in a collaborative manner. ◦ An aggressive policy that rewards employees for knowledge and information networking and sharing (stimulate creativity and innovation). ◦ Recognizing that tacit knowledge is harder to capture than explicit knowledge. Staff turnover means organizational knowledge is “walking out the door”. Policies to capture and retain such knowledge, as well as policies to retain essential staff, are part of knowledge management. An eGovernance action plan should monitor the spread of a learning organization culture beyond government, and across the stakeholder groups that constitute the non-governmental structure of civil society. These include the private sector, citizens, civic groups, the non-profit sector and others. Failure to convey the KM/ LO mission and vision throughout society leaves the process open to major, frequently misplaced, challenges from entrenched ideological, religious, or other groups, in addition to the usual obstacles to institutional structural and process change. There is considerable capacity for special interest groups to organize in opposition within the electronic venue, in opposition to both eGovernance and eDemocracy.
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A properly formulated eGovernance action plan is a purposeful highly transparent evolutionary strategy for governmental units to embrace and progress toward the goal of good eGovernance. A properly formulated action plan must also extend to the private sector, citizens, civic groups, the non-profit sector and others. In short, a successful eGovernance strategy designed to strengthen democracy can succeed. An unsuccessful eGovernance strategy is likely to produce bottom up eDemocrcy as contravailing force. Research indicates that successful eGovernance requires achieving several collateral objectives. Governance needs to be more transparent and participatory through knowledge networking and learning behavior on the part of all parties. This makes it easier for knowledge to be assessed and applied in context, and opens the door for better feedback from effects and more scope for innovation. In the digital age old knowledge, information and skills may quickly become outdated as circumstances change and as new knowledge emerges. Conversely, new knowledge may be wrongly embraced simply because it is new. Both underscore the need for collaboration around knowledge networking. There is wide scope for the good use of ICTs in good governance. This stems from the fact that the work, mission and vision of any organization, including the government, in an ICT-enabled setting allows a strategy of knowledge management and a favourable attitude toward a learning culture to operate in a more accessible and transparent setting. Access and transparency, across time and space, are integral components of an ICT-enabled KM/LO strategy. The goals of an eGovernance Action Plan involve organizational and individual changes in attitudes and behaviour to properly incorporate ICTs to the task of good governance governance: eGovernance. Although much cultural change can take place at the level of individuals in organizations, it is clear that it is also important to promote and measure cultural change at the organizational
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level. Good eGovernance goes one step further and looks to how ICTs can promote changes in individual, group and organization structures and processes. Attitudes and behavious around knowledge management, knowledge networking, and continuous learning must operate at all levels within government and beyond, across all sectors in society. Overall, the challenge to good eGovernance, as faced by the government, is how to implement such a broad change strategy that goes well beyond eGovernment. It enlists the government as a lead change agent in moving all elements of society to a position where KM, LO and ICT are central to both local (community) development and in strengthening democratic society. Through an eGovernance action plan an evolutionary strategy for government public: administration units to embrace the goal of good eGovernance can be pursued. It is not enough for Government public: administration, or any other organization, to apply knowledge management knowledge: management to a static body of knowledge, or existing structures, only seeing ICTs as a tool for managing that knowledge better within those structures. In the digital age-old knowledge, information and skills can quickly become outdated as circumstances change and as new knowledge emerges. It follows that the good use of ICTs in the pursuit of the work, mission and vision of any organization, including a public administration, requires the organization to combine a strategy of knowledge management with a favourable attitude toward learning culture as an integral component of its knowledge management strategy. Knowledge acquired through formal education and permanent life-long learning processes are extremely important in properly applying knowledge to use and in the proper use of authority. An organization must know what new things to embrace, and when to embrace them, what old things to discard and when to discard them. It also
eGovernance
must know what old things to retain and what new things to reject. To do so, it must strive to become a learning organization. Only in this way can effective and efficient good eGovernance be fully applied, ideally to the pursuit of democracy. In simple terms, the challenge to good eGovernance, as faced by the institutions of government, is how to implement a broad change strategy that goes well beyond the introduction of ICT information: ICT-enabled eGovernment, a strategy that promotes a KM/LO culture throughout society. Stopping at eGovernment, and failing to implement a KM/LO strategy runs the risk of well intentioned ICT-enabled eGovernance to be at odd with democratic objectives, and pitting citizen based eDemocracy against eGovernance. In the worst case where it is used to support autocratic and non-democratic ends one would expect the citizenry to use an ICT-enabled eDemocracy venue to struggle against non-democratic government.
REFERENCES Barclay, O. R. (2007). What is knowledge management? Retrieved on May 2, 2007, from http:// www.providersedge.com/docs/km_articles/ What_Is_Knowledge_Management.pdf Beck, K. (1997). Organizational learning. Retrieved on August 10, 2006, from http://www. sfb504.uni-mannheim.de/glossary/orglearn.htm Berce, J. (2004). The influence of information society technologies on evolution in the public administration. In the 6th Undergraduate and Graduate Students eCommerce Conference, Faculty of Organizational Science, University of Maribor Online. Retrieved from http://ecom.fov. unimb.si/MerkurDay2004/program.htm Berce, J., Lanfranco, S., & Vehovar, V. (2008, July 10-11). E-governance a new challenge after e-government. In D. Remenyi (Ed.), Proceedings of the 8th European Conference on e-Government, Lausanne, Switzerland (pp. 63-71). Reading: Academic Conferences.
Blair, G. M. (1996). Learning organisations. Retrieved on June 3, 2008, from http://www.see. ed.ac.uk/~gerard/MENG/MEAB/lo_index.html Boossma, A., & Hoogland, J. J. (2001). The robustness of LISREL modeling revisited. In R. Cudek, S. Du Toit & D. Sörbom (Eds.), Structural equation models: Present and future. AFestschrift in Honor of Karl Jöreskog (pp. 139-68). Chicago: Scientific Software International. Retrieved on July 2, 2008, from www.ppsw.rug.nl/~boosma/ssi.pdf Carr, N. (2003). Why IT doesn’t matter anymore. Harvard Business Review, 81(5). Retrieved on December 10, 2006, from http://hbswk.hbs.edu/ archive/3520.html Clift, S. (2003). E-governance to e-democracy: Progress in Australia and New Zealand toward information-age democracy. March 2002. Retrieved on April 3, 2003, from http://www. Publicus.Net Druker, F. P. (1999). Management challenges for the 21st century. New York: Harper Business Publications. Ewalt, J. G. (2001, March 12). Theories of governance and new public management: Links to understanding welfare policy implementation. Presentation at the Annual Conference of the American Society for Public Administration, Newark, NJ. Geldof, M. (2005, October 17-20). Becoming an information society: The role of new information technologies in development. Wilton Park Conference, 798. Gonzalez, R. C. (1987). An overview of image processing and pattern recognition techniques (pp 5-78). In F. Aminzadeh (Ed.), Pattern recognition & image processing. London-Amsterdan: Geophysical Press. Jöreskog, K. G., Sörbom, D., & Du Toit, S. (2000). LISREL 8: New statistical features. Lincolnwood, IL: Scientific Software International.
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Letiche, J. M., & Rosen, P. W. (2001). Knowledge management, CKO, and CKM: The keys to competitive advantage. The Manchester Review, 6(2-3), 3. Lundvall, B., & Johnson, B. (1994). The learning economy. Journal of Industry Studies, 1(2). Marsick, J. V., & Watkins, E. K. (2004). The learning organization: An integrative vision for HRD. Human Resource Development Quarterly, (Winter): 1994. Nonaka, I., & Hirotaka, T. (1995). The knowledgeNonaka Ikujiro Takeuchi Hirotaka knowledge-creation company. New York: Oxford University Press. OECD. (2002). KM survey in the public sectordraft report on total results. September 2002; February, 2003; GOV/PUMA /HRM(2002)2. OECD. Sustainable development and governance. Retrieved on April 15, 2003, from http://www. oecd.org/topic/0,2686,en_2649_37405_1_1_1_ 1_37405,00.html Pedler, M. B., & Boydell, J. T. (1996). The learning company. A strategy for sustainable development. London: McGraw-Hill. Perkmann, M. (2002). Measuring knowledge value? Evaluating the impact of knowledge projects. Knowledge & Innovation Network; KIN brief #7-26/07/02. Retrieved on May 10, 2003, from http://www.ki-network.org McDougall, M., & Beattie, R. S. (1998, December). The missing link? Understanding the relationship between individual and organisational learning. International Journal of Training and Development, 2(4), 288-299. Peters, B. G., & Pierre, J. (1998). Governance without government? Rethinking public administration. Journal of Public Administration: Research and Theory, 8(2), 223–243.
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Pierce, J. (2003). Knowledge: What is it? Retrieved on July 12, 2008, from http://www.knowledgeboard.com/library/kmfb_john_pierce_01.pdf Riley, B. T. (2000, February). Knowledge management: An evolving discipline. A paper for National Research Council Canada. Retrieved on October 12, 2005, from http://rileyis.indelta.com/ publications/NewDocs/KnowledgeManagement/ KM-AN-EVOLVING-DISCIPLINE.htm Senge, M. P. (1990). The fifth discipline: The art and practice of the learning organization. London: Random House. Vehovar, V. (2006). Social informatics: An emerging discipline? In J. Berleur (Ed.), Social informatics-an information society for all. Springer Publisher. Verton, D. (2003). Knowledge management failures central to shuttle disaster. Commentary in ComputerWeekly.com. Retrieved on August 28, 2003, from http://www.computerweekly.com/ Articles/2003/08/27/196769/ReportKnowledgemanagementfailurescentraltoShuttledisaster.htm Wikipedia. (2008). Wikipedia entry on “electronic voting.” Retrieved on June 12, 2008, from http:// en.wikipedia.org/wiki/Electronic_voting World Bank. (2008). Economic prospects 2008. World Bank Publication. Retrieved on January 16, 2008, from http://www.worldbank.org/gep2008
KEy TERMS AND DEFINITIONS eGovernance: The pursuit of the objectives of governance through the use of the ICT-enabled electronic venue. eGovernment: The internal and external provision of government information, and interactive services through the use of the ICT-enabled electronic venue
eGovernance
iGovernment: The internal migration of traditional paper based and face-to-face government administrative process to the ICT-enabled electronic venue. Information and Communications Technology (ICT): The combined facilities and services of computers and computer applications linked across time and space via networks ranging from local area networks to the World Wide Web and the Internet. Knowledge Management (KM): An explicit policy of managing both the explicit and tacit knowledge within an organization and its various processes, for the purpose of achieving increased
efficiency and effectiveness in the pursuit of its mission and vision Learning Organization (LO): An explicit practice of nurturing a culture of learning at the individual and organizational level to promote innovation and organizational agility. Information Society: A society in which there is a general appreciation of the importance of information and knowledge as key inputs into socio-economic, political and other social processes, and provides strong support for knowledge retention, knowledge networking and knowledge discovery strategies
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Chapter 18
Antecedents and Consequences of the Risk Taking Behavior of Mobile Commerce Adoption in Lebanon Rima Charbaji American University of Beirut, Lebanon Karim Rebeiz American University of Beirut, Lebanon Yusuf Sidani American University of Beirut, Lebanon
ABSTRACT This study was conducted to explore the attitude towards adopting m-commerce in Lebanon. The sample of respondents were asked twenty Likert’s type questions that taped five different areas: (1) Motives based on Psychographics: Life Style and Hobbies, (2) Perceived Ease of using M-commerce, (3) Adopting M-Commerce, (4) Perceived Credibility, and (5) Experience. Two statistical analysis, Chi-Square and path analysis, were used. Factor analysis and reliability tests were used to establish the validity and reliability of the measuring instrument (questionnaire). Path analysis was used in this study to decompose the relationships between the dependent variable “Respondents Attitude towards Adopting M-Commerce” and the independent variables “Motive,” “Experience,” and “Perceived Ease of Use.” The results of this study suggest that the relationship between the independent variables and the dependent variable to be further studied in further research using a larger sample. Having larger sample seems to be crucial in conducting similar studies. DOI: 10.4018/978-1-60566-671-6.ch018
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INTRODUCTION Commerce is any kind or type of exchange of goods, productions, or property, or the rights to property offered for a consideration to the general public at large1. It is the exchange of something of value between two entities2. However, with the advent of the Internet and the World Wide Web, commerce can be performed electronically, and the process is termed as e-commerce. Thus, e-commerce means conducting business on the Internet. It is mostly referred to buying and selling items on line3. Furthermore, due to the technology revolutions, and wide spread use of the mobile phones across the continents and the countries, entrepreneurs are utilizing the most benefit out of the use of the cell phones. They are using the cellular phones not only for communication purpose (i.e., for information sharing), but also for making commercial use of them. Economy of the current world, especially infotainment has clearly been inclined towards transactions made by the cellular phones. In addition to these, mobile phones are being used to buy and sell commodities. As the following definition reveals, mobile commerce is the buying and selling of goods and services through wireless handheld devices such as cellular telephones and personal digital assistants4. Wikipedia, also termed mobile commerce (also known as M-Commerce, mCommerce or U-Commerce, owing to the ubiquitous nature of its services) as the ability of one to conduct commerce, using a mobile device e.g. a mobile phone (cell phone), a PDA, a smartphone and other emerging mobile equipment such as dashtop mobile devices5. In this context, Tiwari & Buse (2007:33) has defined m-commerce as: “Mobile Commerce is any transaction, involving the transfer of ownership or rights to use goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with the help of an electronic device.” Development in the number of Internet and telecommunications users since the late 1990s
has provided firms with new ways to conduct business and exchange information through the development of the e-commerce market. But due to the differences of m-commerce from the other forms of commerce, recent years have witnesses an increasing discussion of the factors affecting customer satisfaction with m-commerce and how m-commerce differ from e-commerce. Based on review of literature, one may conclude that m-satisfaction is a recent phenomena. Most of previous research on m-commerce was about technology acceptance models. Antecedents and consequences of m-commerce has rarely been studied because of its short history. It is really hard to find causal models explaining and predicting m-satisfaction and or m- motivation. End users differ in their m-Commerce knowledge, awareness, perception, feelings and in their intention to accept to use m-commerce. There are different motives that motivate end users to use m-commerce. Different models such as AIDA (Customers’ Attention, Interest and Desire and Action) are used by industry in making promotion decisions. The days are gone when emphasis was placed on super salesperson that could sell any thing. Understanding consumers’ needs lead to customer satisfaction and loyalty. People have private reasons as well as public reasons for using m-commerce. Motives for using m-commerce may represent different levels of Maslow’s hierarchy of needs and an imperative need exists for future research that deals with what motivates end users to use m-commerce. This chapter is a case study that was conducted to explore the attitude of Lebanese stakeholders adopting the m-commerce. In doing so, this study looks into issues related to the definition of m-commerce, provide general overview of m-commerce, tries to differentiate between ecommerce and m-commerce, provides a thorough literature review on antecedents and consequences of the risk taking behavior of mobile commerce, draws recommendations based on the literature review relating to the risk taking be-
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havior of mobile commerce adoption in Lebanon, analysis was performed through a survey questionnaire responses to study the relationships between different variables including the socio-economic patterns of the stakeholders, provided a few future research implications and a few recommendations before concluding.
GENERAL BACKGROUND Electronic commerce is not a recent idea in Lebanon, for government in Lebanon has been trying to restructure and modernize its telecommunications sector since the end of the civil war in 1990. “The goal of the government was not simply to fix what was damaged by the war but rather to restructure and reform the telecommunications landscape, allowing the country to leapfrog into the twenty-first century and the information age,” (Jamali, 2003). The Economist Intelligence Unit 2003 reported that Lebanon “has one of the most developed internet markets in the Arab world,” and as a result there has been an increased interest in using e-commerce in Lebanon. Similar to other countries, ATM was the most frequently adopted channel, followed by internet banking and telephone banking. “Virtually all of the banks that offer electronic services allow customers to check the balances in their accounts, transfer funds between accounts, and order electronic bill payments” (Lee et al, 2003). But as information
technology becomes more and more sophisticated, m-commerce becomes the natural extension of the classical e-commerce and the primary concern of this paper is to uncover potential factors that will encourage or prevent the adoption of m-commerce in Lebanon. Aldin et al. (2004) defined electronic commerce as any type of business transaction through which the parties interact electronically instead of through physical exchanges or direct physical contact. Lee and colleagues 2004 believe that internet is the revolutionizing tool that has radically altered the dynamics of commerce worldwide. Lately, m-commerce is the hottest new trend in business transactions which became possible due to the emergence of wireless and mobile technology. M-commerce: is defined as the ability to conduct commerce, using mobile handheld devices. It is anticipated that m-commerce will establish a considerable future market worldwide. ARC group (1999) projected that worldwide wireless internet users will increase from the 96 million users in year 2001 to more than a billion in few years. Table 1 below shows the differences and similarities between e-commerce and m-commerce.
Literature Review Based on review of literature, mobile technologies have gained great attention lately. The main value-adding features of m-commerce include
Table 1. Differences and similarities between e-commerce and m-commerce Technology
E-Commerce
M-Commerce
Device
PC
Smartphones, pagers, PDAs,
Operating System
Windows, Unix, Linux
Symbian (EPOC), PalmOS, Pocket PC, proprietary platforms.
Presentation Standards
HTML
HTML, WML, HDML, i-Mode
Browser
Microsoft Explorer, Netscape
Phone.com UP Browser, Nokia browser, MS Mobile Explorer and other microbrowsers
Bearer Networks
TCP/IP & Fixed Wireline Internet
GSM, GSM/GPRS, TDMA, CDMA, CDPD, paging networks
Source: Mobileinfo.com, April 2004. Retrieved on June 15, 2007. http://www.mobileinfo.com/Mcommerce/differences.htm.
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flexibility, convenience, and ubiquity. Wireless value is likely to be a main driver for m-commerce. However, in contrast to the wired methods of connecting with an information system, mobile devices have smaller display screens, not really comfortable methods for inputting data, limited processing power, lower bandwidth capabilities, and require greater security and user identification. (Zhang et al, 2003). “While these technologies may provides benefits and new opportunities for consumers they may also give rise to sharp practices that can affect vulnerable consumers;” for instance, the current uptake of mobile technology by young consumers and the relative inexperience of young people with online buying. The wireless technologies that lie behind m-commerce may result in a lot of privacy concerns because of the ability of collecting individualized and personal information through wired methods. Wireless technology makes it possible to collect locational information as well (Australian Competition and Consumer Commission, 2005). Rogers’ diffusion of innovation theory is a well known model used in explaining user acceptance of new technologies. Rogers (1962) anticipated a model of the diffusion of innovations that included five product or service characteristics assumed to affect consumer acceptance of new products and services: relative advantage, compatibility, simplicity/complexity, observability, and trialability. Relative advantage is the extent to which customers regard a new product or service as different and better from its substitutes. Compatibility is the degree to which a new product or service is reliable and compatible with customer’s beliefs, needs, values, experiences, and habits. Simplicity is the degree to which a new product or service is easy to understand or use. Observability is the degree to which a new product or service is observable and communicable to consumers. Trialability refers to customers’ competence to test a new product or service. Alavi and Joachimsthaler (1992) believed that mainly the four important characteristics that de-
termine technology acceptance are cognitive style, personality, demographics, and user-situational variables; •
•
•
•
Cognitive style is an expression used in cognitive psychology to explain the way people think, perceive and remember information, or their desired way of using such information to solve problems. Personality refers to the cognitive and affective structure held by persons to facilitate adjustments to events, people, and situations. Some important personality traits are: need for achievement, degree of defensiveness, locus of control, and risktaking propensity. Demographic variables refer to individual characteristics such as age, education, and gender. User-situational variables include training, experience, and user involvement.
Roger 1995 stated that technology or innovation adopters are divided into five classes depending on their speed of uptake: innovators, early adopters, early majority, late majority, and laggards. Some of the characteristics of each class of adopters include: •
• •
•
•
Innovators: Brave individuals, educated, multiple info sources, and have greater tendency to take risk. Early Adopters: Respectable individuals, social leaders, and popular. Early Majority: Careful individuals, deliberate, and have many informal social contacts. Late majority: Skeptic individuals, lower socio-economic status, and will not any new thing before others. Laggards: Traditional individuals, caring for old ways, and neighbors and friends are main source of information.
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Previous research has shown that adoption of m-commerce provides an evidence that mcommerce appears to be beneficial to both customer and firms. Anckar 2002 in his investigation of the “ Value Creation in Mobile Commerce: Findings from a Consumer Survey”, highlighted the importance of setting out from a consumer perspective when developing m-commerce strategies, proposing an analytical framework that can be used to assess whether, and in what ways, specific mobile services are likely to offer value for wireless internet users. He attempted to answer the following questions: • • •
What is the effect of value creation on mobile commerce usage? What is the effect of gender and age on mservices usage? What is the effect of consumer’s mobile value recognition on m-commerce usage? What is the effect of m-commerce on the overall increase of the internet commerce market?
To this end Anckar reported data by using a national consumer survey. They used a self administered questionnaire which was mailed out to consumers. Respondents were instructed to indicate the likelihood on a 5 point scale. Anckar found out that: •
There is low willingness to use mobile services in general, but an exceptionally high willingness to use some applications.
Results did not support the supposition that mcommerce is likely to increase the overall volume of e-commerce significantly by penetrating into untapped markets. In the study conducted by Nysveen and his team (2005), Nysveen, Pederson, and Thorbjornsen present an assessment of the way in which consumers use mobile chat services and the effect of gender. They wanted to answer: What
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is the effect of perceived expressiveness, enjoyment, usefulness, and ease of use on the intention to use mobile chat services between men and women? An extended adoption model based on the technology acceptance model and theory of reasoned action is applied in order to pin-point the antecedents of intention to use mobile chat services and for revealing cross-gender differences. The hypotheses are tested on data from a survey of 684 users of mobile chat services. In other words, the survey was totally web-based and comparing it to the number of subjects clicking on the advertisement, the response rate was 43.6%. Biases are eliminated in the sample as a total of 684 respondents participated. The general internet population reflects the distribution of subjects in regards to age, education, and gender. Based on their data, the 3 researches showed that gender moderates the effect of perceived expressiveness on intention to use mobile chat services. Specifically, for expressiveness the results were in the opposite direction of what was hypothesized, and for ease of use and attitudes no differences in effect across gender were found. Therefore, the important determinants of intention to use by female users are social norms and intrinsic motives such as enjoyment. As the key drivers among men are extrinsic motives such as usefulness and expressiveness. In the article, Linking Perceived Value and Loyalty in Location Based Mobile Services, Pura wanted to analyze the effect of perceived value dimensions (monetary, convenience, social, emotional, conditional, and epistemic value) on attitudinal and behavioral components on loyalty: commitment and behavioral intentions to use location-based mobile service. The research model showing the hypothesized relationships is shown in Figure 1. Pura wanted to investigate: What is the effect of introducing new context relevant concepts that are needed in value based marketing towards perceived loyalty in location based on the mobile services? What is the effect of perceived value dimensions (monetary, convenience, social,
Antecedents and Consequences of the Risk Taking Behavior
Figure 2. Consumer acceptance of mobile payment in light of the task-technology fit model. Adopted from: Pousttchi K. & Wiedemann D. (2006), “What Influences Consumers’ Intention to Use Mobile Payments?” Retrieved September 12, 2007.
emotional, conditional, and epistemic value) on attitudinal and behavioral components on loyalty: commitment and behavioral intentions to use location- based mobile services? Pura used online survey for users of a mobile location-based directory service (Fonecta Ltd.). Fonectas’ locationbased service allows people to get the nearest service location by ordering the information with the help of a text message as shown in Figure 2. Pura found out that: •
•
•
The behavioral intentions were most influenced by conditional value; the context, in which the service is used, followed closely by commitment and to some extent monetary value. Commitments can be enhanced through building emotional value and conditional value by focusing on offering fun service experiences in the right context. The influence of social and epistemic value was not significant (Pura, 2005).
Source et al (2005) conducted a research to examine the relative impact of age and attitude towards shopping online in forecasting the probability to shop and buy online. A survey was
distributed to over 300 students and staff from a US university to study their online shopping and buying experiences for 17 products. The researchers investigated the following: (1) What is the impact of age on searching for and purchasing products online? (2) Do online shopping attitudes vary by age? (3) What is the relative impact of age and attitudes in predicting online shopping and purchase behavior? The results of the study show that older shoppers purchased as many products as younger shoppers, although they actually searched for fewer items than their younger counterparts. The unwillingness of older customers to spend the time and effort to shop for products online shows their less optimistic attitude towards internet shopping. The study shows that younger consumers were more expected to search online than older consumers. However, older consumers were more likely to buy when they had searched for the item online. Thus it is better to encourage older consumers to get online in the first place, and need to tempt younger consumers to translate their shopping and browsing into actual purchasing.
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Figure 1. Linking perceived value and loyalty in location based mobile services. Adopted from: Linking Perceived Value and Loyalty in Location-Based Mobile Services. Retrieved on September 12, 2007.
Although many studies focused on technology development, few had explored the influence of culture over the success of IT deployment and adoption. Zakaria and Stanton (2003) believed that culture affects the adoption of new technologies and one has “to think globally but act locally.” What some people consider useful and meaningful in one culture may not be considered so in another. For instance, low-context societies such as USA, Germany, and Great Britain have greater concern for autonomy and privacy as compared to highcontext societies such as Japan, China, and Saudi Arabia. Zakaria and Stanton believe that value has great influence on IT developments. For instance, an important cultural value in the Arab culture is collectivism in which Arabs are concerned about the common good (benefit to the culture) of any project before anything. The study conducted by Lim and his team (2006), entitled “M-loyalty: Winning Strategies for Mobile Carriers” aimed at investigating the determinants of satisfaction and loyalty decisions in the use of mobile services. The purpose was two folds: 360
•
•
The first purpose is to identify relevant dimensions of service quality in the mobile services context that consumers perceive in their service evaluations. The second purpose of the study is to identify relevant dimensions of consumers’ perceived value in the mobile services context. They attempted to answer: ◦ What is the effect of high perceived performance on perceived value? ◦ What is the effect of perceived economic value on satisfaction? ◦ What is the effect of social value on consumer perceived value? ◦ What is the effect of perceived social value on the level of satisfaction in the use of mobile internet services? ◦ What is the effect of consumers’ positive attitude towards a service provider?
A research model was designed to identify multi-dimensions of mobile services quality and perceived value, and investigate their influence
Antecedents and Consequences of the Risk Taking Behavior
on satisfaction and loyalty. Structural equation modeling was employed to test hypothesis. A web- based survey was conducted to collect the data. The sample was general U.S. consumers who currently subscribe to a mobile service. The survey resulted in 81 percent click-through rate with no duplicated responses (i.e. respondents’ IP addresses were checked). Statistical analysis identified five distinct dimensions of mobile service quality, and their direct and indirect effects on economic value, emotional value on loyalty intention through satisfaction. Two dimensions of perceived value (i.e economic value, emotional value) had significant influences on customer satisfaction, and on loyalty. Also, the results show interrelationship between economic & emotional value. In 2007, Vanessa Ratten and Hamish Ratten conducted a study of the social cognitive theory in technological innovations; this survey shed the lights on many important facts. They attempted to answer the question of: What are the effects and factors that influence youth’s intention to use WAP banking services in Australia? The dependent variable is: intention to use WAP banking service by youth in Australia, while the independent variables: are exposure to WAP banking in the media; exposure youth has to others engaging in WAP banking; youth’s expectations of the outcomes of WAP banking, levels of computer self- efficacy; the outcome value of the WAP service. The investigation is based on quantitative study of the youth market in Australia. Social cognitive theory is utilized to support a conceptual model that is empirically tested. The sample comprised 203 Australian youths between the age of 18 and 29 years old attending one of Brisbane’s major metropolitan universities in Australia. A 5 pages questionnaire was administered which included pre-existing scales with their reliability scores. The findings of the demonstrate shows that Australian youths are influenced by media exposure and outcome values (Kaufman, 1991).
In his research, on the consumers’ attitudes towards online and mobile banking in China, Laforet (2005) wanted to investigate the market status for online/mobile banking in China. With the recent and forecasted high growth of Chinese electronic banking, it has the potential to develop into a world-scale internet economy and requires examination. Laforet wanted to: • • •
•
Investigate the markets status of online and mobile banking in China. Identify the target customers for online and mobile banking. Understand the demographic characteristics of users and non users of electronic banking. Compare attitudes of users and non users towards electronic banking with respect to technology, security, convenience, prior personal banking experience and the product attributes and reference group’s influence. The major question to be answered was:
What is the effect of consumer behavior, attitude, motivation, and cultural influence on the online and mobile banking usage in China? Laforet found out that: •
•
•
•
The results showed Chinese online and mobile bank users were predominantly males, not necessarily young and highly educated, in contrast with electronic bank users in the West. The issue of security was found to be the most important factor that motivated Chinese consumer adoption of online banking. Main barriers to online banking were perception of risks, computer and technological skills, and Chinese traditional cash-carry banking culture. The barriers to mobile banking adoption were lack of awareness and understanding
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of the benefits provided by mobile banking. Wan and his colleagues conducted a piece of research in 2005 on customers’ adoption of banking channels in Hong Kong; this research showed several new results. The study sought to investigate factors that influenced Hong Kong bank customers’ adoption of four major banking channels, i.e. branch banking, ATM, telephone, banking, and internet banking. Specifically, it aimed to focus on the influence of demographic variables and psychological beliefs about the positive attributes possessed by the channels. A questionnaire was distributed to 314 bank customers. The question to be answered was: What is the effect of demographic factors on adoption of internet banking in Hong Kong? The dependent variable is the adoption of internet banking channel in Hong Kong, while the independent variables are: gender, age, monthly household income, educational level, and occupation. The result of their study showed that males were more likely to use internet banking, adoption of internet banking was highest between middle adulthood, and lower for younger or older customers, monthly household income was considerably associated with the adoption of internet banking, a positive relation between level of education and adoption of internet banking, and that adoption of internet banking was higher in the higher-level occupations. Jaruwachirathanakul and Fink researched in 2005 the internet banking adoption strategies for a developing country in the case of Thailand; this review uncovered many significant conclusions. The objective of the paper is to identify the factors that encourage consumers to adopt internet banking services in Thailand and to use the study’s findings to develop strategies for banks on how to maximize the rate of adoption. The main question to be answered was: What are the effects and factors that influences internet banking adoption in developing countries like
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Thailand? The dependent variable is the adoption of internet banking in developing countries, while the independent variables are divided into (1) bank factors (perceived usefulness, adoption features, bank online features, and risk and privacy), (2) inhibiting factors (compatibility with the consumer’s personal preferences, the external environment and Thai culture), and (3) moderating factors (age, gender, educational levels, income, internet banking experience. The study was based on a questionnaire research with a sample size of 600 achieved by sending questionnaire to 15 people in each of 40 large companies in Bangkok. The study is based on the Decomposed Planned Behavior. The result of the study showed that with the exemption of the respondents’ age, all moderators had a statistically significant effect on the factors impacting the adoption of internet banking in Thailand. The attitudinal factors that seem to positively influence the adoption of internet banking in Thailand most are “features of the web site” and “perceived usefulness”, while the most significant inhibiting factor to adoption is the external environment. Pousttchi & Wiedemann (2006) conducted research in year 2006 to study consumer acceptance of mobile payment in Germany; in order to study consumer behavior the research introduced a consumer acceptance model that tackles perceived usefulness, perceived ease of use, subjective security, and task-technology fit. Pousttchi & Wiedemann believed that TAM has demonstrated to be a helpful theoretical model in explaining customer behavior in information system implementation; however, it is essential to include other explaining variables into TAM related to mobile payment, “the perspective in which mobile payment is used and consumer’s perceived security.” Pousttchi & Wiedemann assumed that it is important to study consumer acceptance of mobile payment in light of the Task-Technology Fit model also. The research model showing the hypothesized relationships is shown in Figure 4. “The Task-Technology Fit (TTF) model proposes
Antecedents and Consequences of the Risk Taking Behavior
characteristics of technology, tasks, and individuals as explanatory variables for technology use and individual performance. TTF is considered as the extent to which technology functionality matches task requirements and individual abilities.” An online survey was given to participants who were recruited through advertising on some German websites and newsletters. The sample consisted of 1,104 German users. The results of the study show that perceived trustworthiness of a mobile payment service provider and perceived confidentiality of payment details are strongly correlated. Moreover, the study proved that perceived usefulness and perceived ease of use had a strong influence on customers’ intention to use a mobile payment procedure. It showed a significant positive influence of perceived ease of use on perceived usefulness, customers who believe that mobile payment is easy to use also believe that it is more useful. However, perceived confidentiality and perceived trustworthiness had no influence on customers’ intention to use. Subjective security was not considered a driver of mobile payment acceptance. Perceived confidentiality had no influence on perceived usefulness as well. Finally, it showed that TTF have some effect on perceived usefulness. Gan et al (2006) conducted research to study consumers’ choices between electronic banking and non-electronic banking in New Zealand. The dependent variable is electronic banking. The independent variables are: the service quality, perceived risk factors, user input factors, employment, and education. A survey was distributed to 1960 households in New Zealand. The results of the study show that service quality dimensions (reliability, assurance, responsiveness) are positively related to consumer’s choice of electronic banking: •
Reliability: such as clients’ perception that electronic banking is always a secure method
•
•
Assurance: such as the confidentiality aspect that is connected to electronic banking Responsiveness: such as electronic banking users assumed that electronic banking responded faster to their requirements than other traditional modes of banking
Moreover, the study shows a negative relationship between perceived risk and electronic banking. Since electronic banking is a technologyenabled channel, consumers perceive the use of electronic banking as a risky decision because technology-enabled services reveal invasive technological, strange, and vague stimuli. Risk includes: •
• •
•
•
•
Financial risk: such as customers could fear losing money from stopping a payment after discovering a mistake. Performance risk: such as a client is denied the access to his/her account. Physical risk: such as injury when personal information, is accessed by a third party. Social risk: such as older generation could criticize the use of electronic banking due to their belief that non-electronic banking is personal and friendly. Psychological risk: such as clients’ belief that that the use of electronic banking could lower the self-image of themselves, or have a negative effect on their perceived image from other clients. Time risk: such as taking more time to complete transactions as compared to electronic banking.
The study also shows a positive relationship between electronic banking and user input factors which are a function of (control, enjoyment, and intention to use):
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Antecedents and Consequences of the Risk Taking Behavior
•
•
•
Control: is the amount of effort and involvement demanded by clients in using electronic banking. Enjoyment: is the perceived playfulness and intrinsic value that consumers encounter from the use of electronic banking. Intention to use: is the level of resistance to change, which is linked with clients’ intention to shift from non-electronic banking to electronic banking.
Finally, the study shows that demographic characteristics affect clients’ choice of electronic banking. Clients’ different residence areas have different influence on electronic banking use. There is a positive relationship between low-income consumers and electronic banking although it is statistically insignificant, maybe because costs associated with electronic banking are affordable. Amin conducted a research in 2007 to investigate the factors that determine the motives behind using mobile credit card among Malaysia bank customers, as their new way in carrying out payment transactions. This study broadens the applicability of the technology acceptance model (TAM) in a mobile credit card framework trying to study the relationship between independent variables (perceived usefulness, perceived ease of use, perceived credibility, and the amount of information mobile credit card) and the dependent variable (usage intention). The study was conducted through a survey questionnaire that was distributed to 150 bank customers in Labuan and Kota Kinabalu, Sabah, Malaysia and through which only 108 responses were usable. The study verifies the suitability of the TAM in foreseeing mobile credit card acceptance in Malaysia. Perceived usefulness is significantly related to usage intentions; that means that bank costumers will make use of mobile credit card when it is useful for payment purpose. It also shows that that perceived ease of use is significantly related to usage intentions. Finally it explains the association between
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perceived credibility and intention to use mobile credit card; that is even if a customer believes mobile credit card is useful and easy to use, the customer may consider the issue of security and privacy before adoption.
Significance of the Study Based on review of literature it is found that “Owing to its scalability and potential cost savings, mobile communication is being increasingly applied in the business and consumer communities to create innovative data and voice application, which run over the Internet infrastructure” (Olla and Atkinson, 2004). Granted there have been many studies done either on online e- commerce in general or on m-commerce in particular; however, there was no attempt to study the risk taking behavior of mobile commerce adoption in Lebanon. The researchers in this study believes that it is important to investigate the internal and external motives that lead to adopting this new innovative commerce in Lebanon. A study, such as the one conducted here, is recommended by experts in the field of e-commerce. Lee and her colleagues 2003 argue that “Paradoxically, the problems of Internet banking may either prevent consumers from adopting the 3G mobile phone banking services or encourage them to adopt the services. Additional research is needed to identify under what conditions consumers’ adoption of new product may or may not be affected by their experiences with the previously adopted product”. They added that “exclusion and seclusion risks emerged from the current research as possibly being associated with psychological risk and social risk. Intrusion risk, found in the current research, may be related to financial risk, performance risk and time risk. These relationships need to be tested in the future research.” Based on previous research it is found that youths are more influenced by media exposure (Ratten & Ratten, 2007). Moreover, it is reported that online and mobile bank users were predominantly males, not necessarily young and
Antecedents and Consequences of the Risk Taking Behavior
highly educated, but they consider the issue of security as the most important criteria (Laforet, 2005). Furthermore, internet banking was found to be the second most used banking channel after ATM (Wan et al, 2005). The significant moderating factors encouraging the adoption of internet banking are gender, educational level, income, internet experience and internet banking experience, but not age (Jaruwachirathanakul and Fink, 2005). Galanxhi-Janaqi and her colleague 2004 believe that while the combination of traditional e-commerce and wireless, bring many benefits, there are challenges and impediments to overcome and it is imperative to further investigate this issue in different cultures such as Lebanon. Lee and her colleagues (2003) in their recommendation for further research call for “Taking an international perspective, different cultures possess diverse values relating to various products and services, as well as to risk and relative advantages.”
Purpose of the Study The objective of this research is to understand customers’ behavior and motives in choosing to adopt m-commerce in Lebanon. This thesis investigates internal and external motives underlying individual behavioral intention to use m-commerce in Lebanon. It examines both the consumer risk perceptions and the motives as they are the key elements that will affect customers’ adoption of new technology.
Statement of the Research Problem This study investigates the effects of internal and external motives on the adoption of m-commerce in Lebanon via perceived risk. This thesis attempts to answer this basic question: What are the direct and indirect effects of the explanatory variables to the explained variation in customers’ intention to adopt m-commerce in Lebanon?
PROCEDURES AND METHODOLOGy Population of the Study The population of the study consists of the Lebanese people who have access to mobile services. Previous research questioned “the wisdom of using age alone to segment the market. Psychographics, or lifestyle groupings, has emerged as a more robust technique of identifying distinct categories” (Oates et al, 1996).
Sample Selection The researchers in this thesis selected a large convenient sample of the respondents from the population.
Instrumentation Based on review of literature, discussion with experts in e-commerce and m-commerce the researcher in this thesis constructed a questionnaire using Likert type scale in which each respondent is asked to place him/ herself on a scale from 1 to 5 in which “1” means strongly disagree and “5” means strongly agree.
Data Collection The data for this study has been collected by means of personal interviews using questionnaire. A causal model has been constructed to investigate the direct and indirect causal role of the constructs such the attitude toward risk-taking, perceived usefulness and perceived ease of using m-internet in developing the intention to use m-commerce in Lebanon. The intention of the researcher in this study is to develop a structural equation causal model to better reflect m-commerce context in Lebanon that can help in decision making and problem solving.
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Antecedents and Consequences of the Risk Taking Behavior
Table 2. KMO and Bartlett’s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett’s Test of Sphericity
.802
Approx. Chi-Square df Sig.
Construct Validity of the Instrument Factor analysis was carried out as a data reduction technique. Two statistical tests were conducted in order to determine the suitability of factor analysis. First, the Kaisers-Meyer-Olkin (KMO) measure of sampling adequacy score of 0.802 was well above the recommended level of 0.5. Second, the Bartless test of sphericity was significant (Chi Square = 5832.547, P < 0.01), indicating that there are adequate inter-correlations between the items which allow the use of factor analysis, as shown in Table 2. Principal axis factoring was used as an extraction method and oblique rotation was used as a rotation method. Five factors were extracted using
5832.547 171 .000
Eigenvalue greater than one criterion. The five factor solution accounted for 80.26 per cent of the total variance, as shown in Table 3. The table reveals that the five factors were easy to label. The first factor accounts for 37.496 percent of total variance and is defined by four items with factor loadings greater than 0.85. This research calls factor one “Motives based on psychographics: Life Style and Hobbies”. The second factor accounts for 19.177 percent of total variance and is defined by its five items with factor loadings greater than 0.80. Authors call this factor “Perceived Credibility”. The third factor accounts 10.926 percent of total variance and is defined by six items with factor loadings greater than 0.70. Authors call factor three “Adopting M-commerce”. The fourth factor
Table 3. Total variance explained Component
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Initial Eigenvalues
Extraction Sums of Squared Loadings
Rotation
Total
% of Variance
Cumulative %
Total
% of Variance
Cumulative %
Total
7.142 3.644 2.076 1.335 1.071 .643 .543 .499 .438 .355 .268 .246 .224 .182 .123 .088 .062 .043 .036
37.496 19.177 10.926 7.024 5.637 3.382 2.859 2.626 2.303 1.871 1.410 1.297 1.178 .959 .648 .462 .329 .225 .192
37.496 56.673 67.599 74.624 80.260 83.642 86.501 89.127 91.430 93.301 94.711 96.008 97.185 98.144 98.792 99.254 99.583 99.808 100.00
7.124 3.644 2.076 1.335 1.071
37.496 19.177 10.926 7.024 5.637
37.496 56.673 67.599 74.624 80.260
5.391 3.681 5.679 1.881 2.475
Extraction Method: Principal Component Analysis. a. When components are correlated, sums of squared loadings cannot be added to obtain a total variance
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Antecedents and Consequences of the Risk Taking Behavior
accounts 7.024 percent of total variance and is defined by two items with factor loadings greater than 0.70. They call factor four “Perceived Ease of Using M-commerce “. The last factor accounts 5.637 percent of total variance and is defined by two item with factor loadings greater than 0.79. They call factor five “Experience”. As shown in the Table 4.
Testing the Relative Importance of the Independent Variables to the Explained Variation in the Dependent Variable The following table (Table 5) shows the results of multiple regression. The regression is highly significant (RSQ = 0.277, F = 39.783, P = 0.00). The statistical tests of the partial regression coef-
Table 4. Factor analysis – Oblique structure solution Structure Matrix Component 1
2
3
4
5
Q27: Dinner is incomplete without sweet
.971
-.062
.519
-.036
.274
Q25: I like to drive sport cars
.957
-.039
.551
-.003
.345
Q26: I like to be a member in a social club
.917
-.018
.469
-.095
.377
Q23: I like to be a member in a health club
.897
-.057
.330
.017
-.009
Q13: I am not sure of mobile commerce payment system and hesitate to use them
-.054
.898
-.007
.069
-.002
Q7: Buying products via mobile phone is complex
-.010
.879
-.017
.072
-.045
Q2: Mobile devices are easy to use
-.040
.872
-.056
.104
-.051
Q11: Mobile devices is sophisticated
-0.11
.805
-.076
.050
-.116
Q18: Going to stores for shopping is time consuming
-.058
.801
.019
.114
.034
Q17: Mobile commerce increase firm’s temptation to exchange principles for success
.393
-.048
.938
-.166
.374
Q3: Mobile devices have limited memory
.568
-.042
.883
-.280
.227
Q21: I can trade stocks or mutal funds via mobile phone
.332
-.001
.861
-.214
.312
Q1: Mobile screens are easy to read
.341
-.076
.809
-.411
.343
Q30: Mobile commerce invades my privacy via cell phone
.714
-.055
.776
.116
.204
Q10: Applying for loans is east to do via mobile phone
.558
.007
.733
.222
.278
Q8: It is easy to manage my banking/credit cards via mobile phone
-.108
.102
-.148
.856
-.303
Q16: Mobile functions provided to end users are clear
.089
-.119
.430
-.790
.104
Q14: I lack experience in conducting commercial transaction via wireless device
.135
-0.74
.275
-.156
.930
Q20: I like experience in using mobile banking system
.562
-.032
.541
-.264
.792
Extraction Method: Principal Component Analysis. Rotation Method: Oblmin with Kaiser Normalization
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Antecedents and Consequences of the Risk Taking Behavior
ficients show that only three predictors out of four are significant in predicting the variation in adopting M-commerce in Lebanon, and “Perceived Credibility” was excluded because of not being significant in explaining the variation in respondents attitude towards “Adopting M-Commerce”, as shown in Tables 5, 6, 7, 8, and 9.
direct effect is negative. The mathematical model underlying the relations that lead to in solving the recursive causal model are:
Results of Path Analysis Figure 3 below shows the results of path analysis. Path coefficients which measure the direct effects between variables are shown between parentheses. The highest direct effect goes from “Motive” to “Adoption”, the second highest direct effect goes from “Experience” to “Adoption while the lowest direct effect is “Perceived credibility” to “Adoption”. It is very important to note here that that the direct effect of credibility on adoption is negative but because of the effect of indirect effects, the total relationship between credibility and adoption is positive but week. The relation between “Ease of Use and Experience” is positive but the true
Z1 = b2Z 2 + RU
(1)
Z 2 = b1Z1 + RU
(2)
Z 3 = b1Z1 + b2Z 2 + RW `
(3)
Z 4 = b1Z1 + b2Z 2 + b3Z 3 + RV `
(4)
r12 = p21
(5)
r13 = p31 + p32 p21
(6)
r23 = p31 p21 + p32
(7)
r41 = p41 + p42 p21 + p43 p31 + p43 p32 p21
(8)
r42 = p41 p21 + p42 + p43 p31 p21 + p43 p23
(9)
Table 5. Correlation coefficients between independent and dependent variables Adopting M-Commerce
Motives
Perceived Credibility
Perceived Ease of Use
Experience
Pearson Correlation
Adopting MCommerce Motives Perceived Credibility Perceived Ease of Use Experience
1.000 .460 -.034 -.171 .305
.460 1.000 -.040 .003 .210
-.034 -.040 1.000 .096 -.039
-.171 .003 .096 1.000 -.157
.305 .210 -.039 -.157 1.000
Sig. (1-tailed)
Adopting MCommerce Motives Perceived Credibility Perceived Ease of Use Experience
. .000 .273 .001 .000
.000 . .238 .476 .000
.273 .238 . .044 .245
.001 .476 .044 . .003
.000 .000 .245 .003 .
N
Adopting MCommerce Motives Perceived Credibility Perceived Ease of Use Experience
316 316 316 316 316
316 316 316 316 316
316 316 316 316 316
316 316 316 316 316
316 316 316 316 316
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Antecedents and Consequences of the Risk Taking Behavior
Table 6. Model Summary Model
R
R Square
.526a .526b
1 2
Std. Error of the Estimate
Adjusted R Square
.277 .277
.267 .270
.85591851 .85455540
a. Predictors: (Constant), Experience, Perceived Credibility, Perceived Ease of Use, Motives b. Predictors: (Constant), Experience, Perceived Ease of Use, Motives
Table 7. ANOVAc Sum of Squares
df
Mean Square
F
Sig.
1
Regression Residual Total
87.162 227.838 315.000
4 311 315
21.791 .733
29.744
.000a
2
Regression Residual Total
87.157 227.843 315.000
3 312 315
29.052 .730
39.783
.000b
Model
a. Predictors: (Constant), Experience, Perceived Credibility, Perceived Ease of Use Motives b. Predictors: (Constant), Experience, Perceived Ease of Use Motives c. Dependent Variable: Adopting M-Commerce
Table 8. Coefficientsa Unstandardized Coefficients Model
Standardized Coefficients
B
Std. Error
Beta
t
Sig.
1
(Constant) Motives Perceived Credibility Percieved Ease of Use Experience
-1.3E-016 .420 .004 -.142 .195
.048 .049 .048 .049 .050
.420 .004 -.142 .195
.000 8.504 .084 -2.896 3.895
1.000 .000 .933 .004 .000
2
(Constant) Motives Percieved Ease of Use Experience
-1.3E-.016 .420 -.142 .195
.048 .049 .049 .050
.420 -.142 .195
.000 8.520 -2.905 3.900
1.000 .000 .004 .000
a. Dependent Variable: Adopting M-Commerce
r43 = p41 p31 + p41 p31 p21 + p42 p31 p21 + p42 p32 p43 (10) Let us take an example of the computation process, decompose the simple relation between “Experience” and “Perceived Ease of Use” into “Direct Effect” and “Indirect Effect” as follows:R31 = -0.164 + (0.21)(0.038)= -0.157
CONCLUSIONS AND RECOMMENDATIONS Implications for Subsequent Research For subsequent research, the results of this study suggest that the relationship between the inde-
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Antecedents and Consequences of the Risk Taking Behavior
Table 9. Excluded Variablesb Model
Beta In
t
Sig.
Partial Correlation
Collinearity Tolerance
2 Perceived Credibility
a
.004
.084
.933
.005
.989
a. Predictors in the Model: (Constant), Experience, Perceived Ease of Use, Motives b. Dependent Variable: Adopting M-Commerce
Figure 3. Path analysis decomposing relations into direct and indirect effects
pendent variables and the dependent variable are ones of the complex causal sequence. Most of the relationships between variables are recommended to be further specified and clarified in subsequent research. Having a larger representative sample and experienced interviewers seem to be crucial in conducting similar studies about M-commerce. Replicating this study in different Arab countries should help in developing marketing strategies. Since M-Commerce through mobile payment is related to age, income and average monthly payment bill, it is recommended that such variables to be taken into consideration in marketing and promotion strategies. A study of what motivate respondents to use M-commerce and how do they perceive using M-commerce is imperative. As shown in study 82.6% of the respondents said that they are not using m-commerce through mobile payment while just 17.4% said they are; the majority are not using m-commerce through
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mobile payment. In comparing those who said that they are using m-commerce through mobile payment across age categories, the number of respondents who use m-commerce through mobile payment increases as age increases. In asking the respondents “are you using mcommerce through mobile banking” it is found that the majority 78.5% said that they are not as compared 21.5% who said yes. In studying this phenomenon across monthly mobile bill it is found that using mobile banking increases with increasing the amount of bill. When respondents were asked if they use mcommerce through mobile shopping it is found that the majority 89.2% said they don’t as compared to a low percentage of 1.8% who said yes. In studying this phenomenon across income, it is found that saying yes decreases with increasing income. It can be reasoned that respondents making less than $1000 are more ready to browse internet to shop via mobile.
Antecedents and Consequences of the Risk Taking Behavior
Respondents in this study were asked if they are using mobile entertainment and found that three quarters of the respondents are not using mcommerce for entertainment. However, in inspecting this phenomena across the marital status, it is found that using entertainment decreases among the married with children, it can be reasoned that married people may not want to use mobile for entertainment (games, videos, msn, .. others) to protect their kids from such behavior. Instead of asking respondents if they are currently using m-commerce, the researcher asked if the respondents are interested in using m-commerce for receiving financial and non financial information; as if inspecting the difference between those who actually (currently using mcommerce) and those who are interested (expected to use m-commerce). The majority of respondents replied that 50% of sample are interested in using m-commerce for receiving financial and nonfinancial information. In studying if interest in using m-commerce to receive information depends on gender it is found that more than female are interested in having information via mobile. It is found in this study that three quarters of sample are interested in using mobile commerce for checking banking account balance. Interest in using m-commerce for checking accounts is related to marital status and this interest increases among single and married with no children. It can be reasoned that respondents became more risk avert with having children. Fifty two percent of respondents are interested in paying bills via mobile commerce taking into consideration that more female than male are not interested in using m-commerce for paying bills. When respondents were asked about their interest in looking at images of checks and deposit slips; third of them were indifferent as compared to third were not interested The findings of the study reveal that most of the respondents are not currently using mcommerce in fact the majority of them are not
using m-commerce for entertainment, shopping, brokerage, payment, advertising, and information services. Taking into consideration that among the low percentage who are currently using mcommerce the findings of the study showed that a significant effect for age, marital status, income, and monthly mobile bill. It is important to note here that findings of the study show a more optimistic result than a pessimistic one especially when the respondents were asked if they are interested in using m-commerce. It is really interesting to find that interest in using m-commerce far exceeded the actual percentage for those who are using m-commerce. This puts more responsibility on companies, banks, insurance companies to promote m-commerce and help respondents adopt m-commerce. Since respondents are interested in this phenomena and since interest increases with gender, marital status, and other factors; it becomes imperative for companies to take that into consideration in this marketing strategy, planning, etc.
RECOMMENDATIONS For subsequent research, the results of this study suggest that the relationship between the independent variables and the dependent variable to be further studied in further research using larger and representative sample. Having larger sample seems to be crucial in conducting similar studies. As mentioned in the Review of literature, few studies had explored the influence of culture over the success of m-commerce deployment and adoption. The findings of the study call for conducting similar studies in different countries (especially in the Arab and Gulf region) to investigate the influence of culture on the customers’ behavior and motives in choosing to adopt m-commerce. Path analysis is used in this study to evaluate the direct and indirect effects of the independent variables on the dependent variable. A hypotheti-
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Antecedents and Consequences of the Risk Taking Behavior
cal five-variables causal model was developed on the basis of review of literature. The sample in this study was not randomly selected and there is no attempt to generalize the results beyond the sample. In addition, there is no attempt to demonstrate any cause and effect in this study.
research speculates that incremental use of mobile phone would strengthen the behavior pattern of the population at large towards m-commerce and in effect, encourage flourishing of electronics governance in the country.
Limitations of the Study
REFERENCES
This study had various limitations. First, the researchers were unable to select a random representative sample of respondents. Secondly, the researchers in this study had a very limited time. Thirdly, the interpretations of the findings are related to previous research but are based on logical basis and are subject to further research. Finally, it is observed that the implications of m-commerce in terms of the risk taking behavior demands further thorough research and in-depth studies, despite Lebanese market does not diverse far from the other countries in this region in the contexts of culture, or behavior, or motivations.
Alavi, M., & Joachimsthaler, E. A. (1992). Revisiting DSS implementation research: A meta-analysis of the literature and suggestions for researchers. MIS Quarterly, 16(1), 95–116. doi:10.2307/249703
CONCLUDING REMARKS The study finds that despite majority of the people are using mobile phones, but they are unaware of m-commerce and this user pattern varies between age, gender, income pattern, and social patterns. However, the study reveals that the expectation of mobile user is increasing with their use benefits and usage patterns. Furthermore, the study also found that more thrust or awareness effort should be taken from the government and also the entrepreneurs (banks, telcos, agencies and their marketing agents) to make them aware of the benefits of m-commerce. Since respondents are more interested to engage themselves in m-commerce scenario, the outcome will improve significantly through some form of positive inputs in terms of awareness raising. Furthermore, a larger scenario of user comprising a larger communities would reveal more elaborated patterns. However, this
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Zhang, J., Yuan, Y., & Archer, N. (2003). Driving forces for m-commerce success e-business management: Integration of Web technologies with business models. In M. J. Shaw (Ed.), Business management: Integration of Web technologies with business models (pp. 51-76). Boston: Kluwer’s Academic Publishers.
KEy TERMS AND DEFINITIONS Path Analysis: Is a unidirectional simultaneous equations model used for studying the direct and indirect effects of variables taken as causes of variables taken as effects. It is important to note that path analysis is not a method used for discovering causes, but a method used to decompose simple relations into direct and indirect effects in causal models formulated by the researcher on the basis of theoretical and logical basis. Path Diagram: Is a useful device for displaying graphically the pattern of causal relations among exogenous and endogenous variables.
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An Exogenous Variable: Is a variable whose variability is explained by causes outside the causal model. An Endogenous Variable: Is a variable whose variability is explained by causes (endogenous or exogenous variables) in the causal model. The endogenous variable is treated as a dependent variable in one equation and as independent variable in a different equation. Path Coefficient: Is the symbol p with two subscripts, the first indicating the effect (dependent variable) and the second indicates the cause (independent variable). Accordingly, P43 is the direct effect of variable 3 on variable 4.
ENDNOTES 1 2 3
4 5
http://nesara.org/main/dictionary.htm http://validwebdesigns.com/glossary/ www.delicious-webdesign.com/websitedesign-uncovered.html http://www.federalwc.com/glossary.html http://en.wikipedia.org/wiki/M-commerce
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APPENDIx I QUESTIONNAIRE Greetings, As an MBA graduate student at the S. O. School of Business of the American University of Beirut, I am conducting a survey which is part of a research study entitled “Antecedents and Consequences of the Risk Taking Behavior of Mobile Commerce Adoption in Lebanon”. Your valuable input to this questionnaire is kindly requested as the data will be statistically analyzed, and the results of the research endeavor will be disseminated in the academic journals. All the collected information is strictly confidential. Thank you in advance for your cooperation in completing the survey. Rima Charbaji
Mobile Commerce (known as m-commerce) is conducting business through wireless devices such as cell phones and PDAs. Part I Are you currently using m-commerce through: Mobile Payment Mobile Banking Mobile Brokerage Mobile Shopping Mobile Advertising Mobile Information Services (such as sport figures or weather updates) Mobile Entertainment (such as games) For each statement, indicate how interested are you in using the mobile phone for the following: where 1 means Completely not interested, 2 Not interested, 3 Indifferent, 4 Interested and 5 means Extremely interested: 1
2
3
4
5
Q1: Receiving latest adds and promotions Q2: Receiving financial information such as stocks, foreign exchange Rates, interest rates, & others… Q23: Receiving non financial information such as: weather updates and sports figures Q3: Checking banking account balance (banking account/ credit card/ investment account) Q4: Paying Bills Q5: Transferring money Q6: Mobile Shopping Q7: Mobile Entertainment such as: playing games, gambling, watching videos,….
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Part II For each statement, indicate if you agree or disagree with the statement based on a 5 point scale where 1 means Strongly Disagree (SD), 2 means Disagree (D), 3 means Neutral (N); 4 means Agree (A) and 5 means Strongly Agree (SA): SD Q1: Mobile devices have smaller screens Q2: Mobile devices are comfortable in inputting data Q3: Mobile devices have limited memory Q4: When I must choose between the two, I usually buy mobile for fashion, not convenience Q5: I don’t like to take chances Q6: I like to adopt new technologies Q7: I am likely to buy products via mobile Q8: It is easy to manage my banking/credit card records via Mobile phone Q9: Mobile shopping is expensive Q10: Mobile shopping is easy to do Q11: Mobile shopping is sophisticated Q12: I feel safe exposing personal information using Mobile-commerce Q13: I am not sure of Mobile-commerce payment system & hesitate to use them Q14: To buy a product from mobile retailers would be a high potential for loss Q15: Mobile retailers’ product information is not trustworthy Q16: Mobile functions provided to end users are clear Q17: Going to stores involve travel costs Q18: Going to stores involve too-much time Q19: I believe Mobile-commerce is consistent with my self image Q20: Mobile phone is efficient way to keep me updated with my account activities Q21: Mobile–commerce saves me time Q22: Mobile phone helps me in accessing banking service anytime anywhere Q23: I like to be a member in a health club Q24: When I buy new things I ask the advice of others Q25: I like to drive sport cars Q26: I like to be a member in a social club Q27: Dinner is incomplete without sweet Q28: I like to have at least one trip per year
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D
N
A
SA
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Part III Check just one aspect of the following attributes that you believe it mostly affects your intention to use mobile -Commerce: Speed - of transfer and settlement Security - authentication and authorization Ubiquity - usable with a wide range of services Simplicity - easy for users to use Anonymity - identity-less transactions
Part IV What’s the average amount of your mobile phone bill every month (including SMS delivery fee and other value-added service charges)? Below $100 $101~$300 $301~$500 $501~$700 $701 & above
Gender Male
Female
Monthly Income Below $1000 $1001~$2000 $2001~$3000 $3001~$4000 $4001~$5000 $5001 & above
Age Below 20 20-30 31-40 41-50 51 and above
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Education Undergraduate Degree] Master Degree Doctorate Other professional qualifications, (please specify) -------------
Occupation Level Student Business owner High level management Middle level management Entry level management Professional (e.g., doctor/lawyer/engineer) Administrator Unemployed Other (please specify) --------------
Marital Status Single Married, no children Married, with children Divorced Separated
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Chapter 19
E-Government in a Federal State:
The Case of the Introduction of E-Government in Germany in the Early 2000s Bernhard Seliger University Witten/Herdecke, Germany
ABSTRACT After reluctance in the 1990s, Germany finally, in the early 2000s, actively began to pursue the modernization of its administration through online government. The federal initiative “Bund online 2005” with an investment volume of 800 million Euro was one of the largest government online projects worldwide. Other initiatives, like BayernOnline in the economically most dynamic German state, Bavaria, started on the regional level. Nevertheless, in international studies Germany regularly scored moderately in “e-readiness.” The focus on services for citizens and the neglect of business services, especially on the federal level, is one of the reasons. A second reason is a lack of modernization, when bureaucratic procedures are merely digitalized instead of using digitalization for reform. A third challenge is the complicated interaction of various levels of government in a federal state. This chapter first gives a short overview over e-government initiatives and results in Germany. Afterwards, the e-government initiative of Bavaria, “BayernOnline” is presented. Then, the problems of e-government in Germany (neglect of e-government options for business, lack of modernization, compatibility and competition in a federal state) are discussed, followed by a discussion of e-government as one instrument to contribute to a solution of economic problems in Germany. Finally, a view ex-post looks at the results of the “Bund online 2005” initiative and how it helped to overcome bureaucratic inertia in Germany. E-federalism, the interplay of the introduction of e-government on different (federal, regional and local) levels of government certainly needs a balance of competition and cooperation, but should not be seen as a problem for the introduction of e-government per se, but rather as a chance for fruitful competition for the best concepts of e-government. DOI: 10.4018/978-1-60566-671-6.ch019
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
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Table 1. The four steps of e-government. Source: Seliger (2002) Steps towards e-government One-way communication
Posting of information on the internet
Two-way communication
Queries and Search functions, e-mail communication
Exchange of value and sensitive data
Payment of taxes and fees, renewal of licenses
Integration of e-government services
Life-event portals for citizens, e.g. for house construction
INTRODUCTION The introduction of e-government has often been measured along more technical lines. However, the more e-government develops also in those countries, which initially were rather reluctant for this approach, like the continental European states like Germany, it becomes more clear that the problems of e-government are not only technical, but involve economic, political and sociological, even ethical considerations. Moreover, the prior characteristics and organisational features of a state (central or decentralized and federal, with a large bureaucracy or a small one, welfare state or liberal state) is important for the success of e-government approaches. In this chapter, the challenges of e-government in a federal, highly regulated continental European state, namely Germany, are considered. Germany for a long time in international rankings lagged behind many other European nations, though being basically a technologically advanced nation. Only in the early 2000s this has changed, when a federal, more centralized approach to e-government was taken. Interestingly enough, the German example is often disregarded exactly because of its federal approach, where e-government solutions are mainly offered on the regional and local level and no single governmental agency or source is implementing these solutions (see Lenk 1998, p. 125). In purely technical terms, typically the way to e-government includes four steps, as can be seen from Table 1. The first step is one-waycommunication, the use of web-sites for posting government information. The second step is
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two-way-communication, allowing certain forms of communication between the government and users, for example the formulation of queries. The third step towards e-government is the exchange of value and sensitive information through the Internet, for example the payment of taxes and fees, the renewal of licences etc.. The last step is the offer of an integrated government service portal, which does not any more organize websites around current administrative features, but rather organizes web-sites around ‚life events‘, for example housing construction, schooling etc. (for a discussion see Seliger 2002). Also, the benchmarking of e-government using often technical indicators, for example in measuring service maturity and service delivery. ‘E-readiness‘, another important benchmark, measures the capacity to participate in a networked world, for example in the McConnell International study of 2001, which measured in 53 countries the criteria of connectivity, e-leadership, information security, human capital and the e-business climate (McConnell International 2001). While e-infrastructure and –readiness measure the technical side of e-government, an important question is the focus of e-government. In Germany, the focus was long time on the possibilities of increased participation of citizens (e-democracy) and partly, in some regions, on the modernization of administration, again mainly for the use of citizens. However, the importance of e-government for business, especially in the crucial field of public procurement, which in the economies with a large share of the state in GDP like Germany is highly important, had been rather neglected.
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Therefore, a pure measurement of inputs (for example, government investment in IT industries and e-government) or participation (for example, number of citizens connected to government offices online) is insufficient from an economic point of view. Here, rather the quality of e-government for business can make a difference. For example, Germany launched an impressive programme called “government online 2005” with an investment volume of 800 million euro, one of the largest e-government programmes worldwide. But the effects of such a programme depend on the right focus. Given the relative small number of transactions between citizens and the state, a focus on companies seems to be much more important. This, however, does not mean that the focus on the political aspects, for example e-democracy or e-participation, should be neglected. Especially in the control of government by the citizens the internet and e-government can play an important role, as medium of information and interaction. In the following section these questions will be discussed. It is interesting to see how Germany in the early 2000s overcome its initial reluctance to integrated e-government services and how various regional approached competed for best solutions. This holds lessons for latecomers in e-government applications. In the background section, a short overview of e-government initiatives in Germany is given. In the main thrust section, a regional initiative, BayernOnline, which won international recognition, will be considered. The next section deals with modernization of public services and compatibility as the main challenges for e-government in a federal state, followed by a conclusion discussing the results of the “Bund online 2005” initiative from an ex-post view .
E-GOVERNMENT IN GERMANy AND BAVARIA – A SHORT OVERVIEW Germany, the biggest country of the European Union in terms of population and the economy,
developed in the past years to an important market for information technology. The number of Internet users older than 14 years doubled from the end of 1998 to the end of 2001 to more than 30 million, 30 percent of them being women. All schools until the autumn of 2001 had Internet access, while Internet access and usage among university students virtually reached 100 percent. The number of users of mobile phones doubled in 2000 and in early 2001 there were more mobile phones than fixed lines. In the end of 2001 there were 56 million mobile phones. Information and communication technologies also are an important provider of jobs in Germany, with over 800.000 employees and a share of seven percent in GDP. In e-commerce, Germany with a turnover of 30 billion euro holds the first rank in Europe. Nevertheless, Germany is rather EU-average in the use of Internet and its application for egovernment. The number of Germany households with internet access in November 2001 was less then forty percent, more than 20 percent lower than in the Netherlands or Sweden. At the same time, around 40 percent of households communicated via internet with the government (all forms of communication together), which was less than the EU average of 43 percent and again 20 percent less than in Sweden. The main use again (30 percent of households) was for seeking information, while e-mail communication or the filling in of applications was lower than 20 percent, half that in the most active states like Sweden or Belgium (see European Commission 2001a and b). Also, Germany regularly scores under-average in studies about e-government. To cite just two studies, the consulting company Mummert + Partner sees Germany’s administrative electronic service behind that of transformation countries like Estonia and Latvia (Kölnische Rundschau, 7.3.2002). Also the benchmarking study of Bertelsmann foundation and Booz, Allen, Hamilton sees Germany only in the midfield of e-administration (Bertelsmann foundation, 2.3.2002). To answer the challenge of e-government, the
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federal government launched a programme called “government online 2005” with an investment volume of 800 million euro, one of the largest e-government programmes worldwide. Basic framework for this programme is the revised version of a programme called “information society Germany” with the following aims: • • • • • • • • • •
to make Internet a generally accepted means of communication to allow and promote PC-sponsoring for schools to create Internet capabilities for the unemployed to increase competition in the “last mile” (local networks) to guarantee tax exemption for the private usage of the Internet to offer all state services via Internet (e-government) to promote e-commerce to improve security in the net to guarantee self-regulation of the net and to start an information campaign concerning the internet.
Concretely, it means that from 2005 on all dealings with administration can be done completely online, including A2C (Administration to Citizen), A2B (Administration to Business) and A2A (Administration to Administration). While not making a binding promise, the government plans to put online around 400 government services.1 18 model projects ranging from electronic applications for general student aid (BAFöG) to customs clearance and federal job agencies online is already working. The federal government just gives guidelines on technical standards (for example, for electronic signature), while the concrete e-government projects are developed on the level of each ministry or state agency, co-ordinated by a project group led by the Ministry of Domestic Affairs. As of now, the complete financial need for implementation of the program is estimated to be around 1.65 billion euro from 2002 to 2005.
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The largest part of the services of government used today (around 40 percent) consists still of the preparation and posting of information content for the internet (belonging to the first step of egovernment according to our definition above),. The second most important part (more than 20 percent) of government services used are general applications (like applications for licenses, marriages, notifications of changes of address etc.), followed by applications for subsidies. All the three make up 73 percent of e-government today. Economically especially interesting usages like public procurement are just a minor part of e-government today. According to an opinion poll by CSC Ploenzke AG, a consulting company, among the 600 biggest German companies the private sector expects the government to be a role model for some technically difficult applications of e-governance, like the electronic signature, where a non-regulated use might bring companies in legal difficulties (see CSC Ploenzke 2002). The private sector sees the greatest gains in efficiency in online procedures for applications and public procurement. The aspect of increased competition for public procurement in the dynamic perspective might bring less cartelisation, lower prices and better quality for public procurement. Also, the participation of small and medium enterprises in public procurement on the national and even international level, which until now had been difficult given the limited resources and access to information of SME, is easier possible, given ‘e-readiness’ of these enterprises. E-Government is not only a challenge for central government and administration, but as well for the regional and local level of government and administration. This is especially true in federal states like Germany, where not only Länder (state) level and the district and local level are autonomous, but also the lower levels of government carry out (in a form of “borrowed” administration) many tasks originating on the central level. The state of Bavaria (Bayern) is one of
E-Government in a Federal State
the largest German states and economically one of the most important states. The region of Munich (München) ist a European and worldwide center of high technology industries. According to a study of Boston Consulting Group Munich today is one of the five most interesting locations for high tech, being the only one in Europe. However, Bavaria also covers important rural areas. This diversity makes Bavaria an interesting example for the challenge of e-government on the regional and local level. Already since 1994 the project “BayernOnline” (Bavaria online) exists, which is the framework for more detailed initiatives for e-government and e-commerce developed later. In the early 1990s, the revenue of privatization of formerly state-owned enterprises was used to foster Bavaria’s position as a high technology location. From the volume of 4.22. bn. Euro, which was invested into high technology projects, 76 million Euro were used as initial finance for 63 internet projects with a total investment volume of 255 million Euro. More than two third of the more than 2000 Bavarian local governments went online, as well as the state government, the lower-level state authorities (Bezirksregierung) and the 71 districts (Landratsämter). BayernOnline began an extension from the formerly open, university-based network to an administrative network (Behördennetz, closed intra-network), an open citizens’ network (Bürgernetz) and an integrated administrative-economic net, Bayernnetz. The website www.bayern.de is a regional internet portal, integrating government and administration services from different levels of government (Land, Bezirke, Kreise Kommunen) (see Figure 1). The subportal www.bayern.de again not only features “traditional” www-access to all administrative levels (see Figure 2), but also began to offer sites for life situations, e.g. birth, change of address, studies etc. (see Figure 3). While these services until now mostly offer advice rather than integrated internet services, the direction towards a integration of formerly horizontally and vertically
delimited administrations is clear. Also, baynet as a “virtual marketplace” offers complete access to Bavarian enterprises, thereby integrating economy and administration to some extent. Finally, there is the “citizens’ net”, the participartory pillar of the BayernOnline concept. Since 1997 81 citizens’ nets on the district level were founded under the head of a Bavarian-wide association Bürgernetzverband, giving citizens the possibility to reach the internet by low local communication tariffs as not-profit providers, but also offering training and being a popular starting place for first time internet users. The citizens’ net had a potential reach of 99 percent of all citizens and played a pivotal role in Bavarian citizens’ overproportional use of the internet. It was considered of importance for the decision of Bertelsmann foundation to honour BayernOnline with the Karl Bertelsmann price. Since 1998 the citizens’ net is independent from state and works without subsidies. While the citizens’ net lost importance with the rising popularity of the internet and accordingly falling rates for use and ubiquity of service, e-government became more recently a preoccupation of the Bavarian state government. The e-government initiative stresses the relation of the modernization of public services and electronic access to government and is therefore more than mere digitalization of administration. Modernization of administration again is not only seen as a small state, but rather as the shift of administrative tasks from routines, which now can be regulated electronically, to more difficult consulting of citizens, providing a higher quality service. This should bring advantages for all relevant groups, namley, •
•
the citizens, profiting from around-theclock services online plus better consulting in the offices free from routine work, the administration, which is less burdened by routine work, which has not any more to cope with the digital-manual break (Medienbruch), which is better informed
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Figure 1. Adopted from: Baynet – the Bavarian online portal, including “life events” (Lebenslagen), “administrative portal” (Behördenwegweiser), “informations” (Informationen), “business portal” (Handel und Wirtschaft), “holiday and leisure portal” (Urlaub und Freizeit), “service portal“ (Dienstleistungen), “news portal” (Nachrichten) and “events portal” (Veranstaltungen). www.baynet.de
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and leaner without being qualitatively reduced and business, as well domestic as foreign, having better access to government and reducing costs (e.g. information costs for investors by electronic cataster etc.).
For implementing this programme, as well an external side, namely improved outside access to administration, as an internal side, namely the
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restructuring of administration, are important. Both are not only technical tasks, but require training and acceptance by the relevant actors. For acceptance by citizens and business, especially security (especially for online signature and online payment technologies as well as privacy concerns) and transparency are important factors. Technically, the e-government initiative wants to achieve interoperability of administrative units’technologies – a typical problem in a federal administration. Standard technologies,
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Figure 2. Adopted from: “Behördenwegweiser” – the administrative portal, with links to all Bavarian administrations online in form of an organigram or in form of a regional access.
like software for routine operations like application forms for different services of different administrative units (for example, applications for driver licenses or hunting licenses, which are issued by different departments) should be produced or procured centrally, while specific technologies still will be produced or procured decentrally. The issue of harmonization versus heterogeneity is very important here and will be considered below. The volume of investment for the e-government initiative in Bavaria has been around 400 million euro in 2002-2004. To guarantee the implementation of e-government also on the local level, the Bavarian state government and the local authorities concluded an “e-government pact” with the aim of coherent e-government service. Especially, on a state-wide portal all forms of administrative services
shall be offered, thereby overcoming territorial and competence boundaries. Procurement and invitations for tender will be offered online state-wide. Common technical standards will integrate the diversity of existing services. In February 2003 a new state law on “Improvement of electronic government” (Gesetz zur Stärkung elektronischer Verwaltungstätigkeit) came into force, offering a framework for the electronic filing of personal data to local communities (Kommune 21, http://www. kommune21.de/content/00002111.html). The Bavarian example shows that a centralized government is not necessarily better equipped to deal with e-government than a federal state. This topic will be discussed from a more theoretical point of view in the next section.
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Figure 3. Adopted from: “Lebenslagen” – the life event portal, with links to life event related web-sites, for example birth, childhood, adulthood, parentage, old age, death, mobility, finances, education etc.
MAIN SECTION - COMPATIBILITy AND THE MODERNIZATION OF PUBLIC SERVICES - CHALLENGES FOR E-GOVERNMENT IN A FEDERAL STATE AND IMPLICATIONS FOR THE ECONOMy
also protected by constitutional law. That means, even given the political will on the federal level, the federal government could not force states or local authorities to adopt a specific model of e-government. Out of this specific situation, a number of potential problems arises, namely
The German system of federalism, with a federal government (Bundesregierung), a state level (Länder), in some of these states a sub-state level (Regierungsbezirke), a district level (Kreise and kreisfreie Städte) and finally a local level (Städte and Gemeinden) has naturally to cope with the question, how e-government can be provided most efficiently. This question cannot be answered simply as a technical question, since in Germany federalism is not only politically highly valued, but
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the problem of fragmentation of service the problem of high production costs the problem of high development costs, especially if development of technological solutions is carried out parallely in various offices the heterogeneity of service the fact of differing capacities and progress of e-government on various levels of government and in various regional authorities
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in the same level of government the lack of co-operation and interoperability, often aggravated by the insistence of authorities on a strict regional principle.
Overall, the size and complexity of administrative structures and conservativeness of the administration make reform efforts difficult, which require co-operation of all involved governmental agencies. Besides federalism, also a clear division of powers and autonomy, like independence of agencies and local autonomy, add to the difficulty of a swift implementation of e-government. While these observations are shared by many observers, they are not sufficient to jump to the conclusion, federalism itself were a major obstacle for e-government. This would rather be a fallacy typical for static thinking in economics, since it neglects the possible effects of intergovernmental competition and resulting innovation processes. While the doubling of efforts to develop specific softward is often cited as an example for ill co-ordinated policies, this is only true given complete knowledge about the results of development. If development efforts have an unknown result, double development efforts and parallel experimentation might well be worth the expense. So, while for already known solutions, which have to be implemented additionally in different administrations, a centralized solution might be preferable, this is not so for real administrative innovations. The problem is that there is no general advice when efforts in administration should be rather centralized or decentralized. Economists like in theory to work with the concept of “interdependence costs”: They compare the marginal costs of centralization (for example, opportunity cost of less competition and innovation, in this case in the provision of e-government services and the modernization of the public sector) with the marginal costs of decentralization (in this case, the double efforts and costs for citizens due to poor e-government services resulting from
federalism). When both cost curves intersect, the optimal degree of centralization is reached. However, this theoretically optimal concept cannot be used in practice due to the lack of knowledge about the marginal costs, especially in the case of unknown events (for example, innovations in e-government). So, first of all problems of e-government implementation are no general case against federalism. Second, even if the centralized implementation of e-government is preferable to a decentralized one, this would not automatically be a case against federalism, since other values (for example, in the case of Germany, the historical experiences with government centralization) might be valued higher than potential gains from centralization. So, while the is no general case against federalism, there is definitely a challenge for federal states: Administrative services have to be integrated in one-stop-service portals, linking as a front office various services of different levels of government carried out in geographically and by authority different back-offices. In the real world, the trend for one-stop citizens’ services in local administration and investor services on the state and federal level instead of the variety of offices have long been reality. However, the challenge from e-government is more pressing, since the blurring of competencies and the possibility of interjurisdictional competition are much stronger here. Therefore, the modernization of services is invariably linked to a form of e-government being more than mere digitalization. This challenge is a blessing from the point of view of consumers of services, since it forces the ossified administrations to reforms which otherwise would not have been possible. Modernization again should be aimed at the main users of administration and there, again, an imbalance can be observed in Germany. While business is by far the main user of administration and the contacts of citizens with their governments are rather rare (Jansen 2002 speaks of an average of 2,1 contacts with administration per citizen), business has a much bigger interest in
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efficient e-government. Consequently, the focus of e-government is also crucial for the economic gains of e-government. Overall, there has to be a balanced development of e-government as a means to achieve more efficiency in administration and e-government as a means to achieve broader participation in society.2 Both goals, however, are not conflicting, but rather re-enforce each other. An administration working more efficiently will also be advantageous to citizens, for example through lower prices. And an administration better controlled by citizens’ participation will also become more efficient due to public pressure. In Germany, the interplay of competition and co-ordination became important early in the development of e-government. In 1998, the federal state of Bremen (Freie Hansestadt Bremen) discussed the importance of the compatibility of administrative standards for a fully digitalized egovernment approach across the borders of states and local communities. The Online Service Computer Interface (OSCI) is a standard developed in Bremen, institutionally embedded in the OSCI lead agency (OSCI Leitstelle) and financed and used by federal government, state governments and local communities. One of the preconditions for this programme was law “Deutsches Signaturgesetz 2001, SigG” (Germany law for qualified digital signatures), which defined the legal quality of esignatures, as a precondition for fully digitalized e-government. Also, the Electronic File Management Act of 2005 was an important initiative at the federal level. At the same time, in other areas the approach of a co-ordination of regional and local initiatives, while allowing for a limited degree of competition, was used, e.g. in the common approach to e-cards. Germany still has to go a long way for the introduction of e-government. While some initiatives, like the Bavarian BayernOnline approach, have been successful, generally the modernization of administration lags behind that of other European and non-European countries. For Germany, the introduction of e-government however is no luxury
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or additional feature of an otherwise well-organized administration. It is also the chance to break out of a decade-long economic slump and to help overcome the economic consequences of German unification. Germany since the mid-1990s until around 2004 had the lowest growth rate among the EU countries.3 In 2000 for the first year in a decade it surpassed three percent of growth, but until other countries the long phase of recovery after the early 1990s recession did not take place, with negative consequences for the labour market and the fiscal situation of Germany. Second, the reduction of unemployment from the high levels of 1998 slowly declined, but largely due to demographic developments. Again, Germany had the lowest rate of job creation in the last decade among all EU member states.4 Furthermore, the unemployment rates in the 1990s were artificially depressed by massive public works programmes and generous early retirement schemes, adding to the fiscal burden. If unemployment will not sink under the current 4.6 million persons for Germany, the trend for an increasing base of unemployed piling up in every depression or recession, existing since the two oil crises, would continue. Third, while the budget deficit had been reduced from the peak in the mid-1990s, Germany did not yet achieve a budget surplus, despite the inflow of billions of Deutschmark through the auction of UTMS licenses. In 2002 Germany clearly failed to achieve the Maastricht budget criteria with a deficit around 3,6 percent. Additionally, the possible conflicts between the stability pact and domestic fiscal policy also effect the possibilities of monetary policy in Euroland. Fourth, structural reforms of the German economy, while urgently advised since decades, have only after immense political and economic pressure been introduced. Especially the labour market for decades remained ossified.5 After the debate about the quality of Germany as a business location in the mid-1990s the old German government introduced some timid reforms to
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enhance labour market flexibility. However, after the government changed in 1998, even these (insufficient) changes were reversed. New laws, for example on co-determination, even raised inflexibility. When after 2002 the government Schroeder finally embarked on a reform process, it was painful and ultimately led to the downfall of his government and the introduction of a large new coalition government (the “grand coalition”) to ensure reforms. Fifth, the catching-up process of Eastern Germany, while propped up by massive inflows of taxpayer money since the early 1990s, virtually came to a halt in the mid-1990s. Since then, growth rates in Western Germany are again higher than in Eastern Germany (leading to no convergence). High unemployment rates and an unsound fiscal structure of regional authorities remain a problem of Eastern Germany and make permanent inflows of public money necessary. While the nominal wages in Eastern Germany achieved almost 80 percent of the Western level, productivity remains ten percent lower, under the 70 percent level, making per-unit cost in Eastern Germany higher. The stalled catching-up process in Eastern Germany additionally reduced German adjustment capacity to economic crisis. This brief review of economic problems shall not imply that e-government could solve all the problems of the German economy. But egovernment can contribute to resolve especially the structural problems, by making markets, including the labour market, more transparent and efficient, by making administration cheaper and by generally forcing political decision-makers to reform policies otherwise thought to be unthinkable. Especially, this review also makes clear that the focus of e-government should be first of all the most important group of users in numbers, which is not the citizens, but business. To name just one figure, it has been estimated that the savings potential of e-government, given that half of German procurement would be carried out in the net, would be around 15 billion euro.
In 2002, the state of Baden-Wurttemberg for the first time carried out a model project “E-Vergabe” (e-procurement). Also, in Bavaria e-procurement for construction companies just became possible (Staatsministerium des Innern, 2003).
OUTLOOK AND FUTURE ISSUES In the mid-2000s, the fruits of the introduction of e-government in the early 2002s have been reaped to some extent (for an overview see Stobbe 2005 and European Commission 2005). Pressure to modernize government, in particular through e-government procedures, came to an important extent from the local and regional level. Therefore, e-federalism, contrary to the expectations of planners interested in a ex-ante rational and unified approach, has been ex-post an important process to identify new and better e-government solutions. The interplay of the introduction of e-government on different (federal, regional and local) levels of government certainly needs a balance of competition and co-operation, but should not be seen as a problem for the introduction of e-government per se, but rather as a chance for fruitful competition for the best concepts of e-government. However, the introduction of e-government and e-readiness is not fixed, but a moving target. Among the challenges faced from the mid-2000s, the digital identity card has been very important, since they stirred up concerns about privacy for citizens, while at the same time allowing for efficiency gains and more convenience for citizens. The identity card, for which the legislative process began in July 2008, will include an optional qualified electronic signature. Back-office re-engineering as an answer to the introduction of e-government services has been slowly taking place. Competitors since then have made even more progress, though the large-scale federal, regional and local investment paid off. From the early 2000s to 2008, Germany rose from the midor lower level of e-government users to the upper
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third, becoming the sixth biggest e-government users in the EU in 2007, thanks to federal and state initiatives (for an overview see European Commission 2008). Germany still has a long way to go to transform its bureaucracy into a modern public on-line service – the earlier Germany does so, the more e-government can help to overcome Germany’s economic problems. What lessons can be derived from the German e-government experience? While certainly the federal structure of Germany posed a challenge to e-government and hampered a unified approach, it did not really obstruct the introduction of e-government and even allowed for the trial of new, competing approaches. As a theoretical conception, interdependence costs give the point of the optimal federal structure for e-government, too. However, practically this optimal point cannot be derived other than through competition itself. In this sense, the economists’s preference for competition and federal solutions allowing for regional differences has been vindicated rather than rejected by this national case study.
IMPORTANT WEB SITE ADDRESSES Bertelsmann, Bertelsmann best practice for balanced e-government, www.begix.deGerman federal government, E-government handbook, www.bsi.bund.deGerman federal government, Online portal, www.bund.deGerman federal government, Online portal for Germany, www. deutschland.deGerman federal government, Moderner Staat – Moderne Verwaltung (modern state – modern administration), www.staat-modern. deOSCI lead agency, www.osci.de (standard for e-government used by the federal, state and local level in Germany)
REFERENCES Bertelsmann Foundation. (2002). Studie: Elektronische Verwaltung in Deutschland liegt im internationalen Vergleich zurück, press release. European Commission. (2001, November). Eurobarometer 112, Internet and the public at large. Brussels. European Commission. (2005). E-government observatory: E-government in Germany 2005. Retrieved on October 20, 2008, from http:// ec.europa.eu/idabc/servlets/Doc?id=21010 European Commission. (2001, June). Eurobarometer 103, Internet and the public at large. Brussels. European Commission. (2008). E-government in Germany, version 10.0. Retrieved on October 20, 2008, from www.epractice.eu/resource/737 Friedrichs, S., Hart, T., & Schmidt, O. (2002). Balanced e-government: Visionen und prozesses zwischen Bürgernähe und Verwaltungsmodernisierung. In Aus Politik und Zeitgeschichte, B 39-40, 12-23. Jansen, S. A. (2002). Immer noch offline–Die Deutsche E-Regierung ist im internationalen Vergleich bestenfalls Mittelmaß. In Handelsblatt. Kölnische Rundschau. (2002). Kein Geld für online service. Retrieved from http://rundschauonline.de/computer/netzwelt/2447187.html Kommune 21. (2002). E-government Gesetz in Kraft. Retrieved from http://www.kommune21. de/content/00002111.html Lenk, K. (1998). Toward electronic government in the German federal political system. Korean Review of Public Administration, 3(2), 125–153. McConnell International. (2001). Seizing e-government opportunities: Assessment, prioritization, & action. Washington, D.C.: Worldbank. Olson, M. (1982). The rise and decline of nations. New Haven.
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Ploenzke, C. S. C. (2002). Industrie setzt hohe Erwartungen in e-Government. Retrieved from www.de.csc.com Seliger, B. (2002, March 9). The future of e-government. Paper presented at the Korea Association for Regional Information Societies International Forum on National IT strategy, Searching for Regional Informatization Strategy for Internet the Saemaulundong & Knowledge Information Society, Kyongju. Staatsministerium des Innern. (2003). OnlineVergabe von Bauleistungen, Pressemeldung 38/03. Retrieved on January 26, 2003, from http://www. stmi.bayern.de/presseinfo/pm_edv.htm Stobbe, A. (2005). E-government in Germany–much achieved, still much to do! Deutsche Bank Research, 51. Retrieved on October 20, 2008, from http://www.dbresearch. com/PROD/DBR_INTERNET_EN-PROD/ PROD0000000000188264.pdf
KEy TERMS AND DEFINITIONS Bayern Online: A regional government portal site in the Southeastern German state of Bavaria (Bayern). Interdependence Costs: Interdependence costs are the total costs of decision-making, taking into account increasing decision-making costs depending on the number of deciders (e.g. federal states) and decreasing frustration costs through participation of more deciders or provision of certain public goods on the local or regional level. The minimum of interdependence costs shows the theoretical optimum level of centralization. E-Federalism: The system of e-government designed for federal states. Optimal systems of e-federalism take into account the trade-off of potential efficiency gains by centralization and by intergovernmental competition. E-Readiness: The readiness of a country,
region or entity (e.g. corporation) to utilize information and communication technologies for sustaining welfare and growth. Among the important rankings of e-readiness are those of the Economist Intelligence Unit and Bertelsmann foundation. Goverment Online 2005: Government Online 2005 (or Bund Online 2005) is a federal German initiative for introducing e-government in around 100 federal agencies and institutions, making their services available online in five years. Government Online had an investment volume of 800 mill. Euro. Intergovernmental Competition: Intergovernmental competition is the result of the competition of regional governments for mobile resources like investment or highly qualified labour. It works as a Hayekian discovery procedure for improved institutions, but needs, like all competition, a competition system (policy) to prevent cartelization and obstruction of competition, e.g. through protectionism. For new institutions, like in e-government, the discovery procedure can be potentially very important. Life Situations: A system to order e-government services on a portal according to certain events in life like birth, marriage, driving a car, building a house etc.
ENDNOTES 1
In the guidelines for implementation of the program, however, the government admits that this goal depends on further fiscal and personnel developments. 2 For a discussion of balanced e-government see Friedrichs, Hart and Schmidt (2002). They, however, see the necessity of more participation of citizens in the first place. 3 Other European states, like the Netherlands, Finland, Ireland and Sweden had for several years growth rates higher than four percent, others, like France, three years growth rates
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higher than three percent. 4 Between 1996 and 2000 job growth was 3.3 percent in Germany, the lowest in the EU and compared to 24 percent in Ireland, 14 percent in Spain and 12 percent in the Netherlands.
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The idea of ossification or sclerosis of institutional systems was first formulated by the late economic Nobel prize winner Mancur Olson. See his theory of interest groups (Olson 1965) and the application to post- Second World War economic growth (Olson 1982).
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Chapter 20
The Challenge of Bringing User and Development Communities Together Adamantios Koumpis ALTEC S.A. Thessaloniki, Greece Vasiliki Moumtzi ALTEC S.A. Thessaloniki, Greece
ABSTRACT Work reported in this chapter relates with work carried out in the context of the European IST Project SemanticGov (www.semantic-gov.org). The project aims at implementing a set of advanced Semantic Web technologies for adoption in the European public sector to advance the level and expand the volume of e-government solutions in the EU. This research elaborates on the need to (re)position the idea of providing an advanced solution for an ideally functioning e-Gov island within a sea of noninteroperable e-Gov process frameworks, to become parts of open-ended ventures to allow the creation of collaborative networks for electronic governance.
INTRODUCTION What has become obvious to us as result of our exposure to several e-Gov adoption pitfalls, is that we are not facing a lack on enabling technologies but on paradigms to successfully deploy them. In this context, the main aim of this work is to provide a new open development paradigm on how user and development communities can coexist and co-work for the definition of new e-Gov missionoriented application concepts. At a second level, what is important is to help the organization of the
requirements elicitation processes, the compliance validation and quality checking processes in a synergetic way with both users from the European public sector and developers’ communities forming essential part of the intellectual service and software engineering processes. The vision is to understand how to capitalise on the interactions between e-Gov users and developers as part of a value chain that creates new intellectual capital for new e-Gov application types by exploring problem-solving principles in computer science and other disciplines.
DOI: 10.4018/978-1-60566-671-6.ch020
Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
The Challenge of Bringing User and Development Communities Together
This necessitates the existence and fostering of closer links between the sides of the users and the developers, both of which need to share a space for expressing as well as exploring their own modes of thought and help improve their problem-solving paradigm. Better understanding and communication with the future users of the systems requires the software creation to be placed at the level of abstraction the users can understand. Better communication between IT- and application field-specialists will lead to avoidance of misunderstanding, loss of time and resources and in the effect to systems that better address the needs of the end users. This refers to the creation of policies, processes and practices that will enrich the people in both communities of users and developers to coexist smoothly and gain from their interactions.
THE CONTExT OF RESEARCH
tures paradigm (Peristeras & Tarabanis, 2004), implemented through state-of-the-art Semantic Web Services technology and supported by rigorous and reusable public administration domain analysis and modeling, while being in line with all major European programmes and initiatives in the field such as the European Interoperability Framework and the recent work conducted by the EU IDABC Programme (IDA and CapGemini, 2004), the forthcoming i2010 group of Member States representatives and the Competitiveness & Innovation (CIP) Programme. As a wider impact, SemanticGov is expected to enhance the administrative capacity of national public administration systems by providing a new paradigm for service provision, and pave the way to the administrative dimension of European seamless collaboration (aka “Common European Administrative Space”) (Olsen, 2003) by facilitating the cooperation amongst EU national public administration systems.
The SemanticGov Project
The Miranda Modeler
SemanticGov aims at building the infrastructure (software, models, services, etc) necessary for enabling the offering of intelligent services by public administration (PA) through the use of the semantic web (Peristeras & Tarabanis, 2006). Through this cutting edge infrastructure, SemanticGov will address longstanding challenges faced by public administrations such as streamlining cooperation (e.g. through achieving interoperability) amongst PA agencies both within a country as well as amongst countries, easing the discovery of PA services by its customers, facilitating the execution of complex services often involving multiple PA agencies in interworkflows. More importantly, this infrastructure will exploit SemanticGov as an enabler for total reengineering of PA service provision and propose a paradigm shift from today’s modus operandi. To achieve this, the SemanticGov project aims at capitalizing on the Service Oriented Architec-
Miranda is the acronym for an e-Government model, “mission-oriented application modeler empowering user and development communities involvement”. The basic goals for such a facility is twofold:
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On the one hand to provide a new open development paradigm on how user and development communities can coexist and co-work for the definition of new eGovernment mission-oriented application concepts, While on the other hand help the public sector organizations on the requirements elicitation processes, the compliance validation and quality checking processes in a synergetic way with both users and developers communities forming essential part of the intellectual service and software engineering processes.
The Challenge of Bringing User and Development Communities Together
Figure 1. Besides the formal and structured interactions, there are much more important and densely organised informal and unstructured ones.
The vision in Miranda is to understand how to capitalize on the interactions between users and developers as part of a value chain that creates new intellectual capital for new application types by exploring problem-solving principles in computer science and other disciplines. An interactive approach was taken in modeling new forms of jointly defined and lead processes. As shown in Figure 1 below, except from the formal and structured interactions (in many cases of transactional nature) between members of the two communities or within each of the two communities, there is a great number of informal and unstructured (or better: ill-structured) interactions which these researchers tend to leave outside of the scope of thinking. Authors, therefore, propose the Miranda tool as a possible solution for leveraging both types of the interactive elements between the communities of developers on the one hand and the communities of the users on the other. The French philosopher Luis Althusser (1918 – 1990) defined a practice as any process of transformation of a determinate product, affected by a determinate human labour, using determinate means (of production) (Althusser, 1970). Nowadays that people talk a lot about practices on the Net, in services or e-services, it is tragically timely how much they lack on intellectuals that will be able to transform
and process technology problems into societal or political ones and vice versa. Miranda must take into account emerging approaches from the software engineering discipline, adopt a cross- and inter-disciplinary research agenda and adhere to best research results internationally, best practices and standards to avoid any rework and to assure future adoption. Furthermore, better understanding and communication with the future users of the systems requires the software creation to be placed at the level of abstraction the users can understand. Better communication between IT- and application field-specialists will lead to avoidance of misunderstanding, loss of time and resources and in the effect to systems that better address the needs of the end users. This refers to the creation of policies, processes and practices that will enrich the people in both communities of users and developers to coexist smoothly and gain from their interactions. (see Figure 2)
A Quick Overview of Epistemological Issues: Basic Assumptions and Starting Points Although several of the existing approaches used to support community development are sufficient to create an interactive space for stakeholders from
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Figure 2. Impact and influence patterns amongst people – processes – practices and policies.
both communities of developers and users, there is every reason to look for new approaches. In the classic 1950 Kurosawa film Rashomon, various witnesses provide completely contradictory accounts of a single event. The film does not indicate which recollection is correct; each account in turn is depicted equally realistically. The sense by the end of the film is that all we have seen is unreliable, and that no account is completely true (or completely false…). Rashomon is deliberately and pointedly inconsistent, but uses this method to make a coherent and powerful statement. This is a capability which could be of particular relevance to a decision making activity, as it is for an interactive story, if it allows the decision making process to abandon the assumption of an explicit, unifying reality in favor of competing, possibly inconsistent realities. To the extent that inconvenient consequences of the decision maker’s choices could be ignored, a decision based on such a multiple reality model could provide the members of both the user and developer communities with more freedom. But the logical inconsistency found in Rashomon is not the only kind of multiple reality imaginable. A more subtle ‘convolution’ of reality occurs when the witnesses to an event view it in
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ways that are simply very different rather than contradictory. Rashomon’s multiple realities are subjective but pretend to be objective (in order to convince the judge); dropping this pretense would allow each subjective reality to be judged and appreciated on its own terms. The same happens when facing different information sources – many of them contradictory to each other – within a collaborative framework, in which a synthesis on the different views is foreseen. How would the multiple reality model work in practice for the case of organized user and developer communities? Realities could reflect different levels of semantics, different planes of analysis, etc. Moving from reality (of the users) to reality (of the developers) may be intrinsically interesting enough that even simple aspects of an eGov service development process could be related with respect to their significance by the number of separate realities in which they appear. There is, however, a particular challenge inherent in the use of the multiple reality model when facing multi-party (i.e. users and developers) decision-making tasks: For the decision path to be satisfying, a unifying force must be found to tie the pieces of the decision-making process together, the way the investigation into
The Challenge of Bringing User and Development Communities Together
the contradictory accounts does in Rashomon. The analyst must construct the multiple realities so that they interact with each other in some way. If done effectively, this interaction will do more than just hold the decision together; it will most likely serve as the vehicle for the central message of the decision-making process. This comes back to a sad reality many public administrations are facing nowadays: they are not lacking on human resources to take or make decisions, but they are lacking all the necessary underlying constituents frequently described as ‘soft skills’, which can make decisions work for their organisations.
Aspects of the Organizational Structure Having several first and second hand experiences in the success or failures faced from the more demanding and relatively complicated projects or tasks, to less complex and simple ones, the story has to do usually with the same ingredients: • • •
•
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People, and How these interact to each other or with each other, and How they perceive and analyse the world they live in, the events that are taking place and to which they have or need to respond at, and How they document their knowledge, their wants, their goals, their history of what they did or they aimed to do, and, How they access and make use of the documented knowledge – be it theirs or someone else’s, and finally, How they manage to improve their behavior either at the individual level or at the collective one, or – sometimes – at both through learning processes or other optimization processes.
However, to manage a coordinated behavior of individuals is a difficult – if not unachievable task at all. Even if people are working together for
the same goal, and have all unanimously agreed to the same objective and target, it is in the human nature that they shall develop differentiations in regard to the means that each individual shall employ for meeting any specified end. Or, even in the case that there is agreement regarding the means, there will be different opinions on the instrumentations of these very specific means, the orchestration of all individuals around them, etc. This helps us come to the conclusion that the main difficulty concerns the synthesis of all these different ‘resources’. Though the starting point for us has been problems that appear in the corporate world, any type of ‘problem’ that involves most of the above components can be regarded as subject to the same need for being approached with a preferably simple and consistent method for modeling the problem and, secondly, trying to ‘tackle’ or ‘solve’ this in the most easy or straightforward and - if possible - unique way. In interactive environments such as the workplace, to date we have two main types of management models (This goes back to 1960 and the pathmaking work of Douglas McGregor reported in (McGregor, 1985). McGregor there made his mark on the history of organizational management when he proposed the two motivational theories by which managers perceive employee motivation. He referred to these opposing motivational theories as Theory X and Theory Y. Each theory assumes that management’s role is to organize resources, including people, to best benefit the company. However, beyond this commonality, they’re quite dissimilar. Quite recently, Heil (Heil et al., 2000) revisited in a contemporary manner the area and provide information and evidence that is reflecting the networked economy era): •
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Theory X, which refers to the authoritarian management style characteristic of scientific management; and Theory Y, which supports a participatory style of management.
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Theory X was based on the premise that the average user was basically lazy and was only motivated by money and neither wants or is capable of self-directed work. This kind of model led to the specialization and division of jobs into simple tasks, with the aim of increasing user production and consequently, increased pay. Meanwhile, Jaggi (1988) defined participatory management as “a cooperative process in which management and users work together to accomplish a common goal.” This second model was different from the first in that instead of top-down, directive control over users who were perceived to be unproductive without close supervision, the new model stressed that giving the user decision-making powers provided valuable input and enhanced employee satisfaction and morale. This second model came as a result of alternative theories that found users not to be intrinsically lazy, but who were instead adaptive to their environment. Where a workplace lacks challenge, professional growth and other motivators, users became lazy. When the situation was reversed, the proponents of this theory found users to be creative and motivated.
The Need to Invest on Intangibles An important challenge in establishing lasting changes of culture and values in an organization involves ensuring that organized learning processes are anchored within the particular e-Gov organization. Traditional courses and training are considered efficient, but it often seems as the long-term effect is missing. Furthermore, traditional courses are often used by the organizations to train their employees so they can perform better, but in the same ways as they always have done (Watzlawick et al., 1974) and (Argyris et al., 1985). There are several positive aspects to both tactics, but if the goal of the learning is to gain new knowledge and to establish changes in behavior as well as further learning in the organization, it is
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important to use a strategy based on pedagogical theories and methods that take individual as well as organizational learning into consideration. There is a saying: ‘have hammers, will see only nails’, just because you have a hammer in your hand. In the greater scheme of things, collaborative decision-making as part of e-Gov networks includes more than scientific approaches and methods. Hence, the results (observations, conclusions and theories) of one scientific discipline cannot be intelligently applied or implemented in disregard of other scientific theory. The scientific communities have organized themselves in disciplines (e.g. economics, political science, legal science or law, etc.). These might in turn be organized – or thought of – as some ‘blocks’ of sciences such as natural science, social science, human science etc. This internal organization is especially visible in the academic training. In such academic training, however, holistic understanding of science as just science runs the risk of being overlooked. This risk appears despite that theory of science may be part of the academic training in each of the disciplines. A student may learn about the very specifics of sub-theories and approaches developed, approved of, or otherwise adopted in the discipline he or she studies. When making the transition to the labor market, the student then develops into an intra-disciplinary practitioner. This is an example of intra-disciplinary approach, which should be carefully distinguished from inter-disciplinary approaches. We could also say that intra- disciplinary approaches, including the theory and methods implied, constitute the toolbox that we equip the students with. Because of their training, the disciplinary students might later – more or less automatically and thus probably unreflectedly – bring their intra-disciplinary approaches into their future research. These researchers’ own experience working with decision-making processes dates back to
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the beginning of 1990. They have been closely involved with a wide range of different organizations in the research, the business software and the IT industry in general and different types and levels of decision-making styles and cultures. In all these settings, they have been exposed to different learning strategies based on problem-based and project-organized approaches, and have experienced that they provided quite another learning outcome. They consider such a community-based learning approach an effective and motivating way to organize the kind of learning situations needed when working with changes in behavior, strategies, and innovative processes in companies and organizations, as it is for the case of product development.
Relation of the Research with the Organizational Zeitgeist The conducted analysis and the business application scenarios for application of a communitybased approach that puts increased significance in the interactions between the two communities of developers and users indicate that ‘prototyping’ of a Miranda-like environment within a public sector organizational setting can contribute to the increase of the intellectual capital creation in at least three key ways: •
•
By helping to develop understanding about the essence or essential factors of a decision-making experience, as it simulates important aspects of the whole or parts of the relationships between people, events and contexts, as they unfold over time. In exploration, shaping and evaluation of ideas and attitudes: such a communitybased approach can provide inspiration, confirmation or rejection of ideas based upon the quality of experience they engender. It produces answers and feedback to decision-makers’ questions about proposed solutions in terms of ‘what would it
•
feel like if...?’ In communication of issues and ideas: by enabling others to engage directly in a proposed new situation, it provides common ground for establishing a shared point of view. Such a point is to be regarded as a collective asset – not property of an individual but of the team that has contributed to its creation.
In this respect, a possible criticism might read like “such a community-based approach is not a new phenomenon within the e-Government sector; decision-makers have always been ready to adopt and adapt methodology and technology and processes of many kinds to create early representations of their ideas and understandings”. But the concept of our approach specifically, we believe, deserves a conscious focus. It should become a recognized and well-supported tradition within e-Government networks decision-making practice(s). This belief is founded upon observation of our own practices which indicate that we can be more sensitive, can design better experiences for the users, and can be more convincing about the value of the decisionmaking patterns, by intentionally adopting such an approach. From this perspective, it follows that the conducted analysis is not about the creation of a formalized toolkit or set of techniques, but is about developing an attitude and corporate culture to solve problems. As we move into a more conscious frame of mind about collaborative e-Gov networks, we are aware of much we do not yet understand about how to best utilize the principles for the most innovative and successful results. What is the appropriate representation for different audiences? e-Gov networks might be designed primarily for Public Administration users, or other members of the PA organizational value chain teams, stakeholders, and internal or external clients. The audience influences both the type of e-Gov network instance we create and the degree of context and explanation we
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provide to frame the experience for them. For the middle management it may be difficult to provide an early, low-fidelity improvisation prototype of sufficiently robust nature that they can have an experience in a naturalistic context without supervision. Higher levels of fidelity have their problems, too. As faced in one of the conducted experimental sessions, e-Gov network members may become unshakably attached to early ideas when they experience a single convincing manifestation of many different possibilities and perceive it as the final solution. Clearly it is important for designers of eGov networks to share their understanding of the intent behind a particular e-Gov network as an immaterial (intangible) infrastructural asset, but perhaps there are also lessons to learn about communicating these intentions more effectively by carefully choosing the implementation or prototyping technique. Hence it is important to investigate the value of role-playing and improvisational theater (Laurel, 1993), rather than of watching someone else’s experience. Is there any danger that active involvement, especially when an audience is present, tends to direct energy away from understanding the experience? Perhaps sometimes there is at least additional learning to be gained by observation and reflection of someone else having an experience as opposed to being fully immersed in it yourself and then transferring or generalizing your own personal and subjective experience without cross-checking with real users. The analysis focuses primarily on participatory, multi-party and team learning in relation to the precondition for organizational learning and on applying the theory from experiential learning as described by Kolb (1984) and reflective learning as described by Schön (Schön, 1983; 1987). Important is to discuss the circumstances under which we can expect that problem-based, project-organised training / learning methods will be effective in relation to changes in corporate attitudes, values and behaviour. To be effective
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here means that the aim of the learning process encompasses more than participants / employees gaining new knowledge on the cognitive and affective levels: opportunities for subsequent organizational learning should also be ensured. Our opinion is that it is important for the facilitator of a collaborative situation to have a clear approach in order to establish learning activities to support a consistent style of decision-making. It is easy to recognize that when trying to establish a theoretical approach to learning, the first focus is to introduce reflection in the activities with which we worked in different learning situations in the past. The next focus point is the facilitators’ role in the learning process; at this point, we were very much aware of the necessity of focusing on more structured experimentation, as it is in the cross field between reflection and experimentation that innovative processes take place (Schön, 1983). It is essential to think of a collaborative e-Gov network as complementary to other decisionmaking methods. First, no matter how good a collaborative network is at promoting empathy, we cannot actually be other people or dis(as)sociate ourselves from the emotional aspects of a situation we are part of. There will always be a place for other design and research methods to help us understand other people’s points of view. Second, as in all forms of implementation, we inevitably make choices about what elements of the ultimate e-Gov network to represent and what to omit. This means recognizing that a single prototype is never enough. Multiple prototypes and other methods such as contextual observation, participants testing and participatory design all bring important perspectives to complete the picture. These other methods help the researchers in identifying the relevant factors of a collaborative e-Gov network that we plan to implement. To create an appropriate prototype we need to determine, for example, whether we are interested primarily in the temporal/dynamic aspects of an experience, the physical/spatial and social aspects, or the cognitive
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and temporal/dynamic aspects. And, since we are developing only partially integrated prototypes, “setting the stage” for a particular collaborative e-Gov service session becomes crucial. We need to be explicit about what needs to be ignored (e.g., because it “does not look like” or “would not be tethered”) and about what context surrounds the participants’ experience (“a high pressure emergency situation” or “a very insightful and personal moment”). Finally, authors come back to the point that people’s experiences with information products and systems are a complex integration of both personal and circumstantial factors. People will have experiences with the things we design, whether we intend them or not, and in ways that we cannot hope to predict entirely. Nevertheless, understanding, exploring and communicating the experiential aspects of adoption ideas are central activities in the implementation of collaborative e-Gov networks in the real world. Collaborative e-Gov networks, while they create only approximate and partial simulations of the real experiences others will have, bring a subjective richness to bear on decision-making problems faced by Public Administrations. It is an approach that, we believe, will benefit from more conscious attention and deliberate experimentation and adoption in the real world.
EVIDENCE FROM A PRACTICAL CASE ANALySIS An evaluative study ‘Effectiveness of Information and communication technologies (ICT) research technology development (RTD) Impacts on the European Union (EU) Innovation System’ was conducted aiming to assess how effectively EU ICT RTD and deployment initiatives are being exploited in the European systems of innovation at member state and regional levels, exploring the value creation for organisations, networks and regions in the
context of EU-funded, ICT-related Framework Programmes (FP). The focus of the study was on understanding regional innovation as an ecology that converts ICT-FP generated knowledge and value creation into long-term competitiveness and economic growth. We have conducted this assessment through an integrated use of four different methodologies, namely Intellectual Capital (IC) Assessment, Value Network Analysis, the PACE toolkit (Project Assets, Core competences and Exploitable items) and macro-econometric Multivariate Statistical Methods. A total of 85 interviews were conducted with project participants and local stakeholders in the 10 regions of Europe: Auvergne-France (4), Braunschweig- Germany (12), Crete-Greece (8), Jihov’ychod-Czech Republic (11), Kent-UK (7), Kujasko Promorskie-Poland (15), Liguria-Italy (3), Pais Vasco-Spain (7), Smaaland- Sweden (8), and Vlaams Brabant-Belgium (10). In order to study the proposed framework through the networks created by EU Framework Programmes and to understand their impact on regional systems of innovation, 10 regions were selected for in-depth analysis. Our selection methodology started from the NUTS 2 level of the EU-25 that was composed of 254 regions but excluding capital regions. The latter usually have already been studied and are special cases with a large concentration of industrial actors, universities and national research centres. Instead, we elected to focus on non-capital ‘core’ and ‘peripheral’ regions. This research has identified ‘core’ regions as those with a population greater than 400,000 people to ensure a critical mass of industrial, RTD and innovation activity. At the same time we restricted our attention to NUTS 2 regions with a population density lower than 1,000 people per square kilometer. These conditions were met by 196 non-capital ‘core’ regions. The next step was to categorize this list of regions in terms of their performance on basic macro-economic indicators, choosing GDP, Public
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Table 1. Value generated from the involvement of government organisations (e.g. public administrations) in Research and innovation projects Value to the Region. Effect on the innovation system
Direct value to the Government organisation
Indirect value to the Government organisation
Acquire new ideas and approaches. Acquire Knowledge
Effects policy on promoting innovation
Create a more competitive environment inside the regions, generating the interest for external investment
Produce New or improved services
Higher demand on innovative services, better quality of service to the citizens
Create a more competitive and innovative region in terms of international visibility and exports of competitive products
Create, improve and sustain a network of collaborative organizations
New research partnerships expansion of their network
Sustain and improve a innovation friendly environment for businesses and researchers through maintaining the linkages for knowledge exchange
Disseminate knowledge gained internally and externally
Improve internal processes. New research partnerships
International visibility of the region, knowledge intensive organisations, generating the interest for external investment
sector RTD investment and Enterprise RTD investment as a set of three independent parameters upon which to base our categorisation. With respect to each of these we defined Low, Medium and High performance. Regarding the results of the study, and especially those that related with value generation, the first outcomes showed the creation, improvement and sustainability of a network of collaborative organizations managed by a public administration entity through the participation in the ICT research and innovation projects, and the linkages established through them with Government, Industrial, and High Education organisations, including Research centres, for exchanging and elaborating ideas in the generation of new research fields, and maintaining active knowledge exchange. The result was the expansion of research and local network partnerships, affecting the regional performance by sustaining and improving an innovation friendly environment for businesses and researchers alike. The effects of the innovation system on a region can be identified as a value that grows with the increasing involvement of government organizations (like Public administrations) in ICT research and innovation projects. It is really interesting to see that the direct value of acquisition of new ideas, approaches and knowledge by a government
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organization, can effect the regional policy on promoting innovation and creating a more competitive environment inside the region therefore generate the interest for external investment. Additionally, the involvement of a Government organization in the development of new or improved services in can effect any government organization decision making and the perception on a higher demand on innovative services and of better quality of service to the citizens. The following table presents briefly the results in relation to the Value generated from the involvement of government organisations (e.g. public administrations) in Research and innovation projects, see Table 1. The Framework Programme of the EU on research and innovation, through its thematic objectives and requirements creates a demanding environment on its own, far more advanced sometimes with respect to the actual needs of the local, regional, or national environment. In this way, a more knowledge intensive RTD and deployment environment is created that lead to new products and services, and more experienced academic researchers, having the chance to apply their theories to real market needs. All of the above can create a more competitive environment inside the region and generate the incentives for further investments by external funds.
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FUTURE TRENDS Education and democracy seem to go hand in hand in several respects. First of all, many modern constitutions associate education with citizenship rights. All citizens should have the best possible education, regardless of their background, and be able to contribute to society and participate in public life. The potential of e-learning to support this democratisation process is now a lively research topic, especially at international level (Unesco, 2002)(von Hippel, 1988)(World Bank, 2002). Secondly, democratising education may also mean making it really universal, or that the system cannot just cater for the ‘average pupil’, it has to be good at dealing with those who are ‘below’ or ‘above’ the norm. Many schools have applied this kind of personalised teaching for years, tailoring the curriculum and teaching method to stretch and challenge all pupils, using mentoring, catchup or out-of-hours schooling. ICTs – information and communication technologies - are also increasingly used to monitor pupil performance and to identify where additional intervention is needed. Thirdly, especially e-learning and mobile learning are seen as new ways to enable life-long training and continuous professional improvement of people. In this chapter, authors address the topic of ‘democratising education’ according to a different perspective, by referring to the potential role of ‘the many’ (Surowiecki, 2004) – citizens, customers, ordinary people – in increasing by quantity and quality the level of education of ‘the few’ – administrators, law makers, civil servants and the like – that are committed to the management of the ‘public thing’. This approach relates with a participatory evaluation of public decision-making and policy actions. Following Elliot Stern quoted in (Sommerland et al. 1992), by evaluation authors intend “any activity that, throughout the planning and delivery of innovative
programmes, enables those involved to learn and make judgements about the starting assumptions, implementation processes and outcomes of the innovation concerned”. Rowe and Taylor (2005) contend that “evaluation makes little sense unless it is understood as part of a learning process”. A process that is obviously organisational, but can also be understood as the multiplier effect of a sum of individual feedbacks. It is the research question the extent to which the use of ICTs can enhance the efficacy and/or efficiency of this organisational learning in modern public administrations. Finally, authors expect that future trends will be related to the NPM (New Public Management) related research problem that Government “reinvention” needs to support or redefine existing and future relations with the internal and external “stakeholders” of a Public Administration, in order to create added value to citizens/customers. More specifically, in the addressed area research is expected to focus on the following items: •
•
•
Use of government, non-government and citizen networks to organize for routine and non-routine problems. Development of synergetic ways to govern through a “network of networks.” How can the official government of a country capitalize on ideas and information exchanged as part of a citizen’s initiative or think tanks related or affiliated to non government organizations? Assigning the citizens new roles to solve public problems. New hands-on approaches for helping the transition from the currently expected idea of democracy as an institutional concept to an experiential one.
CONCLUSION This research experiences show that the concept of collaborative e-Gov networks can be an extremely beneficial development tool in developing
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successful corporate identity for e-Government projects and increasing their intangible assets value, provided that certain problems are resolved and provided that both communities of developers and users demonstrate that they have the will to remove the obstacles that currently stand in the way of widespread business process and decisionmaking connectivity. While it is all very well to call indiscriminately for adoption of collaborative practices such as the proposed Miranda environment as a tool for development, the reality on the ground in the majority of the corporate world is that there are a number of problems, hindrances and issues which have to be squarely faced and resolved before the Miranda concept can be used successfully as a development tool. These problems, hindrances and issues have been described as some length in the research and relate mainly to the kind of soft skills infrastructure and processes that are absolutely essential in any company before a collaborative e-Gov network can function with maximum efficiency. Any sustainable adoption and usage of collaborative e-Gov networks would require a careful case-by-case needs analysis to determine the form and extent of each organisation’s needs for adoption and specialisation. Finally, the research recommends specific, situation- and context-based provision of access to a collaborative e-Gov network rather than indiscriminate whole scale provision. With this in mind, the research emphasises that analysis and market research need to precede any kind of collaborative e-Gov network provision. Providers, suppliers and designers of collaborative e-Gov network tools and methods should examine every aspect of each company’s needs − as well as each organization’s readiness to use the network before facilitating access for that organization. If it is used in this way, the collaborative e-Gov network will serve a specific function in a specific situation and therefore provide maximum benefit
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to particular group of users and developers (rather than random benefits to diffuse and undefined stakeholders). The authors’ experience and evidence that results from the study has led to believe that situation-specific collaborative decision-making would be far more beneficial for organizations than any kind of ill-prepared attempt to provide universal access to information resources.
ACKNOWLEDGMENT Our thanks to the European Commission for partially funding the SemanticGov project, to the Coordinator of the Project, Professor Konstantinos Tarabanis, and the architect of the SemanticGov ideas and vision, Dr Vasilios Peristeras. SemanticGov is an IST STREP Project, running as part of the European Union’s Framework Programme 6 for Research in Information Society Technologies, aiming towards ‘Providing Integrated Public Services to Citizens at the National and Pan-European level with the use of Emerging Semantic Web Technologies’. Official project Web site: http:// www.semantic-gov.org.
REFERENCES Althusser, L. (1970). Ideology and ideological state apparatuses (notes towards an investigation). In Lenin and philosophy and other essays. La Pensée. Argyris, C., Putnam, R., & Smith, D. M. (1985). Action science. USA: Jossey-Bass Inc. Publishers. Heil, G., Stephens, D. C., & Bennis, W. G. (2000). Douglas McGregor on management: Revisiting the human side of enterprise. John Wiley & Sons.
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IDA, & CapGemini. (2004). Architecture for delivering pan-European e-Government services, v.1.0.
Schön, D. A. (1983). The reflective practitioner. How professionals think in action. New York: Basic Books.
Jaggi, B. (1988). A comparative analysis of worker participation in the United States and Europe. In G. Dlugos, W. Dorow, K. Weiermair & F. C. Danesy (Eds.), Management under differing labour market and employment systems (pp. 443-454). Berlin: Walter de Gruyter.
Schön, D. A. (1987). Educating the reflective practitioner: Towards a new design for teaching and learning in the professions. San Francisco: Jossey-Bass Publishers.
Kolb, D. A. (1984). Experimental learning. Experience as the source of learning and development. USA: Prentice-Hall, Inc. Laurel, B. (1993). Computers as theater. AddisonWesley. McGregor, D. (1985). The human side of enterprise: 25th anniversary printing. McGraw Hill. Olsen, J. P. (2003). Towards a European administrativespace?JournalofEuropeanPublicPolicy,10(4), 506–531. doi:10.1080/1350176032000101244 Peristeras, V., & Tarabanis, K. (2004, September). Advancing the government enterprise architecture (GEA): The service execution object model. In R. Traunmueller (Ed.), Proceedings of Electronic Government: 3rd International Conference, EGOV 2004, Zaragoza, Spain (Vol. 3138, pp. 476-482). Springer-Verlag Heidelberg. Peristeras, V., & Tarabanis, K. (2006). Reengineering the public administration modus operandi through the use of reference domain models and Semantic Web service technologies. 2006 AAAI Spring Symposium, The Semantic Web Meets eGovernment (SWEG), Stanford University, CA, AAAI. Rowe, M., & Taylor, M. (2005). Community led regeneration: Learning loops or reinvented wheels? In D. Taylor & S. Ballock (Eds.), The politics of evaluation: Participation and policy implementation. Bristol: The Policy Press.
Sommerlad, E., et al. (1992). A guide to local evaluation. London: Evaluation Development and Review Unit, Tavistock Institute of Human Relations. Surowiecki, J. (2004). The wisdom of crowds. New York: Anchor Books. UNESCO. (2002). Open and distance learning: Trends, policy, and strategy considerations. Paris: UNESCO Publications. von Hippel, E. (1988). The sources of innovation. New York: Oxford University Press. Watzlawick, P., Weakland, J., & Fisch, R. (1974). Change principles of problem formation and problem resolution. New York: W.W. Norton & Co. World Bank. (2002). Constructing knowledge societies. Washington, D.C.: World Bank Publications.
KEy TERMS AND DEFINITIONS Community Building: Community building is a field of practices directed toward the creation or enhancement of community between individuals within a regional area (such as a neighbourhood) or with a common interest. It is sometimes encompassed under the field of community development. Collaborative Governance: A process and a form governance in which participants (parties, agencies, stakeholders) representing different interests are collectively empowered to make a policy decision or make recommendations to a
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final decision-maker who will not substantially change consensus recommendations from the group. Government Service Interoperability: Collaboration ability of cross-border services for citizens, businesses and public administrations. Exchanging data can be a challenge due to language barriers, different specifications of formats and varieties of categorisations. Community of Practice: A self-organised group of individuals with common goals related with a process of social learning that occurs and shared sociocultural practices that emerge and evolve when the members of the community interact as they strive towards those goals. Intangibles: A colloquial expression for qualities in an individual or group of individuals, especially those organized in an official group
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(e.g. as parts of a community) which affect performance but are not readily observable. Often appears in the literature together with the term intangible assets. Intangible Assets: Identifiable non-monetary assets that cannot be seen, touched or physically measured, which are created through time and/ or effort and that are identifiable as a separate asset. In the context of this chapter they relate to competitive intangibles such as knowledge activities (know-how, knowledge), collaboration activities, leverage activities, and other structural activities. Government Collaboration Patterns: The use of institutions, structures of authority and even collaboration to allocate resources and coordinate or control activity within a governmental authority or amongst several ones.
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Chapter 21
Does the Technological Sophistication of a Firm Influence an Owner-Mangers Choice of Exit Mode Geraldine Ryan University College Cork, Ireland Bernadette Power University College Cork, Ireland
ABSTRACT In a small firm, access to information is linked with strategic awareness, a growth orientated mindset, and better performance. The advent of communication technologies has significantly changed the amount of information available, how it is being accessed, and the cost of collecting and using this information. To exploit this resource, individuals, firms, and governments must be e-ready. In this chapter, the authors examined the technological sophistication of a sample of mature small and medium sized enterprises in Scotland and analysed whether there is a link between this, some other firm-specific factors, and an entrepreneur’s succession choice. The evidence suggests while firms located in urban and suburban areas have access to ICT and may benefit from e-government services targeted at assisting them through the transfer process, older more rural firms have limited access and will only benefit if government policy is directed towards providing ICT access and making them e-ready. DOI: 10.4018/978-1-60566-671-6.ch021
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Does the Technological Sophistication of a Firm Influence an Owner-Mangers Choice of Exit Mode
INTRODUCTION Small firms are quickly becoming the driving force of the modern economy (Loveman and Sengenberger, 1991; Audretsch et al., 2000; Acs and Audretsch, 1993). Fynes et al. (2001) argue that the viability of these small firms is dependent on their technological sophistication. In today’s highly advanced world, PCs, e-mail and the Internet have now become fundamental and basic technologies for many firms. Indeed, information technology has become a critical organisational resource that supports and adds value to a firm. The advent of the World Wide Web and other communication technologies has significantly changed how we access information, the amount of information available to us, and the cost of collecting and using this information. Today, individuals, small and large firms and governments alike use Information and Communication Technologies (ICT) to participate in discussions and debate, to advertise/ collect and store knowledge, to buy/sell products and to interact with the global community on the information super-highway. Over the last decade, governments have invested vast sums of money into developing ICT. For example, in Scotland E-government1 took a major leap forward with the unveiling of a GBP39.5m programme of innovative public sector partnership projects in 2002 (EuropeMedia, 2002). In 2004, a further GBP38.45 million was allocated to public sector projects designed to help contribute towards a more efficient government. Small and medium-sized enterprises (SMEs) have benefited from these developments and many now have access to electronically distributed information resources that until very recently were largely the preserve of large enterprises. As of December 2005, 61% of United Kingdom SMEs used broadband to access the internet (Ofcom, 2006) and all the major database hosts now provide access to their content using the World Wide Web.2 Today SMEs have access to a wealth of potentially valuable information. However, an important question
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arises as to whether many of these companies have employees skilled enough to make best use of these resources. Uhrbach and van Tol (2004) argue that small firms, which do not have access to, or utilise, information technology may be at a competitive disadvantage. The issue of digital inclusion has become pressing in an era where the lack of access to digital technologies has major implication for all aspects of life from employment to government services. The Scottish Government (2006) states that it is undemocratic to move their services fully online until they can be available to all. They argue that this will not be possible until computer literacy is more widespread. De Saulles (2007) supports this view and argues that the issue of information literacy within the workplace is of growing importance, as business leaders and educators express increasing concern about the need for workers and students to be able to navigate the multiplying streams of information available over the internet. Indeed, he shows that £3.7 billion is spent by SMEs in the UK on time wasted looking for information that they cannot find. In this chapter, the authors examined the technological sophistication of sample of SME’s in Scotland. If these firms are not E-literate then it may slow down the move towards E-Government. With this in mind, they examined whether the technological sophistication of SME’s impacts on one decision taken by entrepreneurs – that is their decision to exit/ transfer their business. Upon leaving his business, the owner-manager has a number of options; he can transfer the business to a family member, he can sell the business to an employee/manager(s) or to an outsider, or he can close down the business and dispose of its assets. In 1994, the European Commission acknowledged that small business transfer was a major issue of concern. By 2002, the Employee Ownership Organisation estimated that 30,000 owner-managed businesses in the European Union, involving around 300,000 employees, close each year due to a lack of succession planning. These firms do
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not close because of falling market conditions, but because their owners are not able to transfer the business to new owner-managers. As a result, these owner-managers are forced to close down the firm. In 2003, the European Commission requested constituent countries to put supports in place to raise the choice set of potential endgames for small firms to reduce this threat and to preserve the economic value of these firms (European Commission, 2003). However, it is difficult for governments to put these supports in place unless they know (1) what factors influence the entrepreneurs’ exit-decision and (2) what medium they should use to inform and educate the entrepreneurs about their options. Over the last few years, an array of internet sites, have been developed by Government agencies and others, to provide information to owner-managers about the transfer process.3 While, timely access to better quality information is very important, if SME’s are not E-literate then they may not be able to access and utilise these internet portals and as a result, they may not be fully informed about the transfer process. Such lack of preparation is likely to result in succession failure.4 Such failure can damage local economies by reducing the number of enterprises and jobs, resulting in a loss of knowledge and expertise. It can also result in the loss of opportunities for the entry of new owners with new ideas and energies capable of maintaining and developing established business. As the average age of Scottish firms’ increases, it is important that entrepreneurs are informed about the best ways to survive the transfer process.5 If not, then the employment and wealth created by these established firms and links with the communities in Scotland are vulnerable to transfer failure. Briefly, this chapter is developed as follows: it begins in the next section by discussing the role of information and communication technologies (ICT) in small and medium sized enterprises (SME’s). Following this brief discussion, the authors examine the sample data and then examine
the technological sophistication of the SME’s in the sample. The chapter then turns to discussing factors that may influence an entrepreneur’s exit decision and examines how policy makers could use E-Government tools to address some of the issues that arise in the results. Finally, some emerging and future trends in this research area are outlined and the conclusions are presented.
BACKGROUND World economic growth depends increasingly on information and communications technologies (ICT’s), and on the ability of countries and enterprises to collect, process, and use digital information. Small and medium sized enterprises (SMEs) form a dynamic and important part of the economy in most countries. Growth oriented small businesses make a major contribution to economic development and employment generation within local communities and national economies (Smallbone and Wyer, 2000). SMEs contribute substantially to national economies (Poon and Swatman, 1999) and are estimated to account for 80 per cent of global economic growth (Jutla et al., 2002). Nurturing this prosperous sector is high on the policy agenda of most governments. According to Davis et al. (2000), a firm-specific advantage in penetrating international markets and facilitating organisation growth may stem from investments in technology or the use of specific technologies, such as the Internet. Indeed, many small entrepreneurial firms can overcome the disadvantage of small size through their use of technology, such as the Internet, to reach consumers beyond their borders. Many researchers argue that the use of the Internet and communications technologies improves business competitiveness, with the internet providing the opportunity for SME’s to compete on equal terms with larger organisations (Chapman et al., 2000). E-commerce, in particular, is now seen as an important lever to promote business
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growth (Bianchi and Bivona, 2002). Drew (2003) argues that these communication technologies help small businesses to expand their marketing scope, reach new markets, reduce their operational costs, and partner with suppliers and other collaborates. Small firms employing ICT enjoy enhanced profitability. For example, one study by Qiang et al. (2006) found that firms using e-mail for customer communication can grow 3.4% faster in terms of sales than those which do not, while another study by Raymond et al. (2005) found that the introduction of e-commerce methods in manufacturing firms in Canada was found to explain 4% of sales growth and 5% of export performance. Currently, considerable time and money is being expended by governments to encourage SME’s to invest in the Internet (Beckinsale and Levy, 2004). While many SME’s have made innovative uses of the Internet, Levy and Powell, (2002) show that most SMEs do not view the Internet as the key to their business strategy. Researchers in several countries show that SMEs have been slower to adopt e-commerce than their larger counterparts have. Moreover, Drew (2003) finds that SME’s in traditional industries have been slower to adopt E-commerce than their large competitors have. Levy and Powell (2002) observe that many SME entrepreneurs are cautious about the role the Internet and E-commerce can play in their businesses. They state that many entrepreneurs are unable to see how such technologies can impact on their firms’ growth strategy. SME will likely have varying levels of digital literacy and lack understanding of the potential strength of interactive communication across business and customer strata and clustering benefits. For many SME, ICT is a language they do not understand and e-commerce a product for which they have no use. SME need considerable encouragement to move into, get comfortable, and take mental, physical, and virtual possession of the ICT domain. The success of the Internet initiatives of a firm or enterprise depend not only on its own effort to digitise its value chain, but also on the
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readiness of its customers, supplier and trading partners to engage in electronic interactions and transactions. Successful e-readiness practice requires readiness on the part of all players in the value chain, and companies that adopted ecommerce or e-business must invest in increasing their trading partners’ readiness. The authors hypothesise that the technological sophistication of a firm impacts on many aspects of a firms’ performance and operation. In particular, they test whether the technological sophistication of a firm plays a role in an entrepreneurs exit decision (i.e. where s/he sells their business or closes it down). By doing this they examine whether a firm which is not technologically sophisticated is more likely to shutdown upon the retirement of its owner-manger rather than to sell the business to interested parties. If this is the case then the role out of E-government services (where this includes ensuring that small and medium sized firms are e-Ready) would address a key element of the succession issue, that is, the inability for some profitable and financially viable to transfer.
Data Located in the north of the British Isles, Scotland is the second largest of the four countries that constitute the UK. The population of Scotland is just over five million people, the majority of whom live within the central belt that runs from Glasgow in the west to Edinburgh in the east. Glasgow is the largest city in Scotland, whilst Edinburgh is the second largest city. Scotland’s other pre-eminent cities are Aberdeen, Dundee, Inverness and Stirling. Almost one third of the population live within these six cities, one consequence of which is that population densities vary considerably across Scotland. Glasgow has the highest population density and the Highlands region the lowest (http://www.scotlad.org/about/ fact-file/population/). In this chapter, the authors examined the technological sophistication, age and location of
Does the Technological Sophistication of a Firm Influence an Owner-Mangers Choice of Exit Mode
a sample of long-lived small firms in Scotland. Long-lived small firms are defined as firms which have been trading for more than 10 years and still continue to trade. Similar definitions of maturity have been adopted by Smallbone et al. (1992, 1995). The sample frame of long-lived small firms were extracted from three “parent” samples of Scottish small business enterprises, namely Leverhulme (1985-1988), Telephone Survey 1991 and Leverhulme (1994-1997). The firm survival rates were found to be relatively low in the first two of these parent samples (see Power, 2004 for further details on how the firms were identified and traced). In total sixty-three surviving firms were identified. Almost, all sectors by Standard Industrial Classification Code were represented in this sample, from agriculture (01) to domestic services (99). The main sectors represented were: 32, mechanical engineering (4.8%); 43, textile industry (4.8%); 61, wholesale distribution (4.8%); 64, retail distribution (23%); 66, hotels and catering (4.8%), 67 repair of consumer goods and vehicles (6.3%); and 83 business services (9.5%). The modal firm was a retailer. The sample proportions between extractive/manufacturers (SIC 01-60) and services (SIC 61-99) were 37% and 63% respectively which compare reasonably well with figures from the Department of Trade and Industry, for all UK small firms, at 27% for manufacturing and 73% for services respectively. The data is even more reflective of the market today as the most recent statistics from the Department of Business Enterprise and regulatory reform show that in 2007, 67% of businesses in the United Kingdom were in the service sector. The geographic scope of the sample was also extensive. The following regions were represented in the sample Aberdeen, Argyll, Aryshire, Banff, Caithness, Cumnock, Dundee, Fife, Glasgow, Inverness, Isle of Skye, Lanarkshire, Lothian, Edinburgh, Midlothian, Moray, Orkney, Perth, Renfrewshire, Ross and Stirling. Data from these firms was collected in face-toface interviews with owner-managers conducted
between October 2001 and February 2002. The firms examined were mature, 25½ years on average; median age is 22. Technically, they were classified as ‘small’ at inception since they employed less than 100 people, though in fact, the small firms in this study were much smaller, typically having less than 10 employees at inception. At the time of interview, the long-lived small firms had 13 employees, on average, indicating some, but not substantial growth, since inception. This survey provided data on such characteristics as the entrepreneurs expected end game, whether the firm has a succession plan, the age of the firm, the firms’ location, the technological sophistication of the firm.
Technological Sophistication of SME’s Reid (2000) considers information as being a precious resource. Skills in acquiring real time information reduce risk and uncertainty and improve the adaptability of the internal organisation to changes in its environment. Lybaert (1998) demonstrated that greater information use in SMEs was associated with better performance and was found to be positively associated with factors like strategic awareness, growth orientation, and delegation. On average, long-lived small firms in the sample use seven (2.34) forms of information technology (I.T.) (with the corresponding standard deviation in parentheses). Figure 1 illustrates the percentage of firms, which used various information technologies. Over half the small firms used: telephone (96.8%); fax (92.1%); personal computers (87.3%); E-mail (81%); mobile phone (84.1%); internet (68.3%); telephone answering (65.1%); and a website (57.1%). The permeation of I.T. within the internal organisation of the firm and the introduction of I.T. into the day-to-day running of the business may differ across industries, as some firms are more progressive in the adoption of new technologies than others. To test this hypothesis the authors
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Does the Technological Sophistication of a Firm Influence an Owner-Mangers Choice of Exit Mode
Figure 1. Level of information technology
decompose the dataset into two broad sectors: manufacturing firms and service sector firms. From Table 1, it can be seen that there are 23 manufacturing firms and 40 service sector firms in our sample. On average, the manufacturing firms have 7.6 forms of I.T., while the services sector firms have 6.9 forms of I.T. A test of the null hypothesis of the equivalence in the mean count of information technologies across these broad industrial sectors could not be rejected (F1,61 = 1.387, see Table 1). Thus, there is tentative evidence that manufacturing and services firms use similar levels of I.T. Younger firms, in the sample, were significantly more likely to possess more forms of information and communication technologies (Pearson’s
correlation coefficient7=0.35, p-value
