Managerial Capacity and Digital Government in the States: Examining the Link Between Self-Efficacy and Perceived Impacts of IT in Public Organizations Charles C. Hinnant The University of Georgia Email.
[email protected] Abstract This paper examines the linkage between the self-efficacy of public managers to employ information technology (IT) and managerial perceptions of IT effects on the operations of public organizations. A conceptual model posits that computer self-efficacy is influenced by several factors such as organizational support, IT usage within the organization, and experiential knowledge. Furthermore, computer self-efficacy simultaneously affects managerial perceptions of IT impacts on organizational processes. Data from a national study of state program managers is employed to test five hypotheses regarding computer self-efficacy. Two Stage Least Squares is then used to estimate the effect of computer self-efficacy on perceptions of IT impacts. Results indicate that the level of computer self-efficacy is influenced by the availability of IT training and the extent of IT usage within the organization. Computer selfefficacy is also shown to be associated with more positive perceptions of IT effects within public organizations.
1. Introduction Information technology (IT) has often been considered a primary ingredient for the development of effective and efficient management within large administrative organizations. For example, development of strategic information systems has often been credited with supplying managers with more relevant information, facilitating improvements in managerial decision-making [1]. In regards to the public sector, a great deal of attention has been focused on examining the effects of IT on the internal processes of public organizations. For instance, research has focused on comparing the management of information systems and information resources within the public sector to those of private sector organizations [2-5]. Additional research has focused on how IT alters the power relationships that exist between actors within public agencies [6]. While most research has traditionally focused on how the use of
Eric W. Welch University of Illinois at Chicago Email.
[email protected] IT impacts the internal processes of public organizations, the relatively recent development of wide-area distributed communication networks such as the Internet and World Wide Web (WWW) has brought about a focus on how the use of such technologies may facilitate interaction between public organizations and various organizational stakeholders. Government’s use of computer technologies to provide information and services to citizens, or other stakeholders, has most recently been dubbed e-government [7]. While initial attempts at examining e-government’s effect on public organizations have begun to appear [8-9], relatively few researchers have undertaken large-scale research projects to examine the use of the Internet and WWW. The most extensive studies have focused on tracking the diffusion of WWW-based practices among governments by examining the content of organizational websites [10]. Such studies have attempted to characterize the online web presences of public organizations in terms of transparency, openness, and effectiveness [11]. Furthermore, they have contributed valuable aggregate information about the rate of diffusion for government’s implementation of online technologies. Despite the increased interest in examining the character of e-government, more work must be done to understand the relationships between institutional actors and outcomes of technology adoption in the public sector. For instance, few studies have attempted to examine how the dispositions of stakeholders toward new technologies influence their subsequent perceptions of IT effects within their referent organization. This gap is somewhat surprising since a stakeholder’s own psychological disposition toward a particular technology may influence how he perceives the impact and role of technology within the broader organizational environment. This study is an initial attempt to examine how the computer self-efficacy of one group of stakeholders, public managers, influences their perceptions of IT impacts within their public organization. The first section of this paper examines the existing literature and theory regarding computer self-efficacy and the use of IT within government. The second section of
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the paper presents a conceptual model that links selfefficacy to perceptions of IT within public organizations. Next, I describe a data collection effort and the variables that allow us to empirically explore aspects of the theory. A formal model is then estimated from the data. The final two sections discuss the findings and their implications for the adoption of e-government by public organizations.
2. Background A common concern when adopting any technology is whether or not individual stakeholders will actually make use of it as intended. There are a number of social and technical factors that influence the actual adoption of new technologies. For instance, many researchers have shown that the characteristics of the specific technology in combination with characteristics of the potential adopting organization plays a primary role in the decision to actually adopt a new technology [12]. For instance, many researchers have pointed out that technologies that are radical departures from an organization’s current technical environment are less likely to be adopted than are technologies that serve to make incremental advancements [13]. While such characteristics are obviously important to understand, an issue that has yet to be fully addressed is how new technologies are perceived and understood by organizational stakeholders. We believe this is a prime determinant of whether a new form of IT will be adopted and subsequently employed to achieve organizational goals. Several studies seem to indicate that IT is often perceived by internal stakeholders, especially managers, as a way to address difficulties with internal organizational processes. For instance, assert that interest in new forms of IT may increase if the organizational task requires high levels of communication with external agencies [14]. In addition, a public manager’s interest in new technologies is driven by organizational needs and the manager’s own area of program responsibility. Program managers are more interested in forms of IT that address specific problems they face within their scope of responsibility. At the same time, managerial perceptions of information technologies is also influenced by the technology’s perceived ease of use and overall benefit. IT that is perceived as the most effective in overcoming administrative hurdles, or otherwise facilitating organizational processes, may be shown more interest by public managers. For instance, Moon and Bretschneider show that public managers may attempt to use IT to overcome problems such as administrative red tape [15]. In regards to studying the adoption and use of computer technology, several cognitive theories have been employed in an attempt to better explain how an individual’s own psychological makeup can be tied to
understanding whether or not potential users will accept IT. For instance, the Theory of Reasoned Action assumes that individuals will engage in activities when they perceive adequate benefits [16]. This broad behavioral theory has been used as part of the foundation for examining the actions of IT users. The Technology Acceptance Model (TAM), which has gained broad acceptance within the IT research community as a way to determine the level of acceptance of new IT, is derived from the Theory of Reason Actions as well as Expectancy Theory [17]. The key to such theories is how individual users perceive the characteristics of the technology, as well as the potential benefits associated with its use. In addition to these theories, some researchers have looked to Social Cognitive Theory to better understand how individual stakeholders both perceive and take action within their environment. Social Cognitive Theory posits that an individual, the environment, and the individual’s behavior are all connected in a reciprocal manner [18]. For example, an individual in some way chooses his environment and factors from the environment in turn influence the individual. In a similar fashion, an individual’s behavior is influenced by environmental factors and reciprocally influences the environment. A basic tenet of Social Cognitive Theory is that behavior is related to expected outcomes. Individuals will undertake behavior that they associate with higher levels of benefits. At the same time, perceptions regarding any behavior are to some degree derived from the individual’s belief that the action can be successfully completed. Therefore, selfefficacy can be considered a fundamental factor, not only in what actions will be successfully completed, but also in which actions will actually be undertaken in the first place. While self-efficacy can be applied to any human action, some IT researchers have begun to apply the concept in attempts to explain the computer use of individual actors. In regards to the use of IT, computer self-efficacy can be defined as “a judgment of one’s capability to use a computer” [19]. Furthermore, such judgments are not concerned with an individual’s past behavior and competencies, but with the individual’s expectation of future opportunities in applying computer technology to broader administrative tasks. Since computer self-efficacy is concerned with an individual’s judgments regarding the use of IT, it can also be linked to other perceptions associated with an individual’s IT usage. For instance, Compeau and Higgins found computer self-efficacy to be positively related to perceived personal outcomes, affection for computer use, performance outcomes, and the overall level of computer use [19]. While computer self-efficacy is potentially an important factor in determining whether or not an individual stakeholder will employ IT, it may also influence the stakeholder’s perspective on the broader impacts of IT on organizational processes. In
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regards to public organizations, the computer self-efficacy of public managers may influence their perceptions of IT impacts on organizational processes. In order to examine the relationship between the computer self-efficacy of individual managers and how these managers perceive the impact of IT on organizational processes, computer selfefficacy must be examined in reference to other sociotechnical factors within the organizational environment.
3. Computer self-efficacy and managerial perceptions of IT impacts In order to better understand the role that computer self-efficacy plays within the internal environment of public organizations, we must first examine how organizational factors influence the computer selfefficacy of managers and then examine how a manager’s computer self-efficacy is related to perceptions of IT. In order to examine the level of computer self-efficacy possessed by managers in public organizations, one must attempt to explain how social and technical factors in some ways determine the level of managerial confidence in using new technologies. In the case of public managers, computer self-efficacy may be influenced by the amount of prior knowledge and experience that a manager as accumulated over time, the level of organizational support provided to employees, and the managerial need for using IT in completing organizational tasks.
3.1. Computer self-efficacy and experience A manager’s level of computer self-efficacy may be influenced by previous experience with IT within the organizational environment. For instance, a manager’s tenure within an organization may provide the manager with information regarding the organization’s commitment to using IT to influence internal processes. If a manager has witnessed, or directly experienced, success in the use of IT to achieve managerial objectives, the manager will most likely express more confidence in using IT in the future. Work experience also serves to provide a manager with a sense of general knowledge and achievement that should serve to heighten the level of computer self-efficacy. In a similar manner, a manager’s level of educational attainment may influence one’s level of computer self-efficacy. In this instance, education might serve to increase one’ knowledge regarding the use of technology but, more likely, it will act to bolster a manager’s general confidence in attempting new managerial tasks including those involving new technologies. Whether general, or situation specific, experience should serve to increase the level of computer self-efficacy for public managers. This leads to the following hypotheses:
H1: Computer self-efficacy is positively related to a manager’s experience working with IT within the organizational environment. H2: Computer self-efficacy is positively related to a manager’s level of educational attainment.
3.2.
In addition to work experience and education, the level of organizational support provided to managers may influence a manager’s level of computer self-efficacy. If a manager knows that an organization will provide assistance or instruction in using new forms of IT, they may have a higher level of computer self-efficacy. One obvious form of organizational support is the extent to which training in the use of hardware and software systems is offered to employees. For instance, if a public organization makes an investment in training managers in the use of various technologies, managers may have more positive judgments about their own ability to successfully use new forms of IT. This leads to the following hypothesis: H3: Computer self-efficacy is positively related to the level of IT training available to employees.
3.3. Computer self-efficacy and managerial use of computer applications Another factor that influences the level of computer self-efficacy is the technical environment in which the manager works. If a manager works within a department that requires the use of more, or more sophisticated, forms of IT in order to achieve organizational goals, the manager is more likely to have a relatively high level of computer self-efficacy. In addition to the necessity of using IT to achieve goals, a manager in such an organizational environment may also be in contact with peers that have a high level of computer self-efficacy. In regards to computer self-efficacy, peer ability to use IT is thought to positively influence an individual’s confidence in attempting to use new technologies. This leads to the following hypothesis: H4: Computer self-efficacy is positively related to the importance of IT within the organization for completing managerial duties.
3.4. Computer self-efficacy and perceptions of IT impacts While several factors inherent to the organizational environment are hypothesized to influence the level of computer self-efficacy, a manager’s confidence in using new technologies may also influence perceptions of
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Computer self-efficacy and organizational support
broader technological issues within the public organization. Managers with relatively high levels of computer self-efficacy may be more confident in positively assessing the organization’s technical environment. For instance, a manager that has confidence in using new communication software (email, etc.) may be better able to understand how IT influences organizational communication. Similarly, a manager with high levels of computer self-efficacy may be better able to generalize his expectation of personal success to a broader ability to use IT to influence organizational activities. This leads the following hypothesis: H5: Computer self-efficacy is positively related to the perceived impacts of IT on organizational processes.
4. Data collection In order to test our propositions regarding computer self-efficacy, a sample of state government managers was employed. The sample used in this study was collected under the auspices of The National Study of Information Technology Management and Use in State Government1. The study employed a stratified random sample of 2000 state government program managers distributed across all 50 states. The sample used published directories as the sampling frame and was stratified along ten primary organization functions: budget and finance, commerce and economic development, courts and corrections, education, environmental policy, general services, health and social services, labor and employment, law enforcement and public safety, and transportation. The survey’s design and implementation followed the procedures prescribed by Dillman [20]. A survey instrument was developed and pretested. The pretest was conducted using 15 respondents from the sample frame, as well as reviewed by academic researchers knowledgeable in instrument development. The pretest was useful in identifying problems with question wording and survey length. The pretest results also highlighted the need for mostly close-ended questions in the survey. Once the pretest results were incorporated into the survey, data collection was initiated using the final 11page questionnaire. The author carried out the data collection from November 2000 through July 2001. Respondents were mailed an alert postcard that indicated that they would be receiving a survey packet and requesting their participation in the research study. One week later respondents were mailed a survey packet 1
This study was partially funded by a Junior Faculty Grant to the first author from the University of Georgia Research Foundation. The authors would like to thank Hal Rainey and Bob Golembiewski for their comments on the initial grant proposal. We would also like to thank the following people for their help during the study’s implementation: Carolyn Hinnant, Donnie Hinnant, Trey Hood, Stuart Bretschneider, Jae Moon, and Wen Wang.
containing a cover letter that requested their participation in the study, a survey questionnaire, and a business reply envelope. Three subsequent follow-up mailings were undertaken at intervals of approximately two months. All follow-up survey packets included a cover letter, survey booklet, and business reply envelope. An additional attempt to increase response rates came in the form of one-page reminder letters or faxes, which were sent to non-respondents approximately one month after each of the follow-up mailings. During data collection, numerous phone calls and emails were received with questions about the survey. All communication was routed to the survey director to ensure consistency of responses. A frequent concern was whether there existed a response deadline. To maximize the response rate, no deadline for responses was indicated during any communication with respondents. Other questions included inquiries regarding the most appropriate person to respond to the survey. Some respondents contacted the survey administrator in order to obtain a replacement for a missing survey. In such cases, another survey packet was sent to the respondent. In all cases the respondents were encouraged to complete the survey. Of the 2000 program managers surveyed, 856 useable surveys were received for an overall response rate of 42.8 percent. The response rate is not necessarily surprising when considering the population sampled and the subject of the questionnaire itself. In addition, the response rate is similar to that of other mail surveys using a stratified sample and employing questionnaires of similar length [21].
5. Formal model and measurement Modeling the influence of self-efficacy on managerial perceptions of IT requires capturing factors that directly influence managers’ judgments regarding their own prowess in using IT and then simultaneously capturing the effect of such judgments on the managers’ view of IT within their organization. While capturing these two functions allows us to examine our hypotheses, we must also control for other variables that may influence such relationships. An organization’s broad goals and activities may influence the use and impact of IT on organizational activities, so organizational function should be included. Organizational size has also been shown to influence an organization’s ability to use information technology [22]. Therefore, size may play a role in how managers view the management and use of IT within public organizations. Furthermore, we must also attempt to capture factors pertaining to the general management of IT within the public organization. In order to do this, we must control for the overall importance of IT in delivering services, the planning and development strategies for information resources, and the
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perceived quality of information services within the organization. Conceptually, these relationships are represented with the following two equations: (1) Self-Efficacy = f(Work Exp., Education Level, Training, Managerial Use of Software Applications) (2) Effects of IT on Organization= f(Function, Size, SelfEfficacy, IT Strategy, IT Activities, IT Quality) The operational measure of self-efficacy was adapted from the one described by Compeau and Higgins [19]. The questions asked the respondents how important each of seven different strategies were when attempting to learn a new computer software application. A ten-point Likert scale ranged from one, indicating “Not at all important”, to ten for “Very Important”, capturing the level of need for each strategy. A summative measure of computer self-efficacy was then created from these seven items. The Cronbach’s Alpha of .71 indicates an adequate level of reliability between this set of parallel measures [23]. Work experience was captured with a question that inquired as to how many years the respondent had worked in government. The respondent’s level of education was captured with a question that asked the respondent to indicate the highest level of education attained. The level and nature of training available to the respondents were captured with a seven-point Likert question that asked the extent to which they agreed with five statements about training. The question was scaled from one “Strongly Disagree”, to seven “Strongly Agree.” An alpha of .75 indicates a sufficient level of reliability to create a summative scale. Similarly, the extent of managerial use of software applications was measured with a question that asked the respondents to indicate the extent which each of eleven different software applications were necessary for managers in their department to complete their duties. The Likert scale question was scaled from one, indicating “Very Important” to five that indicated “Not at all important”. An alpha value of .75 indicated a sufficient level reliability to create a summative measure. The perceived impact of IT on organizational processes was measured with a question that asked respondents the extent that they agreed or disagreed with thirteen statements regarding the possible effects of computers on their organization. The Likert question was scaled from one, indicating “Strongly Disagree”, to seven, indicating “Strongly Agree”. An alpha value of .91 indicates a high level of internal reliability and a summative measure was created from these items. Organizational function was measured with a question that asked the respondents to identify one of ten possible activities that best characterized the primary function of their agency. Nine indicator variables were included in the model with “Transportation” representing the base
indicator. Organizational size was measured with a logarithmic transformation of each agency’s operating budget. The organization’s IT strategy was measured with a seven-point Likert question that asked respondents to indicate the extent they agreed with eight statements regarding the organization’s philosophy and strategy in planning information resources. The question was scaled with one, indicating “Strongly Disagree”, to seven, indicating “Strongly Agree”. An alpha value of .72 indicates a sufficient level of reliability to create a summative measure. In addition, the importance of using IT to delivery key organizational resources is measured with a five-point Likert question that asked respondents to indicate how important organizational information services were in accomplishing seven different organizational processes. The question was scaled from one, indicating “Very Important”, to five, which indicated “Not at all important”. An alpha value of .78 indicated an adequate level of internal reliability to create a summative measure. Finally, the quality of the organization’s information services was measured with a five-point Likert question that asked respondents how often their agency’s information services met five quality criteria. The question was scaled from one, indicating “Very Often” to five, indicating “Never”. An alpha value of .83 indicates an adequate level of internal reliability to create a summative measure. Given the presence of endogeneity within the conceptual model, simultaneous equations were estimated using two-stage least squares. This instrumental variable technique involves regressing each endogenous variable acting as a regressor in the system on all the exogenous variables in the system. The estimated values for the endogenous variables are then used as instrumental variables for the endogenous variables [24]. This technique has also been shown to produce robust estimates that are generally insensitive to problems of multicollinearity and specification errors [25].
6. Results and discussion The results of the first stage estimations are found in Table 1 and the second stage results are found in Table 2. An examination of the results from the two-stage least squares estimation yields several clear results. There is empirical support for several of the hypotheses regarding the factors that influence the level of computer selfefficacy in public managers. Similarly, there is also evidence that computer self-efficacy is related to how public managers perceive IT effects on organizational processes. The organizational factors that influence computer self-efficacy will be discussed first and this will be followed by a discussion of how computer selfefficacy influences managerial perceptions of IT.
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There is no empirical evidence that a manager’s experience or knowledge is positively related to the level of computer self-efficacy. The relationship between a manager’s work experience and level of computer selfefficacy is not statistically significant. Likewise, a manager’s level of educational attainment is not related to computer self-efficacy in a statistically significant manner. This may indicate that a manager’s level of computer self-efficacy is not directly related to more general experiential knowledge or to general educational attainment. Computer self-efficacy is more likely directly influenced by a manager’s experience working with and learning about IT. The availability of different operational measures that capture a manager’s level of ITspecific experience may result in a different empirical outcome. Table 1. First stage - ordinary least squares Effect of IT on Org. Self-Efficacy Variable Estimate t value Estimate t value Intercept 60.500 10.630 **** 71.891 10.930 Work Exp. 0.040 0.860 -0.151 -2.810 Educ. Level 0.423 1.100 -0.212 -0.480 IT Training 0.221 2.780 *** 0.232 2.530 Man. Software Applic. -0.210 -2.880 *** -0.445 -5.280 Budget & Finance -2.208 -1.360 1.043 0.560 Commerce 0.922 0.470 2.725 1.200 Courts & Corrections 0.570 0.340 4.958 2.550 Education -3.751 -2.220 ** 3.984 2.040 Environment -0.642 -0.430 3.038 1.770 General Services 1.619 0.760 2.336 0.940 Health & Soc. Services -0.343 -0.250 4.205 2.630 Labor -4.690 -1.950 * 5.927 2.130 Law Enforcement 0.348 0.200 3.120 1.540 Org. Size (Log Budget) -0.167 -1.000 -0.053 -0.280 Org. IT Strategy 0.022 0.320 0.379 4.690 Org. IT Service Del. -0.323 -3.640 **** -0.298 -2.900 Org. IT Quality 0.073 0.510 0.126 0.760
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The technical environment in which managers work also plays a role in the level of computer self-efficacy. There is a positive relationship between the necessity to employ IT to complete managerial tasks and the level of computer self-efficacy. The presence of this relationship could mean that managers may have more confidence in using new forms of IT when their work requires them to use computer hardware and software to complete their managerial duties. As discussed earlier, this confidence in using new IT applications may also be partly due to peer pressure to remain proficient in new technologies. Table 2: Two-stage least squares estimation Self-Efficacy Effect of IT on Org. Variable Estimate t value Estimate t value Intercept 55.127 16.660 **** -12.311 -0.540 Work Exp. 0.036 0.790 Educ. Level 0.090 0.250 IT Training 0.272 3.750 **** Man. Software Applic. -0.267 -3.850 **** Budget & Finance Commerce Courts & Corrections Education Environment General Services Health & Soc. Services Labor Law Enforcement Org. Size (Log Budget) Self-Efficacy Org. IT Strategy Org. IT Service Del. Org. IT Quality
There is support for the hypothesized relationship between organizational support and the computer selfefficacy of managers. In this instance, computer selfefficacy is positively related to the level of IT training offered by the organization. The more training offered by the public organization, the higher the level of computer self-efficacy within managers. This may indicate that an investment in IT training could facilitate increased managerial confidence in successfully using IT to accomplish organizational tasks. Even if managers do not undergo IT training, the mere presence of such organizational support for using IT could serve as a cue to managers that they should use new forms of technology to improve organizational processes.
4.180 2.458 3.401 8.242 4.047 0.293 4.359 11.622 2.203 0.130 1.206 0.352 -0.022 0.010
1.620 0.810 1.320 2.990 1.760 0.090 2.080 2.980 0.820 0.480 3.520 3.220 -0.110 0.050
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**** ***
The second equation considered the relationship between the level of managerial computer self-efficacy and managerial perceptions of IT effects on organizational processes. Computer self-efficacy is positively related to the perceived effects of IT on internal activities. Overall, heightened levels of self-efficacy seem to be related to managers possessing more positive views regarding the role of IT in public organizations. This might mean that a manager’s own computer selfefficacy could influence managerial perceptions about using new forms of IT to change organizational activities. If managers possess confidence in their own ability to use IT, they may be more confident in their organizations’ ability to employ IT. Several other variables were included in the second equation in an attempt to statistically control for the effects of other organizational factors. For instance, nine indicator variables were included to capture the possible effect of organizational function. The results indicate that four functional-types (education, environment, health and
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F Value 9.640 **** 5.880 **** R-Square 0.096 0.190 Adj. R-Square 0.086 0.157 n 367 367 * p < .10 **p < .05 ***p < .01 ****p
