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The Pursuit of E-government: What Determines Perceptions of E-Government Effectiveness?

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Charles C. Hinnant Ph.D. Assistant Professor Public Administration Program Department of Political Science 104 Baldwin Hall University of Georgia Athens, GA 30602-1615 Email: [email protected] Phone: 706-583-8586 Fax: 706-542-2057 M. Jae Moon Ph.D. Assistant Professor Graduate School of Public Affairs University of Colorado Campus Box 142 PO Box 173364 Denver, CO 80217-3364 Email: [email protected] Phone: 303-556-5988 Fax: 303-556-5971

Paper prepared for the 6th National Public Management Research Conference, Indiana University, Bloomington, IN., Oct. 18-20, 2001

The Pursuit of E-government: What Determines Perceptions of E-Government Effectiveness? ABSTRACT In regards to public organizations, E-government initiatives are often proposed as a means to improve internal processes and facilitate external communication. This paper examines the relationship between an organization’s technical environment and managerial perceptions of E-government’s effectiveness. A conceptual model of E-government effectiveness is proposed which includes factors from both the internal and external technical environment. Data from a national study of state program managers is employed to test several hypotheses regarding E-government effectiveness and these dimensions of the technical environment. Regression analysis is employed to estimate the effects of both these dimensions on the level of perceived effectives of E-government. Results suggest that the extent to which the organization depends on internal information systems plays significant role in determining whether Egovernment initiatives will be perceived as being effective. Similarly, the extent to which the organization is perceived to have successfully employed information systems in the past also determines the extent to which E-government initiatives are perceived to be effective by public managers.

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1. 0 Introduction Information technology (IT) has become one of the core elements of managerial reform and electronic government (E-government) may figure prominently in future governance. IT has opened up many possibilities of improving internal managerial efficiency and the quality of public service delivery to citizens. IT has contributed to dramatic changes in politics (Nye, 1999; Norris, 1999), government institutions (Fountain, 2001), performance management (Brown, 1999), and reengineering (Anderson, 1999) during the last decade. As part of the National Information Infrastructure (NII) initiative, the Clinton administration attempted to visualize E-government, through which the government overcomes the barriers of time and distance in administering public services (Gore, 1993). Recently some studies have found widespread diffusion of various IT innovations (mainframe and PC computers, geographical systems, networks, WWW pages, etc.) in the public sector (Cats-Baril and Thompson, 1995; Ventura, 1995; Nedovic-Budic and Godschalk, 1996; Norris and Kraemer, 1996; Weare, Musso, and Hale, 1999; Musso, Weare, and Hale, 2000; Landsbergen and Wolken, 2001; Layne and Lee, 2001; Nunn, 2001; Peled, 2001). In particular, the simultaneous diffusion of wide area computer-based communication networks such as the Internet, and especially the World Wide Web (WWW) within society, has brought about a growing interest in facilitating governance functions via online communication technologies. This broader use of IT to facilitate interaction with citizens and other stakeholders has generally been dubbed electronic democracy or e-democracy (Watson and Mundy, 2001). This broad concept of computer-mediated communication is inclusive of two broad online communication activities, E-politics and E-government. E-politics includes attempts to facilitate civic awareness of the political process as well as citizens’ ability to participate within that process. E-government is composed of government activities using computer technologies to provide information or services to citizens. For instance, the ability of citizens to obtain taxation information or make tax payments online would be a prime example of E-government operations.

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While initial attempts at conceptualizing E-government’s effect on bureaucratic institutions have begun to appear (Watson, Akselsen, Evjemo, and Aarsaether, 1999; Fountain, 1998), relatively few studies have attempted large-scale studies to empirically examine government’s 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 nature of the governments’ online presences (LaPorte, Demchak, and Friis, 2001). Such studies have attempted to characterize the online presences of public organizations in terms of transparency, openness, and effectiveness (La Porte, de Jung, and Demchak, 1999). Furthermore, they have contributed valuable aggregate information about the rate of diffusion for government’s implementation of online technologies. Despite the initial interest in examining the character of E-government, recent studies have raised questions about the actual adoption and use of such technologies by government. Moon (2001) asserts that local government’s have not moved far beyond the early stages of E-government implementation. West (2001) asserts that E-government initiatives have increased responsiveness to the public through the use of communication technologies (i.e. email) but that many of E-government’s purported benefits remain unrealized. Even though there has been increasing interest in E-government initiatives, little research as attempted to examine the factors which will determine how the effectiveness of such initiatives is, or will be, judged. This study posits an exploratory model of the perceived effectiveness for E-government initiatives that focuses on two different dimensions (internal technical dimension and external technical dimension). These two dimensions will be examined as the sources of internal and external forces that facilitate the adoption of E-government practices and eventually lead to the effectiveness of Egovernment. This model is discussed and several hypotheses regarding the model are developed. Next, we describe a data collection effort and the variables that allow us to empirically examine aspects of the theory. A formal model is estimated from the data. The final two sections discuss the findings and their implications for E-government.

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2.0 E-government: Examining Aspects of a Technological Innovation During the 1990’s, E-government became a prominent component of many attempts to reform government operations. Like many managerial practices and reforms in public organizations (TQM, strategic management, participative management, etc.), the E-government followed private sector adoption of so-called E-business and E-commerce. The Global Study of E-government, a recent joint research initiative for global E-government by the United Nations (UN) and the American Society for Public Administration (ASPA), provides a broad definition for E-government. Broadly defined, E-government includes the use of all information and communication technologies, from fax machines to wireless palm pilots, to facilitate the daily administration of government. However, like e-commerce, the popular interpretation of E-government is one that defines it exclusively as an Internet driven activity… to which it may be added “that improves citizen access to government information, services and expertise to ensure citizen participation in, and satisfaction with the government process.” … it is a permanent commitment by government to improving the relationship between the private citizen and the public sector through enhanced, cost-effective and efficient delivery of services, information and knowledge. It is the practical realization of the best that government has to offer (UN and ASPA, 2001. p.1). Similarly, E-government is narrowly defined as the production and delivery of government services through IT applications, it can be also more broadly defined as any way IT is used to help simplify and improve transactions between governments and other actors, such as constituents, businesses, and other governmental agencies (Sprecher, 2000: 21). In her recent book, Jane Fountain (2001) suggests the concept of “virtual state” that is a governmental entity organized with “virtual agencies, cross-agency and public-private networks whose structure and capacity depend on the Internet and WWW (p.4).” Largely speaking, E-government includes four major internal and external aspects: 1) the establishment of a secure government intranet and central database for more efficient and cooperative interaction among governmental agencies; 2) WWW-based service delivery; 3) the application of Ecommerce for more efficient government transaction activities like procurement and contract; and 4) digital democracy for more transparent accountability of government (Government and the Internet Survey, 2000). Various technologies have been employed to support these unique characteristics of E-

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government, including electronic data interchange (EDI), interactive voice response (IVR), voice mail, email, WWW service delivery, virtual reality, and public key infrastructure (PKI). For instance, by introducing Electronic Filing Systems (EFS) with custom-designed software that incorporates encryption technology, the US Patent and Trademark Office (USPTO) has made a bold move toward the substantial reduction of the amount of paper the agency handles by allowing inventors or their agents to send any documents to the PTO via the Internet (Daukantas, 2000). Due to various WWW technologies, 33 million US taxpayers were able to file their 1999 returns via the WWW while 670,000 online applications were made for student loans via the WWW-based system of the Department of Education (Preston, 2000). Some governments have also promoted virtual democracy by pursuing WWW-based political participation such as online voting (Hiller and Belanger, 2001) and online public forums. The functionality and utility of WWW technologies in public management can be broadly divided into two categories: internal and external. Internally, the WWW and other technologies hold promise potential as effective and efficient managerial tools that collect, store, organize, and manage an enormous volume of data. By using the function of upload and download, the most up-to-date information and data can be displayed on the Internet on a real time basis. Government can also transfer funds electronically to other governmental agencies or provide information to public employees through an Intranet or Internet system. Government can also do many mundane tasks more easily and quickly, such as responding to employees’ requests for benefits statements electronically. Externally, WWW technologies also facilitate government’s linkages with citizens (G2C) (for both services and political activities), other governmental units (G2G) and businesses (G2B). Government’s WWW sites can serve as both a communication and a public relations tool for the general public. Information and data can easily be shared with and transferred to external stakeholders (businesses, nonprofit organizations, interest groups, or the public). In addition, some WWW technologies (i.e., bulletin board), enable the government to promote public participation by posting notices and exchanging messages and ideas with the public.

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3.0 E-Government and Effectiveness: Technical Management vs. Organizational Management While E-government is often cited as a means of improving organizational operations, can current conceptualizations of organizational effectiveness be applied to E-government initiatives in order to judge their actual impact? As the discussed in the previous section, the successful use and adoption of Egovernment initiatives is largely dependent on an organization’s technical environment. Most prominent theories regarding the effectiveness of public organizations do not place the technical environment in a prominent position as a determining factor in the organization’s effectiveness. Recently, Rainey and Steinbauer (1999) developed several propositions to advance theoretical discussions and promote relevant public sector research. Their propositions regarding the effectiveness of public agencies are associated with multiple organizational and managerial factors, including relations with oversight authorities, relations with other stakeholders, mission valence, strong organizational culture, leadership, task design, and the utilization of technology, professionalism, and motivation among organizational members. Their model of effective government agencies asserts that effectiveness is directly associated with three motivational factors (public service motivation, mission motivation, and task motivation). These factors are then linked with other internal and external organizational and managerial factors. This theoretical model appears comprehensive but it appears to be focused on organizational management rather than technical management.1 In other words, the effectiveness of government agencies is determined by the quality of organizational management (internal and external) and the performance of organizational members. The model does not seem to address the technical side of the effectiveness for government agencies, which seems to be a primary factor to the effectiveness of Egovernment. In many cases, E-government practices (on-line service delivery, online applications, etc.) are processed and handled through automated technical modules rather than by persons. While the development, implementation, and maintenance of such technical applications and processes are somewhat dependent on organizational factors, the role of the individual front-line public employees is 1

It should be noted that Rainey and Steinbauer recognized that technical innovation is a critical element to organizational effectives. They cite the Social Security Administration as an example of a government agency that enhanced its effectiveness through the computerization of many of its processes.

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less important in E-government services than in traditional public services. The quality of technical management is relatively more important than the more traditional organizational factor that is usually discussed as the determinants of organizational effectiveness. Other theorists suggest other dimensions and criteria of organizational effectiveness. Campbell (1977) provided 30 items in a “comprehensive list of effectiveness criteria.” These criteria include overall effectiveness, productivity, efficiency, quality, growth, job satisfaction, morale, goal consensus, readiness, information management and communication, and participation. Many of these criteria seem to reflect the core aspects of organizational management that directly relate to the three motivations (public service, mission, and task motivations) and organizational effectiveness as discussed by Rainey and Steinbauer (1999). Quinn and Rohrbaugh (1983) posit a competing values approach that suggests four different modes (human relations model, open-system model, internal process model, and rational goal model) based on an organizational focus (internal vs. external), level of control (control vs. flexibility), and means-ends focus (means vs. ends). Applying facets of this approach to the Egovernment initiatives allows one to conceptualize two primary dimensions of effectiveness: internal effectiveness and external effectiveness. Internal effectiveness refers to whether or not the use of the Internet (E-government) helps governmental agencies improve internal management. External effectiveness refers to whether the use of the Internet helps government agencies improve external communications with citizens or improve intra and inter governmental communications.

3.1 A Conceptual Model of Perceived E-Government Effectiveness The effectiveness of E-government initiatives can be judged according to the extent to which such initiatives either improve internal management or the extent to which they help facilitate improvements in communication with stakeholders in the organization’s external environment. While the dependency of E-government on the organization’s technical environment has been discussed, it should also be noted that the extent to which any organizational initiative is judged to be effective is also necessarily dependent on the internal or external stakeholders who make the assessment. Different organizational stakeholders

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may have different goals and, therefore, may have a unique perception of effectiveness (Perrow, 1977; Hall, 1996). This is true of initiatives, such as E-government, that rely heavily on the organization’s technical environment just as it is true for more traditional types of organizational innovations. When conceptualizing how the effectiveness of E-government is, or will be, perceived, it is important to specifically identify whose perceptions are being considered. In the case of most E-government initiatives, assessing the degree to which organizational goals are achieved will most likely fall to internal stakeholder such as public managers. Similarly, assessing the extent to which E-government improves internal processes or the ability to communicate with external stakeholders will probably be determined by examining the perceptions of public managers within the organization. The focus on managerial perceptions is probably appropriate in the case of E-government since determining whether or not such technical initiatives actually accomplish organizational goals such as improving internal management and external communication requires specific knowledge regarding such activities. Since E-government activities are dependent on the technical environment, the way in which managers perceive the management of the technical environment (internal and external) will be vital in how they will view E-government effectiveness. An organization’s technical environment is an important dimension when considering Egovernment effectiveness. The ability to manage internal technical resources such as computer and telecommunication systems will play a significant role in how technology is perceived by managers and other stakeholders within the organization. For example, the extent to which public organizations rely upon their internal computer systems to carry out administrative tasks will have an effect on how Egovernment is perceived by internal stakeholders. If an organization effectively manages more traditional information technologies such as internal local area networks (LANS), there is a greater likelihood that more sophisticated technologies will be adopted and used to improve internal processes. Similarly, there is also an external technical environment to consider. For instance, public organizations usually must deal with a wide array of potential clients. If such clients possess a certain level of technical expertise, or capacity, the organization may seek to match that level of capacity in order to facilitate the delivery of

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services or to more easily communicate with those clients. If the recipients of an organization’s service outputs are unable to make use of such technology, there is little chance that manager’s will believe that such Internet-based initiatives will be effective in improving internal processes or external communication. These two dimensions of the organization’s technical environment play an important role in how the effectiveness of E-government initiatives is perceived by internal stakeholders such as public managers. Figure 1 integrates these dimensions into a more comprehensive socio-technical model. [Insert Figure 1 about here] The conceptual model allows us to synthesize a set of hypotheses that describe interactions between internal and external technical factors and perceptions of E-government effectiveness. Organizational Dependence on Information Systems Organizations that are heavily dependent on technical systems, such as IT, to carry out core program tasks will probably be better able to adopt and implement new innovations such as those in E-government initiatives. Managers in such organizations are more likely to perceive technology as a necessary component in achieving organizational goals and are more likely to consider technological innovations. Therefore the perceived effectiveness of E-government initiatives is directly linked to the organization’s reliance on IT. This leads to the following hypothesis: H1: E-government effectiveness is positively related to an organization’s dependence on information systems to achieve key program goals. Organizational Technical Capacity (Computerization and Technical Resource) While managerial reliance on technology is important, so is the ability of the organization to successfully manage the technological environment. Even if managers rely upon internal information systems in order to carry out program tasks, the ability of the organization to successfully employ IT will have a direct impact on managers’ perceptions of the effectiveness of new technically-based initiatives such as Egovernment. Managers who have had positive experiences in employing IT to achieve program goals (previous experience with the effectiveness of computerization) will be more likely to perceive a potential for effective use of E-government. Another issue closely tied to both the organization’s dependence on

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and successful use of technology within the organization is the level of technical resources available to the organization. Resources may come in the form of personnel, and the knowledge they hold, financial resources, or actual technical (hardware and software) assets held by the company. In regards to Egovernment, the level of resources available will influence how managers perceive the likelihood of success for new technical initiatives. If the organization is not perceived to have the requisite resources to support new initiatives, it is unlikely that E-government will be perceived as potentially effective in achieving organizational goals. This leads to the following hypothesis: H2: E-government effectiveness is positively related to the perceived ability of organizational information systems to meet the expectations of internal stakeholders. Quality and Utility of Information In addition to the technical capacity of the organization, the quality and utility of information is also critical to the effectiveness of E-government. The quality and utility of the information refers to the degree of accuracy, timeliness, accessibility and user-friendliness of the information provided. If the organization is not able to present high quality and utility of information, it is less likely that its Egovernment initiative is effective. This leads to the following hypothesis: H3: E-government effectiveness is positively related to the quality of information provided by the organization. External Technical Environment In addition to factors from the internal environment, the perceived effectiveness of E-government initiatives is heavily influenced by factors from the external environment (task-related environment, information sharing, legal constraints, and political support). External stakeholders may influence managerial perceptions of E-government. For example, organization’s that directly interact with privatesector companies that employ E-commerce technologies may feel the need to adopt Internet-based technologies in order to better serve their clients. Conversely, public organizations that interact with clients with limited technology capabilities may not believe that E-government will be effective in improving the organization’s key activities. This leads to the following hypothesis:

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H4a: E-government effectiveness is positively related to the amount of perceived pressure from clients to adopt technological innovations. H4b: E-government effectiveness is positively related to the degree of information sharing that the organization is engaged with other external actors. H4c: E-government effectiveness is positively related to the degree of external political support while it is negatively related to the degree of legal constraints. 4.0 Data In order to test our propositions regarding effectiveness, 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 Government i. 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. A survey instrument was developed and pretested. The pretest was conducted using 15 respondents from the sample frame as well as review from 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 closeended questions in the survey. Once the pretest results were incorporated into the survey questionnaire, data collection was initiated using the final 11-page 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 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

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in the form of one-page reminders letters or faxes were send 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 was a response deadline. To maximize 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 employing a stratified sample and employing questionnaires of similar length (Yu and Cooper, 1983). 5.0 Measurement and Statistical Methods Modeling the perception of E-government effectiveness requires capturing the influence of several factors which influence the organization’s technical environment: the manager’s perception of the organization’s internal technical environment and the external need demand for new technologies. While measuring these two primary dimensions allows us to test our hypotheses, the model must also attempt to control for other organizational and environmental factors that influence a manager’s perception of Egovernment’s effectiveness with respect to his public organization. Organizational size has also been shown to influence an organization’s ability to use information technologies (Delone, 1981). Therefore institutional size may play a role in the perceived effectiveness of E-government. Finally, some attention should be given to the broader political and cultural environment in which the organization operates. Conceptually, the model is represented by the following equation: Perception of E-Gov Effectiveness = f(Internal Technical Environment, External Technical Environment, Size, Political Environment)

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The dependent variables were derived from a question that asked respondents to indicate the extent to which they agreed or disagreed with eleven possible effects of Internet-based computer technologies on their organization. A seven-point Likert scale range from one, indicating “Strongly Disagree”, to seven for “Strongly Agree” captured the level of perceived effectiveness of E-government for the manager’s organization. The Cronbach’s Alpha of .928 indicates a high level of reliability between this set of parallel measures (Cronbach, 1951). Conducting a factor analysis of this same set of items illuminated how E-government may be perceived to effect organizational processes.

A principal iterated factor

analysis with a varimax rotation method yielded a two-factor solution. As seen in Table 1, items that represent internal productivity improvements dominate the first factor and items that represent improvements in communication to external stakeholders dominate the second factor. Using these two factors as dependent variables allows one to examine the perceived effectiveness of E-government in regards to internal productivity and external communication. The independent variables used to test our model were also measured using responses from the same survey. The respondents’ view of their organization’s internal technical environment is measured with three variables. One question asked the respondents to indicate the extent to the their agency’s information services were important in a carrying out a out seven different program activities. The question employed a five-point Likert scale with one indicating “Very Important” and five indicating “Not at all Important.” A summative measure of these seven survey items was used as the measure. The Cronbach’s alpha was .779.

A second question asked the respondents to indicate the frequency with

which their organization’s information services met five criteria for service quality. The question was scaled with one indicating “Very Often” and five indicating “Never.” A Cronbach’s alpha of .838 indicates that there is enough reliability between these items to create a summed measure. Finally, the respondent’s overall perspective toward computerization with their particular organization was measured using a question that asked them the extent to which they agreed or disagree with thirteen potential positive effects of computers on their organization. The question used a Likert scale with one

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representing “Strongly Disagree” and seven representing “Strongly Agree”. A Cronbach’s alpha of .915 indicates a high level of reliability among the items and a summed measure was created. In addition, the respondents perception of technical capacity was also measured with a question that asked respondents the extent to which the considered a lack of technical expertise and the financial costs associated with implementing information systems as barriers to offering government services through the Internet. The question employed a Likert scale with one representing “Strongly Disagree” and seven representing “Strongly Agree.” The impact of external influences on the respondent’s perceptions of E-government effectiveness is captured through the use of several measures. In order to capture the influence of external political support and the impact of legal restrictions on the effectiveness of E-government, respondents were asked the extent to which seven external influences were barriers to offering government services via the Internet. The question employed a Likert scale with one indicating “Strongly Agree” and seven indicating “Strongly Agree.” A factor analysis of the six items revealed two factors. As seen in Table 2, items that concern the lack of support from external political stakeholders dominate the first factor and the second factor represents legal restrictions associated with public. In order to capture the influence of external clients on organizational task, nine indicator variables representing organizational function were developed. Indicators variables for the following functions were included in the model: budget and finance, commerce and economic development, courts and corrections, education, environmental policy and regulation, general services, health and social services, labor and employment, and law enforcement and public safety. Transportation was used as the base indicator and, therefore, left out of the statistical model. Organizational size was simply measured by using the logarithm of the organization’s budget. Finally, the model controls for the variety of political influences emanating from the state government in the agency resides. In order to control for the different states, the model also includes a set of indicator variables to control for any state-specific political, economic, or cultural influences. Table 3 contains the descriptive statistics and correlations between the variables described here. There are not extremely

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strong correlations between the variables. The models were estimated using ordinary least squares regression. The results of the estimations are presented in Table 4. 6.0 Results and Discussion An examination of Table 4 immediately indicates several significant results in regards to the organizational dimensions in the conceptual model and the level of perceived effectiveness of Egovernment. There is at least partial support for each of the hypotheses pertaining to the perception of Egovernment effectiveness. The individual models will be discussed in the following order: effectiveness in internal productivity improvement, effectiveness in external communication, and the overall effectiveness. The model capturing the perceived impact of E-government on the internal production processes of public organizations also provides some support for our propositions. There is some support for the hypotheses regarding the perception of the organization’s internal technical environment and the perceived improvements in internal production processes. The perceived importance of the organization’s information services in carrying out program activities is positively related to perceived productivity gains to internal management operations. There is also a strong positive relationship between the overall perception of computerization within the organization and the effects of Egovernment on internal production processes. The relationship between the perceived quality of organizational information services and E-government effectiveness isn’t statistically significant. In addition, there is no statistically significant relationship between the level of technical expertise with the public organization and the level of perceived effectiveness of E-government. There is also some evidence to support the proposition that external pressures may influence managerial perceptions of E-government’s impact on the internal production processes of public organizations. There is evidence that organizational function plays a role in the perceived impact of Egovernment on internal processes. There is a negative relationship between the courts and corrections function and the perceived effects of E-government. Conversely, there is a positive relationship between

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the organizational function of commerce and economic development and the perceived beneficial effects of E-government. Public organizations that work to promote private-sector economic activity within their state may be heavily influenced by private-sector organizations which may place a high value on ecommerce and other online activities. Therefore, managers within commerce and economic organizations may place a higher premium on the potential benefits of new technological innovations such as E-government. In addition to function, external political support also plays a role in managerial perceptions of Egovernment effectiveness. The relationship indicates that increased political support for delivering services via the Internet leads to a greater perceived improvement to the internal productivity of public organizations. The necessity for external political support is probably because the adoption of Egovernment is often tied to broader administrative reform efforts that require the support form political actors in order to be successfully implemented. The only other significant relationship that appears is for the indicator variable for Arizona. The perceived impact of E-government on communication with external stakeholders is also influenced by factors from the organization’s internal and external environment. The perceived importance of the organization’s internal information services is positively related to the perceived effectiveness of E-Government on improving external communication. The quality of the internal management of IT is not related to the perceived effectiveness of E-government on external communication. However, the perceived overall effect of computerization on organizational processes is positively related to the perceived effectiveness of E-government. Other factors of technical capacity such as technical expertise and financial resources do not seem to be related to the perceived effectiveness of E-government. In regards to the role of external factors, the need to share information with external stakeholders is the only statistically significant relationship that is indicated. Function does not appear to play a role in the perceived effectiveness of E-government initiatives in improving external communication. Similarly, there are not statistically significant relationships between direct political support and effectiveness. In

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regards to the broader political environment, managers in the states of Arkansas, Iowa, Massachusetts, New Jersey, and Rhode Island appear to have a more negative view of E-government effectiveness in regards to improving communication with external organizational stakeholders. In regards to the model of overall E-government effectiveness, there is some support for the hypotheses regarding the perception of the organization’s internal technical environment and the perceived level of effectiveness of E-government initiatives. The perceived importance of the organization’s information services in carrying out program activities is positively related to the perceived effectiveness of E-government. While the relationship between the perceived quality of organizational information services and E-government effectiveness is statistically insignificant but there is a strong positive relationship between the perceived effects of computerization within the organization and the overall perceived effectiveness of E-government. In addition, there is no statistically significant relationship between the level of technical expertise with the public organization and the level of perceived effectiveness of E-government. There is also some evidence to support the general proposition that external pressures may influence managerial perceptions of E-government’s impact on public organizations. It was hypothesized that the organization’s function should play a role in the perceived effectiveness of Egovernment because an organization’s function may increase the likelihood that the technologies and business practices of external stakeholders might place pressure on the organization to innovate.

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is slight support for this hypothesis given the fact that the indicator variable for courts and corrections is statistically significant. Given the clients and external stakeholders of judicial or corrections organizations, this a reduced likelihood that E-government would be perceived to be an effective means of improving organizational performance. In addition, the organization’s need to share information with stakeholders in its external environment is positively related to the perceived effectiveness of Egovernment initiatives. As discussed earlier, this statistically significant relationship is probably due to the fact that improved communication is proposed to be a primary benefit of E-government. Only four state variables proved to have statistically significant relationships with the perceived effectiveness of E-

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government: Arizona, Arkansas, Nebraska, and New Jersey. These four states have a negative relationship with the perceived effectiveness of E-government. 7.0 Conclusion E-government has been promoted as a means of improving the internal processes and external communication of public organizations but little attention has been given to the potential effectiveness of such initiatives. This study indicates aspects of the organization’s internal and external environment can primarily explain the perceived effectiveness of E-government. In regards to improvements in internal processes and external communication, the overall importance of internal information systems plays an important role in determining perceptions of effectives. Similarly, managerial perceptions of the overall effect of IT on their organization play the most important role in determining perceptions of Egovernment effectiveness. This suggests that the most important factor in determining managerial perceptions toward E-government may be the manager’s previous experience with attempting to leverage technology to improve organizational performance. While this study attempts to conceptualize how internal an external environmental factors influence the perceived effectiveness of E-government initiatives, several caveats must be discussed. First, this study examines managerial perceptions of E-government effectiveness and does not employ objective measures of effectiveness. Second, this study does not employ direct measures of Egovernment adoption by public organizations. Instead, it attempts to explain factors that directly influence managerial perceptions regarding the potential effectiveness of E-government. Finally, some care must be given to extending this study’s findings beyond state government. This is caution must be extended because the level of dependence on IT has been found to vary across local, state, and federal levels of government (Caudle, 1991). Despite the necessary caution illustrated here, this study does take the initial steps in conceptualizing how E-government effectives is influenced by factors from the internal and external environments. As E-government initiatives are adopted in the future, more work must be done to better

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understand how such technological innovations will be evaluated in regards to the broader technical and political environment.

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REFERENCES Anderson, K. (1999) Reengineering Public Sector Organizations Using Information Technology. In Reinventing Government in the Information Age. Richard Heeks (ed.). New York: Routledge. Brown, D. (1999) Information Systems for Improved Performance Management: Development Approaches in US Public Agencies. In Reinventing Government in the Information Age. Richard Heeks (ed.). New York: Routledge. Campbell, J. (1977) On the Nature of Organizational Effectiveness. In P. S. Goodman, J.M. Pennings and Associates. New Perspectives on Organizational Effectiveness. San Francisco: Jossey-Bass. Cats-Baril, W. and R. Thompson (1995) Managing Information Technology Projects in the Public Sector. Public Administration Review, 55: 559-566. Cronbach, L.J. (1951) “Coefficient Alpha and the Internal Structure of Tests” Psychometrika, 16, 297334. Daukantas, P. (2000) PTO Starts E-government Shift. Government Computer News. V. 198. No. 33.http://www.gcn.com/vo119_no33/news/3327-1.html. Delone, W. (1981) “Firm Size and the Characteristics of Computer Use” Management Information Systems Quarterly, 5, December, 65-78. Fountain, J. (1998) “The Virtual State: Toward a Theory of Bureaucracy for the Twenty-First Century” In Democracy.Com: Governance in a Networked World, (Eds) E. Kamarck and J. Nye, Hollis Publishing Company, Hollis, N.H. Fountain, J. (2001) Building the Virtual State: Information Technology and Institutional Change. Washington DC: Brookings Institution Press. Gore, A. (1993) Creating a Government that Works Better and Costs Less: Reegineering Through Information Technology, Report of the National Performance Review. Washington D.C.: US Government Printing Office. Government and the Internet Survey (2000) Handle with Care. The Economist. 2000. Vol. 355. No. 8176. 33-34. Hall, R. (1996) Organizations: Structures, Processes, and Outcomes. 6th Edition, Englewood Cliffs, N.J.: Prentice Hall. Hiller, J. and F. Belanger (2001) Privacy Strategies for Electronic Government. The PricewaterhouseCoopers Endowment for The Business of Government. Landsbergen, Jr., D. and G. Wolken, Jr. (2001) Realizing the Promise: Government Information Systems and the Fourth Generation of Information Technology. Public Administration Review, 61: 206-220; La Porte, T.M., M. de Jung, and C. Demchak (1999) “Public Organizations on the World Wide WWW: Empirical Correlates of Administrative Openness. Paper presented at the National Public Management Research Conference, Texas A&M University, College Station, TX, Dec. 9.

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La Porte, T.M., C.C. Demchak, and C. Friis (2001) “Webbing Governance: Global Trends Across National-Level Public Agencies” Communications of the ACM, 44 (1), 63-67. Layne, K. and J. Lee (2001) Developing Fully Functional E-Government: A Four Stage Model. Government Information Quarterly. 18 (2): 122-136. Moon, M.J. (2001) “The Evolution of E-Government among Municipalities: Rhetoric or Reality” Paper presented at the American Political Science Annual Meeting, San Francisco, CA August 31-Sept. 2. Musso, J., C. Weare, and M. Hale (2000) Designing Web Technologies for Local Governance Reform: Good Management or Good Democracy. Political Communication. 17: 1-19. Nedovic’-Budic’ Z. and D. Godschalk (1996) Human Factors in Adoption of Geographic Information System. Public Administration Review, 56:554-567. Norris, D. and K. Kreamer (1996) Mainframe and PC Computing in American Cities: Myths and Realities. Public Administration Review, 56:568-576. Norris, P. (1999) Who Surfs?: New Technology, Old Voters, and Virtual Democracy. In democracy.com?: Governance in Networked Word. Elaine Ciulla Kamarck and Joseph S. Nye, Jr., NH: Hollis Publishing Company. Nunn, S. (2001) Police Information Technology: Assessing the Effects of Computerization on Urban Police Functions. Public Administration Review. 61: 221-234. Nye, J. (1999) Information Technology and Democratic Governance. In democracy.com?: Governance in Networked Word. Elaine Ciulla Kamarck and Joseph S. Nye, Jr., NH: Hollis Publishing Company. Peled, A. (2001) “Centralization or Diffusion?: Two Tales of Online Government.” Administration and Society. 32:686-709. Perrow, C. (1961) “Three Types of Organizational Effectiveness Studie” In New Perspectives on Organizational Effectiveness, ed. P.S. Goodman and J.M. Pennings. San Franscisco: Jossey-Bass. Preston, M. (2000) E-government US-style. New Statesman. 129 (4517). Special Supplement. p. xxx. Quinn, R. and K. Cameron (1983) Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence. Management Science. 29: 33-51. Rainey, H. and P. Steinbauer (1999) Galloping Elephants: Developing Elements of a Theory of Effective Government Organizations. Journal of Public Administration Research and Theory. 9: 1-32. Sprecher, M. (2000) Racing to E-government: Using the Internet for Citizen Service Delivery. Government Finance Review. 16: 21-22 UN and ASPA (2001) Global Survey of E-government. Ventura, S. J. (1995) The Use of Geographic Information Systems in Local Government. Public Administration Review. 55: 461-467.

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Watson, R.T., S. Akelsen, B. Evjemo, and N. Aarsaether (1999) “Teledemocracy in Local Government” Communications of the ACM, 42 (12), 58-63. Watson, R.T. and B. Mundy (2001) “A Strategic Perspective of Electronic Democracy” Communications of the ACM, 44 (1), 27-31. Weare, C., J. Musso, and M. Hale (1999) Electronic Democracy and the Diffusion of Municipal Web Pages in California. Administration and Society. 31: 3-27. West, D.M (2001) “E-Government and the Transformation of Public Service Delivery” Paper presented at the American Political Science Association Annual Meeting, San Francisco, August 30 – Sept. 2. Yu, J. and H. Cooper (1983) “A Quantitative Review of Research Design Effects on Response Rates to Questionnaires” Journal of Marketing Research, 20, pp.36-44.

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Figure 1: Conceptual Model of Perceived E-Government Effectiveness

Legal Restraints

Size

Internal Tech. Environment • Organizational Dependence on IT • Perception of Computerization and Technical Resource • Quality and Utility of Information

E G o v A d o p t.

E-Government Effectiveness Internal Prod. External Comm.

Task External Political Support

24

External Environment

Table 1: Factor Analysis of E-Gov Effectiveness Factor1 1) The Internet increases the overall productivity of my department 2) The Internet makes the work in my department easier to perform 3) The Internet increases the timeliness of data and information generated by my department 4) Use of the Internet frees the time for employees in my department to take on other responsibilities 5) The Internet makes it easier to respond to information requests from local governments 6) The Internet makes it easier to respond to information requests from other departments in our state government 7) The Internet makes it easier to respond to information requests from the Federal government 8) The Internet makes it easier to respond to information requests form citizens in our jurisdiction 9) The Internet increases the availability of information for managerial decisions 10) The Internet increases the overall quality of administrative decisions made by my department 11) The Internet improves overall communication with individual citizens Using Varimax Rotation Method

Factor2

0.7733

0.2800

0.8091

0.2786

0.7023

0.3888

0.5923

0.3856

0.3361

0.8227

0.3430

0.8430

0.2965

0.7697

0.3637

0.6760

0.6357

0.3519

0.7222

0.3171 0.4525

0.3866

Table 2: Factor Analysis of Institutional Barriers to E-Gov Factor1 1) Lack of citizen support 2) Lack of support from public interest groups 3) Lack of support from elected public officials 4) Lack of support from managers within state agencies 5) Freedom of Information Act 6) Citizen Privacy Requirements Using Varimax Rotation Method

0.8224 0.8814 0.7251 0.5604 0.2424 0.1436

25

Factor2 0.1757 0.1632 0.1762 0.2071 0.7549 0.8116

Table 3. Descriptive Statistics and Correlations for Quantitative Variables

1 2 3 4 5 6 7 8 9

. . . . . . . . .

Variable Perceptions of Computerization Importantance of Info. Services Information Sharing with External Groups Quality of Info. Services Lack of Political Support for E-Gov Legal Constraints for E-Gov Lack of Technical Expertise Financial Costs of E-Gov Log (Operating Budget)

5 6 7 8 9

. . . . .

Variable Lack of Political Support for E-Gov Legal Constraints for E-Gov Lack of Technical Expertise Financial Costs of E-Gov Log (Operating Budget)

n 848 822 821 839 820 820 834 834 736

Std. Dev. Mean Min Max 73.509 11.381 19.000 91.000 17.540 5.182 7.000 35.000 21.508 5.027 9.000 37.000 10.625 3.277 5.000 25.000 0.000 0.932 -1.838 3.009 0.000 0.875 -1.863 2.147 3.893 1.800 1.000 7.000 5.204 1.603 1.000 7.000 16.801 2.605 7.563 25.198

5 1.000 0.080 ** 0.196 **** 0.201 **** -0.046 * p < .10

**p < .05

6

1 1.000 -0.295 -0.057 -0.266 -0.056 -0.077 -0.071 -0.089 -0.041

7

1.000 0.104 *** 0.152 **** 0.050 ***p