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MIS 648 Lecture 4 1
MIS 648 Presentation Notes: Lecture 4
How do national development levels affect IT deployment, use
and innovation?
MIS 648 Lecture 4 2
AGENDA
Goals of the Lecture Deploying IT nationally Institutional Theory Public/National Policy Initiatives A Framework for IT Policies in less
developed countries
MIS 648 Lecture 4 3
Goals of the Lecture
Understanding the ways in which public policy concerning economic and social development can influence how IT is deployed and used.
Detailing challenges this presents to business in a variety of ways
Discussing ways to cope with this challenge.
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How Nations Deploy IT
Private Sector Indigenous Expatriot
Public Sector National Government Local Government
Civil Society/NGOs
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Institutional Theory
Governments and other institutions can either influence or regulate.
Institutions can either create a supply or a demand for IT services and activities.
There are six ways of causing these to happen:
MIS 648 Lecture 4 6
Government Intervention (From Lecture 2)
Knowledge BuildingKnowledge Deploy
SubsidyInnovation Directive
Knowledge DeploySubsidy
Mobilization
Knowledge DeploySubsidy
Standard SettingInnovation Directive
SubsidyStandard Setting
Innovation Directive
Influence
Regulation
Supply Push Demand Pull
I IIIII IV
Research at Universities,
eg.
Education, Training
Financial Support
Awareness Campaigns
Bringing order to “chaos”
Use of IT by Gov’t, eg.
Creating Supply of IT
Creating Demand for IT
Motivation, argumentation
Rules, commands
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National Policy Initiatives
Malaysia Ireland Singapore USA?
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Malaysia
MMC Project; Malaysia 2020 Dedrick and Kraemer (IT led
Development) Goals of the MMC Project Achievements?
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What to Do about Development?
Modernization Theory Dependency Theory The Role of Technology The Role of Information Technology The US Solution Some Existing Solutions: Singapore,
Japan, China, Mexico (Maquiladoras)
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Local logistics; global distribution
Consumers
Hollowing Out
Distributors
Goods and Services Creators
No local source of goods or services
Wealth and skills
InternationalSources
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IT-led Development
EconomicPayoffs
Employment, Productivity and
Economic Growth
IT Diffusion
IT Production and Use
EnvironmentalFactors
IndustrialPolicy
Industry Structure
Education & SkillsTechnology Policy
Infrastructure
Political, Social and Economic Environment
Indigenous vs. MNC R&D
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The Malaysian Solution
Multimedia Super Corridor (MSC) Leapfrogging Components Role of Government
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Heavin & Fitzgerald
Institutional Impacts on the Development of an IT Industry: The Irish Experience
Ireland has become a “hotbed” of software activity.
Article describes a conceptual framework within which to discuss factors that identify key facets of national involvement that impact software growth.
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Four Country Comparison
Four “small” countries Finland New Zealand Israel Singapore
Case studies presented Note age of data and poverty of data
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Finland
Government played a strong role National information society strategy
1976-1991 2600 IT related university graduates
annually
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New Zealand
Formerly agrarian; 30M sheep; 3M people
IT is only 4% of GDP Government policy is inconsistent
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Singapore
Port of Singapore Authority (PSA) Industrial Strategy in Singapore;
transshipment and assembly IT sales are 3.8% of GDP (1997) Government promotion of IT
MIS 648 Lecture 4 18
Israel
Military has led high tech industry Focus on software 1992: 1500 indigenous softare companies 1997: IT is 6% of GDP Software in front of gov’t policy Highest percentage of engineers in the world
(27.4 engineers and scientists per 10,000 people – 1997)
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Conceptual Framework
Joins four models Institutional (King, 1994) IT industry success (Ein-Dor, 1997) Software success (Heeks, 1999) Society-technology interaction (Trauth,
2003)
Contextual factors that contribute to the development of an IT industry
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External
Heavin and Fitzgerald Model
CulturalLanguageLiteracyReligionAttitude towards Edu- cation
DemographicsPopulationLocationSizeNatural Resources
InternalInstitutionalInfluences
FinanceEducation
Gov’t BodiesGov’t Intervention
ITIndustry
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Applied to Ireland
Small economy (3.8M; 38% under 25)Telcoms overcomes distanceLocation is goodSurplus of engineering graduates
External
DemographicsPopulationLocationSizeNatural Resources
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External
Applied to Ireland
CulturalLanguageLiteracyReligionAttitude towards Edu- cation
English-speakingLiteracy rate is highPositive attitude towards educationReligion is not considered
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Applied to Ireland
InternalInstitutionalInfluences
FinanceEducation
Gov’t BodiesGov’t Intervention
National strategy is essential to development of S/W industry
Focus of the research is on institutional influences
Fifteen key interviewees chosen for their position and reputation (5 academic, 4 government, 6 s/w industry)
Document analysis of government documents, resarch papers and reports by the National Software Directorate and the Industrial Development Authority
Sort of “grounded theory”
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Analysis and Evidence
No clear evidence of deliberate strategy of intent to cultivate a s/w industrySoftware grew from the grass root up (probably because of low literacy and education levels in the early days)Some individuals were willing to be champions.Perhaps there was a special factor such as Nokia in Finland or the defense institution in Israel.Supporting human resources seems like a good bet rather than capital investment. Perhaps this was useful because Irish labor rates were low.Many American companies in Ireland.Many government sponsored software sector institutions.Financing has been problematic, but there is state money for venture capital.This could have been a luck accident of timing (late 1990s)Education growth is an important component (Ireland no longer so competitive)
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Summary
Internal Institutional Factors
Evolved: Gov’t prodded by academics Deliberate strategy in 1990s
Proactive: Gov’t deliberate strategy and foresight
Supporting Role Primarily Financial
Academic
Government
Industry
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Checchi et al.
Public IT policies in less developed countries; a review of the literature
Notable quotes: “…rapid and irresistible trend toward
globalization.” “…urgent need to balance the economic
development between developed and less developed countries…”
No clear …demarcation between developed and less developed countries,,,”
?
?
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Existing Frameworks
IT Diffusion and Adoption “Government IT policies represent an evolution of nations toward a developed status via stages.”
Institutional Framework: Normative policy (regulation, influence) x market mechanism (demand pull, supply push)
Intellectual Capital: Role of knowledge Specialized (national information
infrastructure; environmental vs. organizational factors; readiness (Molla & Licker)
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Government Intervention
Government is usually the most active agent.
In the least developed countries, regional agencies play the most significant roles.
Success factors: long-term orientation, capacity building, adaptive, collaborative with other programs (education, economic development, eg.)
Why?
Why?
Gov’t lacks tech expertise; limited resources; regional agencies more powerful; reactive or passive
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Integrative Framework
Governments
Other InstitutionsAssociations
Higher EdFinancial
LaborReligious
BusinessesTrend-settersMulti-nationals
Public EnvironmentHuman resourcesInformation infrastructureService InfrastructureFinancial SupportRegulatory FrameworkLegal FrameworkMarket ConditionsCulture
This is mostly a descriptive framework, aimed at slotting a policy based on influences. It also is the basis of a theory in that it points out where actions and interactions might take place as well as potential for cause and effect
