Estimating Influence of Toe Factors on E-Government Usage: Evidence of Jordanian Companies

By Thi, Lip-Sam; Lim, Hock-Eam et al. | International Journal of Business and Society, December 2014 | Go to article overview

Estimating Influence of Toe Factors on E-Government Usage: Evidence of Jordanian Companies


Thi, Lip-Sam, Lim, Hock-Eam, Al-Zoubi, Mohammad Issa, International Journal of Business and Society


ABSTRACT

This paper examines the effect of TOE (Technology, Organizational and External) factors on the usage of e-government among Jordanian public listed companies. Results reveal that in Jordan, companies that are categorized as basic adopters of e-government mainly used e-government for seeking information and contracts (procurement) and TOE factors are generally found to have insignificant effect on the usage. On the other hand, TOE factors are found to have significant effect only on advanced adopters of e-government that mainly used e-government for financial and business integration purposes.

Keywords: E-Government Usage; TOE; Ordered Logit Model.

(ProQuest: ... denotes formulae omitted.)

1. INTRODUCTION

The revolution in Information Communication Technologies (ICT) has resulted in changes in many aspects of people's daily lives around the world. This revolution has also changed the way governments around the globe interact with their citizens, businesses, agencies, employees and other stakeholders (Lee, 2010; Rokhman, 2011). Today's networked environment implies that besides having direct contact with governments, businesses and indivduals make use of other sources to get governmental information (Boer, Wijngaert, Pieterson, & Arendsen, 2012). E-government is vital because it helps to optimize service delivery strategy to businesses and citizens. These changes and development have promoted the adoption of electronic government or e-government in many countries (Raus, Liu, & Kipp, 2010; Elsheikh, Cullen, & Hobbs, 2007).

Indeed, E-government development projects have numerous political, social, and economic impacts on society. For instance, the uptake of e-government includes cost reductions for both the government and the adopters of e-government services. The general perception is that e-government uptake helps to reduce costs by making operations more efficient, serving citizens better and reducing complex and over-stretched bureaucratic system (Sharifi & Manian, 2010; Basu, 2004). Past studies have also highlighted the potential contribution of e-government to enhance interactivity, transparency, and openness of public sector entities and to promote new forms of accountability (Bonson, Torres & Royo, 2012). Government web sites or e-government sites have evolved from the pure information-sharing phase to interactive, transactional, and intelligent or integration phase. Today, many nations view e-government as an enabler of economic competitiveness and growth. Thus, it is not surprising that many governments have shown interest to allow citizens both from urban and rural regions to use technological tools and information syatems to enable them to interact with the goevernment (Khan, Moon, Swar, Zo & Rho, 2012).

The Jordanian government realized the need to implement e-government in order to take advantage of the opportunities offered by international trade. Jordan would need more efficient, market-oriented custom's regime to comply with World Trade Organization (WTO) requirements, capable of handling increased traffic at the borders while at the same time preventing the entry of pirated software (Tadros & Assem, 2006). As such, the Jordanian government has invested heavily in e-government initiatives for the last 10 years. However, there seems to be a lack of empirical evidence regarding the current stage of e-government adoption and what influences business organizations in Jordan to adopt e-government from the demand-side perspective.

In addition, in the globalization era, understanding the adoption of ICT, including e-government by developing countries is becoming important to improve its adoption success (Shareef, Kumar, Kumar, & Dwived, 2011). Among others, this will enable developed countries to trade with developing countries more efficiently. At this stage, there are only a limited number of studies on the adoption of e-government by developing countries (Shareef et al. …

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