The Effect Of The Organization Factors,

Technology And Social Influences On EGovernment Adoption Libya

Matric No.

2015

TABLE OF CONTENTS

TABLE OF CONTENTS........................................................................................I
LIST OF TABLES...............................................................................................III
LIST OF FIGURES.............................................................................................IV
CHAPTER ONE..................................................................................................1
1.1

Introduction.............................................................................................1

1.2

Background of Study...............................................................................1

1.2 Problem Statement....................................................................................3

1.3

Research Questions.................................................................................3

1.4

Research Objectives................................................................................6

1.5

Significant of Study.................................................................................6

1.7 Scope of Study...........................................................................................7

CHAPTER TWO.................................................................................................9
2.1 Introduction...............................................................................................9
2.2 Background on E-Government...................................................................9
2.2.1 Definition of E-Government...............................................................11
2.2.7 Perceived Benefits of E-Government.................................................13
2.3 Factors Model...........................................................................................14
2.3.1

Organizational, Technology,Social Influence (OTS) Framework.......14

2.3.2 Social Influence..................................................................................21

2.3.3

Organizational Factors.....................................................................23

2.3.4

Organizational Performance............................................................25

2.4 Research Framework................................................................................26

2.5

Summary...............................................................................................29

CHAPTER THREE............................................................................................30
3.1 Population of Study..................................................................................30
3.2 Initial Instrument Structure.....................................................................30
1

3.3

Data Analysis........................................................................................32

3.3.1

Descriptive Statistics.......................................................................32

3.3.2 Factor Analysis...................................................................................32

3.3.3 Correlation Analysis...........................................................................33
3.4

Summary...............................................................................................33

REFERENCES..................................................................................................35

LIST OF TABLE
Table
Table
Table
Table
Table
Table

2.1:
3. 1
3. 2
3. 3
3. 4
3. 5

Selected Definitions of E-Government.........................................12Y

Technology Factors........................................................................30
Organizational Factors...................................................................31
Top Management Support..............................................................31
Social Influences............................................................................31
Organizational Performance.........................................................31

LIST OF FIGURES

Figure 2. 1: Research Model....................................................................................................28

CHAPTER ONE
INTRODUCTION

1.1 Introduction

This chapter offers an overview of the research, including the study background. Next, it sheds
light on the problems that have spurred the study. It also outlines the studys research questions,
research objectives, and the justifications of the study, and finally offers a precise explanation of
the importance of the study scope.

1.2 Background of Study

ICT revolution is currently the center of attention to both IS practitioners and

researchers worldwide. Moreover, ICT has likewise changed the lives of the
people over the globe in numerous aspects, and as reported by Lee (2010)
and Rokhman (2011) the ICT revolution has additionally changed the
interaction of the governments everywhere throughout the world especially,
with business associations, agencies, employees, citizens furthermore other
stakeholders. As indicated by Raus, Li and Kipp (2010) and Elsheikh, Cullen
and Hobbs (2007), the aforementioned changes and development have led
to the conception of electronic government or e-government. As reported by
1

Siau and Long (2006), Chen, Chen, Huang and Ching (2006), the egovernment space is currently an imperative subject all around.

Government dependably seeks to improve its performance efficiency. As per

this, the E-government system was created to help government in achieving
the looked for efficiency level. Specifically, the e-government program
improves services performance for beneficiaries and in addition investors
from all parts of society. The authority governmental operations performance
is marked by precision, efficiency and ease. Further, with interactive services
online, user can be provided with services, for example, licensing or data
queries, petitioning furthermore rate paying. As documented by Henriksson
(2007) and Almarabe and AbuAli (2010), the levels and nature of
implementation for the aforesaid services are constantly diverse. Generally a
type of ICT application for enhancing government services (Bose, 2004), egovernment is currently the center of numerous developed countries'
government, for example, Australia (Teicher and Dow, 2002) and the United
Kingdom (Beynon-Davies and Williams, 2003). Further, the system is likewise
the center of a number of developing countries' government, for example,
Libya, Oman, United Bedouin Emirates, and Qatar (Almarabeh and AbuAli,
2010). However, with regard to the literal works in this space (egovernment), most were concentrating on e-government in developed
countries (Choudrie et al., 2005; Rokhman, 2011).

A number of issues and challenges confronting the e-government

implementation success have been highlighted in the past studies. Examples
are the studies from Almarabeh and AbuAli (2010) and Sharifi and Manian
(2010).

1.3 Problem Statement

Libya's government has allocated a substantial measure of investment in egovernment, but then, similar to some governments in other developing
countries, Libya additionally faces obstacles in terms of its implementation
and reaching the required financial objectives for proper introduction of egovernment to all its service sectors. As reported by Al-Omari (2006) and
Mofteh and Wanous (2008) these aforesaid obstacles faced by Middle
Easterner counters were in terms of infrastructure, ascertaining applications
of e-services, registration, management and back-office, and community
education. Further, as indicated by the Dubai School of Government the
regular obstacles faced by countries in the Middle East in their e-government
initiatives are related to the design and development. However, not all egovernment implementations met with success (Almarabeh and AbuAli,
2010).

Truth

be

told,

more

than

half

(60%)

of

the

e-government

implementations did not succeed or were unable to meet the anticipated

results. In relation to this, Heeks (2002) conducted a study amongst more

than 40 e-government development projects in developing nations, and

discovered that over one fourth (25%) of these projects met with aggregate
failure, while half of these projects (half) partially failed, whereas just a
fraction (15%) were successful.
Based on the reports given, it can be said that the percentage of failure
in e-government implementations in developing countries is high compared
to that in the developed nations. All things considered, implementing egovernment for the developing countries is a risky undertaking. This
phenomenon

likewise

becomes

the

underpinning

motivation

to

this

exploratory study on e-government. According to Majdalawi, Almarabeh,

Mohammad and Quteshate (2015) mentioned that, the absence of financial
allocations for E-government services is negatively affecting the progress of
development in e-government in Libya with a 47 position as of year 2012.
Hence forward measures need to be implemented by Libya government in
order to make necessary finances for proper implementation of egovernment in the nation that will help save the people.
Then again, Kanat and zkan (2009) found that the e-government
development failure is attributed to infrastructural issues, organizational
factors and social component, and absence of awareness of citizen and
business needs, confidentiality and marketing. As stated by Elsheikh and
Azzeh (2014), the reason why there is a crevice in developments in egovernment between Libya and the developed countries is in terms of

strategies and government policies from one perspective when it comes to egovernment, and the perceptions of citizens then again about the
determinants of the delivery of citizen-centric e-government services.
Hence forward looking into these problems it can be noted that there is
still much work that need to be carried out by the Ministry of Information and
Communications Technology (MOICT) in Libya. Therefore, implementing eGovernment in an uncontrollable social-political environment will require
careful consideration on the technological, social and social factors. Indeed,
as stressed by Gilbert et al. (2004), comprehending the motivation
underpinning the use of e-Government services amongst the public is crucial
or otherwise, any strategic efforts to increase the e-Government acceptance
may impractical.
Meanwhile, Dada (2006) had stressed that the most crucial matter is to
comprehend the potential failures and in this way, governments ought to be
prepared to face the possibilities. Other adoption facets, for example,
knowledge and awareness of e-government technologies, and additionally
matters pertaining to e-government obstacles need likewise be addressed so
that more comprehensive knowledge on the adoption behavior of firm can be
achieved. Additionally, the study will likewise delve into the numerous facets
of technology adoption and implementation in e-government. In that
capacity, the adoption and implementation of e-government can be

understood better. Researches on e-government especially on G2B in the

region of Asia is currently limited (Almahamid et al., 2010).
This study is essential in bridging the crevice to development of
services that are more effective and more meaningful in the context of
business environment in Libya could be achieved with the expansion and
using of the factors namely; organization and social influence factors and the
diffusion of innovations (DOI). This concentrate additionally is essential in
bridging the crevice to investigate role e-government adoption among
businesses on firms' as mediating to enhance organization performance

Research Questions

This study aims to extend the knowledge and understanding on egovernment adoption, its antecedents and the impact of e-government on
firms' performance. The research questions examined are as per the
following:
1.
2.

What are the factors that drive the adoption of e-government among businesses in Libya?
What is influence the organizational, technology, and social influence factors enhance egovernment adoption among businesses on firms?

3.

What is influence the organizational, technology, and social influence factors enhance
organization performance?

1.4 Research Objectives

The main objective of this study is to propose a model for e-government

adoption among businesses in Libya and organizational performance.
1.
2.

To identify the factors that drive e-government adoption among businesses in Libya.
To influence the organizational, technology, and social influence factors enhance e-

3.

government adoption among businesses on firms.

To influence the organizational, technology, and social influence factors enhance
organization performance.

1.5 Significant of Study

According to Alhujran (2009), few studies have examined E-services in the
context of citizens. Al-Zoubi (2011, 2012) additionally confirmed the need to
lead a new study to investigate the current eG services adopted in countries
like Iraq. The significance of this study can be discussed from the theoretical
and practical points of views as takes after:
Given the importance of eG services in todays era of technology,
relatively there is a little prior research that uses a factors namely;
organization and social influence factors and the diffusion of innovations
(DOI). model to discuss the eG services antecedents. As an important
variable, Electronic-Services is crucial regarding the availability of eG service.
This study has paid a significant attention to that as a fundamental element
for successful eG system implementation (Carter and Bishath, 2008)

In the field of IT, there has been an increase in the implementation of

e-government. As indicated by Ho (2002), the use of e-government services
is beneficial as user could access information about new business
opportunities online.
Further, by understanding the present status of the e-government
adoption, organization performance and additionally the factors influencing
the use of e-government services amongst businesses, the government
would be able to employ suitable strategies for diminishing some of the
inherent obstacles. Aside from that, as indicated by Zhao et al. (2008),
possessing the knowledge on the type of applications facilitating the egovernment use can offer the input for attracting more business firms to use
the online government services. In relation to this, the current study offers
the crucial information on the G2B e-commerce, and from the viewpoint of
the practitioners, this study offers information to the developers on the
apparatuses and characteristics that are most valuable for the stage of G2

1.7 Scope of Study

In this study, the scope of the applications of e-government is confined to the
internet use as the technology infrastructure by business establishments in
Libya

for

communicating,

distributing,

exchanging

information

and

performing business transactions with government agencies. In particular,

8

the point of convergence of this study is the electronic interactions between

any government agencies and businesses via the use of the internet or the
Internet.
With regard to the unit of analysis, the firms that have adopted G2B egovernment were chosen. These firms made up the various business sectors
in Libya, particularly: 44.2% were from the sector of industry, 15.9% were
from the sector of insurance, 26.5% were from the sector of service and
13.4% were from the sector of banking. More importantly, this study has
selected the domain of business because in agreement with Tung and Rieck
(2005), businesses assume a crucial role in contributing to the nation's
economic development furthermore in providing the opportunities of
employment to the people.

CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction
The current study attempts to investigate the adoption of e-government
amongst business establishments operating in Libya. Further, the factors
which are found to have association with the adoption of e-government and
in addition the adoption's impact on the performance of the respective
business organization are additionally explored in this study. With regard to
this chapter, it contains the highlights of the literature review on selected
theories that describe innovation adoption and diffusion, and in addition
factors and impact which are found to relate to innovation adoption.

10

2.2 Background on E-Government

From the works of numerous researchers, there are numerous definitions
describing the concept of e-government. These definitions were formulated
in accordance to the purposes of the studies conducted and because of this,
there is nobody universally agreed definition of e-government. However, with
the end goal of this concentrate, some selected definitions on e-government
will be highlighted.
The Organization for Economic Co-operation and Development (OECD)
has described the concept of e-government as, "the use of information and
communication technologies, and particularly the Internet, as an instrument
to attain better government" (OECD, 2003). Then again, the United Nations
(UN) has termed e-government as, "the use of ICT, for example, wide area
networks, the Internet, and mobile computing by government agencies."
Meanwhile, among the researchers who have defined e-government,
Tapscott (1996) had defined this system as, "an internet-worked government
which links new technology with legal systems internally and in turn, links
government information infrastructure externally with everything digital and
with everybody," whereas Luling (2001) described e-government as, "any
interaction one might have with any government body or agency via the
internet or the Internet use." Then again, e-government has been articulated
by Sprecher (2000) as technologies that make simpler and automate
transactions between governments and citizens, businesses, or other

11

governments, while Hiller and Belanger (2001), Davis (2001), and Howard
(2001) expressed e-government as a system that comprises of electronic
interactions between the government and the public including the citizens,
business organizations and government employees.
Along these lines, integrating all the above definitions, the concept of
e-government could generally be articulated as the application of the
technology of information and communications with the end goal of
enhancing the delivery of government services and promoting transparency
and responsibility in dealing with citizens, government, employees and
businesses. For the context of this concentrate however, the point of
convergence is the businesses adoption (demand-side) of the e-services that
the government of Libya provides (supply-side). All things considered, this
study defines e-government as every electronic interaction that happen
between all government and business establishments via the utilization of
internet or the Internet.

2.2.1 Definition of E-Government

Researchers have suggested various definitions of e-government depending on their research

purposes. Due to the way that different people have different definition of e-government, there is
no unanimous agreement of its definition (Table 2.1).
E-government was defined by Tapscott (1996) "as an internet-worked government which
links new technology with legal systems internally and in turn links government information
12

infrastructure externally with everything digital and with everybody". Another definition of egovernment is presented by United Nation's website, for example, "e-government refers to the
use of ICT, for example, wide area networks, the Internet, and mobile computing by government
agencies". The Organization for Economic Co-operation and Development (OECD) noted that egovernment refers to the use of information and communication technologies, and particularly
the Internet, as an apparatus to achieve better government (OECD, 2003).
Sprecher (2000) considered e-government as technologies that simplify and automate
transactions between governments and constituents, businesses, or other governments. Then
again, Hiller (2001), Davis (2001), and Howard (2001) defined e-government as electronic
interactions between the government and the public which includes citizens, businesses and
government employees. Luling (2001) defined e-government as any interaction one might have
with any government body or agency using the internet or the Internet.

Table 2.1: Selected Definitions of E-Government

Authors

E-government Definition

Layne
and
Lee (2001)

A government's use of technology, such as the internet, to aid

the delivery of information and services to citizens,
employees, business partners, other agencies and other
government entities
E-government involves using information technology,
specifically the internet, to deliver government information,
and in some cases, services, to citizens, businesses, and other
government agencies.
E-government offers an opportunity for governments to reorganize themselves, get closer to the citizens and businesses
and co-operate with a variety of societies.

Relationships
partners

The use of technology to enhance the access to and delivery

of government services to benefit citizens, business partners,
and employees.

Access
Service delivery

Bonham et
al. (2001)
Dunleavy
(2002) and
Caldow
(1999)
Deloite and
Touche
(2002)

13

Perspective/ Focus

Internet
Information and
service delivery
Political

with

Heeks (2002)
United
Nations
(2003)
OECD
(2003)
Authors
Basu (2004)

World Bank
Group (2002)

Ndou (2004)

Stoltzfus
(2004)

The use of information and communications technologies

(ICTs) to improve the activities of public sector
organizations.
Utilizing the internet and the World-Wide Web for delivering
government information and services to citizens and
businesses.
The use of ICTs, and particularly the internet, as a tool to
achieve better government.
E-government Definition
E-government involves the automation or computerization of
existing paper-based procedures in order to prompt new
styles of leadership, new ways of debating and deciding
strategies, new ways of transacting business, new ways of
listening to citizens and communities and new ways of
organizing and delivering information. Ultimately, egovernment aims to enhance access to and delivery of
government services to benefit citizens.
As the public sectors utilization of the government
owned/operated highly innovative information and
communication technologies delivery of enhanced services
to the entire citizens (private sector and government
agencies) in an attempt to encourage citizen empowerment,
strength accountability, transparency and service delivery.

Improvement

The use of ICT tools to reinvent the public sector by

transforming its internal and external way of doing things
and its interrelationships with customers and the business
community.
A program that utilizes internet communication technology
(ICT) to improve communication, service, and transactional
processes with stakeholders.

Transformation

Technology
Internet
Perspective/ Focus
Transformation
Access

private
sector
and
government agencies

Internet
Communication
and service delivery

2.2.7 Perceived Benefits of E-Government

Chwelos, Benbasat and Dexter (2001) described perceived benefits as the

expected benefits or advantages that organizations can attain when using egovernment. Consequently, as reported by Chean and Thurmaier (2005),
businesses that are driven by economic advantages, for example, profits and
cost saving would attempt to embrace e-government. On the other hands,
the use of e-government among citizens is primarily motivated by social and
likewise economic reasons.
14

A number of researchers have attempted to ascertain the drivers and

barriers to e-government adoption. As reported by Kheng and Al-Hawamdeh
(2002), the element of perceived benefits is the most repeatedly mentioned
as one of the primary drivers for the preliminary use and adoption of egovernment. As documented by Teo and Tan (1998), perceived benefits are
the expected advantages that organizations can be provided with. Further, in
a study on e-procurement, Thompson et al. (2009) found that direct benefits
are chiefly meant for operational savings and are linked to the organization's
internal efficiency. Among the direct benefits that organizations could attain
are faster application process, reduction in transaction costs and errors and
improvement in information exactness and information quality.

2.3 Factors Model

In this section will outline a number of factors which will be incorporated in
the final research model.

2.3.1

Organizational, Technology,Social Influence (OTS) Framework

In general, innovation adoption is executed for improving the adopting

organization's effectiveness yet it would be bound by the influence of
15

Organizational Technology-Social influence (Damanpour and Gopalakrishnan,

1998).
In relation to the above, numerous researchers have probed into
circumstances that are linked with the adoption of e-government. As an
example, Moon (2002), Norris and Moon (2005), and additionally Titah and
Barki (2006) have probed into organizational variables and classified the
variables as uncontrollable, partially controllable, and controlled factors
which impact e-government systems' success. Prior to the aforementioned
studies, Rogers (1995) had advanced the impacts of innovation attributes on
adoption and diffusion of innovation. Additionally, other researchers in IS
domain have looked into other circumstances to ascertain new factors, in
order to establish a framework that is rich and more comprehensive for the
perusal of innovation adoption researches.
Based on the literature review of e-government's success factors,
Tornatzky and Fleischer (1990) concluded the OTS framework (among other
frameworks) as the fitting base for investigating the factors that are
associated with the adoption of e-government. In that capacity, the intention
to embrace or not to receive e-government by business can be influenced by
the aforesaid contextual factors which are justifiable by the OTS model.
The OTS framework is a prevalent framework amongst researchers
when they need to investigate new technology or innovation adoption (Gibbs
and Kraemer, 2004; Zhu et al., 2006). For instance, the framework comes in
16

handy when researcher is ascertaining the determinants of technology

utilization, implementation and diffusion. Aside from that, Zhu and Kraemer
(2005) and Zhu et al. (2006) likewise reported the OTS framework's
suitability in exploring the determinants of e-initiatives implementation's
success.
In examining the process of adoption and implementation, Tornatzky and
Fleischer (1990) theorized the innovation adoption decision contexts as
comprising of OTS contexts. Further, Swanson (1999) employed the OTS
framework in examining complex IT innovations' uptake and deduced that a
facilitating

technology

portfolio,

organizational

factors,

and

strategic

environment, are highly necessitated in the adoption of technology.

i.

Technology Factors
Numerous technology factors are found in the literature, which are

observed to be influencing the adoption of e-initiative particularly in egovernment. In relation to this, numerous researchers (e.g., Rogers, 1995;
Dawes, 1996; Shung and Seddon, 2000; Bonham, Seifert and Thorson, 2001;
Layne and Lee, 2001; Themistocleous and Irani, 2001; Bourn, 2002) and also
the

National

Research

Council

(2002)

had

classified

the

aforesaid

technological factors or attributes as fundamental elements and they seem

to be: relative advantage, compatibility, IT infrastructure and security.

17

Technologies

are

perceived

to

be

possessing

attributes

or

characteristics that have an effect on the decision to receive and in addition

the way that it will be implemented. Roger (1995) identified the various
issues related to innovation diffusion. These are innovation decision process,
individual innovativeness, rate of adoption, and perceived attributes.
Research in IS and related adoption studies have used perceived attribute's
theory extensively to discuss IT innovation based on the five attributes
(characteristics) of innovation proposed by Rogers (1995). These attributes
are

relative

advantage,

complexity,

compatibility,

trialability

and

observability.
An innovation's relative advantage is defined as the degree to which
an innovation is perceived as better than the idea it supersedes,
Compatibility is the degree to which an innovation is perceived as consistent
with the existing values, past experiences, and needs of the potential
adopters (Rogers, 1995). Complexity is the degree to which an innovation is
perceived as relatively difficult to understand and to use (Rogers, 1995).
Trialability is the degree to which an innovation might be experimented with
on a limited basis, and finally, observability is the degree to which the results
of an innovation are visible to others (Rogers, 1995).
Even however Rogers' perceived attribute's theory and its five
attributes have been used extensively by previous creators, other factors
have been observed to be significant in influencing the technology adoption.

18

For example, Tornatzky and Klein (1982) performed a meta-analysis of 75

publications on the relationship between innovation characteristics and rate
of

adoption.

The

analysis

results

revealed

that

relative

advantage,

compatibility and complexity have been observed to be consistently

significant in prior studies, while there was less backing for trialability and
observability (Zmud and Apple, 1992).
Carter and Belanger (2003) identified four technology attributes that
influence the diffusion of an innovation, namely relative advantage,
compatibility, ease of use, and image. Their study revealed three significant
indicators of citizens' intention to use state government services online, i.e.,
the relative advantages, perceived image, and perceived compatibility. They
suggested that state agencies ought to promote citizen acceptance and use
of e-government services by focusing on factors. E-government develops in
importance

and

priority

for

government

and

in

this

manner,

an

understanding of the factors that influence the adoption of government

online services is imperative to drive its adoption.
Lean et al. (2009) examined e-government services among citizens in
Malaysia, and found that adopters and prospectors are more ready to
embrace e-government if it is compatible with their existing work practices,
environments, and firm's objectives. Relative advantage was found to have a
significant positive relationship with citizens' intention toward using e-

19

government services and perceived complexity has a negative relationship

with the intention to use e-government services.
Further, Premkumar et al. (1994) discovered complexity negatively
related to innovation adoption of new technology. Technologies that are
perceived as not complex will be more likely to be adopted (Raymond, 2001;
Thong, 1999). In addition, Al-Qirim (2007) examined e-commerce adoption in
Libya,

and

found

no

relationship

between

complexity,

trialability,

observability and cost with the adoption of e-commerce in Libya.

Melody et al. (2009) examined the factors (compatibility and relative
advantage) that influence e-government adoption in Cambodia and found a
positive

association

between

compatibility,

relative

advantage

and

innovation adoption backing to use e-government services in Cambodia.

Bourn (2002) posited that technology that is compatible with organizational
belief, values and IT infrastructure will contribute to its adoption.

Based on the findings of previous studies on e-government by VanSlyke et al. (2004) and Al-Qirim (2007), it has been suggested that relative
advantage and compatibility are the most relevant develops to adoption
research that influence technological innovation diffusion.Hence, this study
examines the influence of relative advantage and compatibility on business intention to use egovernment services.

20

Observability is the degree to which individuals feel they have the option to use an
innovation or not. As businesses' use of a web-based state government service is an organization
choice and is not likely to be mandated, observability would be unlikely to indicate significant
variability. Complexity is the degree to which an innovation is perceived as relatively difficult to
understand and to use. Again, apprehension provoked by observability is not a significant
deterrent of e-government adoption, and is therefore inappropriate for this study. Trialability is
the degree to which potential adopters feel that they can attempt the innovation before they really
embrace it.
Albeit numerous IS and e-government studies have attempted to examine the association
between technological attributes and IS or e-government adoption, the results from these
findings were inconsistent and inconclusive. Meanwhile, other studies on inter-organization IT,
for example, internet technologies, have examined other technological factors which were
perceived to drive or inhibit technology adoption and implementation (e.g. Jones and Beatty,
1998; Soliman and Youssef, 2003).

It has long been recognized that higher levels of perceived relative advantage increases
business organization intentions to use e-government services. Several studies observed it to be
significant in influencing users 'decision to receive' (Hung et al., 2010; Sang et al., 2009)
Therefore, the government's role is to identify and communicate to its target bunch
including business organizations, the advantages of using online services as opposed to other
means of conducting business matters with government agencies. As a result of e-government
services, individuals and organizations received faster and more convenient services from
21

government (Trinkle, 2001). For example, the government could encourage the adoption of
online license renewal and formal transactions by emphasizing its convenience and speed
compared to the traditional method. Such online transactions can be completed from the home or
office 24 hours a day, seven days a week. The availability of the service is not limited to standard
business hours. The users can complete this transaction whenever and from wherever it is
generally convenient.
ii.

Relative Advantage
As described by Rogers (1995), the attribute of relative advantage entails

the point to which an innovation is seen as better in comparison to the idea it

overtakes, while the attribute of compatibility is the point to which an
innovation is seen as coherent with the current values, previous experiences,
and demands of the potential adopters, whereas the attribute of
As indicated, the aforesaid theory and its four attributes have been
employed by past studies quite extensively. However, there are likewise
other factors which have been found to significantly influence technology
adoption, for example, the study by Tornatzky and Klein (1982). In their
study, Tornatzky and Klein (1982) performed a meta-analysis on 75
publications to ascertain the association between characteristics of
innovation and adoption rate. Further, Zmud and Apple (1992), Permkumar
et al. (1994) and Butcher et al , (2001) documented that the attributes of
relative advantage, compatibility appear to be always significant in past
researches.
22

iii.

Compatibility

Compatibility is about the way people perceive the initiatives of egovernment and how the methodology of e-government suits the current
work process of government agencies (Plouffe et al., 2001; Van-Slyke et al.,
2004). Compatibility explains the steadiness of new innovation with the
current needs, values and experience. Perceived compatibility is additionally
related with increased intentions to embrace the initiatives of e-government.
iv.

IT Infrastructure

Sufficient technology infrastructure is the primary determiner of successful egovernment adoption particularly to develop countries like Libya. As
highlighted by Al-Omari and Al-Omar (2006), IT infrastructure encompasses
all IT components namely, communication and networks infrastructure,
hardware, software and its application, legacy systems and the current
technology of organization and electronic systems. In that capacity, having
limited IT availability to build the infrastructure necessitated can discourage
internet technologies' adoption (Joseph and Kitlan, 2008).
Kim and Lee (2004) contended the IT infrastructure as an essential
element that connects information and integration of knowledge in the
adoption of e-government. Meanwhile, all realistic evaluation on the journey
of the nation towards comprehensive e-government ought to begin with a
well-defined notion about what really is feasible with respect to infrastructure
and policies (Chango, 2007). However, the success of e-government
23

necessitates more than just technology (Shung and Seddon, 2000;

Themistocleous and Irani, 2001). The are other factors contributing to the
success of IT adoption, for example, adequate resources and infrastructure,
support from management, skilled IT staff, and effective IT training and
bolster.

v.

Security

Security issue, both real and perceived, appears to affect intention to receive
the genuine adoption behavior (Nambisan and Wang, 2000). Security
encompasses, "both the perception, or judgment, and fear of safeguarding
mechanisms for the movement and storage of information through electronic
databases and transmission media.
The issues of security particularly with regard to information privacy
and confidentiality are crucial for both e-government and e-commerce
(Awan, 2007). Within the context of e-commerce and e-government studies
( Blanger and Hiller, 2005; Zhao and Zhau, 2010), the matter of security is a
recurring issue and truth be told, it is one of the most substantial challenges
in the implementation of e-government. To illustrate, there appears to be
legal issues on the rights of citizens to privacy against the national-security
concerns of the state

24

2.3.2 Social Influence

Social influence is defined as the degree to which an individual perceives
other persons belief about the system to determine if he or she ought to
use the new system (Chiu and Wang, 2008). Social influence as a direct
determinant of behavioral intention is represented through using three
develops, namely subjective norm TRA, TAM2, TPB/IDTPB, C-TAM-TPB, social
factors MPCU, and image IDT (Venkatesh et al., 2003). Each of these
develops contains the explicit or implicit notion, where the individual's
behavior is influenced by the path in which they believe others as a result of
having used the technology. Moreover, the few past studies in Libya have
neglected the examination of the effects of social influence, especially from
family and peers, and empirical test have not been previously carried out in
Libya.
The notion of social influence is about the degree to which an individual
believes that significant others are persuaded that he/she ought to use a
technology, likewise the notion of social influence is about the degree to
which an individual believes that significant others are persuaded that
he/she ought to use a technology (Venkatesh, 2003).
i.

Subjective Norm

Fishbein and Ajzen (1975) defined subjective norms as, "a person's
perception that a great many people who are important to him think he
ought to or ought not perform the behavior in question" (p. 302).
25

Additionally, Davis et al. (1989) and Mathieson (1991) described subjective

norms as being grounded by normative beliefs about referent others and the
motivation to adjust with referent others. However, Davis et al. (1989)
contended that the subjective norms contain theoretical and psychometric
issues, that their effect on behavior of usage is not distinguishable from that
of individual attitudes. Still, to better comprehend information technology
acceptance and usage phenomenon, the significance of social influences
can't be neglected.

ii.

Image

The desire to attain status/image motivates one to receive an innovation

(Rogers, 1995). Meanwhile, Venkatesh and Davis (2000) documented that
the influence of subjective norms on image was an important system use
measure.
Within the adoption of Windows, the post-adoption attitude was linked
to instrumentality of beliefs of usefulness and the perceptions of image
improvement (Karahanna et al., 1999). Correspondingly, a great deal of
managers chose email and use it convey information to their subordinates

26

about style of media and identity of individual in an organization (Marginson,

King and Mcaulay, 2000).

2.3.3

Organizational Factors

The organizational component represents different mechanisms, structures

and characteristics that influence the propensity of adoption and assimilation
of an innovation (Tornatzky and Fleischer, 1990). However, the organizational
factors that are associated with the uptake of e-government are top
management support and organizational resources, which are important for
the implementation of e-government in businesses (Al-Qirim, 2007).

The successful adoption and implementation of technological innovations

in organizations, for example, businesses have often been related to four
main considerations top management support (;Sagheb-Tehrani, 2007; Kouki
et al., 2006), organizational resources (e.g. Bonham et al., 2001;OECD,
2003).

i.

Top Management

Due to the way that top management can increase an organization's

adoption of innovation by promoting a friendly culture, for example, valuing
change, efficiency and objective setting (Do Carmo Caccia-Bava et al., 2006).

27

Top management support in promoting friendly culture is likewise vital in

promoting innovation in organization (Do Carmo Caccia-Bava, 2006).
Slevin and Pinto (1987) defined top management support as the
willingness of top management to provide the necessary resources and
authority or power for project success. In the case of e-government adoption,
Sabherwal et al. (2006) defined top management support as a favorable
attitude towards e-government in general. Top management can offer
several guidelines to managers in departments and business units about
opportunities and risk technologies (Barki and Hartwick, 1989).
Prior studies have demonstrated that financial resource is additionally an
important element for technology implementation (OECD 2003;). Due to the
way that e-government adoption is an investment in hardware, software,
system integration and in addition employee training, sufficient financial
resource is required in order to help businesses in developing e-government
capabilities .Businesses that devote greater financial resources to IT and
web-based development are more likely to achieve success in e-government
implementation and realize its value (UNCTAD, 2002).

ii.

Resource

28

Prior studies have demonstrated that financial resource is additionally an

important component for technology implementation (OECD 2003;). Due to
the way that e-government adoption is an investment in hardware, software,
system integration and additionally employee training, sufficient financial
resource is required in order to help businesses in developing e-government
capabilities (Chircu and Kauffman, 2002). Businesses that devote greater
financial resources to IT and web-based development are more likely to
achieve success in e-government implementation and realize its value
(UNCTAD, 2002).

2.3.4

Organizational Performance

The implementation of e-government initiative is primarily to enhance the interaction quality

between the government and businesses and citizens using enhanced means of connection, better
access, high-quality services and superior processes and systems (Moon, 2002; Lean et al.,
2009). Truth be told, e-government is illustrated by wide-ranging communication technology use
(Warkentin et al., 2002). Business can benefit from the online environment as this mode offers
easy information gathering and information mining, and multiple parties' use ability. Likewise,
the e-government initiative by the government of Libya is aimed at improving its public and
private sector organizations' performance in terms of provision of service, in order to attain better
efficiency and precision, reduce time and cost, improve transparency, and enhance the
satisfaction of both the citizens and business owners.

29

2.4 Research Framework

As evidenced in the preceding chapter, the comprehensive model that
comprises of the combination of the OTS factors, the present e-government
adoption status, and the impact on organization performance is yet to exist.
In reality, the main center of most past studies was primarily in clarifying egovernment adoption and also its usage extent. Then again, just a handful of
studies that looked into the present status of e-government current, the
influencing factors of adoption and the impacts of e-government adoption on
the performance of firm, especially on sector of business.
Therefore, this study will attempt to formulate a more improved model
with the capacity to illuminate the present status of the adoption of egovernment amongst businesses. This study aims to explore and investigate
the driving factors of e-government adoption, the organizational
performance and the status of the e-government adoption at the present
time amongst businesses in Libya.
The researcher hopes this study would be able to offer the government
of Libya information that would be of value to the nation's future policy
planning in improving e-government adoption. Further, the model formulated
in the study is hoped to be of value to e-government research and also help
to shed some lights on the area of which businesses ought to concentrate on
in terms of e-government adoption and investments to attain the best
performance.

30

As mentioned earlier, this study has chosen both the DOI theory and
OTS framework as the bases for developing a model for understanding the
implementation and adoption of e-government amongst business
establishments in Libya. The underpinning rationale for choosing these two is
that the OTS could explain organization's innovation adoption while taking
into record the external factors whereas DOI addresses both the factors of
organization and the technology.
As can be referred in Figure 3.1, the research model comprises of three
components: 1) antecedent factors of e-government (the OTS factors), 2)
adoption of e-government amongst businesses in Libya, and 3) the impact of
e-government adoption on the performance of the organization. With regard
to the first component of the model, OTS describe the factors of technology
adoption based on the context of three elements as explained below:

The factors of technology are about the particular innovation's

characteristics and additionally the internal technological setting of the

organization itself (Tornatzky and Fleischer, 1990). In this study, the factors
of relative advantage, compatibility, security, and IT infrastructure are
scrutinized.

The organizational variable is about differing systems, structures

and characteristics impacting the adoption and assimilation predisposition of

an innovation (Tornatzky and Fleischer, 1990). Top management bolster,

31

resources, and business nature, all of which are crucial for organizations' IT
implementation are examined in this study.

The social influence theories argue that individual in an

organization's perceptions are additionally likely to be influenced by the

opinions, information and behaviors of salient others and socially referent
others, the people whose opinions can influence others' opinions and
behaviors (Salancik and Pfeffer, 1978). From this perspective several
auxiliary contexts influence an individual in an organization perceptions,
actions and experiences.
The second component, which is the adoption of e-government
amongst businesses in Libya, operates as the general uptake and utilization
of the firm of the numerous functions and services offered by the Libya's egovernment. These range from acquiring information to engaging in online
transactions with the government.
Finally, the third component, which is the impact of e-government
adoption on the performance of the organization, operates in accordance to
the perception of managers and likewise the overall performance of the
organize.
Figure 2. 1: Research Model

32

2.5

Summary

As demonstrated by the literature, the selection and implementation of

innovation were illustrated and assessed through numerous methods. Firms
have really adopted innovations, for example, e-government. However, these
selections had not demonstrated the extensiveness of e-government
features being adopted, diffused or used. Further, the reputable criteria for
assessing the degree of e-government appropriation and dissemination
amongst businesses establishment which could exemplify e-government's
nature and gathering of use is also inadequate.
33

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Population of Study

The study has selected managers in Libyas business sector as the target
population and the studys unit encompasses managers in the sector of

34

industry, service, insurance, and banking. Meanwhile, the firms there are 30
firms.

3.2 Initial Instrument Structure

The very vital step before arranging the survey questions is to draft clear and
understandable guidelines. To ensure this, the questionnaire is provided with
a cover page contains the research title and a brief explanation of the
research.

Likewise,

consent

page

that

contains

obscurity

and

confidentiality explanations, procedure and dangers, member rights, contact

data, length of time the survey is expected to take, and description of an
incentive offered is additionally provided.
Table 3. 1

Technology Factors

Variable

Statement

Relative advantage

E-government allows us to better communicate

with our business partners
E-government allows us to cut costs in our
operations
E-government is compatible with our firm's
values and beliefs.
E-government is compatible with management
support
Our firm has good telecommunications
infrastructure
Our firm shares the databases for various
applications
E-government reduces the risk of unauthorized
access
Online payment does not pose security risks

compatibility

IT infrastructure

Security

Table 3. 2 Organizational Factors

35

Resources
Resources 1

Statement

The financial resources to implement egovernment is available

The financial resources to support egovernment is available

Resources 2

Table 3. 3 Top Management Support

Variable

Statement

Top Management Support 1

Top management supports the adoption of egovernment

Top management has allocated adequate
resources to adopt e-government

Top Management Support 2

Table 3. 4 Social Influences

Variable

Statement

Subjective Norm

People in my community think I should use eG

services.
Important people around me think I should use
eG services.
People who use internet to obtain government
information are trendy
People who use internet to obtain government
information are have a high capability.

Image

Table 3. 5 Organizational Performance

Variable

Statement

Organizational Performance 1
Organizational Performance 2

Improve accuracy
Improved service level

36

3.3

Data Analysis

Data analysis is performed to answer the studys research questions. There

are numerous modes of analysis such as: descriptive statistics, factor
analysis, correlations and multiple regressions.

3.3.1

Descriptive Statistics

The very essential step before sorting out the survey questions is to draft
clear and understandable guidelines. To ensure this, the questionnaire is
provided with a cover page contains the research title and a brief
explanation of the research. Additionally, a consent page that contains
secrecy and confidentiality explanations, procedure and dangers, member
rights, contact data, length of time the survey is expected to take, and
description of an incentive offered is likewise provided.

3.3.2 Factor Analysis

Factor analysis is performed to when researcher needs to ascertain the interrelationship
(correlation) structure among items in large number. As indicated by Hair et al. (1998), knowing
the relationships in empirical research or the dimension of variables in the proposed model is an
essential step in information analysis, and this is achieved by identifying the basic underpinning
dimensions called the factors (Hair et al., 1998)
Factor analysis is performed in this study, to ascertain the dimensions of the three key
concepts: OTS factors, e-government selection, and e-governments' effects. The factor analysis
in this study takes after Pallant's (2007) three proposed steps. Step 1 entails information
37

appropriateness which includes sample size, presence of sufficient correlations between variables
in the same factor, attainment of linearity condition and outlier checking. Meanwhile step 2
entails factor extraction by employing the appropriate techniques for verifying the smallest
measure of factors. In this step, the principle component analysis (PCA) is used in which, the
real variables were gathered into smaller linear variables, and employing a mathematical model,
all the shared variance are analyzed (Tabachnick and Fidell 2007).

38

3.3.3 Correlation Analysis

The motivation behind Pearson's correlation is to exhibit the quality and in

addition bearing of the relationship between two variables (Hair et al., 2007).
This examination is utilized in this study to research the relationship between
the measurements of hierarchical execution and e-government reception,
furthermore between precursor variables (OTS) and e-government selection.
A positive correlation implies that increment in one variable will bring about
the other variable to increment while a negative correlation implies that
increment in one variable will bring about the other variable to diminish.

The estimation of 1 or - 1 demonstrates an impeccable correlation which implies that a

variable's quality can be chosen just by knowing the other variable's worth. In the interim, 0
correlation esteem implies the relationship between the two variables does not exist.

3.4

Summary

This chapter deliberated on the research framework together with its

components. In this study, three research questions have been formulated.
With respect to the variables of the research, they are grouped based on
variables that characterize e-government reception and implementation,
variables that are linked with elements viewed as influencing e-government
selection and implementation, and variables that are linked to the effects of

39

e-government, based on the degree to which e-government is adopted by

firms.

40

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