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A Framework for Understanding Returns from E-Government
Abstract
Though policy makers and governments are interested in understanding the returns from e-Government implementation, there are relatively few empirical studies that analyze this aspect. Using secondary data from 99 countries and the IT impact literature as the guiding theoretical perspective, we examine the returns from e-Government in the form of national performance. We do this by initially examining the relationship of e-Government development with the first order government process efficiency parameters (resource spending efficiency and administrative process efficiency). Subsequently we examine the association of these first order efficiency outcomes with the two second order dimensions of national performance (reduction of social divide and business competitiveness). Our initial analysis reveals a significant association between “e-Government development” and “resource spending efficiency” and also between “e-Government development” and “administrative process efficiency”. For the second order model, we find that the relationship between “administrative process efficiency” and “reduction of social divide” is not significant. Further, we conducted a post-hoc analysis which revealed that the relationship between “administrative process efficiency” and “reduction of social divide” is fully mediated through the “national business competitiveness”. Hence, “business competitiveness” emerges as an important variable for realizing the “reduction of social divide”. Through this research, we make some important contributions and offer implications for researchers, practitioners and policy makers.
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