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MIS 648 Presentation Notes: Lecture 4

MIS 648 Presentation Notes: Lecture 4. How do national development levels affect IT deployment, use and innovation?. AGENDA. Goals of the Lecture Deploying IT nationally Institutional Theory Public/National Policy Initiatives A Framework for IT Policies in less developed countries.

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MIS 648 Presentation Notes: Lecture 4

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  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. MIS 648 Lecture 4

  4. How Nations Deploy IT • Private Sector • Indigenous • Expatriot • Public Sector • National Government • Local Government • Civil Society/NGOs MIS 648 Lecture 4

  5. 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) Research at Universities, eg. Awareness Campaigns Supply Push Demand Pull Influence Knowledge Building Knowledge Deploy Subsidy Innovation Directive Knowledge Deploy Subsidy Mobilization Education, Training Bringing order to “chaos” Financial Support I II III IV Regulation Knowledge Deploy Subsidy Standard Setting Innovation Directive Subsidy Standard Setting Innovation Directive Motivation, argumentation Use of IT by Gov’t, eg. Rules, commands Creating Demand for IT MIS 648 Lecture 4 Creating Supply of IT

  7. National Policy Initiatives • Malaysia • Ireland • Singapore • USA? MIS 648 Lecture 4

  8. Malaysia • MMC Project; Malaysia 2020 • Dedrick and Kraemer (IT led Development) • Goals of the MMC Project • Achievements? MIS 648 Lecture 4

  9. 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) MIS 648 Lecture 4

  10. International Sources No local source of goods or services Wealth and skills Goods and Services Creators Consumers Local logistics; global distribution Distributors Hollowing Out MIS 648 Lecture 4

  11. Education & SkillsTechnology PolicyInfrastructure Industrial Policy Environmental Factors IT Diffusion Economic Payoffs Political, Social and Economic Environment IT Production and Use Employment, Productivity and Economic Growth Industry Structure IT-led Development Indigenous vs. MNC R&D MIS 648 Lecture 4

  12. The Malaysian Solution • Multimedia Super Corridor (MSC) • Leapfrogging • Components • Role of Government MIS 648 Lecture 4

  13. 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. MIS 648 Lecture 4

  14. Four Country Comparison • Four “small” countries • Finland • New Zealand • Israel • Singapore • Case studies presented • Note age of data and poverty of data MIS 648 Lecture 4

  15. Finland • Government played a strong role • National information society strategy 1976-1991 • 2600 IT related university graduates annually MIS 648 Lecture 4

  16. New Zealand • Formerly agrarian; 30M sheep; 3M people • IT is only 4% of GDP • Government policy is inconsistent MIS 648 Lecture 4

  17. 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) MIS 648 Lecture 4

  19. 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 MIS 648 Lecture 4

  20. IT Industry Cultural Language Literacy Religion Attitude towards Edu- cation Demographics Population Location Size Natural Resources Heavin and Fitzgerald Model External Internal Institutional Influences Finance Education Gov’t Bodies Gov’t Intervention MIS 648 Lecture 4

  21. Applied to Ireland External Demographics Population Location Size Natural Resources Small economy (3.8M; 38% under 25)Telcoms overcomes distanceLocation is goodSurplus of engineering graduates MIS 648 Lecture 4

  22. Applied to Ireland External Cultural Language Literacy Religion Attitude towards Edu- cation English-speakingLiteracy rate is highPositive attitude towards educationReligion is not considered MIS 648 Lecture 4

  23. Applied to Ireland 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” Internal Institutional Influences Finance Education Gov’t Bodies Gov’t Intervention MIS 648 Lecture 4

  24. 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) MIS 648 Lecture 4

  25. Summary Academic Government Industry Internal Institutional Factors Evolved: Gov’t prodded by academics Deliberate strategy in 1990s Proactive: Gov’t deliberate strategy and foresight Supporting Role Primarily Financial MIS 648 Lecture 4

  26. 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,,,” ? ? MIS 648 Lecture 4

  27. 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) MIS 648 Lecture 4

  28. Government Intervention Why? • 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? Gov’t lacks tech expertise; limited resources; regional agencies more powerful; reactive or passive MIS 648 Lecture 4

  29. Integrative Framework Governments 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 Public EnvironmentHuman resourcesInformation infrastructureService InfrastructureFinancial SupportRegulatory FrameworkLegal FrameworkMarket ConditionsCulture BusinessesTrend-settersMulti-nationals Other InstitutionsAssociationsHigher EdFinancialLabor Religious MIS 648 Lecture 4

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