1. MIS 648 Lecture 41 MIS 648 Presentation Notes: Lecture 4 How do national development levels affect IT deployment, use and innovation?

2. MIS 648 Lecture 42 AGENDA  Goals of the Lecture  Deploying IT nationally  Institutional Theory  Public/National Policy Initiatives  A Framework for IT Policies in less developed countries

3. MIS 648 Lecture 43 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.

4. MIS 648 Lecture 44 How Nations Deploy IT  Private Sector  Indigenous  Expatriot  Public Sector  National Government  Local Government  Civil Society/NGOs

5. MIS 648 Lecture 45 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:

6. MIS 648 Lecture 46 Government Intervention (From Lecture 2) Knowledge Building Knowledge Deploy Subsidy Innovation Directive Knowledge Deploy Subsidy Mobilization Knowledge Deploy Subsidy Standard Setting Innovation Directive Subsidy Standard Setting Innovation Directive Influence Regulation Supply PushDemand Pull I II III 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

7. MIS 648 Lecture 47 National Policy Initiatives  Malaysia  Ireland  Singapore  USA?

8. MIS 648 Lecture 48 Malaysia  MMC Project; Malaysia 2020  Dedrick and Kraemer (IT led Development)  Goals of the MMC Project  Achievements?

9. MIS 648 Lecture 49 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)

10. MIS 648 Lecture 410 Local logistics; global distribution Consumers Hollowing Out Distributors Goods and Services Creators No local source of goods or services Wealth and skills International Sources

11. MIS 648 Lecture 411 IT-led Development Economic Payoffs Employment, Productivity and Economic Growth IT Diffusion IT Production and Use Environmental Factors Industrial Policy Industry Structure Education & Skills Technology Policy Infrastructure Political, Social and Economic Environment Indigenous vs. MNC R&D

12. MIS 648 Lecture 412 The Malaysian Solution  Multimedia Super Corridor (MSC)  Leapfrogging  Components  Role of Government

13. MIS 648 Lecture 413 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.

14. MIS 648 Lecture 414 Four Country Comparison  Four “small” countries  Finland  New Zealand  Israel  Singapore  Case studies presented  Note age of data and poverty of data

15. MIS 648 Lecture 415 Finland  Government played a strong role  National information society strategy 1976-1991  2600 IT related university graduates annually

16. MIS 648 Lecture 416 New Zealand  Formerly agrarian; 30M sheep; 3M people  IT is only 4% of GDP  Government policy is inconsistent

17. MIS 648 Lecture 417 Singapore  Port of Singapore Authority (PSA) Port of Singapore Authority PSA  Industrial Strategy in Singapore; transshipment and assembly  IT sales are 3.8% of GDP (1997)  Government promotion of IT

18. MIS 648 Lecture 418 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)

19. MIS 648 Lecture 419 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

20. MIS 648 Lecture 420 External Heavin and Fitzgerald Model Cultural Language Literacy Religion Attitude towards Edu- cation Demographics Population Location Size Natural Resources Internal Institutional Influences Finance Education Gov’t Bodies Gov’t Intervention IT Industry

21. MIS 648 Lecture 421 Applied to Ireland Small economy (3.8M; 38% under 25) Telcoms overcomes distance Location is good Surplus of engineering graduates External Demographics Population Location Size Natural Resources

22. MIS 648 Lecture 422 External Applied to Ireland Cultural Language Literacy Religion Attitude towards Edu- cation English-speaking Literacy rate is high Positive attitude towards education Religion is not considered

23. MIS 648 Lecture 423 Applied to Ireland Internal Institutional Influences Finance Education Gov’t Bodies Gov’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”

24. MIS 648 Lecture 424 Analysis and Evidence No clear evidence of deliberate strategy of intent to cultivate a s/w industry Software 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)

25. MIS 648 Lecture 425 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

26. MIS 648 Lecture 426 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,,,” ? ?

27. MIS 648 Lecture 427 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)

28. MIS 648 Lecture 428 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? Gov’t lacks tech expertise; limited resources; regional agencies more powerful; reactive or passive

29. MIS 648 Lecture 429 Integrative Framework Governments Other Institutions Associations Higher Ed Financial Labor Religious Businesses Trend-setters Multi-nationals Public Environment Human resources Information infrastructure Service Infrastructure Financial Support Regulatory Framework Legal Framework Market Conditions Culture 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