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Khodaparasti R. B. and Mohammadpour R.
INVESTIGATING THE IMPACT OF E–GOVERNMENT ON PUBLIC MANAGEMENT
MANAGEMENT RESEARCH AND PRACTICE VOL. 7 ISSUE 4 (2015) PP: 72-81
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INVESTIGATING THE IMPACT OF E-GOVERNMENT ON PUBLIC MANAGEMENT
Ramin Bashir KHODAPARASTI1 and Reza MOHAMMADPOUR2 1Department of Management,Urmia University, Urmia, Iran.
[email protected] 2University of Tehran,Aras International Campus, Jolfa, Iran.
Abstract This paper explores the role of public management in effective use of resources and increasing efficiency which leads to satisfaction and economic development. Considering the fact that most of the facilities and tools are in the hands of the state, utilization of new methods of management in doing services are noteworthy. Using E– Government, the role of public institutions is more transparent as people have more information and this leads to the essential changes in interactions between government and citizens. In Iran, as a developing country, service centers of E–Government provide various services for citizens. The methodology of the chi-square test is applied to the survey. The results indicate that these centers not only saves time and resources, but also feedback of appropriate services to the citizen's leads to improve management function. Keywords: electronic government, click and mortar, public management, Iran.
1. INTRODUCTION
E-government is the use of internet technology in general and e-commerce in particular to deliver
information and public services to citizens, business partners and suppliers of government entities, and
those working in the public sector. It is also an efficient way of conducting business transaction with
citizens and within the governments themselves (United Nations, 2014).
E-government offers a number of potential benefits: it improves the efficiency and productivity of the
government, including the delivery of public services. It enables governments to be more transparent to
citizens by giving access to more of the information generated by the government (World Bank, 2012).
E-government also offers greater opportunities for citizens to provide feedback to government agencies
and to participate in democratic institutions and processes. As a result e-government may facilitate
fundamental changes in the relationships between citizens and governments.
E-government applicants can be divided into three major categories: government-to-citizens,
government-to-business and government-to-government (Yildiz, 2007). In the first category, government
Khodaparasti R. B. and Mohammadpour R.
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agencies increasingly are using the internet to provide services to citizens like pension payments, social
security smart cards, etc. In second category, governments use the internet to sell to or bye from
business. For example, electronic tendering systems using reserves auctions are becoming mandatory,
to ensure the best price for government procurement of goods and services. The third category,
includes intra-government transaction between different governments. Hence, the focus of the e-
government is exploring the services which develop online contract management solutions for the public
sector.
The remainder of paper is organized as follows. Section 2 discusses implementing of e-government
versus bureaucracy. Section 3 reviews related works. In section 4, we describe our research method.
Section 5 presents the results of the study. Finally, Section 6 concludes the paper.
2. IMPLEMENTING E-GOVERNMENT VS. BUREAUCRACY
E-commerce is the utilization of global informing network through the net for supplying of goods and
services. Electronic Data Interchange (EDI) technology's high rate has caused the e-commerce to
become the symbol of current era. E-commerce has caused a modern arena in competition, due to the
increase in pace and efficiency and also a decrease in expenses. As mentioned above, the lag from this
trend would cause isolation in the global economy.
The most important advantages of e-commerce are as below:
Facilitation and globalization of trade and economic growth increase in welfare of individuals through
production increase, creating new job opportunities, investment absorbing, and income increase.
Decreasing traffic jam, and therefore reducing environmental pollution, creating a sense of competition
and therefore improving the goods' quality, efficiency in goods production, omitting mediating costs and
consequently creating creativity and innovation (World Bank, 2012; United Nations, 2014).
Thrift and expenses' reduction, for instance warehousing, creating a 24 hour work condition and
increasing connection with clients and face to face contact with them, online response, and besides
expediting to goods delivery are other advantages of implementing e-government (World Bank, 2012;
United Nations, 2014).
By mentioning the most remarkable advantages which e-commerce brings to us; the important role of
state in infrastructure's development and e-commerce technologies among consumers and different
institutions can be realized. Effective electronic communication networks are vital requirements for the
mentioned subject. The lack of distinct state policies in electronic communications can be a huge barrier
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Khodaparasti R. B. and Mohammadpour R.
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to e-commerce growth especially in countries that electronic communication networks are in the control
of public sector (Torabi and Mohammadzadeh Asl, 2009). According to Rezaei et al. (2014), in most
developing countries, user's access to the internet is expensive or the usage speed of internet is
inappropriate and unreliable. That is why users have few tendencies to use the internet. In most
developing countries like Iran, state is the supreme purchaser of goods and services. If these states use
policies that would support purchase and payment in the form of e-commerce in the society, this itself
will cause growth and prevalence of e-commerce in the society.
Many states provide services to citizens through the internet, which itself will promote the internet usage
culture. Iran, likewise, consistent with the current world, feels the urgency of electronic trade, however
does not possess the needed pace.
The main purpose of implementing e-government is expansion of e-democracy tools. Nowadays, most
of government projects have concentrated on e-service, which is sort of parochialism towards e-
government. By implementing e-government, organizational structures will be transformed and will
become completely transparent. Borders and organizational units will become inconspicuous. Besides,
all organizational activities will be designed and supplemented according to networks and employees
will not need physical attendance in organization. The staffs are the informative partner of their
organization and that is the cause of their authority. On the other hand, their important role is innovation
and creativity (while can be continuously learned and trained). Organization affairs will be done
proximately and managers will keep in touch with the clients. So, the decision making process will be
more efficient. By implementing e-government, a lot of employees become free and can be used in
other mental activities (Yaghoubi et al., 2011). In countries like Iran which formal process is paper-
based-also, movements towards e-government requires formal process reengineering. In this regard,
culture development is very significant. Thus, public training about the importance, the advantages, and
the instruction of these facilities are important.
Bureaucracy means managing by offices and rules and regulations, expressively (Beetham, 1996). In
public opinion, bureaucracy has a negative concept and bad effects such as bureaucracy and slow
administration process (Orren, 1997). The administrative structure reformation has also recently been
initiated in Iran. These reformations' main purpose is development in administrative method, style, and
procedures and besides bureaucracy and administrative red tape reduction. It has been a long time that
these problems and issues have made chaos and stress in official and state organizations of the
country and have caused complaints and dissatisfaction within the inner and outer organizations. These
issues in state organization have somehow caused problems. Complicated bureaucracy, over lapping
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and sometimes conflicting goals and therefore such processes have been emerged as a result of
dissatisfaction.
3. LITERATURE REVIEW
Liberate review of e-government, indicates that this category was born in articles and discourses with its
high speed from the late 1990s (Rogers, 1995). Likewise, in Iran, from the mid-2000s, with the launch of
e-government, some studies have been conducted about this issue (Yaghoubi et al., 2011; Jalali and
Khorasani, 2012). However, the abundance has not been remarkable.
Buchanan and Tullock (1962) mentioned democratization in their research. In their opinion
democratization is the satisfactory of a larger number of citizens who participate in government's works.
However, it should be pointed out that by more people participation, the control expenses will raise.
According to the subjects mentioned above and different research results, in the democratic era, more
access of states to resources for better system control, is one of the requirements of operating the
citizen complaint system. Using new information and communication technology (ICT), in the field of
control and investigation of citizens' complaint, can be considered as an appropriate solution to prevent
the increase of participation costs. On the other hand, by means of this technology the entry costs to
state services decreases and determination of citizens to participation would be increase.
Welch and Hinnant (2003) mentioned the association between transparency and citizens' trust,
concluding that a positive relationship exists between transparency and the internet, used by e-
government.
Chen et al. (2003) after probing into Taipei city, concluded that external clients' satisfaction will not
increase, unless Reorganizing Bureaucratic Structure. They showed that reforming legal environment
occurs simultaneously.
Leung (2004) indicates that stepping into the path of reinvention in state depends on paying attention to
regional culture. He insists that using Information and Telecommunication Technology (TCI) is essential
to reach bureaucratic reform and government reinvention.
The results of Welch (2005) survey, shows that on the one hand there is a positive connection between
the usage and government website usage and satisfaction from e-government and service provider
websites. On the other hand, there exists a positive connection between satisfaction from e-government
and trust in government. An important issue existing in the field of state-management is looking at
citizens as clients, which is rooted in te modern state management paradigm. According to this issue,
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converting the consumers to customers is the solution to liberate from this problem. Thus, proceeding
with the client orientation issue, requires a modern state management.
Lund and Mc Guire (2005) stressed on the attendance of active state in the field of e-commerce. They
believed that without such states, you cannot take an effective step towards economic growth, unless by
owning e-commerce tools.
Bjoner (2006) in his book, points out that reducing productive bureaucracy is the greatest intensive for
e-government development and this factor reduces effective expenses. Another point related to e-
democracy-in their opinion is using information and telecommunication technology in meetings and also
conversations between citizens. Following this issues, Schedler and Summermatter (2007) consider the
municipality's awareness of their clients' needs as the requirement of client orientation.
Shim and Eom (2008), believed that information technology can reduce administrative corruption in
different ways. These methods include: improvement in relationships between state personals and
citizens, possibility to follow the state activities by citizens, increase in accountability of government
officials, promoting good governance, reducing potential corruption in immoral behaviors, strengthening
the reform oriented projects and ultimately, better monitoring and control over employees' behavior. We
know that trust can be considered as the democracy proxy. Gholipour and Pirannejad (2007), studied
the effects of e-government on primary institutes and democracy; likewise on confidence in government
and democracy. They utilized three groups' opinions in their questionnaire: state managers, professors,
university students. Conceptual model of their research indicates that four dimensions of the five-
dimensional model of justice have a meaningful relationship with the public trust.
Torabi and Mohammadzadeh Asl (2009) studied the significance and the effect of globalization and
consequences of the modern economy, while emphasizing the role of e-commerce, on economic growth
of developing countries. Their research shows that for the lower-middle income countries, both e-
commerce and the world index variables (infrastructure gap, state role, and the instruction of information
and communication technology tools) have a positive relationship with upper-middle income countries in
comparison with developed countries. Yaghoubi et al. (2011) studied the effective factors in clients'
satisfaction, from e-government services in Mashhad, Iran. Their research results show that although
the satisfaction of citizens from delivery, variety and access to e-services is higher than average,
satisfaction level from ICT offices' staff is low.
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4. METHODOLOGY
The questionnaire was developed via extended literature review and refined after a pilot study. The
population of interest is defined as a group of university students in Urmia city, Iran (state universities,
Payam-e Noor University, and private universities). According to Cochran formula, the sample was
taken randomly from 94 management students. All variables are considered acceptable since they
signified tolerable reliability and validity of all items demonstrates the strong correlation of them with
their assumed theoretical construct. This paper deals with the application of a chi-square test to the
results of a survey focused on the impact of E–Government on public management. The chi-square test
is a nonparametric statistical analysis method often used to assess the probability of association or
independence of facts (Maxwell, 1971). This statistic approaches a chi-square distribution that was first
introduced by Karl Pearson in 1900. The first step in mentioned methodology is the expression of the
null and alternative hypothesis. The second step is to determine the significance level (α). The third step
is to calculate the chi-square test statistic (χ2). The fourth step is to compare the computed (χ2) with the
critical value in the table for the significance level (α) and then to make a statistical decision in regard to
the null hypothesis.
5. FINDINGS
The model used in this article, was statistical analysis of X2 test at α=95% level. The result of this
survey is as below:
TABLE 1: QUESTIONNAIRE OF QUESTIONS INTENDED TO ASSESS THE ROLE OF E-GOVERNMENT
Total No Yes
1212
total number of satisfaction responses in ratio with the option of No: 563
total number of satisfaction responses in ratio with the option of Yes: 649
Satisfaction the expected frequency according to the gained assumption of trust in ratio with the
option of No: 453.36
the expected frequency according to the gained assumption of trust in ratio with the option of
Yes: 758.64
1212
total number of trust responses in ratio with the option of No: 355
total number of trust responses in ratio with the option of Yes: 857
Trust
the expected frequency according to the gained assumption of satisfaction in ratio with
the option of No: 453.36
the expected frequency according to the gained assumption of satisfaction in ratio with the
option of Yes: 758.64
752
total number of economic growth responses in ratio with the option of No: 270
total number of economic growth responses in ratio with the option of Yes: 482
Economic Growth
the expected frequency according to the gained assumption of economic growth in
ratio with option of No: 281.29
the expected frequency according to the gained assumption of economic growth in ratio with
option of Yes: 470.71
3176 1188 1988 Total
Source: Research findings Note: Chi_sq=77.178, DF=2, P_Value =0.000
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The statistical assumption of this survey is if the three factors of citizens' satisfaction, trust, and
economic growth are independent or not. The statistical H0 test is the data's independency. The
purpose of this statistical assumption is rejecting the independency of these three factors (rejecting H0).
The test method is according to amounts which equal 77.178 and with regard to DF with two
degrees of freedom, is always greater than at the level of 95%(77.178>5.991) and therefore the
H0 statistical assumption is rejected. On the other hand the amount of P_Value=0.000 which is always
less than 0.05, giving as a strong feasibility for the results.
Figure 1 displays the proportion of Yes responses to the questions proposed in the questionnaire, in
which the amount of P_Value is 61%. Also in figure 2, displaying the proportion of No responses, the
amount of P_Value is 40.7%.This figure revision indicates that the number of Yes responses in
comparison with No responses is greater.
160012008004000
99
95
90
80
70
60
50
40
30
20
10
5
1
yes
P e
r c e
n t
Mean 662.7
StDev 187.9
N 3
A D 0.194
P-Value 0.610
Probability Plot of yes Normal - 95% CI
FIGURE 1 - PROBABILITY PLOT OF YES
Source: Research findings
125010007505002500-250-500
99
95
90
80
70
60
50
40
30
20
10
5
1
no
P e
r c e
n t
Mean 396
StDev 150.7
N 3
A D 0.252
P-Value 0.407
Probability Plot of no Normal - 95% CI
FIGURE 2 - PROBABILITY PLOT OF NO
Source: Research findings
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Figure 3 indicates the trend of total Yes and No answers to 68 different responses in relation with
citizens' satisfaction, trust, and economic growth.
635649423528211471
90
80
70
60
50
40
30
20
10
0
Index
d a
t a
MA PE 63.923
MA D 19.510
MSD 547.181
A ccuracy Measures
A ctual
Fits
Variable
Trend Analysis Plot for data Growth Curve Model
Yt = 52.820 * (0.99194**t)
FIGURE 3 - TREND ANALYSIS PLOT FOR DATA
Source: Research findings
The result indicates a dependency among three factors of citizens' satisfactions, trust, and economic
growth. It implies that an increase in citizens' satisfaction from e-government services increases the
trust in government and therefore this factor develops the economic growth. Hence, the government of
Iran has taken an important step in order to increase citizens' satisfaction, trust in government and
ultimately developing the economic growth by proceeding towards electronic services of the state, which
shows the government's success in presenting e-government and public management development.
6. CONCLUSIONS
Governments basically play an important role in creating citizens' satisfaction. There are several
samples in government's performances which cause citizens' positive or negative attitude towards the
government. Another important issue is that, when citizens participate in determining their fate, they feel
that social and political trades are fair and therefore public trust, which is the foundation of democratic
governments' existence, increases.
The more information technology and informing systems promote, the more the e-government issue has
been discussed. Evaluation of statistical model in this article showed that, in Iran, utilizing this
technology in order to provide better services to citizens has increased their satisfaction. On the other
hand, by an increase in satisfaction, trust in government would be raised. Thus with the launch of e-
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government in Iran, suitable infrastructure has been created for modern management, which has
caused public management improvement.
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