A path analytic model and measurement of the business value of e-government: An international perspective

Masood Abdulla Badri and Khaled Alshare

International Journal of Information Management, 2008, vol. 28, issue 6, 524-535

Abstract: The paper tests a model of measuring the business value of e-government. It provides results of its application to business firms operating in Dubai and using its government electronic services (e-government). The dimensions of the e-government business value model include information technology (IT) capability, search and transaction-oriented uses of e-government, intelligence generation, new business development, time savings, and firm profitability. The dimensions of e-government use and e-government benefits on firms’ profitability are tested. The study uses self-reported data and is based on a sample of 1859 firms operating in Dubai. Using LISREL, we employed confirmatory factor analysis to assess the factor structure of each of our latent constructs. Path analysis with composite variables is used to test the hypothesized relationships among the constructs. Several rival path models are tested by comparing the goodness-of-fit of each. The results confirm that firm's IT capabilities are positively and directly associated with the use of e-government services, enhanced firm intelligence generation, and firm profitability. IT capabilities are also associated indirectly with the firm's time savings from e-government use. Other results show that the use of e-government, search or transaction-oriented, is positively related to enhanced intelligence generation, new business development, and time savings. The paper provides empirical evidence about the positive effect of use of e-government services on the performance of firms. Results also support the positive effect of new business generated from e-government use and time savings. The relationship between use of e-government and profitability is also mediated by other variables. In general, mean scores show that the average level of use of e-government in our sample was still low. The study strongly implies that firms in Dubai should use e-government as an information source to enhance their market intelligence and build revenues. In addition, IT suppliers should emphasize e-government services that link firms to customers and collaborators, and facilitate access to key information resources. Government agencies should enhance their e-government information services to improve business performance. The study provides some preliminary evidence about the criteria that businesses use to evaluate their adoption of e-government services. This could be valuable for governments in designing and implementing their e-government services. The findings might have policy implications for the implementation of Dubai e-government services.

Keywords: e-Government; Information search; Information transaction; Path analysis; Structural equations modeling; Business value; Profitability; UAE (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ininma:v:28:y:2008:i:6:p:524-535

DOI: 10.1016/j.ijinfomgt.2006.10.004

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