The impact of ICT-diffusion on government effectiveness: what role for cultural practices?

Abstract

Purpose Based on data collected over a 15 year period (2000–2015) for 89 countries selected across nine geopolitical regions of the world, the purpose of this paper is to explore the role of economic development and the Hofstede index of national cultures in influencing level of government effectiveness and ICT diffusion; as well as the impact of ICT diffusion on government effectiveness. The level of economic development and a country’s ranking on the E-government index were found significant in explaining ICT diffusion and level of government effectiveness, respectively. But the findings also indicate that only the cultural factors such as Indulgence and long-term orientation (LTO) were quite significant in explaining level of government of effectiveness and ICT diffusion, respectively. The findings conclude that while some cultural factors may provide partial explanations for a country’s level of government effectiveness or ICT diffusion, but for other cultural elements, the path of influence is still unclear and at best debatable. Hence, in light of the growing emphasis placed on it in the literature, the effect of culture is limited and may have been overstated. ICT diffusion, while a necessary tool for administrative efficiency, is only but one piece of a larger puzzle and should be developed in consideration of and in the context of a broader framework of economic development, institutional design and behavioral practices. Design/methodology/approach This study examines how existing ICT diffusion and infrastructures among a set of 89 countries spread across nine world geopolitical zones has been able to improve their government effectiveness – as measured by their relative scores or rankings on the global “government effectiveness index” over a 15 year period (2000–2015); and also how specific cultural factors may influence the level of ICT diffusion. Drawing data from the United Nations e-Government knowledge database, the United Nations Development Program, the GlobalEconomy.com, as well as other socio-demographic sources, I examine key and associated indicators that influence information technology diffusion and its contributory effects on level of government effectiveness; as well as the impact of national cultures on ICT diffusion. Findings Overall, the finding from this analysis point to the fact that only two of the Hofstede national culture variables were significant (LTO and Indulgence). The other four national culture variables (Power Distance, Individualism, Masculinity/Femininity and Uncertainty Avoidance) were not. Indulgence has a negative effect on level of government effectiveness, while LTO has a positive effect on ICT diffusion. The other culture variables were not significant in any of the regression models, but they seem to congregate much closer to or around the mean. Originality/value This is the only work of its kind that has utilized the seven Hofstede indicators to test for the relationship between culture and technology over a long period of 15 years.