M-Government Cooperation for Sustainable Development in China: A Transaction Cost and Resource-Based View

Abstract

Mobile government (m-Government) is highly valued by many countries and governments worldwide for its important technical, economic, and political benefits. A development trend worthy of attention in China is that various public mobile services are provided through the cooperation between governments and Internet enterprises. The m-Government cooperation, as component of the public service system, has both a benefit safeguard function by mitigating transaction hazards and a value creation function by sharing advantageous resources. Previous studies have not explained both functions for m-Government cooperation. This study addresses this research gap. We establish a theoretical model by developing hypotheses from integrating model of Transaction Costs Theory (TCT) and Resource-based Theory (RBT). The OLS and Poisson regression method are used to test the proposed model by using cross-sectional data collected from 284 cities in China. Results show that strategy alliance, technology-specific knowhow, and financial security positively influence m-Government cooperation, asset specificity negatively influences the m-Government cooperation, and environmental certainty has no significant impact on m-Government cooperation. From the perspectives of technology, policy, and culture, the article puts forward suggestions on how to better promote m-Government cooperation in China, including promoting the government’s digital capabilities, improving the citizen’ privacy protection system and cultivating a public-private cooperative culture of mutual trust.