An investigation of IT-intervention adoption in public distribution system: A stakeholder and agency theory perspective

Abstract

This paper attempts to explore the adoption of changes introduced by an IT-intervention in the context of a social welfare scheme. Using case study methodology, we have studied the changes introduced through the project ‘CORE PDS’ (Centralized Online Real-time Electronic Public Distribution System) in the Chhattisgarh Public Distribution System (PDS). CORE PDS was a far-sighted project aimed to integrate the retailers (Fair Price Shops, FPSs) with IT infrastructure. It simultaneously introduced two changes. One was an automated transaction processing system while another was the provision of portability for the beneficiaries. After 2 years of its implementation it was observed that despite the government’s diligent efforts, only the automated transaction processing system was adopted, while portability was discarded by the FPSs. We use the theoretical lenses of stakeholder theory and agency theory for identifying reasons for this partial failure. Our analysis suggests that information system (as monitoring and reporting mechanism), outcome uncertainty, risk aversion and goal conflict play critical roles in the adoption of changes. Changes with higher monitoring, lower outcome uncertainty and lower goal conflict are easily adopted, and on the other hand, lower monitoring, greater outcome uncertainty and higher goal conflict result in lower possibility of adoption.