Societal and Organisational Culture and the Adoption of Management Information Systems in Arab ...

349 Pages·2007·1.56 MB·English

Societal and Organisational Culture and the Adoption of
Management Information Systems in Arab Countries

Jamal Mohamed Twati
B.Sc., MBA, MIT Information Systems

Submitted in fulfilment of the requirements of the Degree of Doctor of Philosophy in
Management Information Systems, Faculty of Griffith Business School

Brisbane, Australia
March / 2006
ii
iii
iv
ABSTRACT
Information Systems (IS) have become a vital component of successful business firms
and other organisations. Over the last three decades, there has been a dramatic growth
globally in the acquisition of Management Information Systems (MIS). Research,
however, indicates that there has been an increase in reported MIS failures, and the
adoption issues are not just technical, but encompass wider societal, organisational, and
economical factors. Whilst research has shown the effect of such factors, the relationship
of specific cultural factors to adoption remains poorly understood.
The influence of both societal and organisational culture was studied in large
organisations that have either adopted or have not yet adopted MIS in two different
regions in the Arabic cluster. Such regional distinctions have been otherwise neglected or
conflated in MIS adoption studies. In particular, this research examines how MIS
adoption is constrained or facilitated by societal and organisational cultures, and seeks to
detect relevant regional variations in societal and organisational culture.
This research identifies cultural norms and beliefs within key national or multi-national
organisations. Samples from the oil and gas and the banking sectors of the top
organisations spanning five countries of the Arab regions (Kuwait, Libya, Oman, Saudi
Arabia, and United Arab Emirates) were used. The countries were divided into two
regions, North Africa (Libya) and the Arab Gulf region (Kuwait, Oman, Saudi Arabia,
and United Arab Emirates), because of differences in their history, culture and
geography.
The study compares economically similar regions which differ markedly in MIS
adoption. Libya was chosen as representative of the North Africa region because Libya
has not been covered in MIS literature to date. In addition, although Libya is one of the
wealthiest countries in North Africa, it has not yet widely adopted MIS. Comparable
countries were chosen in order to link cultural factors to MIS adoption. National level
variables, such as social class, GNP (or GDP) per capita, and political systems, were
controlled for by choosing countries comparable on these variables.
v
A multi-method design (combining survey and case study methods) was used to provide
a rounded perspective on the phenomena studied. For each region, a survey aimed firstly
to validate the framework empirically, and also to refine the protocols required by the
subsequent detailed case study. The qualitative study analysis confirmed the theoretical
findings and adds richness to our understanding of the influences of societal and
organisational culture on the process of MIS adoption.
The study revealed that the two regions are not as homogeneous as is indicated in the
literature. In addition, the study showed that age, gender, and education levels are among
the factors contributing to the success of MIS adoption in the two regions. The results
from the current study also showed that the societal culture of the Arab Gulf region is
now different from Hofstede’s (1980) index, while Libya still has the same societal
culture as Hofstede predicted for the two regions four decades ago. Furthermore, the
study showed differences in organisational cultures that impacted upon MIS adoption in
both regions. While the Arab Gulf region was dominated by an adhocracy culture that
values the adoption of MIS, the North Africa region was dominated by the hierarchy
culture type that favours a centralised management style, which impacts negatively on
MIS adoption. Additionally, this research pointed out the role of technology acceptance
in mediating adoption in both regions. Whereas the Arab Gulf region did not show any
significant effect of technology acceptance variables, in the North Africa region,
technology acceptance played a vital role in MIS adoption.
The findings from this study provide scholars, consultants, managers, and MIS vendors
with valuable information. This research thesis contributes to MIS adoption and diffusion
theory, along with societal and organisational culture theory, and is the first of its kind to
establish a regional distinction between the North Africa and Arab Gulf regions. It is also
one of the first empirical studies to compare societal and organisational culture with the
adoption of MIS worldwide and in the two identified regions. The implications from this
study for further research are also discussed.

vi
STATEMENT OF SOURCES

This work has not previously been submitted for a degree or diploma in any university.
To the best of my knowledge and belief, this thesis contains no material previously
published or written by another person except where due reference is made in the thesis
itself.

…..……………....……

Jamal Mohamed Twati

vii
TABLE OF CONTENTS

LIST OF FIGURES XI
LIST OF TABLES XII
ACKNOWLEDGEMENTS XIV
CHAPTER ONE: PROBLEM DOMAIN
1.1 Introduction 1
1.2 Aims and Objectives 3
1.3 Background to the Research 4
1.4 Research Problem 6
1.5 Research Questions 7
1.6 Justification for the Research 9
1.7 Contributions to Theory and Practice 10
1.8 Overview of Research Methodology 11
1.9 Limitations of Scope 12
1.10 Ethical Considerations 13
1.11 Thesis Structure 14
1.12 Summary 16
CHAPTER TWO: RESEARCH ISSUES IN MANAGEMENT
INFORMATION SYSTEMS
2.1 Information Systems Overview 17
2.2 Management Information System Overview 20
2.3 Diffusion of Innovation Theory 24
2.4 Technology Acceptance Model 27
2.5 Barriers to MIS Adoption 36
2.6 MIS Adoption and Culture 39
2.7 MIS Adoption in the Arab Regions 42
2.8 Summary 43
CHAPTER THREE: RESEARCH ISSUES IN SOCIETAL CULTURE
3.1 Introduction 45
3.2 Societal Culture Defined 47
3.3 Clusters of Culture 50
3.4 Societal Culture Dimensions 54
3.5 Hofstede’s Model of Societal Culture 57
3.6 Summary 74
CHAPTER FOUR: RESEARCH ISSUES IN ORGANISATIONAL
CULTURE
4.1 Introduction 75
4.2 Organisational Culture Defined 77
4.3 Measurement of Organisational Culture 79
4.4 Overview of the Competing Values Framework (CVF) 81
4.5 The Organisational Culture Assessment Instrument (OCAI) 83
4.6 Organisational Culture and MIS Adoption 88
4.7 Arab Organisations’ Readiness for MIS Adoption 89
4.8 Integrating Societal and Organisational Culture 91
4.9 Summary 93
viii
CHAPTER FIVE: CONCEPTUAL MODEL AND HYPOTHESES
5.1 Research Questions 94
5.2 The Conceptual Model of the Study 95
5.3 Defining the Variables 96
5.4 Development of the Hypotheses 102
5.5 Summary 109
CHAPTER SIX: SURVEY DESIGN AND METHOD
6.1 Introduction 110
6.2 Survey Objectives 111
6.3 Survey Research Design 111
6.4 Pilot-Test 122
6.5 Data Analysis 124
6.6 Organisational Culture Profile 130
6.7 Societal Culture Profile 141
6.8 Modelling the Factors that Influence the Adoption of MIS 144
6.9 Summary 162
CHAPTER SEVEN: CASE STUDY DESIGN AND METHOD
7.1 Introduction 163
7.2 Case Study Objectives 165
7.3 Qualitative Research Methods 165
7.4 Case Study Research Method 168
7.5 Case Study Design 170
7.6 Mode of Analysis 184
7.7 Summary 198
CHAPTER EIGHT: SYNTHESIS OF THE RESEARCH FINDINGS
8.1 Descriptive Statistics 199
8.2 Testing Hypotheses and Theoretical Discussion 205
8.3 The Mediating Role of Technology Acceptance on MIS Adoption 219
8.4 Summary of Hypotheses Testing 224
8.5 Relationship of Research Findings to Literature 225
8.6 Summary 228
CHAPTER NINE: CONCLUSIONS AND FUTURE IMPLICATIONS
9.1 Overview of Research 229
9.2 Summary of the Research Methods 230
9.3 Summary of the Main Findings 231
9.4 Conclusion about the Research Problem 235
9.5 Contribution to Theory and Practice 237
9.6 Reflections on Problems Faced in Conducting Research 238
9.7 Limitations 241
9.8 Implications for Further Research 242

ix
APPENDICES
Appendix A: Survey Questionnaire “English Version” 245
Appendix B: Arab Gulf Region SPSS Output 257
Appendix C: North Africa Region SPSS Output 263
Appendix D: Letter of Support 270
Appendix E: Case Study Protocol 273
Appendix F: Arab Regions Overview 279
Appendix G: Arabic Version of Survey Questionnaire 291
BIBLIOGRAPHY 304

x