A model of factors affecting information technology adoption and revenue generating performance inThai municipality

Abstract

The purpose of this study is to develop a model of the factors affecting information technology adoption and to determine the relationship between the adoption and revenue-generating performance of municipalities. Regarding to the level of IT adoption, in this study, municipalities were classified into four group which are laggard, reactive, active, and proactive. Based on an integration of institutional theory, resource dependence theory, innovation theory, and literature reviews, the study proposed that technological, organizational, and institutional factors are the main influencing factors. Ten hypotheses are presented describing the theorized relationship between the three factors and level of IT adoption. In addition, another hypothesis will explain the relationship between level of IT adoption and revenue-generating performance. Out of 800 questionnaires sent to the municipalities, there were 226 completed questionnaires replied. The findings indicated that, the factors affecting IT adoption are relative advantage, cost, management support and commitment, perceived importance by stakeholders, degree of interconnectedness and IT adopted by other. In addition, the finding also indicated that an increase in revenue of the municipality is related to the level of IT adoption

This study makes many important managerial and policy contributions. First, the mayor and municipality clerk should realize that the adoption of IT systems will increase their municipalities’ efficiency. Second, the central government should have a measure to ensure that the mayor should be more concerned about the IT adoption in the municipality. Third, the central government and the policy makers should provide an appropriate level of IT support to different municipalities according to their current level of IT adoption ( cluster classification) . Forth, the management should also provide more support and commitment toward training, such as setting up an IT training session in the municipalities in order to provide the necessary IT knowledge for the personnel