Societal and Organisational Culture and the Adoption of Management Information Systems in Arab Countries Author Twati, Jamal Mohamed Published 2007 Thesis Type Thesis (PhD Doctorate) School Griffith Business School DOI https://doi.org/10.25904/1912/2274 Copyright Statement The author owns the copyright in this thesis, unless stated otherwise. Downloaded from http://hdl.handle.net/10072/366806 Griffith Research Online https://research-repository.griffith.edu.au 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 LIST OF FIGURES Figure Title Page Figure 1.1 The Overall Conceptual Model For the Study 08 Figure 1.2 Thesis Structure 15 Figure 2.1 MIS Innovation Process 26 Figure 2.2 Technology Acceptance Model 29 Figure 3.1 Cultural Differences at Societal and Organisational levels 50 Figure 4.1 Competing Values Framework 82 Figure 4.2 The Organisational Culture Profile 87 Figure 4.3 Model of Societal and Organisational Culture Influence on Individual Values 92 Figure 5.1 Overall Conceptual Model for the Study 95 Figure 5.2 Model of Factors Influencing MIS Adoption 96 Figure 6.1 Number of Survey Respondents According to Countries 127 Figure 6.2 Profile for the Oil and Gas Sector in the Arab Gulf Region 133 Figure 6.3 Profile for the Banking Sector in the Arab Gulf Region 134