Technological infrastructure

As highlighted in the above discussion, ICT services and efficient ICT use rely heavily on a dependable technological infrastructure. Enablers of ICT and e-business include accessibility, and the quality and speed of Internet connectivity. Although little has been researched on issues affecting ICT and e-business usage and adoption from SIDS’

perspective, literature does exist that shows the impact of technological infrastructure on economic development, the challenges faced by developing countries, and how developing countries have acquired dependable technological infrastructure.

This body of economic research demonstrates significant improvements in economies resulting from telecommunication infrastructure investments (Cronin, Colleran, Herbert,

& Lewitzky, 1993; Cronin, Parker, Colleran, & Gold, 1993; Datta & Agarwal, 2004;

See Hardy, 1980; Madden & Savage, 1998; Parker, 2000; Qiang, 2010; Riaz, 1997;

Röller & Waverman, 2001; Sridhar & Sridhar, 2007; S. Straub & Terada-Hagiwara, 2010; H. G. Thompson & Garbacz, 2007). Most of these studies show a positive causal link between telecommunication infrastructure and economic returns. As Röller and Waveman (2001) have noted, the majority of studies indicate that as the ICT infrastructure improves the cost of doing business reduces and production increases for firms in various sectors of the economy. Thus, investment in ICT infrastructure contributes considerably to the economy. However, according to the World Bank, most developing countries are not equipped with an adequate information and communication infrastructure (Qiang, Pitt, & Ayers, 2004). In a similar vein, Walsham and Sahay (2006) also report that the quality of infrastructure in developing countries is still inadequate. In this regard, more recently Qiang (2010) advises developing countries to invest in broadband networks and notes that this should be a key part of development strategies in developing countries. The effectiveness of a sound technological infrastructure relies on a number of factors to pay off on investments. According to the World Bank (Qiang, 2010; Qiang, et al., 2004), the high costs associated with building a network (encouraging public private partnerships), the regulatory framework, and the market structure or market conditions need to be taken into account.

30 The lack of proper telecommunication infrastructure is further exacerbated by the regulatory framework or approach to managing the telecommunication sector.

Competition in the telecommunications sector brings in substantial benefits to countries (See Corrocher & Ordanini, 2002; Fowler, Halprin, & Schlichting, 1986; Hargittai, 1999; Kauffman & Techatassanasoontorn, 2005; Li & Xu, 2004). However, in many countries the Government protects the state monopolistic position over telecommunications (See Bhatnagar, 1999; Bhuiyan, 2004; C. H. Davis, McMaster, &

Nowak, 2002; Goodman, Kelly, Minges, & Press, 2000; Minges & Gray, 2004; Peha, 1999; Petrazzini & Kibati, 1999; Travica, 2002). For example in 2003, among the South Asian nations, the Maldives and Nepal were the only two countries with a single mobile service operator (Minges & Gray, 2004). According to Goodman et al. (2000), Nepal, as a late-comer to telecommunication, suffers under a state monopoly, which leads to high access costs, limited Internet access, and limited inter-regional infrastructure, which in turn conspires against ICT development in Nepal. The authors note that there are millions of potential telephone subscribers on the waiting list, as in many other developing countries. Likewise, in the Maldives, Dhiraagu² had a monopoly over telecommunication services from 1988 to 2002, which resulted in high costs in telecommunication services in the country. According to Minges and Gray (2004), the Maldives had the highest per-minute mobile call charges, connection charges, and short message service (SMS) prices in the South Asian region in 2003 (while Nepal has significantly lower mobile tariffs than the Maldives). Another developing country noteworthy is Morocco, with the performance of three operators sharing mobile broadband Internet market and one operator fixed-broadband operator which hold a monopoly (ITU, 2011). Morocco has record high mobile subscription, representing 76 percent of total broadband subscription recording 20 percent growth from 2008 to 2010, and one percent growth with fixed-broadband penetration (ITU, 2011).

2.2.3 Culture

The influence of culture in the adoption and use of ICThas attracted the attention of IS researchers. Several models have been used to examine culture in the context of IS.

2A joint venture Company between the government of Maldives and Cable and Wireless Plc. of the United Kingdom

31 Hofstede’s (1991) cultural dimensions, Hall’s (1973) classification of culture based on event perception, and Walsham’s (2002) use of Giddens (1984) structuration theory to explain and understand cultural contradictions and conflict are three well known models (J. W. Kim, Meso, & Kim, 2005). Most IS researchers tend to rely on Hofstede’s taxonomy (Ali, Tretiakov, & Crump, 2009; Leidner & Keyworth, 2006; Myers & Tan, 2002; D. Straub, 1994; Tan, Watson, & Wei, 1995) describing culture along the dimensions of power distance (which focuses on authority orientation), collectivism versus individualism (which focuses on self-orientation), femininity versus masculinity (which focuses on achievement orientation), and uncertainty avoidance (which focuses on risk orientation). Although this view has merit in highlighting the importance of culture, some authors have criticised the use of Hofstede’s (1991) model in IS research (See Myers & Tan, 2002; Walsham, 2002). Hall’s (1960, 1973; 1990) categorization of polychromic vs. monochromic time perception are also criticised for over-simplifying cultural influences (See Cardon, 2008; Kabiraj, 2010). (Monochrons - originally associated by Hall with the cultures of Northern Europe and North America prefer to organize their time in a linear, "one thing at a time" manner, in contrast with polychrons - originally associated with the cultures of Latin America and the Middle East as more relaxed about deadlines, etc).

Myers and Tan (2002) regard Hofstede’s and Hall’s cultural dimensions as being too simplistic and crude and suggest “adopt(ing) a more dynamic view of culture - one that sees culture as contested, temporal and emergent” and “as something that is interpreted and re-interpreted, and constantly produced and reproduced in social relations” (p. 29).

Considering the contested, temporal and emergent attributes of culture, Walsham (2002) argues that the structuration theory developed by Giddens (1979, 1984) can provide a deeper examination of cross-cultural working in Information Systems studies. Jones and Karsten (2008) reviewing 331 IS articles (published between 1983 and 2004) using Giddens structuration theory, note that Giddens’ work offers significant insights that can be effectively and fruitfully drawn into IS research. Giddens (1979, 1984) views cultural issues from three dimensions of action and structure; systems of meanings, forms of power relations, and sets of norms. Structuration theory supports the notion that culture as a social structure is created by on-going processes in the social environment in a society. This theory provides rich insights into how social interactions affect ICT usage mediated by the organizational and national culture.

32 Researchers have shown that social influence plays a significant role in technology use (Bandyopadhyay & Fraccastoro, 2007; Im, Hong, & Kang, 2011; Malhotra & Galletta, 1999; Venkatesh, Morris, Davis, & Davis, 2003).Other researchers have shown that social influence can be both positive and negative (See Hill, Loch, Straub, & El-Sheshai, 1998; Im, et al., 2011; Malhotra & Galletta, 1999; Thanasankit, 2003). For instance, Im et al’s (2011) comparison between US and Korea revealed the cultural differences between these two countries –Koreans tend to adopt technology more quickly, are more susceptible to pressure from social factors such as trends and social groups. Such social behavioural characteristics or social structures would seemingly influence ICT usage in other contexts too. Thanasankit (2003) shows how organizational culture in Thailand affects use of ICT – the subordinates need to respect, believe, and obey their bosses. The study showed that it discourages system analysts from creative independent thinking and taking the initiative. Such authoritarian management style would hinder teamwork among members of organizations.

Some studies have highlighted how culture influences, and is, in turn, impacted by, the arrival of the Internet. In a theoretical analysis of the effect of Internet adoption on cultural convergence among countries, Martínez-López, and Sousa (2004) conclude that it may strongly foster cultural convergence. This convergence, they argue, take place by assimilation and transference of cultural values (acquired from the Internet) to the primary culture, but don’t imply that cultural diversity will disappear. The Internet has also affected attitudes towards information sharing. Ang and Loh (1996) argue that in developing countries, user attitudes towards global information sharing remain oriented towards obtaining rather than providing information. Hafez (2006) argues that this can be attributed to the fact that most third world countries view information as a “source of power” (p. 39). Researchers have also shown that different countries have different cultural traits affecting e-business. For instance, cultural issues such as the “socializing effect of commerce”, “transactional and institutional trust”, and “attitudes toward debt”

were determined to be the major impediments to e-commerce in China (Efendioglu &

Yip, 2004), and in Costa Rica a study showed that the issues were largely driven by the social environment; the country lacked a culture of trust and largely relied on face-to-face communications, hindering e-commerce activities (Travica, 2002).

33 Therefore, culture is one of the factors affecting the adoption and implementation of ICT in developing countries and cultural differences have some impact on the usability and acceptance of e-business. A number of IS researchers have taken this broader perspective of culture. Understanding ICT in organizations requires an exploration of the dynamics of organizational and national culture. Culture is not static and cultural context is also generated and regenerated in tandem with the changes in ICT. Unlike the Hofstede-type studies, this study adopts the dynamic view of culture emergent, contested, constantly interpreted, and reproduced in social relations and people’s reaction to dynamic contexts (Giddens, 1979; Myers & Tan, 2002; Walsham, 2002), in order to understand the effect of national cultural environment and its resilient features on e-business adoption and usage in the Maldives.