The Effects of Culture and e-Commerce Adoption in the UAE - Literature review Example

Literature Review Excellent service delivery has to be connected to one aspect; Arab culture which in the actual sense is high on family collectivism and group and power distance and such is low on future orientation. Beginning with a high context, communication processes are more significant compared to the content of the communicated message within United Arabs Emirates. It is also noted that due to these variations in culture, oral message is given preference as compared to written one. This further translates that telephone calls or even face-to-face communication is preferred and highly valued compared to high technological communication such as e-mail or through websites. To conceptualise this point further, though reports by Kumar et al. (2012) show that UAE is ranked high in terms of internet preparedness and in as much, cultural orientations affect its ability to adopt and use internet related technologies. When these issues stands as they are, it can only be taken that personal decision to carry out online shopping, online studying, online research and transactions are equally affected. Mustafa (2011) carried a case study on the effects of culture and eCommerce adoption in UAE. Using a case study of banks, NGOs and other financial institutions, the research concluded that the rate of internet usage is still low as most of people are delinked from it based on cultural beliefs that see internet as hub for gambling and cyber related crimes. Looking at this issue practically, Dubai Smart Government platform has been created specifically to promote eServices that can be found through www.dubai.ae as a unified official portal for the Government of Dubai, it is supposed to be providing services to all business and residents of the 7 emirates with more than 300 electronic services. Unfortunately, report by Sadiq et al. (2013) indicate that at least three-quarters of the total adult population have not visited the webpage thus making it difficult to access the services offered online. This research puts UAE to a lower level compared with what is reported in countries such as Australia, Canada, United Kingdom and Germany where intention to use eGovernment services as well as eRediness has been high thus improving service deliveries (Travica, 2008). This ultimately affects efficient service deliveries such as using master cards, online transactions such as Paypal to carry business. This finding is in tandem with what Rajput (2009) researched under the topic, “Risk Perception Among Arab Consumers and its Contribution to Service Delivery.” Culturally, majority of UAE citizens still fear that online services such as the introduced eGovernment and mGovernment pose some risks as they feel there is uncertainty in the purchase environment. RoyaGholami et al. (2011) add that such fear affects equitable and just service delivery since citizens fear making unsuitable or wrong decisions. Ultimately, such cultural orientations compromise the kind of service quality the public expect from the government in future. Another connotation for this is that indeed cultural orientations among UAE negatively affect service excellence and such even undermines the vision 2021. Such has significantly compromised what his highness Sheikh Mohammed set in terms of new challenge when he oversaw the introduction of mGovernment that was supposed to offer citizens a challenge specially when the country is aspiring to keep pace with the global technological developments and harnessing to ensure that there is customer satisfaction. This cultural drive conforms to the Theory of Acceptance and Us of Technology (UTAUT) where the proponents of this theory posit that individuals are likely to be influenced by their cultural orientations when it comes to the acceptance and use of a particular technology (Travica et al., 1996). As already postulated earlier, service excellence is one of the key indicator of a working government. In tandem with aspects such as SERVQUAL, European Foundation for Quality Management (EFQM) and Total Quality Management, theoretical models and cultural practices to such factors have been integrated so as to conceptualise the identified research questions. Starting with SERVQUAL model as a case for analysis, when Sheikh Mohammed bin Rashid, Ruler of Dubai and Vice President of the UAE introduced Aerial drones as a platform geared towards promoting service delivery there was controversy on ethical and effectiveness of such motives to the population of people of Dubai and the other 6 emirates at large. One of such worries was building integral service that can provide service reliably. With regard to adoption of drones to facilitate service provision to the citizens, such has heavily been influenced by culture and behavioral intention to adopt the drones. Saudi Arabia has seven emirates with each emirate consisting of almost same setting of cultural backgrounds and beliefs where there are issues that cannot easily be received by these emirates. Culture has negatively impacted on citizens’ intention to use drones, including cultural awareness, national culture and cultural influences. Scholars relate introduction of drones, culture and service delivery differently. Beginning with culture, Travica and Rebecca (1998) define the concept as beliefs, norms, values and behaviour patterns that influence how Saudi Arabian citizens perceive certain practices and technological adoptions. Therefore, in as much, drones have been perceived to be a positive trend towards service excellence, values and behavioral patterns within a given organization have really affected their adoption. Statistically representing this, in 2013, interview conducted in Saudi Ministry of Communication and Information Technology (2013) showed that cultural practices delinked the ability of staff members to adopt the use of drone that was perceived to be a positive indicator towards services excellence. Of the 24 interviewed staff members, only 4 showed positive attitude towards adoption and usage of drones with the rest objecting giving varied reasons such as erosion of cultural identities. The introduction of aerial drone is unique to United Arabs Emirates, in particular, Dubai. Civilian and commercial use of drones has been a growing factor worldwide. For instance, Saudi Post (2010) reports that government service deliveries in Australia are measured by the availability of drones for recreational photography. In as much as such statement underscores the fact that UAE’s delivery is on the international mark, remarks made by Minister of Cabinet Affairs, Mohammed Al Gergawi shows that there is still a major factor that impedes the implementation of aerial drones and as noted, it is has been behavioral intention to adopt among Saudi Arabian citizens. With regard to aerial drones, behavioral intention to adopt as another factor other than cultural orientations has really affected customers’ perception to adopt and make use of a certain tools in the future. For instance, when Dr Raford said that there were battery-operated drones that were able to cost as little as Dh 4,000 and such cold fly up to 4 kilometres at about 40kph and carry about 1.7kg, there was poor perception as prices for adopting such technology was not friendly to customers (KACST and Saudi Ministry of Economy and Planning, 2012). Therefore in as much as the technology could be used to deliver information from one office to another, there is poor behavioral intention to adopt the technology thus affecting excellence service delivery. As LeBlanc (2012) notes in his research, customers’ satisfaction is embedded on factors such as reliability, tangibles, responsiveness, assurance, and empathy. Therefore picking on reliability and assurance for instance, drones as argued by Saudi Post (2010) conceptualises a factor that has positively effected on implementation of service excellence in Dubai in the sense that they ensure regulatory of services in as much as culture and behavior to adopt its use show otherwise. Contemporary scholars such as Siddhi and Wafaa (2012) look at the feasibility of the introduction of drones, service delivery excellence and human factor as integrated aspects. To begin with, customer satisfaction is an important impetus regardless of the institution that offers the service. On the other hand, gauging firms’ input also depends on the service excellence achieved. Measuring this statistically, in United States of America’s department of Communication registered an index of positive 5 in terms of service excellence as a result of adopting drones. This compared to the case of Dubai, the Emirati engineer, Abdulrahman Alserkal argues that in the year 2012 and 2013 alone, there was improvement of service delivery index by 20% compared to 2010 and 2012 (Sadiq, 2013). The translation of this statistics is that it puts UAE performance index at per with other developed countries as far as service delivery to the people using drones is concerned. Facts of the matter as they stand are that UAE comprises of seven emirates and with regard to federal level, these emirates have governance pegged on one single entity. To understand this position with regard to theoretical model and service delivery requires the approach of the New Public Management Theory. Proponents of this theory posit that introducing private-sector methods and incentives structure within the country increases the efficiency and service deliveries. Applying this theory within the context of UAE service efficiency, public offices should be run as private institutions. This also relates to two other issues, making these institutions apply traditional sector management techniques like result-based management techniques, clear standards and measures of performance and a focus of bottom-line management approach. To contexualise New Public Management Theory within the case of UAE, there was introduction of mGovernment that has been received differently by population. After the launch at federal level, renaming of Dubai eGovernment followed suit. As Sheikh Mohammed Bin Rashid Al Maktoum argues, this platform is a platform aimed at transforming lives of all Saudi, regardless of culture (Saudi Ministry of Communication and Information Technology, 2012). On a different note, this initiative puts Saudi government on international mark as it aims at transforming its services to what Sadiq et al. (2013) describe as ‘post-eGovernment phase and a practical embodiment of the vision the country is having by 2021’ (p. 53). In as much, researches and public opinions have cited some issues with eGovernment as far as their perceptions of the intended service excellence. To begin with, Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Chairman of the Dubai Executive Council argued that the initiative though good for the people of UAE and Dubai in particular, it tends to divert resources from its intended purpose thus distorting the formulation of effective public policy and even the provision of services as already established and managed by federal governments. This translates to a situation where excellent services deliveries are negatively affected by rigid federal government in adopting new systems of management and administration. Mohammed Bin Rashid Al Maktoum adds that services offered will be concentrated to minority whereas the majority is not benefited thus reinforcing the already existing economic and social inequalities. However, there is no evidence provided on how what Mohammed Bin Rashid Al Maktoum consequently undermines the credibility of public and government institutions with regard to service excellence. Secondly, Gibbs et al. (2012) compare the intended use of eGovernment vis-à-vis the economical state of the country. The position they hold is that in as much as federal governments affect their implementations, the programme should be designed to measure service performance that focuses on outcome value measurable to the international standard and a modular approach to the delivery of benefits. Comparing this with health service deliveries in Canada, mGovernment unlike eGovernment lacks clear articulation of outcomes thus compromising measures intended to lay down the foundation for both short-term and long-term improvements in service performance, public accountability, return on investment and public service delivery. Though rigidity of federal government to support eGovernment has been noted as one factor, this suggestions can be summarized under an overall factor; performance expectancy from citizens. Performance expectancy has positively transformed service delivery excellence since the adoption of mGovernment. To put this factor in its rightful context, the degree to which government officers in various department believe that using mGovernment as a system has help them improve their service delivery and job performance to people of Saudi Arabia at large and Dubai in particular. According to AlGhamdi et al. (2011), government offices have been pushed by performance expectancy, job-fit, extrinsic motivation with regard to performance expectancy. Performance expectancy as a factor can be tied to the Theory of Governance as the minimal state. This theory posits that organization structure arises from well-defined structures that improve performance and such structures come as a result of the expected performance from top-down hierarchy (AlGhamdi et al., 2011). Applying this this with regard to service delivery in emirates such as Abu Dhabi, Dubai, Sharjah, Ajman and Umm Al Quwain, service delivery is motivated by the performance expectation but in as much, such is regulated without interventions from a formal actor in this case federal government from any of the emirates. On the other hand, this theory posits that for performance expectation to trigger excellent service delivery to people there must be some elements of organic framework structured to govern the behaviours of these actors with the realm of international expectations. Recent study by Alkadi (2008) shows that there is connectedness between performance expectancy, service delivery and intention to use Information and Technology. For instance, excellent service delivery as far as mGovernment is concerned triggers government employees facilitate communication with the government thus improving the quality of the services government offers to people and also providing its citizens with equal basis on which to carry out business with government. Conversely, a measure towards enhancing service provision has been put on trial as far as performance expectation as a factor is concerned. To begin with, the Dubai Quality Award (QDA) is a good impetus that helps the government measure strides made as far as service delivery through mGovernment is concerned. Born out of vision of His Highness Sheikh Mohammed Bin Rashed Al Maktoum, organisation from 8 sectors in Dubai, Ras Al Khaimah and Fujairah such as service, construction, manufacturing, health, media, education finance and tourism were vetted to establish service delivery and performance expectation for a period of 1 year begging from mid-2012 (Information Centre - Saudi Ministry of Commerce, 2013). Information Centre finds that due to performance expectation given, these sectors recorded good services delivery to citizens. QDA was first based in US Malcolm Baldrige National Quality Award framework which was used to measure departmental service delivery to people. Owing to the fact that this model was adopted to gauge service deliveries in the sectors mentioned above, it shows that standard of services offered are in tandem with international standards. Actual example on how this has made UAE, particularly Dubai be on international mark is the seven star hotels in Dubai where UAE Minister of Environment and Water, Rashid Bin Fahad announced that the seven star hotels surpassed Standards for Government Services Excellence Programme as established by the government of UAE. Further to this, Standards for Government Services Excellence Programme was jointly introduced by federal governments to check on performances of different government departments so as to improve government service deliveries that meet international standards. Furthermore, with regard to the introduction of mGovernment there is also an issue that needs to be mentioned as far as what citizens of Dubai expect regarding the quality of service that must be rendered to them is concerned. To contextualize this point, modern custom administration as done during eGovernment was that it did not only collect revenue but also played two other significant roles. First, eGovernment expedited cross-border trade that also promoted economic development but also prevented international trafficking with regard to illicit goods such as narcotics and weapons. As a matter of fact, during the 42nd Arab League, the entire Mena region recognized that the transformations brought as a result of mGovernment propelled UAE to international levels (Saudi Ministry of Commerce, 2012). A standardisation arm of Arab League, Arab Accreditation appreciated that service offered under the newly introduced mGovernment were positively affected by performance expectation. However, with the introduction of mGovernment the system of service delivery has been streamlined. For instance, Saudi Ministry of Commerce described that mGovernment gives structures through which governmental departments and ministries set their objectives and determines ways of attaining such objectives and monitoring. Corporate Governance Theory is focused on the shareholders who by virtue of their position own the corporation and make selection on the Board of Directors. This has been a factor that negatively has affected service implementation as far as mGovernment is concerned. The result of such is that the cost of providing services to people becomes higher especially when factors such as inputs that followed inflationary pressures in the market are concerned. Social influence is another factor that has been debated by scholars to either positively or negatively affects service delivery to people of Saudi Arabia (Internet Software Consortium, 2003). Within the context of service delivery and introduction of service related technologies in Saudi Arabian Emirates, social influence can be defined as the degree to which people influence the use of a system or introduced technology (Internet Software Consortium, 2003). Whether this brings negative or positive effects, it affects service delivery and other significant aspects of the lives of citizens and is therefore likely to be influential as far as what citizens expect from citizens. The introduction of eGovernment for instance received mixed reactions and such affected service delivery differently depending on the perception and social influence the technology had on people. It is worth noting that as far as service delivery through eGovernment is concerned, reason to adopt the technology has been positively and negatively influenced by social environment within United Arab Emirates. To identify the influential factors, there are different models and contributions that researchers have noted to be influencing social decisions individual make with regard to the adoption of eGovernment service delivery. For instance, Technology Adoption Model (TAM) posits that people will not be negatively influenced by their social background when making decision with regard to the technology to adopt as long as such benefits. On the other hand, Diffusion of Innovations Model (DOI) believes that individuals can be pushed by advent of technologies to an extent that it becomes difficult to refuse to adopt. Connecting the two models with social influence that affect service delivery within the country, the Saudi government started the YESSER programme, the first eGovernment services that aimed at streamlining service provision to people of Saudi Arabia. In the first year of its operation, YESSER programme had recognized acceptance due to its excellent service deliveries that stigmatization attached to its introduction is said to have been negligible (Saudi Ministry of Commerce, 2012). Bridging the gap between what the government is currently offering and what public expect from the government in future, eGovernment was expected to integrate all services given the crucial roles such services have in facilitating and accelerating the transformation process. In the joint meeting pitting Dubai Smart Government officials, officials from Abu Dhabi and proponents of eGoverment, the parties made an agreement that the social stigmatization associated with eGovernment should be reduced so as to ensure efficient service delivery to the people (Saudi Ministry of Commerce, 2012). On international platform, statistics as shown by Molla and Licker (2012) show that socially, introduction of eGovernment was positively influenced and enhanced service delivery to the people. As a matter of fact, after the introduction of eGovernment, UAE was ranked first globally in aspects such as social cohesion, values and attitudes (Information Centre - Saudi Ministry of Commerce, 2013). This is to mean that social influence did not affect the introduction and implementation of eGovernment as far as service delivery and or excellence is concerned. Saudi Arabian people are known to be living in a cosmopolitan society with diverse and vibrant social influence. As a matter of fact, the social influence of its attire, lifestyle, architecture and cuisine plays a big role on whether introduction of eGovernment would necessitate service delivery from government to its people. To find how this has gone, as far as the Saudi Arabia is concerned, in-depth social media usage research in UAE emirates has shown that internet usage has not been negatively influenced by the social factors that have been mentioned above (Information Centre - Saudi Ministry of Commerce, 2013). As a matter of fact, Information Centre adds that secretary of Arab Accreditation, Hasan Qasem argues that within UAE, service deliveries are up to the expectation of citizens since federal governments are being monitored by the office of Prime Minister in collaboration with Emirates Standardisation and Metrology Authority (ESMA). As introduction of eGovernment was not affected by social influence, this can be conceptualized when UAE introduced a Customer Service Charter in 2011. This charter has indicated high level of customer satisfaction and excellent service delivery to people by government since the introduction of eGovernment. Customer Service Charter is indeed an impetus that has been used to gauge perceptions of service excellence by users of government services. In as much, for such services to achieve what members of public are looking for, their participation and readiness to accept technology based service deliverance must be positive. This augurs well with the positive attitude that has been shown by members of the public as far as social influence in concerned. In real estate market, Knight Frank Global House Price Index reports that Dubai was ranked as the world’s best performing during the 2012-2013 financial year with a growth rate of 35%. The assessment further indicates that the introduction of eGovernment and mGovernment, services as well as positive influence to such platforms propelled such growth. The fact that Bureau of International Expositions (BIE)awarded Dubai as the best performing real estate market confirms that service deliveries in UAE has been up to international standards thus an indicator of the service quality the public expect from the government as per vision 2021. When UAE government introduced services such as eGovernment, mGovernment and aerial drones, the biggest worry to their excellent service delivery to the people was not culture, traditions, gender stereotyping but technical infrastructure. As a matter of knowledge, scholars such as Siddhi and Wafaa (2012) recognize that excellent service delivery from organisations in UAE is highly dependent on technical infrastructure understandings and underpinnings of a particular organization and or employees. However, ground for service provision and measuring such provisions is manifold. Notably, EFQM excellence model, SERVQUAL and SERVPERF – a variant of SEVQUAL do not recognize entirely culture as the only factor likely to affect excellent service provision within the seven emirates making UAE. Instead, SEVQUAL is poignant about technical infrastructure of a system or tool that will be used to offer such service and that is why as far as determinations of factors that affect service delivery in UAE is concerned, technical infrastructure is worth noting. With view to the newly introduced technologies such as mGovernment, technical infrastructure can be defined as the effectiveness of local area network, technical parameters specifications of computers used to offer services and selection of operational system environment and database platform. A study by Rayed et al. (2013) found that when government introduced eGovernment, most of people in the industrial sectors within towns such as Dubai and Abu Dhabi were worried about technical complications that are attached to eGovernment service delivery. They note that such reservation contributed significantly towards citizens’ encouragement to adopt eGovernment services. On the other hand, reliable and well integrated technical infrastructure has been the difficult part facing government as far as eGovernment is concerned especially as citizens are still dealing with instances of cybercrime that has affected peoples’ perception regarding e-transactions. Though there is paucity of data, statistics and general information on the extent technical infrastructure has negatively affected excellent service delivery in UAE, it can be judged, from the Rayed et al. report that when government introduced this service, it did not consult widely regarding its technical infrastructure and that has consequently generated some issues such as; first, lack of specification of the quality service delivery to be provided and which departments and offices will be engaging with customers and or members of public. Secondly, there seemed to have been inadequate participation and consultation with citizens on a structured basis. Thirdly, there was apparent lack of integration of public service in the 7 emirates, public service at regional, local and national levels thus lacking a system that comprehensively measures citizens’ service delivery satisfaction. To underscore this statement, it is true that UAE is recognized by business leaders as one of the most robust and efficient nation in terms of service delivery. As a matter of fact, according to recent international survey by the World Economic Forum, the country was ranked highly in terms of service delivery and public spending though the forum also recognized that the latest introduced service delivery platforms such as eGovernment has not been well received by citizens due to complexities associated with its platform and infrastructure (Rayed et al., 2013). Perhaps no trait is more characteristic of the UAE than its culture. As a matter of fact, in the entire Middle East, there is no understanding of national identity is truly practical without grasping the cultural underpinnings of people of UAE. Citizens of this country do not perceive a separation between their culture and the rest of their lives. The complexities of their culture come with regard to service deliveries from government and other corporate organisations. This has even affected how government and other organisations approach issues to do with service delivery. For instance, government is forced to follow a policy of tolerance towards Muslims so that in practice, it will interfere minimally with cultural practices of its people. While this factor relates to cultural orientations as already reviewed, culture in itself directly looks at peoples’ direct linkage with service provision. It is on the ground of these cultural orientations of the country that scholars have investigated its effect on efficient service delivery. For instance, Ministry of Commerce reports how culture has inhibited abilities of organisations to create and share data and or benchmark with each other. To this regard, leading organisations in the country still find it difficult to access industry related data and or benchmark with other industries so as comparison that can bring about excellent service delivery can be guarantee. A dynamic theory of service delivery posits that there should be business environment open enough to allow parties share good practices within related industries. When such are restricted, best practices that further continue efficient service delivery. To conceptualise this point, Sheikh Mohammed Bin Rashed Al Maktoum recogise that cultural orientation has negatively affected the rate at which services can reach individuals (Alkadi, 2013). He adds that reluctance by organisations to share business related information with other international organisations or even free benchmarking with international companies has affected ways in which services can reach individuals. It is for this reason that schemes such as Dubai Service Excellence Scheme was introduced so as to promote excellence in customer service standards especially in private sector and furthermore making the expenses related to shopping in Dubai convenient to everyone. Research related to management and organization studies in public and private sectors within UAE has pointed a number of drivers that improve performance delivery and such include cultural orientations of the organisations, leadership, innovations and benchmarking (Alkadi, 2013). However, the research also notes that some cultural practices in UAE has made it difficult for such organisations to offer quality service deliveries inhibit because these culture among other issues, affect strategic planning for implementation. Integrating this with what Atkinson and Castro (2008); Al-Khouri (2012), point out, anticipated services can only be achieved if the environment is conducive enough for operations to thrive. Citing a good example, it cannot be wholly disputed that e-government has not played a key role in promoting service deliveries to what in not only at per with international standards but also up to what citizens are expecting. However, a cultural practice such as fear for online transactions has negatively affected transparency and accountability as far as service deliveries is concerned. Looking at organisations such as Abu Dhabi Commercial Bank and Standard Chartered Bank, it stands that UAE is in the process of creating a customer-centric platform where delivery of high quality service is becoming crucial especially as the domestic industries is experiencing stiff competition from foreign multinational industries established in regions. In order to increase a given level of service delivery, managers must come up with strategies that conform not only to international standards but also quality of products and services expected by Saudi citizens. One of the key factors that have been developed by organisations such Standard Chartered Bank with a view to improving service delivery is customer care strategy development. Customers always buy goods and or services with one key reason; receive goods and services that create value for their money. The consequence of that is that these organisations have developed customer care strategy development so as to make them more service-oriented. This has positively improved service delivery in the sense that it has been a significant tool industries use to compete internationally as well as differentiating between competing services. Basing on their culture as analysed before, UAE citizens expect high quality products and therefore creation of customer care strategy development has helped to bridge such expectations since it serves as a standard against which subsequent service experiences are compared. As already noted earlier, perception of service excellence by users of government services is very specific; it must add value to their money or time. This is why eGovernment was introduced to show a commitment to good governance in the organization and in society at large. Connecting this to customer care strategy development, federal governments is committed to ensuring that service delivery is up to international level and that is why such strategy development must conform to quality assurance evaluations undertaken by external bodies periodically. According to Alkadi (2013), government has come up with different measures to enhance service delivery that are provided to citizens so as to ensure that any customer strategy development audited through rigorous standard methodology. For instance, in 2010 Information Technology Commission was requested to provide a report on its self-assessment so as to circulate the same information to other quality assurance organisations in UAE. After submission of the report, the Commission was also visited after three months to review and give its formative and summative judgement and such information presented to members of public either in whole or part. Federal governments in all the 7 emirates have adopted this model so as to a have a control of all sectors and ultimately ensure compliance with professional body and government requirements. Specific sector where such strategy has positively impacted service delivery is the higher education environment. In Dubai, this strategy has seen the environment divided into three segments; the first comprise of higher education institutions that were introduced by royal decree through the UAE government. The second category is the one that is quality assured by UAE government and have been established by federal agency (Commission for Academic Accreditation. The last category is comprised of higher education institutions that are based in Free Zones (Dubai). These groups are assessed and quality assured by Knowledge and Human Development Authority (KHDA). References AlGhamdi, R., Drew S. and Alkhalaf S. (2011). Government Initiatives: The Missing Key for E- commerce Growth in KSA. 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