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Information & Management 51 (2014) 120–128

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G2G information sharing among government agencies
Jing Fan a,b,1, Pengzhu Zhang a,2, David C. Yen c,*

Management School, Shanghai Jiaotong University, China
International Business School, Beijing Foreign Studies University, China
School of Economics and Business, SUNY College at Oneonta, USA



Article history:
Received 27 March 2011
Received in revised form 3 November 2013
Accepted 4 November 2013
Available online 14 November 2013

Despite its importance in government operations, G2G information sharing remains a challenge for IT
professionals worldwide. While recent literature has examined this challenge in Western countries, little
has been published on Eastern countries. We developed a four-layer model of G2G information sharing
across horizontal functional agencies and used it to conduct an analysis of sites within Chinese contexts.
Included in the model were the external environment, interagency partnership, organizational
readiness, and user expectation. Through empirical testing, we found that the authority of the upperlevel leadership, GuanXi, compatibility, top-management support, cost, process security, and expected
risks and benefits had a significant influence on the degree of G2G information sharing. However, laws
and policies, interagency trust and IT capability had no significant influence on the degree of G2G
information sharing. Also, the expected benefits and the degree had positive effect on the performance of
G2G information sharing while expected risks had no significant effect on the performance of G2G
information sharing.
ß 2013 Elsevier B.V. All rights reserved.

Government to government (G2G)
Information sharing
Realization degree
Performance of G2G information sharing

1. Introduction
Information sharing between government agencies has increased substantially due to a need to monitor and react to terrorist
and other illegal activities. It covers not only law enforcement,
health care, societal, public education, economic development, and
geographic information [15]. G2G information sharing is the
collaboration of two or more governments or governmental
agencies sharing information and cooperating with one another
through the Internet, Extranet, disks, EDI, phone, and/or other
electronic tools; it can lead to effective service and the realization
of the monitoring goals [1].
In China, different government agencies have primarily used a
hierarchical administration model. They have implemented silos in
which different functional agencies have managed their own
information resources. Today, with the development of e-government in China, most government agencies have set up their own IS,
but information sharing has been limited to the same vertical
functioning for several reasons. This has resulted in information

* Corresponding author. Tel.: +1 607 436 3458; fax: +1 607 436 254.
E-mail addresses: (J. Fan), (P. Zhang),, (D.C. Yen).
Tel.: +86 10 88818121; fax: +86 10 88810062.
Tel.: +86 21 52301231; fax: +86 21 62932982.
0378-7206/$ – see front matter ß 2013 Elsevier B.V. All rights reserved.

In China, companies have had to deal with several agencies
separately to perform similar procedures and this has resulted in
inconsistent information among agencies about the same company; e.g., fake information to the Administration of Taxation for tax
evasion, to the Administration of Tax Reimbursement and to the
Customs for additional export rebates. Horizontal functioning
agencies that operate separately without back-office information
sharing and interoperability not only provide discrete service for
companies and citizens, but also tend to allow criminal activities
with less likelihood of the company being caught [8].
Therefore, an understanding of G2G information sharing
among government agencies is likely to be important in China.
The aim of our study was therefore to understand the challenges of
G2G information sharing within China. Our study may help the
Chinese government promote its development of G2G through egovernment and also provide useful information to other
countries whose governments are at a similar stage of egovernment development.
2. Literature review
Information sharing among government agencies has the
potential to increase the productivity and performance of
government operations, improve policy-making, and provide
better services to citizens and businesses [10]. However, bringing
together an array of agencies with differing and sometimes
competing internal cultures is not an easy task [18].

Here. generally concentrating on cost. KUAI are also termed horizontal agencies or local governments.. KUAI . but difficulties occur when G2G information is shared between horizontal government agencies in China. However. One of the most important factors is TIAO TIAO Functional Agency A Functional Agency B KUAI Province-level/State Government Functional Agency A Functional Agency B KUAI City-level Government Functional Agency A Functional Agency B KUAI District-level Government Functional Agency A Functional Agency B Central/Federal Government Fig. it must meet requirements of the external environment. organizational leaders’ attitude. Government structure for TIAO and KUAI in China. a taxation bureau at a city level is usually more obedient to the Taxation Bureau at the provincial level than to the municipal government level in which it operates. and degree of automation are different in China from Western countries. multiple stakeholders are involved and every stakeholder has special challenges. Their cumulative effect can thus be represented in the model. and because the TIAO and KUAI government administrative systems play an important role in any inter-agency project. we first developed a four-layer behavioral model of G2G information sharing among government agencies. and the Peoples’ Bank of China in the same city. team. however. different countries have different types of government agencies. The creation of large software development systems is a process that should be analyzed at several levels: from the individual. Most western researchers have studied the challenges of information sharing between federal and state governments. from local government up to the central government. because: (1) G2G information sharing includes activities that occur at many layers of user (governmental employees.  The external environment Although various policies have been set up for G2G information sharing. organizational structure.  Interagency partnerships Partnership within G2G information sharing projects requires interoperability among government agencies involving complex interactions. (2) they require cooperation and participation among different users. the authority of super-management agencies become a crucial factor for G2G information sharing. Separation of TIAO and KUAI is a serious problem in China. Thus. such as that in China. 3. culture. The process is still in its early stages and the policies are not well documented. are also termed vertical or functional agencies. Decision-making for G2G information sharing is typically needed at the topmost-level of administrative management and high-level leadership is likely to influence the speed and performance of G2G information sharing adoption [24]. multi-level. From the previous study of Fan and Zhang. refers to agencies of different functions at the same level of administrative government. city-level. The overall taxation system bureau includes the district-level. The theoretical model and hypotheses G2G information sharing is a complex process with many stakeholders. it is responsible for the absence of common upper-level managerial agencies. the Industry and Commerce Bureau. There is still a lack of a unified national architecture and no formal laws defining the information. We therefore studied the overall G2G information sharing from a four-layer viewpoint. etc. This layer involves both organizational factors and technological factors among government agencies. agencies need to be ready. many authors have studied G2G information sharing by focusing on technological and organizational characteristics.g. Then. province-level. especially in the early phases. a TIAO-oriented mode is dominant.  Organizational readiness In order to participate in information sharing activities. We decided that we needed a standardized framework with tools to help manage the shared databases. Thus there should be project-wide championship by all agencies committed to implementing and overseeing information sharing at a high level. and central-level taxation bureau. individual agency. Unlike B2B systems. IT resources. to the external. Fan et al. business process. there is a network-oriented structure in China composed of ‘‘TIAO’’ and ‘‘KUAI’’ (see Fig. In a network-oriented government structure. Such super-managerial agencies for G2G information sharing are essential in coordinating system implementation. It was used to extend the scope of our study from an organizational to an interagency process. G2G information sharing requires interoperability among government agencies. an understanding of the factors influencing information sharing is critical in establishing and maintaining collaborative relationships. it is important to consider how to streamline the relationships among stakeholders in order to understand the whole process. 1. The politics. such as the Taxation Bureau. (3) they involve complicated. it is relatively easy to accomplish G2G information sharing within the vertical administrative agencies. 1). The model focuses on the behavior of those individuals creating the activities. / Information & Management 51 (2014) 120–128 To facilitate G2G information sharing. inter-agency partnerships generally focus on achieving public good or improved public service [25]. the term TIAO refers to functional administrative systems that pass information. For example. TIAO. or between state and local governments [26]. A layered behavioral model (LBM) was selected as our analytical framework. KUAI. To be effective. upper-level managerial agencies and the central government). However. e. Using diffusion theory. 121 Therefore to increase our understanding of G2G information sharing among government agencies. which generally focus on improving economic outcome. we made an empirical investigation of its use in exploring the factors influencing G2G information sharing. the Customs Bureau. creative activities.J. project.

Hence. Guanxi This is a Chinese word used to explain strong ties resulting from social networks in China. Although technological problems are also an obstacle. For G2G information sharing this requires: the agency’s trust in the quality of the data collected by other agencies [14] and expectation that participants recognize and protect the rights and interests of all others engaged in the sharing. 3. an upper-level managerial agency has the right to set rules and standards for sharing information such as statewide inventories. functions. Interagency trust Inter-organizational trust is one of the fundamental conditions for establishing a partnership. Interagency Guanxi is often formed through frequent business transactions which indicate the need for information sharing. H2. Technical compatibility requires the integration of different information systems for participating in G2G information sharing project [16]. and general legislative authority). So. Although the information can be shared to some extent when the law is untried. Guanxi has a positive influence on the degree of G2G information sharing. An institution is the topmost management agency authorized to guide the G2G information sharing initiative at a nation-wide level or project-wide level. and objectives. Interagency trust has a positive influence on the degree of G2G information sharing. agencies might easily abort the sharing with certain excuses [4]. and information clearing houses.J. 3. Guanxi is a mutual obligation to respond to requests for assistance from others. information sharing procedures. Hence.  Individual expectation Most government leaders and staff have realized the benefits of G2G information sharing. information security is needed for information transfer among different government agencies.. Therefore our external environment layer contains two parts. and rules to guide information sharing (interagency agreements. Its meaning includes concepts of commitment. upper-level leadership might provide financial resources for project development. these factors include interagency trust. while one of the obstacles is cost. Thus. Second. answering questions such as: ‘‘Which agencies have the right to collect and own information?’’.1. Furthermore. First. data standards. H4. . First. Therefore laws and policies should have a significant effect on realizing the degree of G2G information sharing.2. 3. Interagency partnership layer Partnership assumes that participants try to build a relationship to achieve common goals [6]. the extent to which government agencies share information through various electronic media tools. The protection of political benefits is the hardest obstacle in G2G information sharing. 2. ‘‘Which of it can be shared?’’. different agencies may use different hardware. H3. Interagency Guanxi is thus an important factor affecting organizational members’ attitudes towards cooperating with partners and it plays a crucial role in ensuring successful information sharing. 3. Laws and policies These define the rights of government agencies to collect and disseminate information. Third. The upper-level leadership has a positive influence on the degree of G2G information sharing. In our paper.2. and long-term mutual benefits [22]. Hence.2. Hence. Fan et al. the realization of technological integration depends on the financial support of G2G information sharing. Hence. Organizational compatibility requires little need to introduce change due to G2G information sharing fit within the current administrative practices. and even competing interests [19]. / Information & Management 51 (2014) 120–128 122 External Environment Inter-agency Partnership Organizational Readiness Individual Expectation Fig.3. 2. organizational goals and cultures into one information sharing project [13]. 3. cultures. risk reduction and even compulsory enforcement in G2G information sharing projects [3]. data definitions. Interagency compatibility Compatibility of G2G information sharing requires both technological and organizational informational systems. Upper-level leadership This involves the existence of an institutional authority that is committed to implementing and overseeing the G2G information sharing projects [23].2. government agencies participating in a G2G project have different values.1. The material includes laws. Thus it provides an agency with an optimistic anticipation of the behavior of other agencies and increases its willingness to participate in the sharing [5]. H1. Guanxi. leadership support. However. 3. Second. the perceived risks influence information sharing. including: (1) laws and policies and (2) upperlevel leadership. loyalty. This layer therefore must measure the factors that government agencies have to provide to allow effective information transfer with other layers or the coordination activities among them.2.1. legal policies. cultures. Researchers have shown that information sharing can implement effectively when government agencies share a common upper-level leadership [17]. Thus our layered behavioral model of G2G information sharing is shown in Fig.1. A layered behavior model. and compatibility. ‘‘Which agencies are permitted to access it?’’ and ‘‘How will it be shared by government agencies?’’ They also help in trust building. software and data standards.1. upper-level leadership can help build agreement. promote trust among participating agencies and clarify roles and responsibilities during the project processes. Laws and policies will positively promote the degree of G2G information sharing. 3. External environment layer This contains material that the central and local governments have agreed is needed to support the development of G2G information sharing. i.2. they can be resolved. It is not easy to integrate several different information systems.e.

It refers to the degree to which an agency is aware of.1. Process security Government agencies are responsible for a tremendous volume of public and national information. Economic costs have a negative impact on the degree of G2G information sharing. Process security has a positive influence on the degree of G2G information sharing. Three aspects are recognized as important aspects of the degree of G2G information sharing: (1) volume of information obtained from other agencies. and (3) the degree of electronic information sharing.4. 3. enhance the ability of decision and policy-making. etc. 3. first the risk of misinterpretation or misuse of the information. and governance to allow the new system to function. and reduce cost. Expected risks These refer to organizational members’ concerns about the possible challenges or losses due to G2G information sharing.4. H10b. Organizational members.5. H7. 4. Agencies with different level IT capabilities will have different attitudes towards information sharing initiatives. 3. Hence.1. Expected risks have a negative influence on the performance of G2G information sharing. resources. and improved policymaking. (2) that provided to other agencies. Employees who have mastered the new technology can facilitate the project development greatly [2]. government agencies may be unwilling to share their information. in coordinating with customers and reduction in human resources. Cost The cost of G2G information sharing is primarily related to development. The questionnaire was developed based on the previous research by either adapting questions based on prior validated . 3. set-up. Hence.2. awareness by users. 3. Many researchers have focused on technological and organizational characteristics. Hence. Expected benefits G2G information sharing has the potential to improve information quality. allowing the real benefits of G2G information sharing to increase.J. who were not fully aware of the potential benefits of G2G information sharing. There are three kinds of expected risks. / Information & Management 51 (2014) 120–128 H5. 3.2. and other advantages that government agencies achieved through sharing projects.3.3. has the. access authorization. H11b. 123 3. and process security. Expected benefits have a positive influence on the performance of G2G information sharing. as shown in Fig. Questionnaire design Organizational members’ expectations prior to the initiation of G2G information sharing activities will influence the attitude and initiative of employees towards the sharing process. were found to be unwilling to participate in it. Expected benefits have a positive influence on the degree of G2G information sharing. Hence. computer monitoring. second that information sharing may result in the exposure of sensitive information.4. which include top management support.4. much of which may contain enterprise or personal privacy information. 3. H9. streamline the business process.3. IT capability This refers to the level of IT resources. IT capability. Thus we constructed a model of G2G information sharing for our research. A greater degree of information sharing will lead to increased performance. Hence. Due to a perceived fear of losing political power to others. IT capability has a positive influence on the degree of G2/G information sharing. Information security cannot be controlled by one agency once this information is shared with others [20]. Financial performance of G2G information sharing includes reduction in bureaucratic processes with other agencies. Administrative performance not only involves increased information quality and streamlined data management but also better services. innovation will continuously occur when top management within one agency appreciates the value of innovation and actively creates a favorable atmosphere the IT system [7]. Expected risks have a negative influence on the degree of G2G information sharing. H6. By increasing the amount of information sharing government agencies will improve the interaction and integration of administrative processes. Meanwhile. H8. It is difficult for agencies to spare their limited resources to make information available for the benefit of other agencies. transaction cost. Hence. H12. economic cost.1. and other IT skills within a government agency that eases participation in G2G information sharing projects [11]. H10a. Lack of awareness of the benefits of G2G information sharing has been shown to be a major reason in obtaining agency participation [21]. the IT skill of an agency’s employees is a factor that may constrain the implementation of new technologies. Countermeasures involve policy statements. operating. Organizational readiness layer This measures the capability of a government agency to participate in a G2G information sharing project. IT expertise. Top management support within an agency This is one of the most frequently discussed factors in the literature on successful system implementation. Research methodology 3. Compatibility has a positive influence on the degree of G2G information sharing. increase administrative efficiency. Realization and performance of G2G information sharing Performance of G2G information sharing refers to the degree of administrative. commitment. 3. financial. authentication. especially when the costs are uncertain and the benefits are not clearly defined.3. Fan et al. third the political risks of losing authority. H11a. maintenance. and communication and training costs. Individual expectation layer 4. Hence. more efficient monitoring.3.3. Top management support has a positive influence on the degree of G2G information sharing.

based on the pretest and pilot study. northern. 3. Of the 300 questionnaires distributed. The items regarding expected benefits and risks were integrated using the research of Zhang and Dawes. the items about Guanxi were designed by transforming interpersonal Guanxi to interagency Guanxi according to the research of Shin. and 40 questionnaires were removed due to their having incomplete and invalid data. and those government agencies in China responsible for business activities have made urgent demands for information sharing and business interoperability.b) Expected Risks(H11a. several famous projects of G2G information sharing have begun to emerge in China. [12]. Fan et al. The items about performance of G2G information sharing were adapted from the research of Iyer et al. The items of upper-level leadership were derived by synthesizing the research of Liu. administrative and technical employees. Model of influencing factors on G2G information sharing. Basic demographics of these respondents are shown in Table 1. packages containing a cover letter stating the study’s objective and a copy of the finalized questionnaire were distributed to a large group of interviewees from 42 government agencies based in northwest.9% (H12) Individual Expectation Expected Benefits(H10a. indicating that the constructs possess adequate conceptual validity. Economic cost. Data analysis and results 5. Guanxi. Process security was derived from the research of Chang and Wong. The remaining 216 questionnaires were used for data analysis. Yang and Maxwell. Other questionnaires were sent to informants by mail. Thereafter. including in the projects of Enterprises Basic Information Interchange Platform. and Yang and Maxwell. To improve the validity of the questionnaires.5% 28 13.8% 24. Several types of members in each agency participated in the survey.9% 19. 5. interagency trust.b) Performance of G2G Information Sharing Fig. including government leaders. and Company Credit Information System.1. and sentence structure were revised and several items that were irrelevant to the Percent Category Inter-agency Partnership Layer Inter-agency Trust(H3) Guanxi(H4) Compatability(H5) Frequency Demographic information Agency sizes <50 employees 50–100 employees 100–200 employees >200 employees 14 40 51 111 6. a pilot study was executed by administering the questionnaires to 149 government employees in several government agencies. IT capability. The items concerning degree of G2G information sharing were based on the measures of Akbulut et al. The items of laws and policies were based on the work of Liu [15]. Hameed. Gil-Garcia and Pardo [9].1% 44..5% 28 15 5 13. a 5-point Likert Scale was used in the questionnaire (with values ranging from 1 = strongly disagree to 5 = strongly agree). 4.2. cost were developed by synthesizing the research of Akbulut et al. top management support. government agencies rely on a high volume of integrated information provided by enterprises to set up policies and make decisions. process security. Ishman and Sanders. Problems concerning grammar.0% Administrative levels District level City level Province level 73 52 91 33. External Environment Layer Laws and Policies(H1) Upper-level Leadership(H2) Realization Degree of G2G Information Sharing Organizational Readiness Layer Top-management Support(H6) IT Capability(H7) Economic Cost(H8) Process Security(H9) Areas East China Northwest China North China 35 97 41 36. / Information & Management 51 (2014) 120–128 124 Table 1 Sample demographics.0% 53 24. Company Reputation Platform. Items about interagency compatibility.6% 51. measures or adjusting the variables’ definitions into a question format.3% 40. compatibility. For the measures.4% 100% domains of the designated constructs were removed. .4% Positions Administrative employees Technical employees Government officials 85 87 44 216 39. EPort. more than 80% of them were administered in a face-to-face meeting in order to avoid any misunderstanding. top management support and IT capability.3% 20.1% 42. As a result.1% Functional agencies Administration of industry and commerce Administration of national taxation Administration of local taxation Administration of customs Administration of audit Administration of quality supervision.9% 2. All these agencies have participated in or were preparing to participate in G2G information sharing activities. phrase. As such. Counsell and Swift. upper-level relationship. The items regarding interagency trust were adapted from the research of Chang and Wong. Appendix A shows all survey items used to measure each construct. There are several reasons for this focus: enterprises have the closest relationships with government agencies within their life cycles (from registration to cancellation).5% 18. Specially.5% 23. Data collection and samples The study’s target samples were concentrated on those agencies which are responsible for the regulation and provision of services to an enterprise’s economic and financial activities. 256 were returned. The initial questionnaire was reviewed by two professors specializing in MIS and e-government. inspection and quarantine Peoples’ bank of China China banking regulatory commission Administration of finance Administration of foreign economic relation & trade 40 18. and then again reviewed by four officials of government agencies participating in G2G information sharing. Revisions were made. Measurement model We conducted a principle components analysis on the variables and found thirteen important ones: laws and policies. and eastern China. information sharing among agencies is one of the most important areas of e-government development for China.3% 26 6 12.2% 1.J.0% 6. Next. There were no major problems with the content of the questionnaire.8% 9 4 4.0% 2.

process security. Law and policies.388 0.114 0.3.217 1 expected benefits.155 0. H3. except that for interagency compatibility and realization degree.95).47 3. It plays an important role to promote G2G information sharing in China. The root mean square error of approximation (RMSEA) was 0. Therefore.050 0.043. and time into the process.05 0.194 1 0. This structure was subjected to a confirmatory factor analysis using LISERL8.418 0. and H9 were supported.2.431 0. H10a. H11b were not supported.550 0.71 0.09 2. 5.413 0.293 0.421 0.253 0.275 0.425 0.227 1 0.31 3.01 1.320 0.351 0. H8.227 1 0.50. especially in the early stage of interagency projects when the policies and standards are not incomplete.143 0.379 0.109 0.91 0.431 0. Interagency partnership and G2G information sharing Hypothesis 3 was not supported in our research.175 0.117 0. Therefore.9 0. The goodness-of-fit indices suggested that the structure had excellent model fit.1. resulting in issues of e-government incompatibility nationwide.724 0. other factors are dominant in influencing G2G information sharing. human resources.362 0.50 in order to assess whether all measurement items were appropriate to each construct. 6.96 0.337 0. The goodness of fit index (GFI = 0.078 0.J.126 0.75 0. and IT capability had no significant effect on the degree of G2G information sharing.388 0. Table 2 shows the means.411 0. upper-level leadership is especially important when G2G information is shared among horizontal government agencies. Authority of upper-level managerial agency. H6.43 4.380 0.68 1. H11a.2.270 0.112 0. Most values of Cronbach a were greater than 0. H7. However. Expected benefits had significant influence on the performance of G2G information sharing.64 value was considered acceptable (see Table 3).304 1 0. Next. Organizational readiness and G2G information sharing 6. economic cost. except for the degree of G2G information sharing.313 0. H10b. interagency trust.244 0. 6. Hypothesis 2 was strongly supported. Variables Mean s.234 1 0. H5. Expected risks had no significant effect on the performance of G2G information sharing. Hypothesis H2. .84) were both acceptable.010 1 0.046 0. a vertical system has dominant power.034 0.96 0.192 0. government agencies have set up their own IS.410 0.69 3.46 3.88) and adjusted goodness of fit index (AGFI = 0.310 0.50’s maximum likelihood method was used to compute it. expected benefits. The confirmatory fit index (CFI) of 0. There is a lack of laws and policies promoting G2G information sharing in the initial stages of e-government development in China. The ratio of x2 to the degrees of freedom was acceptable (x2/df = 1. The analysis indicates that respondents from governmental agencies were highly sensitive to the word ‘‘trust.91 0. Hypothesis H1.317 0.d. G2G information sharing can be efficiently promoted only when organizational leaders are willing to invest enough money. which is less than the cutoff maximum of 0. H9.260 0.081 0.366 0.346 0. Most AVEs for the constructs in the study were greater than 0.06 2.22 3.98 exceeded 0. and expected risks had significant influence on the degree of G2G information sharing.394 0.195 1 0. As such. China. Although some national policies were set up in 2002 by the central government. and LISERL 8. though this is not in agreement with the findings of many previous studies.070 0. 1 2 3 4 5 6 7 8 9 10 11 12 13 Law and policies Upper-level leadership Interagency trust Guanxi Compatibility Economic cost IT capability Top management support Process security Perceived benefit Perceived risk Realization degree Performance 3.19 1.49. External environment and G2G information sharing Laws and policies have not been found to have significant effects on G2G information sharing among government agencies in H6. many local agencies continued to follow their own policies. whose 0.143 0. at least at the 5% level. standard deviations. trusting relationships with other governmental agencies because they are served and led by the Chinese Communist Party.57 3. topmanagement support. Table 4 shows the regression results of SEM.56 3.70. The social relationship network built by it has become an important source of competitive edge and competitive advantage for business organizations in China.21 3. defined their own business workflow and data formats. In a network-oriented governmental structure like China.074 0. The AVE was calculated measuring the variance that a construct captures from its indicators relative to the variance in measurement error. Hypothesis 1 was not supported. Guanxi. / Information & Management 51 (2014) 120–128 125 Table 2 Descriptive statistics and constructs correlations.87 1.02 0. incompatibility is a critical barrier to G2G information sharing. Discussion 6.110 0.66 1 0.42 and 0.8. Table 3 shows the results of CFA.025 0. There are also no existing regulations to guarantee the enforcement of the policies issued by the central government.287 0. From early stages of e-government development in China. different levels of Chinese governmental agencies have set up many policies and regulations regarding e-government and government information resource management to meet their own needs.337 0.’’ Most of the respondents answered that their agencies had built good. realization degree and performance of G2G information sharing. The results showed that all the standardized loadings were significant.296 0.309 1 0.300 0. H12 were supported.326 0.324 0.045 0. as well as ensure that they are ready to change previous administrative processes.82 0. compatibility.108 0. Fan et al.479 0.184 0. the Cronbach as were tested to asses the convergent validity of our results.168 0.180 1 0.033 0.172 0. The degree of realization had significant influence on the performance of G2G information sharing.096 1 0. which were 0.340 0.394 0. Hypothesis 5 was supported in our research. In recent years.328 0.108 1 0. H8. Structural model SEM was used to estimate parameters of the structural model.344 0. expected risks. and correlation of these constructs.90. Guanxi is a highly significant factor in affirming Hypothesis 4. H4.

58 0.81 0.636 0.78 0.91 0.01 RD1 0.794 AI2 AI3 AI4 Table 4 Regression results of structural equation model test. Fan et al.01 <0.78 0.01 <0.14a 0.01 <0.34 0.01 <0.01 <0.01 <0.83b 0.63 <0.01 <0.01 <0.67 0.01 EB1 EB2 EB3 EB4 EB5 EB6 EB7 ER1 ER2 ER3 ER4 ER5 0.21b 0.20a 0.35 2.83 0.01 <0.83 0.796 0.03 0.75 <0.01 TS1 TS2 TS3 IT1 IT2 IT3 IT4 IT5 EC1 EC2 EC3 EC4 EC5 PS1 PS2 0.04 0.84 0.01 <0.71 0.01 <0.01 <0.01 <0.00 2.08a 1.86 0.01 <0.01 <0.01 <0.01 0.19b 0.01 <0.92 0. Layers Constructs Items Reliability AVE Loading p External environments layer Laws and policies LP1 LP2 LP3 AU1 AU2 AU3 0.J.03 0.50 0.95 0.849 0.833 0.01 AT1 AT2 GX1 GX2 GX3 AC1 AC2 AC3 0.64 2.01 <0.94 0.01 <0.96 0.99 <0.61 0.81 0.70 0. Significant at 1% level.68 0.01 <0.01 <0.18b 0.71 2.01 <0. H1 H2 H3 H4 H5 H6 H7 H8 H9 H10a H11a H10b H11b H12 a b Path Path coefficient t value Results Law and policies ! Realization degree Upper-level leadership ! Realization degree Inter-agency trust ! Realization degree Guanxi ! Realization degree Compatibility ! Degree of realization Top management support ! Realization degree IT capability ! Realization Degree Cost ! Realization degree Process security ! Realization degree Expected benefits ! Realization degree Expected risks ! Realization degree Expected benefits ! Performance of G2G IS Expected risks ! Performance of G2G IS Realization degree ! Performance of G2G IS 0.05 <0.01 <0.90 0.60 0.763 0.14a 0.67 0.73 0.839 0.68 0.818 0.01 <0.51 <0.55 <0.68 2.90 0.65 0.01 <0.83 0. / Information & Management 51 (2014) 120–128 126 Table 3 Confirmatory factor analysis results of the model.01 Upper-level leadership Inter-agency partnerships layer Interagency trust Guanxi Interagency compatibility Organizational readiness layer Top management support IT capability Cost Process security Individuals expectation layer Expected benefit Expected risks G2G information sharing Realization degree of G2G information sharing Performance of G2G information sharing RD2 RD3 AI1 0.01 <0.77 0.80 0.87 0.01 <0.829 0.87 0.72 0.31 0.57 0.01 <0.85 0.05 <0.14b 0.29 2.11 Not Yes Not Yes Yes Yes Not Yes Yes Yes Yes Yes Not Yes Significant at 5% level of significance.43 2.42 0.84 0.01 <0.79 2.826 0.52 0.49 0.01 <0.84 <0.09 2.01 <0.01 <0.19a 0.53 0.01 <0.936 0.01 <0.01 <0.59 0.76 0.50 0.67 0.01 <0.738 0.68 0.903 0.01 <0.01 <0.72 0.62 0.93 18.01 0.17 0.63 0.59 0.87 0.62 0.86 <0.24 0.58 0. .95 0.69 0.01 <0.

e-government projects have been development since 1990s and most agencies have set up their own IT Centers. 4-Our agency has good external IT consultants to support information sharing. resulting agencies waiting for others to invest. However. There were. External environment layer Laws and policies 1-The laws and policies about G2G information sharing are complete in China. that compatibilities.J. Hypothesis 7 was not supported. 6. Economic cost 1-Our agency has enough financial power to develop the information sharing system. 2-The volume of information provided by our agency is enough. 3-The laws and policies about G2G information sharing can be enforced in China. 2-Our agency cooperates and makes joint decision with other agencies. top-management support. We attempted to model the processes needed and determine what factors influence G2G information sharing between agencies. 5-Our employees have enough IT skill in operating computers. 2-Our agency has enough financial power for maintenance the information sharing system. Guanxi 1-Our agency communicates with other agencies frequently. 7. 4-Our agency has enough financial power to train our employees for participating in the information sharing. system platforms and websites. Degree of G2G information sharing 1-The volume of information collected by our agency is sufficient. the survey was conducted only within agencies responsible for the regulation of and services to an enterprise’s economical and financial activities in China. We found that Guanxi is significant among business organizations and government agencies. 2-The upper-level managerial agencies have the right to set up rules for G2G information sharing. 3-We visit other agencies frequently. cost. Conflicts occur when both G2G information sharing and information security are concerned. 2-The information sharing has increased administrative efficiency. . 3-The upper-level managerial agencies have the right and financial power to support and monitor G2G information sharing. 3-Our agency has adequate expertise to support information sharing. 3-The electronic degree of information sharing is high. Conclusion and limitations The central government in China has recently decided to promote functions. Fan et al. process security and political benefits also show have significant influence on G2G information sharing. supporting Hypothesis 10a and 10b. More people will have access to the transmitted factors. and thus improve collaborating among government agencies. 127 Appendix A List of items by constructs. that upper-level leadership is especially crucial to coordinate to reduce conflicts among government agencies. resulting in increased likelihood of information leaks or misuse. some limitations to our research. IT capability 1-Our agencies has good information system infrastructure to support information sharing. Also G2G information sharing involves more than one agency. 2-The laws and policies about G2G information sharing are consistent in China.4. Interagency partnership layer Interagency trust 1-Our agency trusts that other agencies will fulfill their obligations. Acknowledgements The work on this paper was supported by the National Science Funds in China (Project number: 71103021) and by the National Science Funds in China (Project number: 70533030). 3-The information sharing has integrated administrative services of different agencies. the more severe potential security problems there will be. It is apparent that expected risks prevent agencies from participating in G2G information-sharing. 2-Our agency has adequate experience to implement integrated information technology. 2-Our agency has the same data standards as other agencies for information sharing. Organizational readiness layer Top-management-support 1-The top-management of our agency is interested in information sharing 2-The top-management participates in the design and detailed processes of information sharing. Expected benefits and risks of G2G information sharing Our results indicate that the expected benefits have a significant positive effect on the degree and performance of G2G information sharing by government agencies. / Information & Management 51 (2014) 120–128 It is possible that G2G information sharing may be hindered by high costs. the sample data was primarily collected during the same period. G2G information sharing Performance of G2G information sharing 1-The information sharing has reduced administrative cost. it is clear that Hypothesis 11b was not supported. Interagency compatibility 1-Information sharing with other agencies is compatible with our agency’s existing information systems and/or other electronic applications. Information sharing with other agencies is consistent with our agency’s goals and needs. Thus. However. 5-Our agency has enough financial support to train our employees for participating in the information sharing. that perceived risks of political power negatively affects information sharing. Upper-level relationship 1-There are the upper-level managerial agencies that are responsible for information sharing. The higher the degree of information sharing between agencies. 2-Our agency trusts that other agencies will do positive action to us when sharing information. We developed and tested an empirical model of a G2G information sharing system to gain a better understanding of what is needed and how its parts affect its ability to act efficiently. Second. 4-The employees have improved their service awareness. First. there is no national policy that provides a distribution mechanism for cooperative parties in different function agencies. 3-Our agency has enough financial power to integrate the system with other agencies. 3-The top-management participates in the design and detailed processes of information sharing. Our results also indicated that G2G information sharing promoted social benefits. which supports Hypothesis 11a. expected risks fail to produce negative effects on the performance of information sharing. improve their coordination. however. and thus it fails to reflect the specific circumstances in different developmental phases when agencies participate in the same G2G information-sharing project. In China. interagency trust and IT capability have not been found to be significant.

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