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Government Information Quarterly xxx (2016) xxx–xxx

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Government Information Quarterly

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Digitally-enabled service transformation in the public sector: The lure of


institutional pressure and strategic response towards change
Vishanth Weerakkody a,⁎, Amizan Omar a, Ramzi El-Haddadeh b, Moaman Al-Busaidy c
a
Business School, Brunel University London, Uxbridge, Middlesex, UB8 3PH, United Kingdom
b
College of Business and Economics, Qatar University, Doha, Qatar
c
Oman Airport Management Company, Oman

a r t i c l e i n f o a b s t r a c t

Article history: Digitally-Enabled Service Transformation (DEST) projects in public sector institutions are viewed as a choice of
Received 9 February 2016 strategic response towards changes in policy. Such transformation can destruct institutional stability and legiti-
Received in revised form 15 June 2016 macy and result in failure if the complex institutional setting of the public sector is not comprehended in the
Accepted 15 June 2016
change-institutionalisation effort. Through a multiple case enquiry, this study examines how institutional pres-
Available online xxxx
sures contribute towards the emergence of DEST in public agencies and how newly introduced transformation
Keywords:
is implemented and diffused within the institutional setting. The findings highlight that as a form of technology
Public sector driven change, DEST is characterised and shaped dominantly by continuous interplay with institutional elements
Service transformation and the impact of these interactions define the institutionalisation, deinstitutionalisation and re-
Institutional theory institutionalisation of DEST. Ability to recognise such stages and provide the required support will determine a
Digital government public institution's ability to effectively manage DEST and attain its strategic goals.
Organisational change © 2016 Elsevier Inc. All rights reserved.

1. Introduction evolving nature of technology often adversely affects DEST by stimulat-


ing unanticipated pressures on the organisation and producing uninvit-
The introduction of digital government services in the mid-late ed outcomes that alter organisation properties (El-Haddadeh et al.,
1990′s has stimulated efforts across public administrations to transform 2013; Heinze & Hu, 2005).
their services using technology. The internet in particular is seen as a Reflecting on various examples of DEST in the public sector around
catalyst for enabling efficient, low cost and transparent services to citi- the globe, most often the undesirable outcomes have been rooted in
zens through integration and sharing of knowledge and resources technology related issues. This is due to the reason that most DEST pro-
(Janowski, 2015; Sivarajah, Irani, & Weerakkody, 2015). Such efforts jects are not viewed as an integrated institutional process of change, but
have been facilitated by the implementation of digitally-enabled service rather as isolated projects that are implemented, often reactively, to pol-
transformation (DEST) programs, which have helped improve interac- icy decisions, using private sector thinking without due consideration
tions between public institutions and stakeholders, and changed the for the complex public sector institutional setting (Currie & Guah,
public service delivery landscape (Danneels & Viaene, 2015). 2007; Currie, 2012; Janowski, 2015).
Although DEST has helped public institutions to radically improve Unlike other institutions, public organisations compete for political
service delivery, transparency and accountability and resulted in re- power, institutional legitimacy, as well as social and economic fitness
duced costs, multitude of challenges throughout the transformation (Cordella & Tempini, 2015). These organisations are shaped by the in-
journey has impeded many DEST efforts from being institutionalised teractions between elements within environment that they operate in,
(Danneels & Viaene, 2015; Dwivedi, Weerakkody, & Janssen, 2012; rules and norms imposed on them, behaviours of their internal systems,
El-Haddadeh, Weerakkody, & Al-Shafi, 2013). Ironically, although and cognitive patterns of their inhabitants (Klievink, Bharosa, & Tan,
DEST is empowered by ICT, the use of technology itself has been identi- 2015). As part of the institutional elements, an organisation evolves
fied as the most significant factor impeding the institutionalisation pro- through mutual interactions of various sub-institutions such as regula-
cess (Diniz, Birochi, & Pozzebon, 2012). This is because the rapidly tors, society and competitors. In this vein, digital technology is often
used as a catalyst to shape new forms of organisational functions and
in helping the government to increase public sector legitimacy in the
⁎ Corresponding author.
E-mail addresses: Vishanth.Weerakkody@brunel.ac.uk (V. Weerakkody),
digital-age through integration of various functions between public
Amizan.MohamedOmar@brunel.ac.uk (A. Omar), rhaddadeh@qu.edu.qa agencies. In pursuit of legitimacy, the ‘new functions’ will eventually de-
(R. El-Haddadeh), moaman@omanairports.com (M. Al-Busaidy). fine how organisations should evolve, in terms of their structures,

http://dx.doi.org/10.1016/j.giq.2016.06.006
0740-624X/© 2016 Elsevier Inc. All rights reserved.

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
2 V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx

culture, and systems to achieve the desired goals. Knowing this, imple- organisation which affect outcomes (Baptista, Newell, & Currie, 2010;
mentation of digital technology should be viewed as an integrated Baptista, 2009; Diniz et al., 2012; El-Haddadeh et al., 2013; Mousa,
institutionalisation process of change on an ongoing basis, rather than 2013). In this context, the fact that technological changes in organisa-
a single view of isolated technology implementation case on reciprocal tions are closely related to a social process, mediated by other formal
basis. Therefore, potential challenges, complexities and associated neg- or informal institutional structure, political influences and management
ative outcomes of DEST should be anticipated and approached accord- strategies, is confirmed (Sharif, Troshani, & Davidson, 2014). Therefore,
ingly. In addition, the fact that technological change is a complex digital-led solutions should not be viewed as merely ‘tools’ to produce
social process driven by organisational structure, politics and manage- and deliver services, but as part of organisation practice that requires
ment strategies should be thoroughly understood in order to facilitate changes in ‘taken for granted activities’, including cognitive abilities to
the institutionalisation of DEST (Irani & Kamal, 2015). Therefore, the modify existing culture, sanction of new procedures to reinforce actions
central question to this research is: and regulating practices to form new norms (Azad & Faraj, 2011;
Al-Busaidy & El-Haddadeh, 2011; Baptista, 2009).
How is DEST implemented and diffused within public organisations
In this backdrop, it is vital to recognise the events that trigger the
through the process of institutionalisation, deinstitutionalisation and
deinstitutionalisation stage in change – a stage which is also known as
re-institutionalisation?
‘pre-institutionalisation’ (Tolbert & Zucker, 1999 from Scott, 2014),
This research question offers the frame of reference to investigate which starts the institutionalisation cycle of change. This analysis
the factors inflicting institutional pressures and the role of isomorphic should then be followed by a key question that examines how a public
mechanism, which over time embed the Digitally-Enabled services in organisation secures a common structure through ‘typification’ events
working practices of the public agency that undergoes transformation. and what are the mechanisms used to rest the continuity of this
As such, the question focuses on deinstitutionalisation and re- structure.
institutionalisation processes of mutual transformation underpinning
the interplay between technology and its hosting organisation. This 2.2. Institutional theory and the institutionalisation of change
focus aims to analyse how Digitally-Enabled services (as structure), is
shaped and shapes its organisational context of use, and how this inter- Several studies adopted Institutional Theory as a potential lens to
play then underpins the institutionalisation of a service in the working study the institutionalisation process of ICT-led changes in the Public
practices of the public agency. In this respect, using a case study ap- Sector, emphasising that organisations interact with its internal and
proach and review of the existing literature, the paper examines how external environment to achieve legitimate status, or state of being
technology institutionalisation occurs in public organisations, and widely accepted or institutionalised (see for example Al-Busaidy &
more precisely how institutional logics relating to technology imple- El-Haddadeh, 2011; Diniz et al., 2012; El-Haddadeh et al., 2013;
mentation are diffused within organisations through three isomorphic Panagiotopoulos, Elliman, & Fitzgerald, 2011; Phang, Kankanhalli, &
processes i.e. coercive, mimetic and normative. The findings will be Ang, 2008; Zucker, 1988). The basic assumption made utilising this the-
used to extrapolate the challenges and complexities of digital-led trans- ory is that – technology becomes institutionalised in an organisation
formation from the perspective of public agencies. This study offers a when it forms as routines of the organisation's inhabitants, which
reference point for practitioners and researchers involved in the new then gradually reduces the need for cognitive efforts (Baptista et al.,
era of digital-led government transformation projects – such as e-gov- 2010). Recurring interactions between the technology or structure
ernment, enabling them to relate implementation paradoxes and asso- and the organisation's inhabitants or actors are required in order to
ciated challenges. The broader aim of the study is to draw lessons from achieve this status (i.e. routinised actions) over time and space through
multiple public agencies on the trajectory of institutionalisation of digi- different modalities and actions. The interplays, which produce conse-
tal-led service transformation projects that are aimed at delivering cost quences – both intentionally and unintentionally, will later shape new
savings for government and improved service outcomes for citizens. institutional structure forming organisational routines and eventually
The paper is structured as follows. The next section presents an in institutionalised practice (Veenstra, Melin, & Axelsson, 2014; Veenstra,
depth analysis of the literature that shapes this research followed by a Janssen, & Tan, 2010).
discussion of the process of institutionalisation and deinstitutionalisation Tolbert and Zucker (1991, quoted from Scott, 2014) further dissected
of digital-led transformation in public agencies and various dimensions of the institutionalisation process from a micro-level perspective and ex-
it. The proceeding section explains the research framework and approach plained that a newly introduced invention would undergo stages known
driving the study, followed by findings and discussion. The final section as ‘habitualisation’ and ‘objectification’ before it is institutionalised.
concludes with a discussion of the research contributions, implications ‘Habitualization’ is a stage where new practices (or in this context
to theory and practice. known as structure) are produced as the result of a ‘typification’ process,
which is a micro-process where organisational inhabitants give meaning
towards a new innovation or change according to their individual belief.
2. Literature review As actors respond differently using a diversity of evolving approaches, va-
riety of new structures are created and proposed as a solution or response
2.1. Digital-led service transformation in public institutions towards the new innovation or change. According to Scott (2014), the oc-
currence increases vulnerability in the habitualisation stage, thus reducing
As a policy instrument, digital initiatives continue to flourish in ex- the chance of realising a common solution to enable movement to the
pectancy of enhancing the public service delivery system, lowering op- next stage, towards institutionalised practice. ‘Objectification’, a stage
erational cost and bettering government controls on information and after the ‘habitualization’ - is a stage where organisational inhabitants
data as well as transparency and efficiency (Mergel & Desouza, 2013). start to develop consensus among them towards the value of a structure,
However, many Digital Enabled Service Transformation (DEST) initia- to set common agreeable practice (Clegg, Hardy, Tawrence, & Nord, 2006,
tives have failed to realise such a context due to the complex p.p. 820). The final stage of the institutionalisation process – known as the
organisational structures, as well as homogeneous values and beliefs sedimentation stage, involves embedding the common practice that
among the institutional actors, which often inhibit information sharing was derived from the previous stage, as part of organisation culture.
in public agencies (Currie, 2012; Lounsbury, 2008; Lounsbury & Completion of the three stages ensures institutionalised practice in any
Boxenbaum, 2013). Such issues are further compounded by organisation.
unsupportive legislations and use of complicated technology that Therefore, in the context of institutionalising DEST in the public
demotivate users and stimulates unanticipated pressures towards the sector, an understanding towards both institutionalisation and

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx 3

deinstitutionalisation events, as well as underpinning logics that drive misaligned pillars can cause organisational imbalance and state of ille-
the transformation process is vital. This understanding will provide a gitimacy, thus motivating different choices and actions to be taken by
clearer view of the institution's characteristics and behaviour and offer institutional actors for different ends (Scott, 2014). This situation is
clues for intervention, thus allowing a desirable institutionalisation pro- called ‘deinstitutionalisation’ and is posed as a trigger for institutions
cess in the organisation. to undergo change where current institutionalised practices become
A gap seen in the literature is the lack of discussion about the inter- dysfunctional or unattractive (Scott, 2014). Zucker (1988) associates
play between institutional actors, such as the stakeholders and this phenomenon with “modification of rules under the pressures of
organisational structures like technology and policies, and how the out- varying circumstances”, which often starts with symptoms such as ero-
comes of these interrelationships affect the institutionalisation of DEST sion of beliefs that finally give rise to the questioning of matters taken
in public sector organisations (Basettihalli, Kim, Lee, & Noh, 2010; for granted, and depletion of regulative systems that increase the
Currie, 2012; Veenstra et al., 2010), as well as lack of focus given to chances of unfit practices being discontinued. According to Sine and
the deinstitutionalisation event. Therefore, it is possible to imply from Tolbert (2006), the change of practice in an organisation projects the
these arguments that factors associated with institutional pressures, as symptom of early deinstitutionalisation stage, and the outright aban-
well as other institutional elements need new studies to cover today's donment of certain institutionalised practice shows an extreme
rapidly evolving DEST setting. deinstitutionalisation case, while the gradual deinstitutionalisation lies
Hence, this study emphasises the role of cognitive processes (mi- between the two scenarios. Most often, the process is given a myopic
metic isomorphism) in the development and proposal of new structures view as institutional pressures.
as a response towards newly introduced innovations and change, as As institutions work as forces upon individuals and organisations,
well as the role of regulatory frameworks (coercive isomorphism) and they create social pressures and restrictions that set boundaries for
morale (normative isomorphism) in determining and transmitting the what is accepted and what is not. Resembling the three pillars of an in-
common, agreeable practice to form an institutionalised behaviour. stitution, the three types of institutional pressures are identified as: (1)
Meanwhile, to understand deinstitutionalisation in this context, much Normative pressures or social pressures that entailed the moves of orga-
focus is given to the roles of functional and environmental pressures nisations and its members to conform to certain norms, and most often
in forming the trigger points for transformation during the pre- associated with professionalisation; (2) Coercive pressures that stems
institutionalisation stage. from political influence and the need for legitimacy, such as regulations
or laws imposed, as well as expectations on organisations such as
2.3. Isomorphism process - a product of deinstitutionalisation achieving certain technical or service standards; and (3) Mimetic pres-
sures that occur resulting from standard responses to uncertainty, as
Institutional theory provides explanation of why organisations outlined in Fig. 1. Oliver (1992, as in Scott, 2014) links normative pres-
operating in a particular sector resemble each other to a certain degree. sures to social pressures which emerge due to differentiation among so-
The concept of ‘fields’ in institutional theory emerged to draw together cial groups that increase fragmentation of common understanding,
all organisations meeting together to attain the same kind of needs, causing deviation in practice members of a society or organisation. He
rather than simply emerging as the product of the natural interaction also re-classified coercive pressures into two sub-types of functional
of organisations (Frumkin & Galaskiewicz, 2004). Institutionalisation and political pressures, which arise from perceived problems in perfor-
process is intimately tied with this concept and organisation fields re- mance levels regarding institutionalised practice, and pressures that are
flect the slow homogenisation and convergence of organisational derived from shift in interest of political power supporting current
forms. Although many factors contribute towards the shaping of this institutionalised practice, respectively.
analogue practice, culture is recognised as the prominent factor affect- Innovation is often introduced in an organisation as a strategic re-
ing the organisation inhabitants' behaviours. Culture, is entrenched in sponse towards pressures, thus causing the organisation to undergo
knowledge and practices that are commonly understood, acted upon, an institutionalisation process. The whole process is driven by isomor-
disseminated, and sediment in the organisation. This process is known phic mechanism, which is a mechanism where an organisation aims
as institutionalisation. When the institutionalised practice or commonly to resemble others (within the same institutional or service setting)
held model of the individuals or any social organisation is spread to by having similarity in forms, shapes and structures. When mimicking
others and embraced, it will form an institution – a collective environ- the pressures, there are three types of isomorphism: (1) coercive iso-
ment that embodies the ‘pre-determined scripts’, which are used as a morphism – compliance by expedience through indicators of rules
lens to make sense of the world. In the context of this research, the con- and sanctions; (2) normative isomorphism – which cautions towards
cept of ‘pre-determined scripts’ rationalise why public organisations social obligations through indicators of certifications and accreditations;
within the same environment often react and behave similarly despite and (3) mimetic isomorphism – cautions towards ‘taken for granted ac-
of their distinct functions. tivities’ through indicators of prevalence. These three mechanisms can
According to Scott (2014, p.56) an institution “…comprise regula- overlap and intermingle, but they tend to derive from different
tive, normative, and cultural cognitive elements that, together with conditions.
the associated activities and resources, provide stability and meaning Thus to understand how institutions arise, maintain and
to social life”. Institutions operate in an environment consisting of undergo changes, institutional study must encompass both the
other institutions, called the institutional environment. The broader en- deinstitutionalisation and institutionalisation process. This paper
vironment influences every institution. In this environment, the main therefore analyses which factors are inflicting institutional pres-
goal of the organisations is to survive. Therefore, they need to succeed sures causing deinstitutionalisation in public agencies. We draw
both – within the scope of economy and established legitimacy within upon institutional theory, focusing on the isomorphic mechanism
the world of institutions. Hoffman (2001) summarised that institutions amidst the institutionalisation stage of digital-led service transfor-
are made from three pillars: regulative, normative and cultural cogni- mation in public agencies.
tive, which form a continuum moving “from the conscious to the uncon-
scious, from the legally enforced to the taken for granted”. In a stable 3. Methods
situation, persistence and reinforced practiced can be observed, as
they are taken for granted, socially validated and regulatory backed. 3.1. Research design
These pillars provide support to the systems in the institutions, as
well as act as the roots in developing and sustaining institutionalised This research adopts an interpretive method, as in other IS studies
behaviour. Aligned pillars result in strength and stability, whereas (Baptista et al., 2010; Currie, 2012; Mergel & Desouza, 2013). The

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
4 V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx

Fig. 1. Pressures that contribute to deinstitutionalisation. Source: Oliver (1992). The antecedents of deinstitutionalization.

paradigm allows theories to be organised according to the degree to should examine how new structures are enacted in organisations when
which social phenomena is presumed to exist independently and to faced with change (Scott, 2014; Veenstra et al., 2014). This is due to the
be discovered through own understanding, which then can inform fact that many studies which have adopted Institutional Theory as a
other situations rather than seeking generalisations (Elbardan, 2014; conceptual lens have ignored the process by which structures change
Guba & Lincoln, 1994). An inductive approach is used with the applica- and new ones that emerge during DEST implementation. This study
tion of qualitative methods, involving a systematic literature review and will in particular attempt to recognise the pre-institutionalisation
case study. stage by identifying the triggering factors, and elucidate the reciprocal
The initial stage of the research begins with a systematic literature interactions between the different elements, which are influential in fa-
review process conducted on Scopus and Web of Science. The search cilitating the implementing of a successful transformation process.
discovered over 300 articles published between the year of 2000 to In order to create a link between literature and empirical data, the
2010 with the presence of “Public Sector”, “Government”, “Digital”, “Im- second stage of the research employed a case study methodology
plementation Challenges”, “Institutionalisation” “ICT” and “institutional (Zorn, Flanagin, & Shoham, 2011). Empirical data was gathered through
theory”, in tittle, abstract, and key-words of papers. The final review interviews, besides analysis of policy documents and reports such as
after filtering the papers focused on 21 key papers, which were selected, “National IT Strategy” (Information Technology Authority, 2008,
analysed and profiled according to the relevance of their titles, research 2010), Oman Digital Society Strategy (Information Technology
aim and questions, research methodologies employed, research limita- Authority, 2008, 2010), and United Nations e-Government Surveys
tions, future research avenues, theoretical lens utilised and research (United Nations, 2010, 2012, 2014) to strengthen the empirical enquiry
context. The intention was to establish a deep understanding of issues for the study (Walsham, 1995; Zorn et al., 2011). The aim of the inter-
surrounding the implementation of DEST in the public sector and asso- views was to explore DEST challenges and resulting paradoxes in the se-
ciated research gaps. Results of the analysis revealed three themes of re- lected public organisations.
search, categorised as ‘factors affecting institutionalisation of DEST in The three ministries were selected as they were actively involved in
PS’, ‘managing institutionalisation process of DEST in PS’, and ‘chal- DEST and comprehensively illustrated the local administration struc-
lenges in institutionalisation of DEST in PS’. ture and services within the Omani public services. The interviews in-
The first theme of research confined the focus of their studies on the volved key officials ranging from top management and middle
factors triggering, facilitating and impeding institutionalisation of DEST management, to operational level staff in the ministries, who were
in PS. For example, Luna-Reyes and Gil-Garcia (2014) revealed that co- responsible for DEST. The interviews in the three ministries were
evolution of various factors - technological, organisational, and institu- complemented with further interviews with the Omani Information
tional components were impeding the e-government institutionalisation Technology Authority (ITA) who provided overall infrastructure and
process. Al-Busaidy and El-Haddadeh (2011) named economic, political, project support to the Omani public sector on DEST. A total of 20 em-
social and technological evolution as pressures forcing Omani Govern- ployees who were involved in ICT-let transformation projects across
ment to implement e-government systems, and El-Haddadeh et al. the three ministries and ITA were interviewed. Access to the inter-
(2013) corroborate these findings in their study of e-government viewees was gained through personal contacts. In keeping with ethical
institutionalisation in Qatar. protocol, the interviewees were informed about the purpose of the in-
The second theme was constrained within practices, where the re- terviews and assured about their right to withdraw from participating
search focused on identifying exemplary management practices that fa- in the process and the anonymity of the response given. All interviews
cilitate the DEST institutionalisation process through analysis of cases. were recorded with permission from the participants and transcribed
For instance, Veenstra et al. (2010) had discovered that the factors caus- for qualitative analysis. Subsequently, email exchanges and telephone
ing discrepancies in e-government implementation performance in the calls were used more than once to clarify any unclear information
Netherlands were rooted in managerial practices of hierarchical struc- (Yin, 2009; Walsham, 1995). The interviewees were given the
ture and decision making process. In addition, Diniz et al. (2012) transcripts to check and resolve any discrepancies that may have arisen
highlighted the importance of intervention mechanism such as educa- and to eliminate any bias (Irani, Love, Elliman, Jones, & Themistocleous,
tion and training in minimising the impact of unintended outcome 2005). The mixed nature of interviewees and secondary documents col-
throughout the institutionalisation process. lected allowed the authors to maintain an adequate level of data trian-
The final theme highlights challenges encountered during the DEST gulation which was deemed to be important in tracking the variation
institutionalisation process. For example, complexity of public institu- between primary and secondary data and thus improving the accuracy,
tions (Dwivedi et al., 2012; El-Haddadeh et al., 2013), the anomaly be- interpretation and analysis of the collected data (Mingers, Mutch, &
tween policy and political objective (Currie & Guah, 2007; Currie, Willcocks, 2013). This ensured that no bias emerged from either the
2012) and stakeholders' ability to critically learn and adapt the technol- participants or the researchers (Zorn et al., 2011).
ogy (Basettihalli et al., 2010) were drawn as major causes for the derail- The interpretation and analysis of data for this study evolved over
ment of DEST projects. several stages, following closely a hermeneutic process, that allowed
Synthesis from the literature review indicated a significant gap in the researchers to understand, reflect and improve the interpretation
the study of DEST institutionalisation process, suggesting further studies of the findings over two stages (referring to secondary data analysis

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx 5

and empirical data collection) of the research process employed digital-led services. The evolution of events influenced by ICT-led trans-
(Baptista, 2009). formation of the public sector in Oman is outlined in Table 1.
Against this backdrop, our study explored how the three govern-
ment ministries that acted as the backbone of this grand plan attempted
3.2. Empirical study context to implement digital-led service transformation and the challenges they
faced in institutionalising the ensuing changes within their institutional
The Sultanate of Oman where the empirical study for this research environment. Our first case study is the Ministry of Man Power (MOMP)
was conducted is located in the southeast of the Arabian Peninsula. As in Oman. The main function of the ministry is to propose and implement
one of the six member states of the Gulf Cooperation Council (GCC), Sul- general policies relating to manpower in line with the State's economic
tanate of Oman is actively promoting DEST to strengthen its economic and social objectives. The Ministry prerogatives among others include,
and political achievements. However, it was ranked in 48th position ensuring labour market and training sector stability in Oman, and over-
for e-government development by the United Nations among the UN coming the challenges faced in the sector through establishing partner-
member states, and is five places behind other GCC states (Bahrain, ships with private sector and citizens. The ministry was chosen as a
United Arab Emirates, Saudi Arabia and Qatar) (UN, 2014). Therefore, research sample as it is one of the pioneering public agencies that
it is vitally important for the key ministries in Oman to scrutinise their have applied digital-led initiative through its digital services. To com-
DEST efforts and look for insights in order to improve public services pare, we opted for a case study in a second ministry, the Ministry of
and turn their ICT-led transformation efforts into more successful Higher Education (MOHE) in Oman. MOHE is concerned with governing
outcomes. higher education and in meeting the national demand for sustainable
Oman has embarked on digital-led transformation journey of their development, including providing scholarships to those eligible.
public services since 1995, with the drafting of an ICT strategic plan by MOHE introduced digital-led services in 2006, integrating information
the Ministry of National Economy (MNE). Among others, the plan in- and databases from all local higher institutions and the Ministry of
cludes a strategy to streamline government services in Oman through Education in Oman. However, MOHE faced major challenges in
the use of ICT (Al-Busaidy & El-Haddadeh, 2011). A year after the an- institutionalising the digital-led service transformations and made little
nouncement of the plan, Internet technology was introduced in Oman progress in diffusing its digital services and enticing stakeholders to
by a single Internet service provider. Seeing the potential, Minister of adopt them compared to MOMP.
National Economics pronounced the establishment of a National Com- In providing better triangulation, the Ministry of Interior (MOI) was
mittee in 1998 to execute their strategic plan. The committee then chosen as the third case study. MOI is the governmental body in the
signed a contract agreement with Microsoft Corporation and Oracle to Sultanate of Oman responsible for supervising administrative issues
standardise the ICT backbones and tools that will be used in the trans- in the various dimensions of the country's public services such as
formation projects across government ministries. Another contract dealing with tribal issues, overseeing the election process, governing
was agreed with Gartner, the information technology research and ad- affairs of government in the capital and the affairs of Immigration and
visory company, to provide advice on the capability and readiness of Nationality/Passports. It is the largest local government authority in
Oman for DEST projects. Oman, providing services across the county from different regional
Despite these efforts, little progress was made and in 2003 the ‘Dig- offices and handles around 1000 enquiries and face-to-face contacts
ital Oman’ Strategy was announced (referred to as eOman) to shape the daily. With the need to automate their services, in 2006 MOI started
development of digital society and digital-government implementation its ICT-led initiative. However, despite the ICT-led transformation ef-
in the country. Digital-government, from an Omani perspective was forts, MOI's digital government services were seen as underperforming
defined as “… the transformation of internal and external public sector in comparison to both MOMP and MOHE.
relationships, through ICT in order to optimize government service
delivery and citizen participation”. eOman also focused on the concept
of “digital society” where efforts were targeted towards ensuring the Table 1
The evolution of events influenced by ICT-led transformation of the public sector in Oman.
community was well advanced in the adoption and integration of digital
technology into their daily lives at home, work and play (Sarrayrih & Year Events Reference
Sriram, 2015). To support eOman, a digital-governance mechanism 1995 Ministry of National Economy (MNE) develops Ministry of Education
was set-up to develop, deploy and enforce government policies, laws an ICT strategy for Oman (2008)
and regulations necessary to support the functioning of e-government. 1998 MNE formed a National Council (NC) to Ministry of Education
Due to slow progress made in the digital services sphere, the Oman monitor the implementation of ICT strategy (2008)
2003 Digital Oman Strategy is launched Ministry of Education
Telecommunication Regulatory Authority (TRA) was established to (2008)
govern the country's telecommunication regulatory framework and to 2005 United Nation recognises the lack of legal UN (2005)
spearhead the implementation of eOman. Bearing three main pillars, framework and guidelines concerning
namely, infrastructure, service support and citizen empowerment, digital-government implementation in Oman
2006 Information Technology Authority (ITA) is Ministry of Education
the ITA was assigned to oversee the area of society and human capital
established as an affiliation of MNE to govern (2008);
development, digital government and e-services, ICT Industry Develop- the implementation of eOman after failure of
ment, infrastructure development, awareness, as well as Governance, NC to perform its responsibilities. ITA bears 3
Standards and Regulations (Information Technology Authority, 2015). pillars: infrastructure, service support and
The ITA launched the eOman portal in 2008 providing a single gate- citizen empowerment
Telecommunication Regulatory Authority Telecommunications
way for public services, integrating all of the public agencies websites (TRA) is formed to govern the country's Regulatory Authority
and payment systems. In 2007, the ITA signed agreements with telecommunication regulatory framework (2010)
MasterCard Worldwide and Bank of Muscat to launch a national e-Pay- 2007 ITA signs agreements with Microsoft Nath (2007)
ment Gateway (ePG) (Nath, 2007), followed by training of the civil ser- 2008 ITA develops 14 basic projects to enable Telecommunications
eOman implementation and launches eOman Regulatory Authority
vants and launching of the single e-payment gateway for government
Portal (2010)
services. In the same year, ITA executed 14 projects, mainly basic infra- 2009 Internet subscribers in Oman increases to 1.4 Oxford Business Group
structure related, to prepare public agencies for digital-led service trans- million people (2016)
formation. However, by 2010, only two Internet Service Provider 2010 TRA reports that the two existing ISP Telecommunications
companies were operating in Oman, and this was seen as a huge chal- companies are unable to provide coverage to Regulatory Authority
all towns and cities in Oman (2010)
lenge for public organisations in their efforts to reach citizen through

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
6 V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx

Given the disparities in the institutionalisation of the ICT-led trans- performance of other organisations (mimetic isomorphism)—plays its
formation efforts in the three public ministries, Institutional theory is role in shaping a new form of public sector organisation after the imple-
employed as the analytical lens to examine the forces influencing mentation of digital-led services.
change. In specific, the theory helps to recognise arising pressures that
triggered service transformation in the three ministries, and challenges
impeding the institutionalisation of new practice following the transfor- 4.2. Regulative pressures: coercive isomorphism
mation events. Three main institutionalisation elements are believed to
have influence and impact over the institutionalisation process. They Scott (2014) explained that regulative pressures are the uninvited
are identified as: (1) Broader institutional environmental factors that outcome of imposed regulations or laws towards an organisation. He
cause the organisation to undergo the deinstitutionalised state, such suggests that expectations over the organisation's performance or stan-
as political will, governance and economy; (2) Logic that shapes the dards by the stakeholders could also lead to these pressures. In the case
value of the organisational inhabitants, which influence the infusion of of MOMP, MOHE and MOI, besides the impact of the introduction of
new organisational practice such as the perceived benefit of the trans- eOman as the government's new strategic policy, government expecta-
formation process and outcome; and (3) Mechanism that is used to con- tions over public service performance created coercive pressures. More-
trol the impact of uninvited outcomes due to the institutionalisation over, the need to diversify Oman's economy from one that is heavily
process and reinforcement of the desired behaviours, such as formation reliant on oil imposed another degree of pressure to all three organisa-
of new rules, modification of existing regulations, morale support from tions. In a report by GulfBase (2015),1 Oman's economic performance
organisation's leaders, as well as recognition of good practice. was strong between periods of 2003 to late 2008, due to sustained
The first element can be observed by contextualising events pro- high oil prices. However, in avoiding the risk of plummeted oil prices,
ceeding changes in the institutional environment, such as change in Oman decided to pursue an economic diversification plan by announc-
government policy or directions, change in economic orientation, emer- ing eOman, with the objective of reducing the oil sector's contribution to
gence of new practice globally and cultural change in the society. On the GDP to (9%) by 2020 (Gulfbase, 2015). This is a turning point for public
other hand, the next two elements are observable by understanding the sector institutions in Oman. Six years after the implementation of
values upheld and culture in the organisation – particularly their per- eOman, in 2009 Oman was affected by falling oil prices due to the global
ceived benefit and motivations, as well as emerging structures following financial crisis. This reduced Oman's budget surplus significantly and
the introduction of new organisational practice. These elements provide slowed the pace of government investment and development projects.
the roots of isomorphic mechanism conceptualisation, which determine At the same time, public organisations were expected to double their ef-
how the organisation would behave to resemble the targeted outcome fort with limited resources, thus, creating added pressure to public
and achieved an institutionalised stage. organisations.
The challenging environment in Oman particularly impacted the
4. Findings and discussion MOI. With limited funds and tight deadlines, MOI was urged to provide
resources to support the digital-led service transformation. According to
4.1. Pressures, deinstitutionalisation and isomorphism its IT Director, the ministry was not prepared when the digital-led ser-
vice transformation efforts were introduced through the eOman strate-
The vision of transforming Oman into a sustainable knowledge gy. Hence, despite claims that the ministry has benefited from the
based economy was started in 1995 and revitalised in 2003 with the en- eOman strategy trough reduction of paper work and increase in em-
dorsement of Digital Oman (eOman) Strategy (as outlined in Table 1). ployee productivity, the implementation of digital government systems
The eOman strategy in particular focused on the simplification of gov- faced a multitude of challenges. Among these, top management support
ernment processes by adoption of technology in daily operations and in ensuring the success of the transformation effort was seen as vital. In
for online or digital-led service delivery. The three ministries identified MOI, the program was given less strategic focus and priority by senior
in this research – Ministry of Man Power (MOMP), Ministry of Higher management. The IT Director confessed this, stating: “…the dissimilar-
Education (MOHE) and Ministry of Interior (MOI) are not an exception ities of adoption and diffusion of electronic services in Omani public agen-
to the strategy and for that reason, all three transformed most of their cies depends on individual approaches and experiences of each
services by making them available online. government agency. Importantly, the variations in levels of success
Varied result between the ministries indicated that institutionalisation achieved by different agencies means that top management awareness
of digital-led service in public agencies is not a linear and stand-alone and understanding is critical if they are to deliver the required strategic di-
process. Multitude of challenges inflicted the transformation journey, rection and resources for projects.” He then highlighted the lack of staff
thus requiring corrective actions at all stages of recursive interactions capabilities, skills, quality of services and public awareness towards ser-
between institutional elements. The internal and external pressures that vices offered as key factors impeding the service transformation pro-
rooted from three different sources: conformity to norms, conformity to gram at MOI. This claim was supported by the feedback gained from
rules/laws/sanctions and conformity to ‘what is perceived right by the other operational level staff. A junior project manager stated: “In the
culture / society’ – triggered changes in the organisations, and caused context of e-government, the legislation process at MOI is still at its initial
the deinstitutionalised stage. stage in which MOI is yet to identify the relevant features and benefits of
As a strategic response towards these pressures, the public agencies e-services compared to other countries' experiences in the digital govern-
produced innovation by transforming their face-to-face and manual busi- ment field. We need to employ the experts to examine various roles, study
nesses to digital-led services. The traditional organisational practice was different scenarios to get a true picture of the situation and suggest best
then destructed with the introduction of a new practice to support the in- practices to be implemented by the organisation.”
novation, and the journey of adapting and instilling the practice to be part It was suggested that a holistic control and governing mechanism is
of the organisations' normal functions started. This process falls under needed to resolve this issue. Addressing MOI's legal issues that forbid
three different categories: coercive, mimetic or normative, and known the integration of processes and systems with other ministries is one
as isomorphism, which is a mechanism to stabilise the organisation pillars of the key areas that needed focus, according to the IT Director. He
through institutionalisation of the new practice (Barley & Tolbert, 1997;
Powell & DiMaggio, 1991; Scott, 2014). Therefore, this study explores 1
GulfBase is the premier source of detailed financial information on the joint stock
how these institutional pressures — that is, being subject to regulations companies in the GCC region (Kingdom of Saudi Arabia, United Arab Emirates, State of
and political interference (coercive isomorphism); remaining convergent Kuwait, Kingdom of Bahrain, Sultanate Oman and State of Qatar), offering up-to-date fi-
to a cluster of organisations (normative isomorphism); and looking at the nancial information and market data for the countries in the region.

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx 7

saw this as critical for improving interactions between stakeholders and resulted in additional workload for employees. This pressure is further
facilitating the institutionalisation of new practice. heightened when the ministry has to bear the maintenance costs for
In contrast, MOMP has gained significant support in implementing non-integrated IT infrastructure.
their digital-transformation initiative. Among others, key areas of sup- In MOMP, the use of open standards for IT infrastructure helped to
port include necessary advice on legislation issues including authentica- facilitate the integration of internal systems with other government
tion for digital services and e-payments (such as e-signatures), e- ministries and reduces operational cost during DEST. This was con-
identification and privacy and security issues. Their senior development firmed by the Head of Software Development when stating, “digital gov-
engineer claimed that: “…our key success is implementing policies and ernment has helped reduce the expenditure for setting up large network
procedures for each e-service that covered privacy, security and authenti- infrastructures. In this respect, digital government has helped simplify pro-
cation. In our case, all new procedures were approved and followed up by cesses and made access to government information easier for both public
top management, ensuring a successful implementation”. As the ministry sector workers and citizens”. He further added, “when we started our in-
was approached to implement the digital-led service transformation, house software development, we decided that using the latest application
the management secured a consensus agreement from employees by software is an initial step. This has reduced standard related problems
making clear that the project required their long term commitment and has made upgrades and integration with other agencies' applications
and undivided support to be successful and sustainable. The manage- easier. This resulted in a convenient environment for any internal and ex-
ment then allocated specific budgets to different projects in the trans- ternal integration. The standards and protocols established by MOMP
formation effort, which has played a significant role in its overall have enabled other government agencies to exchange information efficient-
progress. The IT director summarised the situation by stating: “…our ly and securely in the context of eOman”.
higher administration had an effective role in the application of e-services The IT director added that his team has implemented technology-re-
and our administration was providing us with continuous financial and lated solutions based on certain software and application standard, as
strategic support. We ensured that these resources were allocated to vari- well as producing policies and procedures for all digital services that
ous projects that were focused on e-enabling our core services”. they have provided. To support the DEST effort, MOMP appointed a
Despite the positive progress made in institutionalising change, the group IT specialist to select and agree on the development tools. This
realignment of existing organisational structures was deemed neces- role has contributed to improvement in information accuracy, notifica-
sary according to new work functions and digital services. A senior en- tions and tracking status of services, and round the clock availability of
gineer highlighted that the rapid developments and changes in the e-services.
organisation environment due to eOman implementation occurred si-
multaneously with the restructuring of MOMP business processes, 4.3. Cultural-cognitive pressures: mimetic isomorphism
thus changes were needed to policies, procedures and business process
ownership within the ministry. There were several new business pro- The cultural-cognitive dimension centres on sense-making includ-
cesses that needed to be streamlined with different departments and ing the scripts and belief systems that organisational members con-
ministries that required top management intervention. Furthermore, struct and use for everyday practice. It stresses the central role played
the structural changes required amendments to government policies by the socially mediated construction of a common framework of mean-
that were under the authority of the ruling government and beyond ings (Scott, 2014). In the present study, it centres on government
the control of MOMP. In this respect, the issue was depicted as a political leaders', public servants', and the government stakeholders' schema
factor that pressured the digital-led service implementation in MOMP. for understanding key aspects of their work including service delivery,
Earlier on, the feedback received from the interviewees in MOI indi- service improvement, and socio-economy benefit. For example,
cated that the eOman implementation was given less attention by top schemas for understanding government's performance may be pre-
management. The top-management commitment towards the transfor- dominantly ability-based or effort-based and, depending on which con-
mation program in MOI however gradually increased due to the politi- ceptualisation prevails, have a profound influence on service delivery
cal influence exerted by the Ministry of National Economy (MNE). In practice as well as efforts to improve that practice.
this context, MNE had formed a committee whose remit was to study The cultural-cognitive elements primarily lie in the diffusion process
the benefits of digital-led services in the public sector and find ways (Powell & DiMaggio, 1991). Scott (2014) explains that when a new
to maximise its diffusion across Omani society. The committee was form of organisation emerges, the numbers of such kind of organisations
joined by MOMP, MOI and ITA. start to build up before eventually tailing off. It provides a meaning that, in
Despite emerging commitment among top leaders in MOI, a senior the event when organisational inhabitants regard it as ‘natural way’ to or-
engineer suggested that the network links between local agencies and ganise for some purpose, more organisations will emerge to resemble the
the ministry, which is vital to support improved ways of working ‘natural practices’. However as the number increases, organisations will
through collaborative capabilities, was missing. The head of the techni- be competitive and start to invent new things, and eventually dampen
cal support department stated “the IT infrastructure at MOI remains the the current practice. This scenario indicates that organisational density
main challenge that is impending e-services implementation and related is- serves as an indicator of its cognitive legitimacy. In this context, the vul-
sues, such as, information sharing and internal and external integration.” In nerability of the global oil price in early 2000 that affected Omani budget
addition, the IT director added, “information sharing is certainly amongst surplus had induced Oman to explore better practices in diversifying its
the most important issues hindering digital government implementation economy. Although the MNE had drawn an ICT strategic plan in 1995 as
and this indicates the inability of MOI to interact with various databases the basis towards transformation, this plan was underperforming for
and systems in other public agencies”. One of the operational level inter- several years before the announcement of eOman. Conceptually,
viewees commented “since we have not implemented the right IT infra- this type of dormant period is termed by Cole (in Scott, 2014) as ‘sense-
structure and standards, we are unable to efficiently support MOI work making’, which describes a period where little consensus is developed
processes and this has become a major obstacle for achieving our service to support new policy, thus resulting in the absence of supporting norma-
delivery targets”. Furthermore, discussions with the IT director revealed tive and regulative structures to implement and diffuse strategic plans.
that the lack of skilled staff required for implementing digital services During the interviews, some of the employees across the ministries
within the project team delayed implementation further. Nevertheless, claimed that they were not provided with clear directions and support
pushed by the central government and ITA to improve the current range to implement the digital-led services, thus leading them to find their
of digital-led-services offered, MOI continues its plan for various techni- own solutions and imitate the practice of others. In an interview with
cal developments including new software implementations. The ab- the General Director Of Infrastructure and E-Services at ITA, he stated
sence of online payment in their digital-led services modules had “…the ITA has developed a government standard to manage digital

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
8 V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx

government initiatives and projects, however, the reasons behind differ- more proactive engagement with media, including exploiting television,
ences or delays in the integration process between various government publications and leaflets to promote the current services and educate
agencies and ITA systems are due to four main reasons, namely a) the citizens on how to use these services. The central logic for these prac-
wrong advice from middle management (IT managers) to top manage- tices are the ability to make-sense of the depriving situations by
ment, b) the availability of a good IT team, c) sometimes, but not always rationalising what is appropriate, followed by the efforts to strive for
the budget, and d) not renewing the organisation's business processes.” the demanded solutions effectively through scripts of appropriate
Nevertheless, the CEO of ITA explained that “…participation de- actions.
pends on leadership - I think this step needs strong support from top
management. Additionally, we need in each agency, at the initial 4.4. Normative pressures and isomorphism
stage, a thinker or thinking team with the ability to produce thoughtful
plans and exact information requirements from other government Scott (2014) argued that the normative system encompasses both
agencies, with support from top management, not only the implemen- values and norms. In one hand, values refer to the conception of the de-
tation team.” In this perspective, it was evident that for the public agen- sirable together with the development of standards and benchmarking
cy to move out from the deinstitutionalised state, a ‘sense-making of the existing structures and behaviours. On the other hand, norms de-
process’ should occur where the organisational inhabitants should be fine how things should be done legitimately to achieve the desired sta-
informed of the ‘rationale to change’, and the strategy should be formed tus. Hence, a normative system not only draws the ultimate objective
as a ‘script’ to guide the change process. All of these were absent during for an organisation, but also specifies appropriate means to attain it.
the initial stages, thus resulting in different performance among the Therefore, the system imposes constraints on behaviour and at the
ministries in respect to DEST. same time empowers actions, by conferring among others - responsibil-
The varying performance between the ministries was further ities and duties. Imparting the logic of appropriateness, normative pres-
outlined by the ability of the ministries' leaders to value the benefit of sures set the orientation of patterns for action by prioritising conformity
the change process. In the interview with the Customer Services Manag- towards norms (Scott & Meyer, 1994). According to Scott, norms are
er at MOMP, he admitted that “…the citizens within the country require spreadable within an organisation due to various factors, particularly
better services at lower costs and greater responsiveness in a dynamic professional or collegial networks, interlocking directorates, as well as
and continuously changing environment”. Hence, to show their support support provided by external parties through informal ties.
towards the demand, MOMP has made innovative use of ICT in deliver- When examining the effects of government influence in all three
ing a number of services. For instance, SMS messaging is used to com- ministries, it was evident that the ‘weak-leadership roles’ within the
municate with Omani jobseekers helping them to complete the ministries was resulting in their inability to set clear directions and
registration process and share data between different public agencies. failure to provide managerial support during the implementation of
The web application manager stated, “The nature of MOMP's work is to digital-led services. This resulted in the government having to form
inform job providers and jobseekers of various supports and opportunities a separate committee to oversee the transformation work in the
that are appropriate for their needs.” ministries. In this scenario, the leaders' role in eliciting change was
According to MOMP, the key success factor motivating their perfor- overshadowed and augmented by the government's interest in collec-
mance in implementing the digital-led services was the adoption of the tively crafting a normative justification that created a rationale for the
services by citizens, which was driven by awareness, simplicity and conformity for change. This scenario is evidenced by Dobbin's (2009
availability of the system and change of internal practices. In this respect cited in Scott, 2014) argument that the diffusion of new practice or
MOMP has adopted a proactive engagement strategy with citizens to norms through professional relationship is more efficient than spread-
promote and motivate the use of their digital services. The Head of ing of norms through changes in regulatory policies. This argument
Web Applications reported: “Usually after implementing a new technolo- is justified by the progress made by MOHE and MOI on post joint
gy, we provide a video tutorial showing how to use these services. Those committee implementation of digital-led services.
videos are uploaded on our website for additional support. We also provide On the other hand, the case study in MOMP clearly showed that
details about the use of e-services in newspapers, radio interviews and tele- this ministry has confronted the various institutional factors that have
vision interviews. Our brochures are distributed among the public through influenced their digital government initiative and implemented a num-
our offices and through our website to illustrate and maximise the benefits ber of exemplary services (such as e-payments, smart forms, , e-services
of e-services among our society”. Additionally, two Senior Development etc.). Given this context, the MOMP web portal is established and
Engineers and the Customer Services Manager agreed that the digital operated as a successful digital government initiative; therefore,
government implementation awareness strategy of MOMP was used MOMP can be treated as a good practice case for other agencies in
as a plan to empower citizens to use different services and capture Oman. The progress of MOMP, in comparison to MOI and MOHE, in
their opinions to achieve a robust system. From an operational perspec- implementing the required transformation showed an exemplary
tive, one MOMP employee stated: “In order to communicate with the out- approach towards institutionalising the digital-led services in all aspects
side community, you must understand their scientific, practical and cultural of the agency including people, process and policy, thus setting ‘norms’
background. Our way of stimulating citizens to deal with online services to be adopted by other public institutions, including MOHE and MOI.
was a key to complement the digital government plan. This helped to con- In particular, the joining of MOMP's key personnel in the special
vince the public to use e-services for their daily transactions with the gov- committee had encouraged the spread of the norms to other ministries
ernment.” The customer services manager concurred that digital through professional networks.
government implementation in MOMP is used as a tool to ultimately in- Normative standards may arise slowly and incrementally over time
crease and control the quality of its services and improve customer sat- but they may also be explicitly established through informal relation-
isfaction as well as transparency through the various feedback ships with other entities. By having ITA, Microsoft, TRA, MasterCard
mechanisms used by the ministry, such as online polls and complaints Worldwide and Bank of Muscat as supporting bodies, it allowed the
hotlines. ministries to draw from good practice and standards and seek advice
In contrast, the strategy to engage citizen in DEST was absent at MOI. throughout the transformation journey. This environment encouraged
One of the operational level staff argued that “…while other public new norms to be established in the government agencies through
agencies are using all possible media and means to advertise their digital informal ties. For instance, after a considerable struggle since 1995,
government services, MOI is still in its initial stage of implementing digital the appointment of Microsoft Corporation, Oracle and Gartner had
government and therefore marketing efforts are constrained.” However, somehow provided directions for the government in setting the basic
senior staff assured that MOI was working on a strategy to ensure a framework for the eOman project to kick off. In addition, the

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx 9

establishment of TRA and ITA was a normative process by itself, aimed the institutionalisation progress between organisations differ due to
at promulgating high standard for DEST in Oman. The evolution of multitude of internal challenges. Nevertheless, when exposed to institu-
DEST and influence of its various milestones on the institutionalisation tional forces, public institutions seemed to adapt and change, seeking le-
of digital government is depicted in Fig. 2. gitimacy by conforming to institutional pressures due to the lack of
accountability for performance indicators (in comparison to the private
5. Discussion and conclusion sector). Therefore, exposure to some institutional pressures may also be
the cause of ‘reinvention’ or deinstitutionalisation. Thus, government
This research has attempted to provide an alternative perspective on organisations appear to be much more vulnerable to institutional forces.
the implementation of the digital-led services, grounded in institutional New thinking of institutional theorists posits that change and stabil-
theory. The relevance of doing so in the context of the public sector is ity co-exist and frequently give rise to organisational paradoxes. Among
justified by the complex interrelationships between environmental ele- the paradoxes discussed in this paper, it was evident that pro-active
ments and various means to maintain legitimacy of ICT led change in strategic attempts to regain organisational stability through isomor-
public agencies. phism may induce vulnerability rather than predicted change when
The paper has explored how institutional pressures shape attempting to institutionalise a specific agreeable practice. The rationale
organisational culture by helping embed changes within its work envi- for this is that isomorphism may be seen as an attempt to maintain le-
ronment. In this respect, our approach goes beyond the relatively sim- gitimacy equilibrium of the three pillars – coercive, normative and cog-
plistic assumptions underpinning current literature on digital-led nitive, after being disrupted by institutional pressures (Scott & Meyer,
service transformation, which has paid less attention to the external en- 1994). This causes the introduction of new work practices that bring in-
vironmental influences and how they shape the institutionalisation pro- consistency in organisational routine – which then requires common
cesses. We hope the arguments presented in this paper will encourage acceptance by the organisational inhabitants for routine to be instilled
further empirical inquiries to explore the dynamic characteristics in as part of the work functions and embedded as organisational culture
the interplay between environmental elements, both internal and ex- over time. In contrast, the scope for such ‘strategic’ management tactics
ternal. While institutional theorists have tended to emphasise the adap- is likely to be more limited in situations where change is imposed on or-
tive nature of organisational behaviour, we recognise the need to ganisations in a more coercive manner (e.g. by announcing the eOman
complement this with a view of digital-led service transformation as vision and forcing the ministries to undergo service transformation
an intentional, strategic responsiveness of the organisation towards without proper engagement, training and constrained resources) over-
pressures impeding their legitimacy in the broader institutional arching other approaches. In such circumstances, shifting service-deliv-
environment. ery practices may seem to follow a more deterministic model of change,
Empirical data for the present study was extrapolated from inter- which explains that the output of transformation in this context is fully
views and secondary data including policy documents and official re- determined by the efforts put into the program (such as the managerial
ports. Three ministries in the Sultanate of Oman – the Ministry of Man support, training, and resources) and the initial conditions (or in this
Power (MOMP), Ministries of Higher Education (MOHE) and Ministry case ‘readiness’ of the ministries to undergo the transformation pro-
of Interior (MOI) together with the Information Technology Authority gram). This justifies why the institutionalisation of digital services in
(ITA) provided empirical evidence on how pressures triggered changes MOMP exceeded pre-determined goals and objectives, while a different
in the highly institutionalised public sector organisational context, thus situation was faced by MOHE and MOI.
putting them in a deinstitutionalised state of misalignment and threat- At an external level, coercive isomorphism was linked to the envi-
ened their legitimacy. As a strategic response, DEST has been introduced ronment surrounding the organisation. Our study confirmed that
as a vehicle to regain this legitimate status. Although the three minis- when organisations are exposed to outside coercive scrutiny and regu-
tries hold the same ground for transformation purpose (as they were lation, they tend to react defensively and are inclined towards isomor-
pressured by decisive political will and strong economic goals), the dif- phic transformation. Mimetic and normative processes on the other
ferences in logic among the organisational inhabitants and absence of hand were internal and helped explain the spread of roles and struc-
uniformed control mechanisms in the organisations had led them to dif- tures. As the pressures from the outside grew, the organisations found
ferent isomorphic roots. This justifies why MOMP was more successful ways to either diffuse or eliminate this pressure by changing their
in the institutionalisation process of DEST, as compared to MOHE and practices.
MOI. The significance of our findings to organisations and public admin- Second, it was apparent from the case studies that, right from the be-
istration are twofold. ginning, there was no clear norm formally stated for the ministries to
Firstly, institutional pressures do not affect all organisations in the abide. However, as the DEST institutionalisation progress between the
same way. Despite facing similar socio-economy and politic conditions, agencies varied, the more successful case had defined certain standard

Fig. 2. Pressures shaping the isomorphic mechanism over time.

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
10 V. Weerakkody et al. / Government Information Quarterly xxx (2016) xxx–xxx

for practice that were turned to by the others as the benchmark, thus environments are difficult to define as priori and need to be identified
defining new norms for others. This situation resulted in new pressures through close empirical examination (Powell & DiMaggio, 1991; Yin,
and further deteriorated the DEST institutionalisation process. We 2003). A fruitful research strategy in this respect might be to compare
learned that government agencies were more bureaucratised by looking the implementation of digital-led services between government institu-
at the centralised decision-making structures, formalised rules and tions (or ministries), to allow generalisability of the inflicting factors
highly organised structures to perform different government function and processes involved.
(e.g. the formation of NC, ITA and TRA as affiliates of MNE to monitor
eOman implementation). Nevertheless, the exposure to coercive as
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and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006
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Vishanth Weerakkody, is a Chair in Digital Governance at the Business School in Brunel
conference on information systems (ECIS 2011) (pp. 2561–2567) (Available at:
University London. His research expertise lies in the area of electronic service delivery,
http://aisel.aisnet.org/ecis2011/219).
technology adoption, diffusion and evaluation in a public sector context. He has published
Phang, C. W., Kankanhalli, A., & Ang, C. (2008). Investigating organizational learning in
over 150 peer reviewed articles and guest-edited special issues of leading journals and
Egovernment projects: A multi-theoretic approach. The Journal of Strategic
books on these themes. He is currently an investigator in several FP7 ICT, ICT-PSP and
Information Systems, 17(2), 99–123.
SSH and other internationally funded projects on technology adoption and evaluation, in-
Powell, W., & DiMaggio, P. (1991). The new institutionalism in organizational analysis. Chi-
cluding LiveCity, PolicyCompass, DAREED, OASSIS and SI-DRIVE. He is the Editor in chief of
cago: University of Chicago Press.
the International Journal of Electronic Government Research.
Sarrayrih, M. A., & Sriram, B. (2015). Major challenges in developing a successful E-gov-
ernment: A review on the sultanate of Oman. Journal of King Saud University-
Ramzi El-Haddadeh, is an Associate Professor at the college of Business and Economics at
Computer and Information Sciences, 27(2), 230–235.
Qatar University. Prior to this he was a Senior Lecturer in the Business School at Brunel
Scott, W. R. (2014). Institutions and organizations. Ideas, interests and identities. SAGE Pub-
University London. His research expertise lies in the context of emerging technologies
lications Inc.
adoption and evaluation in addition to public sector services ICT enabled transformation.
Scott, W. R., & Meyer, J. W. (1994). Institutional environments and organizations: Structural
Dr El-Haddadeh has published over 50 peer reviewed articles in international Journals
complexity and individualism. SAGE Publication Inc.
and conferences, and has several years of R&D experience in the field of developing eval-
Sharif, M. H. M., Troshani, I., & Davidson, R. (2014). Adoption of social media services: The
uation indicators for ICT implementation projects; including in EU FP7 funded ICT-PSP
case of local government. Handbook of research on demand-driven web services: Theo-
projects such as SI-DRIVE LiveCity and OASIS.
ry, technologies, and applications: Theory, technologies, and applications (pp. 287).
Sine, W. D., & Tolbert, P. S. (2006). Institutionas in action: Tenure systems and faculty em-
Amizan Omar is a PhD candidate at the Business School at Brunel University London. Her
ployment in colleges and universities. Ithaca, NY: Cornell University.
research is focused on the institutionalisation of digitally enabled public sector transfor-
Sivarajah, U., Irani, Z., & Weerakkody, V. (2015). Evaluating the use and impact of web 2.0
mation projects. Her research has been published in several peer reviewed journals and
technologies in local government. Government Information Quarterly, 32(4), 473–487.
international conferences.
Telecommunications Regulatory Authority (TRA) (2010). TRA work plan 2010. (Web. 8
July 2015).
Moaman Al-Busaidy is the ICT Director General at the Oman Airport Management Com-
United Nations (2005). Global E-government readiness report 2005, from E-government
pany. He completed his PhD at Brunel University and his research was focused on the
to E-inclusion. New York. Available at http://unpan1.un.org/intradoc/groups/public/
institutionalisation of ICT enabled change in public organisations in Oman. Prior to his role
documents/un/unpan021888.pdf/ (Accessed 12.05.2015)
at Oman Airport Management Company, he held various management positions in gov-
United Nations (2010). United Nations E-Government Survey 2010. Published by Depart-
ernment departments in Oman.
ment of economics & social affairs.
United Nations (2012). United Nations E-Government Survey 2012. Published by Depart-
ment of economics & social affairs.
United Nations (2014). United Nations E-Government Survey 2014. Published by Depart-
ment of economics & social affairs.

Please cite this article as: Weerakkody, V., et al., Digitally-enabled service transformation in the public sector: The lure of institutional pressure
and strategic response towards c..., Government Information Quarterly (2016), http://dx.doi.org/10.1016/j.giq.2016.06.006

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