E-Government Business Models: Theory, Challenges and Research Issues

E-Government Business Models: Theory, Challenges and Research Issues

Marijn Janssen (Delft University of Technology, The Netherlands) and George Kuk (Nottingham University Business School, UK)
DOI: 10.4018/978-1-60566-130-8.ch001
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Stimulated by the need to reduce cost and improve service provisioning and client involvement at the same time, the concept of business models has gained attention in the e-government domain over the last few years. Business models can appear at the individual organization and network level and describes how an entity plans to provide services. The basic premise of business models is that it helps to understand the relation between service offering and other elements and can be used as an instrument to improve service provisioning and lowering cost at the same time. In this chapter an overview of the state-of-the-art of e-government business models, a theory integrating the various elements and research challenges and issues are presented. There is ample need for research and overcoming these challenges result in better leveraging the advantages of business models.
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Countries worldwide are developing towards online service provisioning as a logical response to technology advances. Delivering government services to the public electronically requires innovation which entails the adaptation of policy and strategy, and the associated changes in technologies and infrastructures. Often governments are imitating each other and pursuing a similar set of novel business models without careful examination of the hidden challenges. The business models is aimed at describing how organization entities plan their service provisioning and depicts the relationship among the elements (Janssen & Kuk, 2007). This chapter aims to provide an overview of e-government business models and described the background, a theory and research challenges and issues

The business model concept has become a popular and important strand within the field of information systems and strategic management (Hedman & Kalling, 2003), specifically its application to the electronic business environment (e.g. Afuah & Tucci, 2000; e.g. Timmers, 1998; Weill & Vitale, 2001). Initially, different types of business models were experimented with and tested. The ones contributing to the financial success are widely promoted by the e-commerce and e-business practitioners. Despite the lack of a universal definition (Alt & Zimmerman, 2001) and the fact that the theory often lags behind the practice it attempts to describe and explain (Hedman & Kalling, 2003), there is little difficulty for direct adoption and transfer of the business model concept across domains and from the private to the public sector. The latter underscores the mentality that the practical rationality will compensate for the lack of theoretical underpinnings (Kuk, 2003).

The concept of business models developed and tested in the network economy cannot be translated to the public sector in a one-to-one manager. One of the notable differences is the level of inter-firm rivalry and mistrust which can limit resources and knowledge sharing in private networks (Adner, 2006). Whereas public networks which are often grounded on the non-exclusive and non-rival properties of public goods can facilitate a greater extent of resources and knowledge sharing among governmental agencies. Yet increased sharing will also lead to an increase in the coordination challenges comprising of how to route and reuse the existing silo-based types of functions and resources which are developed and resided within a public agency to a network arrangement; and crucially, how to generate new capabilities in support of developing new service offerings.

New types of service offering are made possible due to the cross-agency collaboration in form of a public service network (Provan & Milward, 2001). Different networked business models tackle different coordination challenges and will likely have other benefits. When it comes to the decision of which business models to adopt, consideration should be given to what coordination challenges that different business models may engender. Organizations should consider which ones are worthwhile to invest their resources. And by successfully tackling these challenges, organizations can acquire a new and useful set of knowledge which in turn improves the business and coordination logics of offering new web-based services.

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Associate Editors and Editorial Review Board
Table of Contents
Mehdi Khosrow-Pour
Chapter 1
Marijn Janssen, George Kuk
Stimulated by the need to reduce cost and improve service provisioning and client involvement at the same time, the concept of business models has... Sample PDF
E-Government Business Models: Theory, Challenges and Research Issues
Chapter 2
Roy Ladner
In this chapter we provide an overview of electronic government as it pertains to national security and defense within the Department of Defense... Sample PDF
Electronic Government: Overview and Issues for National Security Interests
Chapter 3
Ranjeev Mittu, Suleyman Guleyupoglu, William Barlow, Michael Dowdy, Sean McCarthy
The emergence of new doctrine is enabling Security, Stabilization, Transition and Reconstruction (SSTR) operations to become a core U.S. military... Sample PDF
Towards Civil-Military Coordination During Security, Stabilization, Transition and Reconstruction Efforts
Chapter 4
Akhilesh Bajaj, Sudha Ram
Recently, there has been increased interest in sharing digitized information between government agencies, with the goals of improving security... Sample PDF
A Comprehensive Framework Towards Information Sharing Between Government Agencies
Chapter 5
Eric T.K. Lim, Chee-Wee Tan, Shan-Ling Pan
As e-government becomes increasingly pervasive in modern public administrative management, its influence on organizations and individuals has become... Sample PDF
E-Government Implementation: Balancing Collaboration and Control in Stakeholder Management
Chapter 6
Yining Chen, H.M. Chen, Russell K.H. Ching, Wayne W. Huang
Over the last decade, the Internet has become one of the most important means of communication in all social areas. The success of Web technology... Sample PDF
Electronic Government Implementation: A Comparison Between Developed and Developing Countries
Chapter 7
Jonna Järveläinen, Eija Koskivaara, Päivi Pihlaja, Hannu Salmela, Jarmo Tähkäpää, Timo Kestilä
This collaborative action research study reports the experiences in developing e-government innovations in early childhood education context in... Sample PDF
Involving Service Professionals in eGovernment Innovation: The Case of Finnish Early Childhood Education
Chapter 8
Jyoti Choudrie, Vishanth Weerakkody
This article examines how horizontal integration between the various departments of a local authority in the United Kingdom (UK) occurs. Following... Sample PDF
Horizontal Process Integration in E-Government: The Perspective of a UK Local Authority
Chapter 9
Lucas Walsh
As developments in communication technologies impact upon many spheres of public and private life, they influence the way in which the public sector... Sample PDF
Online Policy Consultation: A Case Study of Local Government
Chapter 10
Lisa Hill
Due to compulsory voting, Australia’s turnout rate is among the highest and most socially-even in the industrialised world. Nevertheless, some... Sample PDF
Electronic Conduits to Electoral Inclusion in an Atypical Constituency: The Australian Case
Chapter 11
Kevin O’Toole
This chapter analyses local government’s response to the pressure to modernise its structures through its use of Information Communication... Sample PDF
Australia Local Government and E-Governance: From Administration to Citizen Participation?
Chapter 12
Kate Alport
This chapter examines the spread of Information and Communication Technologies (ICTs) in South Australia. It starts by assessing South Australia’s... Sample PDF
Engaging the Community Through E-Democracy in South Australia
Chapter 13
G. P. Sahu
The study seeks to highlight the key variables affecting usage of e-government by internal users of Indian Central Excise. An e-government... Sample PDF
Users' Acceptance of E-Government: A Study of Indian Central Excise
Chapter 14
Tagelsir Mohamed Gasmelseid
The recent economic, organizational and technological transformations are motivating developing countries to adopt electronic government... Sample PDF
A Multi-Agent Service Oriented Modeling of E-Government Initiatives
Chapter 15
Shahram Rahimi
The effectiveness of current search and retrieval systems is restricted as they do not use the semantics of the data but mainly utilize keywords.... Sample PDF
A Methodology for Ontological Mediation in Multi-Agent Systems
Chapter 16
Eugene Santos Jr., Eunice E. Santos, Hien Nguyen, Long Pan, John Korah
With the proliferation of the Internet and rapid development of information and communication infrastructure, E-governance has become a viable... Sample PDF
Analyst-Ready Large Scale Real Time Information Retrieval Tool for E-Governance
Chapter 17
Marco Carvalho
Data dissemination and information management technologies for tactical environments are quickly becoming major areas of research for both military... Sample PDF
In-Stream Data Processing for Tactical Environments
Chapter 18
Dilip Kumar Sharma, Gopalji Varshneya, Ashwani Kumar Upadhyay
This article analyzes the diffusion of a Web technology named AJAX in facilitating e-government architecture and enhancing its potential by... Sample PDF
AJAX in Development of Web-Based Architecture for Implementation of E-Governance
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