• Trust in e-government depends more on trust in the government, than on trust in technology. Similarly, trust in e-business depends more on trust in the vendor than in its website technology.
• Website information quality is the most critical factor for fostering trust in and continued use of an e-system.
• E-government offers many business advantages, including transparency, and quick and easy means to fulfill administrative obligations.
E-System use: a matter of trust
Srivastava says the biggest surprise of the study was to find that trust in technology is not as important to e-government users as trust in the government. 57% of information-seeking (“passive” e-government users) study participants reported that their trust in the government’s e-system stemmed directly from their trust in their government. Furthermore, while trust in technology was important to the 43% of “active” users (those with greater stakes and involvement in e-government transactions—e.g. online tax declarations, payments, etc.), it did not outrank their fundamental need to first trust the government (2). High trust in the national government is a main reason Singapore has successfully built up a strong e-government system. This suggests that companies not worry about constantly upgrading their technological systems, but rather focus on creating trusting relationships with their customers.
In Singapore, there is a government-run feedback unit where any citizen (person or organization) can voice opinions or make suggestions about national policies. The effectiveness of the system was demonstrated when the issue of casino legalization was presented to the public. Citizens were able to voice their opinions on the government website for a full year. As a result, they felt they had been heard, and their leaders were able to make a more informed decision. Microsoft makes use of a similar system, a “user’s forum” where people can report bugs and offer solutions. Both user and company benefit from this problem-solving system that reinforces customer/vendor trust and loyalty.
Information Quality: the Cornerstone of E-Government Use Srivastava and his colleagues examined the relative significance of information, service, and system quality on and the continued use of e-government systems. While service quality is important for “active user” satisfaction, the most critical factor for continued use of an e-system by both active and passive users is the quality of the information provided on the site. “Informational inconsistencies or errors are tantamount to broken promises; they are extremely harmful,” says Srivastava. Because the goal of any e-system is continued use, Srivastava advises both governments and companies to display information well, update it as often as necessary, and ensure its timeliness and relevance. “Some companies pay a lot of attention to technology and neglect backend processes. But customers are becoming increasingly sensitive to CSR, for instance; they are increasingly more interested in a brand’s trustworthiness than in its technological savvy.”
E-Government and Business
“Government is very important for business,” says Srivastava. “If government systems are efficient, businesses have much to gain.” For example, in Singapore, setting up a company offline means dealing with approximately 20 different government agencies, an obviously time-consuming endeavor. In contrast, it takes just 15 minutes to complete the same formalities online. Such ease and efficiency explain why many international corporations have their head offices in Singapore; it also gives companies a good reason to get involved in the issue. Srivastava adds that governments are also business customers. In times of economic crisis, they increase spending to boost local and/or national economies, presenting obviously valuable business opportunities. But in Singapore, for instance, companies must get on the IT wagon to win government contracts. Most government units interact with their vendors solely online, whether collecting bids or placing orders. Srivastava comments, “e-government has been underrated, but it can remove a lot of business hurdles. Companies are starting to realize this and ask for it.”
1. In research, e-government refers to use of IT for interaction with citizens, including businesses.
2. Srivastava says numbers of active users of e-systems are increasing, so even though information quality is the most important factor for building trust, organizations mustn’t neglect to build trust for their technologies as well.