Societal and Organisational Culture and the Adoption of Management Information Systems in Arab Countries

Abstract

Information Systems (IS) have become a vital component of successful business firms and other organisations. Over the last three decades, there has been a dramatic growth globally in the acquisition of Management Information Systems (MIS). Research, however, indicates that there has been an increase in reported MIS failures, and the adoption issues are not just technical, but encompass wider societal, organisational, and economical factors. Whilst research has shown the effect of such factors, the relationship of specific cultural factors to adoption remains poorly understood. The influence of both societal and organisational culture was studied in large organisations that have either adopted or have not yet adopted MIS in two different regions in the Arabic cluster. Such regional distinctions have been otherwise neglected or conflated in MIS adoption studies. In particular, this research examines how MIS adoption is constrained or facilitated by societal and organisational cultures, and seeks to detect relevant regional variations in societal and organisational culture. This research identifies cultural norms and beliefs within key national or multi-national organisations. Samples from the oil and gas and the banking sectors of the top organisations spanning five countries of the Arab regions (Kuwait, Libya, Oman, Saudi Arabia, and United Arab Emirates) were used. The countries were divided into two regions, North Africa (Libya) and the Arab Gulf region (Kuwait, Oman, Saudi Arabia, and United Arab Emirates), because of differences in their history, culture and geography. The study compares economically similar regions which differ markedly in MIS adoption. Libya was chosen as representative of the North Africa region because Libya has not been covered in MIS literature to date. In addition, although Libya is one of the wealthiest countries in North Africa, it has not yet widely adopted MIS. Comparable countries were chosen in order to link cultural factors to MIS adoption. National level variables, such as social class, GNP (or GDP) per capita, and political systems, were controlled for by choosing countries comparable on these variables. A multi-method design (combining survey and case study methods) was used to provide a rounded perspective on the phenomena studied. For each region, a survey aimed firstly to validate the framework empirically, and also to refine the protocols required by the subsequent detailed case study. The qualitative study analysis confirmed the theoretical findings and adds richness to our understanding of the influences of societal and organisational culture on the process of MIS adoption. The study revealed that the two regions are not as homogeneous as is indicated in the literature. In addition, the study showed that age, gender, and education levels are among the factors contributing to the success of MIS adoption in the two regions. The results from the current study also showed that the societal culture of the Arab Gulf region is now different from Hofstede's (1980) index, while Libya still has the same societal culture as Hofstede predicted for the two regions four decades ago. Furthermore, the study showed differences in organisational cultures that impacted upon MIS adoption in both regions. While the Arab Gulf region was dominated by an adhocracy culture that values the adoption of MIS, the North Africa region was dominated by the hierarchy culture type that favours a centralised management style, which impacts negatively on MIS adoption. Additionally, this research pointed out the role of technology acceptance in mediating adoption in both regions. Whereas the Arab Gulf region did not show any significant effect of technology acceptance variables, in the North Africa region, technology acceptance played a vital role in MIS adoption. The findings from this study provide scholars, consultants, managers, and MIS vendors with valuable information. This research thesis contributes to MIS adoption and diffusion theory, along with societal and organisational culture theory, and is the first of its kind to establish a regional distinction between the North Africa and Arab Gulf regions. It is also one of the first empirical studies to compare societal and organisational culture with the adoption of MIS worldwide and in the two identified regions. The implications from this study for further research are also discussed.