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Steering institutionalization through institutional work: The case of an eProcurement system in Indonesian local government

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Published on March 15, 2014

Author: fathulwahid

Source: slideshare.net

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Proceedings of the 47th Hawaii International Conference on System Sciences (HICSS) 2014, Hawaii, January 6-9.
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Steering Institutionalization Through Institutional Work: The Case of an eProcurement System in Indonesian Local Government Fathul Wahid1,2 & Maung K .Sein1,3 1 Department of Information Systems, University of Agder, Kristiansand, Norway 2 Department of Informatics, Universitas Islam Indonesia, Yogyakarta, Indonesia 3 Luleå University of Technology, Luleå, Sweden fathul.wahid@uii.ac.id & maung.k.sein@uia.no HICSS 2014, 6-9 January 2014 UNIVERSITAS ISLAM INDONESIA

Background: problem formulation • Some eGovernment initiatives are successfully implemented • ... Others are not. Why? • The influential role of institutional entrepreneurs have been highlighted • only a few studies have examined how they do it • Institutional entrepreneurs • purposeful actors with resources, skills (social and political) and social position to lead change (Dacin et al., 2002) • initiate divergent changes, actively participate in implementation of these changes • thus transform existing institutions or to create new ones (Battilana et al., 2009) 2

Background: theoretical • Call for research • to examine role of individuals in the implementation of information systems, through a fine-grained analysis of the situated practices (Avgerou, 2000; Currie, 2009; Suddaby, 2010) • to study institutionalization using an historical approach by focusing on its process rather on its outcome (Mignerat & Rivard, 2009) • Specifically in public sector (Weerakkody et al., 2009) • Our research question How do the institutional entrepreneurs carry out institutional work during the institutionalization process of a system? • Specific system studied: eProcurement System in the Indonesian public sector • Institutional entrepreneur studied: Mayor of the city of Yogyakarta 3

eProcurement efinition • “The use of integrated (commonly web-based) communication systems for the conduct of part or all of the purchasing process; a process that may incorporate stages from the initial need identification by users, through search, sourcing, negotiation, ordering, receipt and post-purchase review” (Croom & Brandon-Jones, 2007, p. 295). enefits of eProcurement systems • a more efficient procurement process, cost reduction, and improved internal service and status of the purchasing function (Croom & Brandon-Jones, 2007; Henriksen & Mahnke, 2005; Transparency International, 2008). 4

eProcurement in the public sector dditional benefits • enhanced transparency, better access for non-local bidders, better access for SMEs, corruption avoidance (Transparency International, 2008) dditional complexity (Boyne, 2002; Henriksen & Mahnke, 2005; Mougeot & Naegelen, 2005) • must adhere to rigid regulations and depends on a political decision • transparency becomes basic requirement • involves a variety of stakeholders with different and often conflicting agendas • often implemented under a unified public procurement plan that involves different government agencies (such as different departments) onsequently, institutionalization of such systems becomes 5

Institutional work efinition • “The sets of practices through which individual and collective actors create, maintain and disrupt the institutions of organizational fields” (Lawrence & Suddaby, 2006, p. 219). 6 Creating Maintaining Disrupting Disconnecting sanctions Disassociating moral foundations Undermining assumptions and beliefs Advocacy Defining Vesting Constructing identities Changing normative associations Constructing normative networks Mimicry Theorizing Educating Enabling work Policing Deterring Valourizing and demonizing Mythologizing Embedding and routinizing

Type of institutional work Type Description Examples Cultural Practices that stimulate common ways of acting and behaving (Perkmann & Spicer, 2008) Constructing normative networks Constructing identities Changing normative associations Political Involves the enactment of rules and regulations through exercise of coercive power (Lawrence & Suddaby, 2006) Advocacy Defining Vesting Technical Involves the construction of ‘mental models’ and shared world views (Scott, 2008) Theorizing Standardizing Mimicry Educating 7

etrospective interpretive case study esearch sites: the city of Yogyakarta, Indonesia ata • Interviews with key players (11 informants) • Documents (reports. slides, news in the media, websites) • Observations ata analysis Research method 8 Yogyakarta

The timeline 9

Findings: Identified institutional work Stage Institutional work Type Disrupting Disassociating moral foundation* Cultural Creating Changing normative associations* Cultural Counterfactual thinking** Cultural Convening*** Cultural Connecting to the macro-level discourse** Political Aligning with highly legitimate actors** Political Educating* Technical Maintaining Policing* Political Leveraging** Political Deterring* Political Enabling work* Technical Embedding and routinizing* Technical 10 Notes: * Lawrence and Suddaby (2006) ** Dorado (2005) *** Tracey et al. (2011)

Findings: Patterns ultural institutional work was important at the beginning of institutionalization process • to bring divergent change • to create a collective awareness and to develop a new shared identity olitical institutional work was important at • creating stage to facilitate a smooth start by minimizing resistance and getting broadest possible support • maintaining stages to make other stakeholders enrol in the practices and simultaneously to deter others echnical institutional work was important • for maintaining the new institution 11

Conclusion – role of the entrepreneur he involvement of the dominant actor (i.e. the mayor) gradually diminished at the later stages of the institutionalized process – a strong indication that the practice has become routinized and institutionalized 12

Contributions of the study llustrates that the notion of institutional work provides a good insight into what institutional entrepreneurs do in the institutionalization process • builds upon previous studies by Lawrence and Suddaby (2006), Tracey et al. (2011), and Dorado (2005) to develop a sharper interpretive lens dentifies a set of specific institutional work carried out by institutional entrepreneurs in the institutionalization process or practice, offers insights about possible strategies for implementing an initiative • ‘values instilling’, ‘careful exercise of political power’, ‘building collective 13

For your attention Thanks Tusen takk Terima kasih Matur nuwun Questions? Spørsmål? Pertanyaan? Fathul Wahid Maung K. Sein fathul.wahid@uii.ac.id maung.k.sein@uia.no 14

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