AMEL ATTOUR CHRISTIAN LONGHI
University of Nice Sophia Antipolis GREDEG CNRS
LOCAL INNOVATION POLICIES IN SERVICES:
THE ROLE OF MUNICIPALITIES IN THE IMPLEMENTATION OF e-GOVERNMENT Summary
This article constructs an analytical framework to investigate the development of local electronic government (e-Government) recently implemented by the French municipalities. The existing literature and studies on e-Government generally focus on progress at national level. However, online public services are being developed at the level of municipalities in France. This article describes the context of these recent developments, identifies indicators of the efforts made by the municipalities to develop local e-Government, and tests the implication of the socio economic context on strategies implemented by the municipalities.
Keywords: cities, local government, e-Government, online local public services. 1. Introduction
The development of electronic government (eGovernment) shows that information and communication technology (ICT) have an increasing effect on public institutions, which are heavily involved in the development of network infrastructures and related services – the focus of this article. In the literature, eGovernment is defined as the use of ICT by public government associated with organizational changes and new skills in order to improve public services and democratic processes as well as to reinforce public policies ([24]). This process is calling into question the culture and relations of public institutions with civil society and is being driven from above – by Europe, national government and the municipalities. This paper focuses on the implication of cities in this process. Following the principle of subsidiary fostered by the European Commission (EC), which has largely been adopted, this local level is affected by the decisions of economic policy and is able to influence reform of the State and public institutions. The implementation of e-Government does not mean that certain services become redundant, but rather that new governance methods and relationships are being forged.
Reform of the French State is at the heart of many contemporary evolutions. The development of e-Government is seen as an essential reform, [7], as well as the process of decentralization and the various laws that have been passed since 1999, which are changing the definitions of territories and local government. The “Orientation Law for the Planning and the Durable Development of the Territories” and the “Solidarity and Urban Renewal Law” define the “Agglomerations” or “Pays” as projects, in which municipalities have become the engine of change and economic development. In examining e-Government at the commune level, this article is examining the articulation of the key levels in the recent changes. Besides, in recent years, developping eGovernment at the local level has been recognized as an opportunity to regulate public government processes, to visualize
and simplify them and to realize them online. This is an area that has recently mobilized theoritical and empirical researches in several countries, in Italy, Norway, or USA ([1]; [10]). In the French case, studies have been undertaken at he national scale to analyse the progress of e-Government but only a few have focused on evaluating the implications and the efforts of French actors at the local level, [2].
This article builds and applies an analytical framework to understand e-Government at the level of the French municipalities. Section 1 provides an overview of recent developments; Section 2 builds an analytical framework within which to evaluate the level of the local e-Government services implemented by municipalities; and Section 3 builds a methodology to measure the municipalities’ efforts to develop the local e-Government services.
2. Methodology for categorizing the municipalities’ efforts in developing local e-Government in France
There are various studies that offer information about the processes supporting the development of e-Government. But this information is primarily focused on the national level and the local level is completely ignored. However, this level is fundamental; as previously underlined, subsidiarity and proximity are pillars of the French State reform. The municipalities are of particular interest. They are the users of the services offered by other levels of the government and the providers of local services. They are privileged intermediaries for the citizen. But the local services provided by the municipalities vary quite widely; there are not precise requirements attached to the development of e government by the cities, which are relatively free to choose their own strategies regarding implementation of electronic services. The dynamics underlying the emergence of a local e-Government are therefore complex. In this paper we try to establish a knowledge base related to the types of services offered and construct an analytical framework to understand how these services are implemented and to characterise the various forms of local e-Governments that are coexisting in France. Obviously, some of the diversity in the services being offered arises from the "digital divide”2 although the technology is not the only dimension to be considered. Other obstacles are linked to tradition. Problems that arise can be sociological, cultural or economic, depending on the strategies of the municipalities.
The aim of this section is to measure the development of e-Government at the local level. Our study is not exhaustive and does not evaluate user satisfaction of e-Government services. However, we hope to mitigate the lack of information on the efforts of French municipalities to improve public services using ICT. We generally implement the European indicator model at local level, [6]; however, we do ignore the impact of innovative services on the internal business processes of the commune and the evaluation of users' perceptions. Here, we address the state of deployment of the e-Government services at local level and the municipalities efforts to develop the use of e-Government services.
2 The digital divide refers to two levels, technological and social. Thus Suire, [27], distinguishes a «first level divide» associated with the telecommunications infrastructure, and a «second level divide» which is linked to the “very strong heterogeneity in the capacity ‘of individuals’ to use the technological objects and the Internet in particular”.
2.1. Application based ICT services
Municipalities are relatively free to decide the level of e-Government they will implement. These local services are obviously not the ones offered by the central administration, which are available over the country. They are implemented locally for the citizens or firms belonging to the municipality, of for objectives specific to this municipality. For the purpose of determining indicators that reflect the effort of municipalities in the development of online administrative services, it is necessary to build a nomenclature of implemented and potential services. To achieve this we use two types of segmentations:
(i) The first takes account of the recipient of the service:
Government to Government (G to G) services: procedures acts, internal relations, Intranet...;
Government to Businesses (G to B): calls for tenders; Government to Citizens (G to C): services to citizens.
(ii) The second reflects the distribution of internal commune services (CapGemini (2005)): Income generating services (taxes,...);
Registry services (certificates, address changes...);
Redistribution of wealth and expenditure services (public employment, police force, health,....);
Licences and permits (personal documents, building permissions...).
The categorisation suggested by CapGemini, [6], is intended to evaluate the level of development of the national central services. In building an adequate nomenclature of local services, additional categories are needed, "Proximity", which includes services provided on the initiative of the commune, and “Communication Technology”, which includes all the communication services set up by the commune. The nomenclature of implemented and potential local services is presented in Table 1.
These services can be used as indicators because they reflect each of the categories discussed above and the actors to whom the services are addressed. This set of "services-indicators» represents the scope of what a commune could implement in France.
Table 1.
G to G G to B G to C
Incomes - Public contract
dematerialization
District ticket office (concert, museums, etc.)
Registry
-
Providers bills processing
Civil Status: register: nursery; school meals; etc.
Town planning Redistribution
- House renovation Housing
Licence and authorisation
-
Authorisation to undertake work in public roads
Building licensing District rooms renting Authorisations Proximity and Communication Technology Control of legality, inter governmental information. -
Information and Communication: communication with elected people, citizens polling; district counsel reports, city laws; district job offers; vote, vote results, vote information
Demand: district services; garbage containers.
3. Methodologies for measuring the use of local e-Government
Several methodologies have been applied to evaluating e-Government through the services implemented. The efforts of municipalities in developing local e-Government services can be measured in terms of evolution phases. Stage models are often used to address the evolution of the e-Government development. Several studies ([31], [8], [25], [15]) adopt the European Union four stage model defined in eEurope and by Cap Gemini, [6]. In stage one, the information phase, the government creates a website with online information about the procedure and services. The front and back office processes are not integrated ([25]). In stage two, which is a one-way communication phase, the public website provides downloadable forms. In stage three, the two-way communication phase, users are able to transact with the municipalities on-line by completing forms, which receive a response in the form of a confirmation, a receipt, etc. In stage four, the transaction phase, there is vertical integration. The service is processed entirely online, including decision, delivery and, where necessary, payment. The processes are automated and digitized.
Since the potential local e-Government services that a commune can implement are identified and selected against a European context and strategy, we adopt the same stages of evolution in terms of phases in order to show the degree of effort being made by the municipalities.
Our objective is to investigate the level of effort of the commune in its government services offering by measuring the progress of local e-Government services. The methodology can be extended to take account of the user’s perceptions of the offering and the internal changes promoted in the organisation of the commune.
3.1. Adoption of the e-Government services
Various studies have proposed models to measure the adoption of online e-Government services. The methodologies are based on evaluation in terms of phases. There are two main stage models proposed in the literature.
The first defines a model that predates the European stage model. Green, [14], suggests three stages: attracting (using the website), transforming, and utilization of media technology. Fink et al. (2001; quoted in [25]) propose the stages of attracting, enhancing and retaining client relationships using web site applications. These models comprise the first step towards a fully fledged evaluation. Merwe and Bekker propose a more technical stage model. Although it does not indicate users' perceptions of the website, it allows some measurement of the effort required to design a service that will benefit and be easy for users. It evaluates the quality of a commune website and its services, in five phases. The first phase refers to the website’s interface. Phase two evaluates the ease of navigation of the website. Phase three evaluates its content, phase four measures the site’s reliability, and phase five evaluates its technical attributes. It is argued in [25] that some of these criteria seem to have been inspired by the author's interest in e-Commerce practices, but many are also applicable to e-Government.
The second group extends the European stage model. St-Amant, [26], defines four stages of evolution of the e-Government. The three first stages automate existing processes and are based on the European stage model: Stage one, information phase, enables electronic access to government documentation. Stage two, the interaction phase, adds technologies that facilitate bidirectional communication. Stage three, the transaction phase, allows the complete electronic processing of requests and stage four, the integration phase, requires a more radical transformation and evaluates the adoption of e-Government services and the internal changes it has provoked in the organization of municipalities. It is customer oriented and aims at integrating services either within an organization or between various partners. It requires a re-conception of the processes, and the technologies supporting them in order to set up an organization able to offer flexible, personalized, and good quality services within a network of internal and external partners.
The literature usually shows that municipalities made huge efforts to inform and train citizens in using the ICT and the services offered. The initial preoccupation is to provide access to the infrastructure via for instance Digital Public Spaces. This is one of the efforts involved in the development of e-Government and should be identified by the indicators.
3.2. Internal change management
The models described above take no account of the implications of ICT introduction on the internal business processes. The methodology developed in [20] to overcome this limitation includes a five stage model: attracting, informing, creating a community (online forum, events, e-Magazine domain identity and community services), delivery (presence or absence of features), and innovation (transformation of existing services and introduction of new innovative services).
The effort expended by the Municipalities to set up e-Government may also extend into the field of project management and the hiring of multidisciplinary staff, starting from process re engineering of district services to the training of regional agents, a measurement systems for results and the planning of e-Government systems. The management of the project can be an indication of the perception of the municipalities of the importance of the deployment of e-Government. A multidisciplinary team is needed to scan for all the impacts that deployment of
the system has, both technical and human, on the various commune processes. The mobilization of a truly multidisciplinary team is a necessary effort to achieve this.
The application of measuring tools on the use of equipment or service is optional, but can have important consequences for our understanding of its effectiveness in terms of satisfaction and return on investment. Greater understanding of these aspects allows realignments wherever necessary or the knowledge needed to support other investments.
Global planning of the commune’s Information System involves similar things. A new service can be deployed independent of existing services and at lower cost, but there is the risk that loss of synergy may occur and that in the long term difficulties may arise that generate additional costs. Thinking about Information System planning and taking coherent decisions, represents an effort and reflects a strategic maturity with respect to the ICT.
4. Application of the stage model to the French case
A survey on 95 municipalities with more than 10,000 inhabitants was conducted in early 2006, on the basis of the stage model described above, to measure their level of local e-Government. The survey is representative, since the municipalities were selected according to two criteria: a geographical and national repartition of the municipalities, and the population distribution within the communes. The survey was administered online (by email) or by phone and addressed to the Director of Informatics Systems (DSI) in the commune. The survey was based on a questionnaire on the e-Government services available on municipalities’ websites and on the efforts made by the municipalities to develop ICT use. It enquired whether the e-Government services identified in paragraph 2.1 had been developed by the commune and asked for details about the stage of development of each service. It also enquired whether any efforts had been made to inform and communicate the user about the ICT and the services offered, and asked about the efforts made to change internal business processes in the commune to accompany the development of local e-Government services.
4.1. Development of local e-Government in French Municipalities
The survey shows that the level of development of local e-Government services is rather low. The services identified in paragraph 2.1 have not been implemented by all municipalities. Among those that are available, only a few have reached a well developed stage. Note that 90% of the municipalities surveyed have less than 50.000 inhabitants. Therefore, it can be said that in small municipalities the development of e-Government is immature. The municipalities in our survey fall into two categories: (i) those that have not developed local e-Government services; and (ii) those that have introduced some simple services.
Figure 2 depicts three stages in building/licensing services, authorization to undertake public roadworks, box office services; town planning; building licensing; and commune job situations vacant. The services that have not been developed generally are those that would involve the two-way communication phase and the transaction phase. It can be seen that 51.8% of the municipalities surveyed do not offer online services related to building licensing and 48.2% have developed only the first two levels of online offering (information phase and one-way communication phase). Only three services and in only a few municipalities have been developed to the transaction phase (registrations, public contracts citizen consultation).
Fig. 2: Frequency and evolution of local e-Government services in France
Source: Dedicated survey of 95 French municipalities with more than 10.000 inhabitants, 2006. Not all the municipalities in our survey were offering innovative services. The municipalities that are investing most in the development of e-Government are the larger ones, with more than 50,000 inhabitants. There are very few services that are in an advanced stage of development. The majority of the services being offered are in the second stage of maturity. A hierarchical classification has been used to identify if municipalities invest differently in developing e-Government. To sum up there are basically two groups: (i) municipalities that have not developed services, and (ii) municipalities that are offering very basic services (information or/and one-way communication phases). First, the effort required by some municipalities to deploy broadband networks is huge and consume a huge share of their budgets; second, digital network development in the municipalities is at an early stage (computers and other equipment, recruitment and training of employees, etc.) and the full e-Government services development phase has yet to be achieved.
The analysis of the relationships between the likelihood of a commune developing e-Government and its socio-economic characteristics using an econometrical model confirm this result. For that, we have complemented the survey to identify the effort of municipalities in developing e-Government by socio-economic variables. Four groups of explanatory variables have been built to complement the survey: economic, education, socio-professional categories and geographic variables. The selection of the explanatory variables is based on a review of the
literature relating to the deployment of the ICT and the diffusion of ICT services in the municipalities, and also the literature analysing territorial externalities and the unequal deployment of broadband.
The empirical analysis of the database has led to proposing and testing the following hypotheses:
H1 : the density of the commune influence significantly the municipalities’ effort in developping e-Government.
H2 : the economic characteristics of the commune significantly influence the development of e-Government.
H3 : the municipalities’ tourism activity influence significantly the development of e-Government.
These hypotheses are tested in the following logit model:
e-Government = f (Share of industrial business, share of business developing services for companies, share of business developing services for consumers, share of business developing wealth/education/social services, share of working population, share of pensioners, log of the municipality hotels, log of density of the commune population) + const +
e
iThe variable y = e-Government resulting from the classification is defined as:
y = 1 if the municipalities are active in developing basic e-administraion services (group 2) y = 0 if the communes are passive in developing local e-Government services (group 1). The results from the logit model are resumed in Table 2.
Table 2. Results of the logit model
Number of observations = 84 LR CHI 2 (7) = 24.26 Prob > chi2 = 0.0125 Log likelihood = - 39.030
Pseudo R2 = 0.1620
Variables in local e-Government Coefficients
Share of industrial business 0.054*
Share of business developing services for companies 0.075**
Share of business developing wealth/education/social services 0.004
Share of business developing wealth/education/social services 0.012**
Share of working population -0.071
Share of pensioner -0.006
Hotels (log) 0.091
Density (log) 0.465**
Constant -79.31***
Source: Dedicated survey of 95 French municipalities with more than 10.000 inhabitants, 2006. The logit model validates H1, H2 and H3. The model shows that the commune’s physical (density) and economic characteristic have a positif impact on its local e-Government orientation strategy, its economic and touristic characteristics. This results confirm the usual findings of the
economic geography analysis, which show that ICT investments are strongly concentrated in agglomerated zones ([18], [4], [3], and others). The economic landscape of the commune is an extremly important factor in the decision to implement e-Government services. In line with Jacobs, [17], the most diversified industrial complexes show the most important development. But, our results highlight an important point in term of digital divide. They show that geographic inequalities are reinforced by public intervention in developing ICT. Public efforts in developping e-Government are not only motivated by development but also by the implementation of stategies fostering competitiveness and attractiveness of their territories.
The cross study of the commune effort in deploying digital networks and in dematerializing their government services shows that the factor explaining public strategies in developing ICT is not so linear.
4.2. Why local e-Government has not taken off in France?
Why local e-Government is generally at a low level of development in France? Digital divide in the uses of ICT services may be a first explanation. The relationship between broadband availability and its impact on the development of e-Government can be pointed out. Theoretical literature has frequently debated the existence of a direct relationship between the presence of broadband networks and availability of e-Government services. However, no or only few studies have focused on understanding and quantifying such a relationship. As it is summarized in Table 2.30% of the municipalities with no local e-Government services and 17% of the municipalities with basic local e-Government services had to deploy broadband by themselves. The efforts in developing e-Government in these municipalities are less intensive than the efforts required for deploying an attractive digital network. At this step, it would possible to conclude that municipalities which do not develop e-Government are those which have no easily available broadband access. But, as we can see in Table 2, the relationship between broadband access and e-Government development is more complex than reflected in the recent literature ([10]). More than 50% of the two municipalities groups did not need to make any efforts for deploying digital networks, an operator had spontaneously deployed the broadband. So, how can we explain that, for these groups of municipalities, local e-Government has not taken off?
Table 2. Municipalities’ efforts in deploying digital infrastructures and level of local e-Government maturity
Groups of municipalities Municipalities effort for deploying
digital networks in their territories
Group n° 1 Municipalities with no local
e-Government
Group n° 2 Municipalities with basic
local e-Government services The commune have deployed the
broadband 30% 17%
An operator has been asked by the
commune to deploy broadband 10% 27%
An operator has spontaneously
deployed the broadband 60% 56%
We do not have any information about citizen’s uses of e-Government services, which would require a specific study built on a survey addressed to administrative users. Nevertheless, municipalities of our survey have been asked about their efforts to inform and to form internal and external user groups of e-services. The survey shows that only few municipalities have made any efforts to diffuse information about the development of local e-Government services. The DSI questioned were asked whether their commune had produced an information leaflet to inform citizens about e-Government. Only 16% of municipalities had made some effort to inform potential users. Of these, 33% were municipalities with more than 50,000 inhabitants, 18% had less than 20,000 inhabitants and 11% had between 20,000 and 50,000 inhabitants. Only 4% of municipalities make effort to form internal and external users. So, a first limit of the development of French e-Government is the lack of information of citizen about the existing e-services and their awareness from ICT.
In order to measure the municipalities’ efforts to evaluate user satisfaction of e-Government services, DSIs were asked about the impact of local e-Government services development and their efforts to gauge the use of on line services. For the 18% of the municipalities that have developed local e-Government services this has involved a reorganisation of their processes. Of these, 53% have made efforts to measure the impact of the new services and the introduction of ICT in their internal processes. Finally, DSIs were asked about the measures they used: 21% of municipalities do not measure the results of the new services they have developed. Forty-eight (4%) measure web site uses, 9 (5%) measured the use of the new services. 15% of the municipalities measured user satisfaction with the services and only 6% calculated the return on the investment made to develop e-Government.
One more important element to explain the level of French local e-Government is the implication of local actors in reducing digital infrastructure divide. With the liberalization of the telecommunication market, the distribution of digital infrastructure offering becames inequally distributed geographically. French reforms encourage public actors to adopt policies promoting digital infrastructure in their territory. At the beginning of 2000’s, public initiatives have increased and concentrate public efforts in the first level of the digital economy as defined by Curien (2000), the infrastructure level wich needs important financial efforts.
5. Conclusion
The article builds an original analytical framework to understand the development of e-Government in the French municipalities. It contributes to the construction of a knowledge base on local level e-Government, which is a major element of the current and undoubtedly future developments of the ICT, but which up to now has been poorly documented. In particular, it defines indicators of the efforts of municipalities in local e-Government. Further research developments have aimed at the valorisation of the selected indicators. We defined a set of surveyed municipalities, and a quantitative measure of their efforts to deploy e-Government. We compared municipalities on the basis of indicator families, examined the diversity of approaches relative to the implementation of e-Government. Further research is needed to assess the role of socio economic parameters and evaluate the efforts made to encourage adoption and the services and manage change. However we assume that the municipalities that are better developed at the strategic level will expend a significant share of their effort on the adoption of the e-Government services and internal change management while municipalities with less well developed strategies will show inertia in these respects.
Analysis of the efforts underlying the deployment of e-Government should make it possible to build taxonomy of municipalities, which should allow the diversity of project dynamics and territories to be assessed. This analysis has to an extent clarified one of the fundamental uses of the Internet. One of the reasons pushed in the literature for forging ahead or falling behind is problem of access to infrastructure. This access known as the problem of the "last kilometre", access to the Internet through broadband netwroks, has generally found solutions. But from the point of view of local e-Government services the problem is somewhat different. As underlined in [23], it is rather "the first kilometre" problem that requires attention, i.e. getting users to communicate more in areas where relations between governments and citizens, associations, firms are most dense and are the most attached to economic, social realities. It is also a space where the introduction of e-Government services is part of a local development project, which implies greater involvement of the municipalities. Understanding of the different dynamics of e-Government development within municipalities, the constitution of classes of municipalities according to the strategies implemented, the identification of constraints and barriers are fundamental aspects which, given the role of the local level in the contemporary society, must be considered when analysing the effects of the Internet on the society. The insertion of this local resource in the process would be likely to start loops of innovation which, beyond technologies, would upset the whole of the government, the interactions and interdependences which underlie the relations. The nature of the local e-Government actually implemented should be a good indicator of the reality within the municipalities or territories.
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LOKALNE POLITYKI INNOWACJI W USŁUGACH: ROLA GMIN WE WDROĩENIU E-ADMINISTRACJI
Streszczenie
W artykule zaproponowano podejĞcie analityczne do badania rozwoju lokalnej e-administracji, wdraĪanej w ostatnim okresie przez gminy francuskie. Istniejąca literatura i badania e-administracji koncentrują siĊ zazwyczaj na poziomie krajowym. JednakĪe usługi typu administracyjnego rozwijają siĊ takĪe na poziomie gminnym, równieĪ we Francji. W artykule opisano kontekst tego rozwoju we Francji, zidentyfikowano czynniki, stojące za wysiłkami, podejmowanymi w tej dziedzinie przez gminy francuskie i przetestowano hipotezy, dotyczące kontekstu społeczno-gospodarczego strategii faktycznie realizowanych przez władze gminne.
Słowa kluczowe: gminy, miasta, administracja lokalna, e-administracja, lokalne usługi internetowe.
Amel Attour Christian Longhi
University of Nice Sophia Antipolis GREDEG CNRS
