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Digital Era GovernanceIT Corporations, the State, and e-Government$
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Patrick Dunleavy, Helen Margetts, Simon Bastow, and Jane Tinkler

Print publication date: 2006

Print ISBN-13: 9780199296194

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780199296194.001.0001

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Explaining Performance II: Competitive Tension and the Power of the IT Industry

Explaining Performance II: Competitive Tension and the Power of the IT Industry

Chapter:
(p.114) 5 Explaining Performance II: Competitive Tension and the Power of the IT Industry
Source:
Digital Era Governance
Author(s):

Patrick Dunleavy

Helen Margetts

Simon Bastow

Jane Tinkler

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199296194.003.0005

This chapter operationalizes the power of the IT industry in terms of three key, qualitatively categorized dimensions: the extent to which government IT contracting has moved away from effective competition, which we expect to worsen performance; strong market dominance by the top five firms, which we expect to reduce performance; and government's lack of in-house capabilities, in which increased dependence upon contractors is expected to worsen performance. There are sharply varied patterns of government-industry IT relations across the seven countries under study. However, using an aggregate measure of IT industry power shows a very close negative relationship with government IT performance, far stronger in its influence than the effects of government institutional factors. In other words, the greater the overall power of the IT industry in a country, the lower the performance of government IT systems.

Keywords:   information technology, performance, contracting, competition, industry power, market dominance

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