An integrated model for information technology servitization adoption in South African state-owned enterprises

Abstract

Information Technology (IT) servitization manifests itself in multiple forms, including IT outsourcing, virtualization and cloud computing. It was inferred that various determinants influence South African State-Owned Enterprises (SOEs) to adopt IT servitization. Although the concept of IT servitization has been researched under various terms, the determinants, particularly in the context of South African SOEs, have not been adequately studied to date, resulting in large capital investments in IT servitization adoption but with limited value realised thereafter. This thesis examines the determinants that influence the adoption of IT servitization. The study and thesis were motivated by the fact that these determinants were not well explained in order for SOEs to smoothly adopt IT servitization. Subsequently, the thesis develops an integrated theoretical and practical model for IT servitization adoption in the context of South African SOEs. Three theories were triangulated based on the study objectives to provide lenses for explaining the determinants. The lack of a single all-encompassing theory of innovation adoption influenced the triangulation decision. Technology, Organisation, and Environment (TOE) framework, Institutional theory, and Process virtualization theory are the triangulated theories. In order to guide the actions and beliefs of the study, a positivistic philosophical orientation was followed with a quantitative deductive approach being adopted. The unit of analysis were individuals who have IT experience within South Africa’s SOE environments. This decision was informed by the need to understand IT servitization adoption from the individual’s point of view as opposed to the organisational point of view. Purposive sampling was the primary method for selecting respondents, which was supplemented by snowballing. A Web-based questionnaire was used to collect survey data from IT executives and practitioners. Structural Equation Modelling was used to validate the research model. The theoretical and practical model for IT servitization adoption in the context of South African SOEs is thus the contribution of this thesis. This model indicates that, when technology allows for virtual interaction of participants in a professional setting (relationship readiness) as well as provide an automated process that uniquely and accurately verifies the identity of process participants (identification and control readiness), SOEs are enabled to adopt IT servitization. Moreover, when coercive and normative pressures are exerted, formally or informally, directly or indirectly, through regulatory bodies, trading partners, professional associations, and organisations on which SOEs rely, SOEs adopt IT servitization. Furthermore, the industry, or the business sector within which the SOE operates, has an influence on their adoption of IT servitization.