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CONTENTS Preface Chapter 1
vii Empirical Analysis of the Status Quo of Global e-Governance: What Determines the Level of e-Governance Across Countries? Bodo Herzog
Adaptability and Risk Control Criteria in Managing Models of an Enterprise Victoria FitzGerald and Janina White
Performance Measurement Systems and Financial Results of Polish Enterprises: Multidimensional Analysis Barbara Batóg, Jacek Batóg, Andrzej Niemiec, Wanda Skoczylas and Piotr Waśniewski
Business Engagement into Economic Development of the Poorest Countries: The Case of Russia Yury K. Zaytsev
Information Technology Development: Does Information Technology Need Inspiration from Swarm Intelligence? Milena Janakova
vi Chapter 6
Contents Conflict Resolution Style and Job Satisfaction of Employees in Nursing Mateja Lorber
PREFACE The authors of this book examine the latest research in business and management, including the development of e-governance over time and across countries; the adaptability and risk control criteria in managing models of an enterprise; the dependences between performance measurement systems (PMS) and financial results achieved by Polish enterprises; Russian business’ envolvement into the markets of developing countries as a case of private development engagement; the use of swarm intelligence in the field of information technology; and job satisfaction of employees in the nursing field. Chapter 1 - This article studies the development of e-governance over time and across countries. The authors use a large data sample consisting of 99 developing and 34 OECD countries to study this notion. Firstly, the authors study the development of e-governance. Secondly, the authors estimate models to check the determining factors of e-governance over time and across countries. The study reveals that the level of e-governance is determined by the degree of e-participation, online access as well as GDP per capita. Chapter 2 - Recent signs of a recovery in the UK and world economy along with the liquidity inflow, variety of traditional funding sources and new entrant lenders enable increased M&A and restructuring activity. At the same time most managers have employed nowadays various forms of cost-cutting and a more disciplined spending, so that cost effectiveness is a key. The expenditures on innovations targeted to improve or to completely transform existing structures in view of the contemporary and future economy challenges and enterprises competitiveness must not undermine already achieved wealth and assets, and also to be effective and provide for possible deviations from the planned scenario. Preliminary analysis from point of reaching planned design parameters, as well as of adaptability to a destabilizing influence
William D. Nelson
includes pre-investment project modeling, thus saving excess costs that both big businesses and SME cannot afford to spend on experimental evidence of an incorrect development option. Proposed re-investment modeling based on automatic control apparatus allows to lower unnecessary risk narrowing the choice of restructuring options and saving costs of the realization of a project. Chapter 3 - The results of research conducted so far in different countries confirm that enterprises using performance measurement systems (PMS) perform better than those that do not. In this chapter the authors tried to identify the dependences between PMS and financial results achieved by Polish enterprises. In the study, a dependent variable was constructed on the basis of financial results for three consecutive years. The application of a multidimensional analysis (classification trees) in examining the relationships between the features of performance measurement systems and financial results of Polish enterprises allows identifying key elements of a performance measurement system: an ordered system of financial and nonfinancial measures, the frequency of measuring and complexity of performance measurement (company as a whole, organizational units and individual employees level). The research is based on a representative survey carried out twice, in 2012 and 2014 by using a CATI method on a sample generalized to the entire population of Polish non-financial enterprises. Chapter 4 - The role of business in contributing to the overall economic growth of developing countries cannot be underestimated. Business creates such economic benefits as employment, taxation base for the state, generates innovations in technologies and management practicies, provides goods and services for the population. However there is a growing pressure on business nowadays, which goes well beyond its contribution to overall economic growth through trade and investments, which is associated with social and environment issues. To address this pressure the business became directly involved in poverty alleviation schemes, environmental, economic and social regulation activities. This tendency affected the concept of corporate social responsibility (CSR), which now implies compliance with the social, economic and environmental commitments at the corporate level and beyond the corporation. This shift proposes that CSR practicies make the business to involve the poorest inhabitants of a country both as consumers and as producers for their economic benefit. Moreover, it suggests that business models are becoming “inclusive businesses”, “making markets work for the poor.” This shift is relevant for developing countries, which quite often face with the challenge of international business activities. To this end greater emphasis is placed on the economic substance of the CSR, social investments
and social engagement of the foreign business at the markets of developing countries. The chapter analyses Russian business’ envolvement into the markets of developing countries as a case of private development engagement. Particular focus is made on the expenditures of CSR projects, practices to engage with the local businesses, as well as the activities associated with “inclusive business”. The chapter also analyses the factors, explaining the return on investments for social projects. In conclusion the recommendations on strengthening the practices of CSR are suggested. Chapter 5 - This paper is focused on the use of swarm intelligence in the field of information technology. Information technology (IT) supports the majority of the realized activities. The press is focused on time and quality. There are also competitions, customer preferences and downward pressure on prices and costs. In this situation, new products and services have to address both existing and new customers. Such innovations actively use information technology and available information from the Internet. Good and bad advice, experiences or requests are immediately available for everyone. The behavior of individuals in a global information society reveals similarities with regard to the collective behavior of animals in nature. Although this analogy might seem startling, there is no reason not to make use of experience from nature for IT development. Swarm intelligence provides inspiration for various fields such as economics, biology and also computer science. IT product development is perceived with a wide spectrum of conditions and preferences. There are verified methodologies, methods or advice in the form of the finest examples for correct IT implementation. Optimal IT implementation must be evaluated based on the available IT product, technology issues, data difficulties, company philosophy, employment approach, motivation, the aims and concept, management support, end users, the learning process, security of application, measurement and evaluation. The perception of IT implementation is a difficult process with a number of relationships. This volume information is beyond human capacity and a suitable arrangement is needed. There is an absence of unique methodologies and methods and therefore, the activation of pheromones is advantageous. Pheromones make use of ants to support realized activities and collective intelligence. They have solid results and similar results are brought by these pheromones as indicators of the actual impact for software development. There are used in a wide spectrum of suitable dimensions (for a complete view of the existing reality) and phases (for improved realization of the implementation process step by step). Based on pheromones (representing the actual impact on the software project), only the needed dimensions and phases are selected. The needed
William D. Nelson
corrections are realized via well-known iteration. The benefit is in the uses of all available knowledge and information for optimal software development in a global information society. Chapter 6 - Conflict has been an integral component of human functioning throughout history. In nursing often experience conflict not only with other members of the team but also between the individuals that take care. The aim of the study was to identify the dominant conflict resolution style and their effect on job satisfaction of employees in nursing. The authors used the quantitative methodology, based on a cross-sectional study. The study was conducted in Slovenian Hospitals at internal medicine and surgery departments. A structured survey questionnaire was administered. The relationship between demographic data, conflict resolution style and job satisfaction were analyzed using descriptive statistics and regression analysis. Cronbach α was 0.95. The most common style used by nurses to resolve conflict was collaborating followed avoiding, accommodating, compromising, and competing. In the research the authors found that collaborating and compromising positively correlated with teamwork, communication, emotional intelligence and job satisfaction. Regression analyses indicated that collaborating conflict resolution style (β =0.212; p=0.004) and compromising conflict resolution style (β =0.099; p=0.037) influenced on job satisfaction. This study examined an important aspect of self-knowledge of approaches to resolving conflict and individuals’ characteristic that is particularly relevant to nursing professionals. In the study was found that conflict resolution in nursing associated with the teamwork, communication, emotional intelligence, work stress and employees' job satisfaction. Health care institutions will be successful and achieve their organizational objectives, if their employees will feel well and will be satisfy with their work. Employees with a high level of job satisfaction are more successful, more committed and more productive. Therefore, it is important that management focus on integrating conflict resolution style in nursing.
EMPIRICAL ANALYSIS OF THE STATUS QUO OF GLOBAL E-GOVERNANCE: WHAT DETERMINES THE LEVEL OF E-GOVERNANCE ACROSS COUNTRIES? Bodo Herzog* ESB Business School, Reutlingen University, Germany Reutlingen Research Institute, Reutlingen University, Germany Institute of Finance and Economics, ESB Business School, Reutlingen University, Germany
ABSTRACT This article studies the development of e-governance over time and across countries. We use a large data sample consisting of 99 developing and 34 OECD countries to study this notion. Firstly, we study the development of e-governance. Secondly, we estimate models to check the determining factors of e-governance over time and across countries. The study reveals that the level of e-governance is determined by the degree of e-participation, online access as well as GDP per capita.
Corresponding author: Bodo Herzog, ESB Business School, Alteburgstr. 150, D-72762 Reutlingen, Germany, Tel.: +49 7121 271 6031, Email addresses: Bodo.Herzog@Reutlingen-University.de.
1. INTRODUCTION The notion of “e-governance” has been relevant since the early 1990s. Egovernance is considered as a broader concept than e-government because it describes the way that citizens relate to governments. In fact, both notions are closely linked. The major driver is the new development in the information and communication technology (ICT), such as the personal computer and world-wide-web. E-governance (= electronic governance) is defined as a new style of governance based on new ways of debating and decision-making through the application of ICT (Carter and Belanger 2005, Edmiston 2003, Finger and Pécoud 2003, Sipior and Ward 2005, West 2004). This new style of governance should support and improve both the interaction and transparency between the citizens and its policy-makers. Therefore, e-governance provides government service to citizens in a convenient, fast, efficient and transparent manner. In the end, it is beneficial for both governments and citizens alike. Today e-governance is more citizen-centric and outward-looking than it has been in earlier years (Thompson, Rust and Rhoda 2005). Layne and Lee (2001) even argue that government processes are organized for citizens’ convenience rather than the convenience of government agencies. This view demonstrates that e-governance enhances both the communication and service to the public. Consequently, citizens are better informed and public processes are faster. The government benefits due to increasing efficiency and reduced administrative costs. However, the increasing availability of e-governance is used differently across countries and over time. In this regard, my research elaborates the existing divide and addresses the following questions: what determines the degree of e-governance? How has e-governance developed in developing countries in comparison to OECD countries? What are the key drives of e-governance in countries and over time? In order to study the determinants of e-governance, I also take a look at eparticipation and broadband subscription. Principally, both e-participation and broadband subscriptions are prerequisites for efficient e-governance. In literature, e-participation is defined as a ‘use of information and communication technologies to broaden and deepen political participation by enabling citizens to connect with one another and with their elected representatives’ (Macintosh 2004). Again, e-participation attempts to improve the processes of involvement through the use of IT, however, it is rather for communication than service purposes. Consequently, the idea of eparticipation is a part of e-democracy, where the political process is modernized (Clift 2003). The variable broadband subscription is a simple
Empirical Analysis of the Status Quo of Global e-Governance
measure of access to the world-wide-web in general. Both variables, eparticipation and broadband, are the cornerstones of a socially inclusive egovernance. There are two major results of this article: on the one hand the underling forces of e-governance are the prerequisites, such as online access and the willingness of citizens to demand online service. On the other hand the supply side factors are equally important especially the investments in e-governance infrastructure. Without sufficient aggregate income and therefore infrastructure investments in the needed IT, the respective utilization of egovernance is limited and constrained by the supply side. I confirm that OCED countries have a higher degree in e-governance due to higher GDP and better online access in comparison to developing economies. The structure of this article is as follows: Section 2 provides a brief literature review. In section 3, I study the development of e-governance across countries and over time using the gathered data. I distinguish between developing and OECD countries and compute several descriptive statistics. To study the driving determinants of e-governance, I compute three different fixed-effects panel regression models in subsection 3.3. Section 4 discusses the empirical results and draws some policy conclusions. Finally, section 5, concludes the article.
2. LITERATURE REVIEW The literature about e-governance and e-government has become more relevant in the recent decade due to an ongoing trend in the information revolution. Today almost every country utilizes some kind of e-governance (Taylor, Miriam and Organ 2007). The past and future development of egovernance is an important research field because it deals with the enhancement of public and private group interactions. Early research by Rogers (1995) proposed a diffusion of the innovation (DOI) approach. This and recent research by Al-Hadidi and Rezgui (2010), view this approach as an emerging topic in e-governance. Existing studies provide suggestions based on theoretical models, empirical studies and explorative case studies. Namely, the current phase of e-governance can be seen as a transition period. For instance, Norris (2010) demands an even better feedback process in e-governance in the interest of learning more from users. In order to get an overview of this field of literature, the paper by Webster and Watson (2002) is a good foundation.
There are many research papers that identify the benefits of e-government (Irani, Love and Jones 2008, Brown 2007, Choudrie, Ghinea and Weerakkody 2004). Understanding the underlying factors that promote the diffusion of egovernment has become a main research topic in literature. In general, the research is categorized into three groups: i) technological, ii) organizational and iii) environmental research. Of course, ICT developments are an essential part of e-governance and e-government (Ndou 2004, Al-Hadidi and Rezgui). These technologies have accelerated the exchange of information. However, the prerequisite requires a stable access to ICT, such as broadband technology (Faniran and Olaniyan 2009). Organizational factors are also of vital importance. A determinant that reassures the success of e-governance over time is the overall organization of a government (Azad et al. 2010, Moon and Bretschneider 1997). The key factors are the size and structure (Moon and Norris 2005) and the financial resources (Ferro and Sorrention 2010). Another impactful element that is not to be underestimated is the influence of government employees and their skills and knowledge (Al-Busaidy and Weerakkody 2009). Finally, let me briefly describe that environmental factors such as culture are also relevant for the development of e-governance (AlAdidi and Rezgui 2010). The reasons why governments engage in e-governance are focused around efficiency and transparency through the use of ICT (Codagnone and Wimmer 2007). But the primary intention is broader than this narrow description. It is about new opportunities and benefits to citizens, businesses and governments (Jaeger and Thompson 2003, Gupta and Jana 2003, Daniels 2001). Egovernance has the potential to improve the delivery of government information, service and resources to citizens at all levels – local, regional, national and supranational (McClure and Jaeger 2008, Helbig, Gil-Garcia and Ferro 2009).
3. EMPIRICAL DEVELOPMENT OF E-GOVERNANCE This section provides an empirical study about the development of egovernance over time and across countries. The data sample consists of 99 developing countries and 34 OECD countries over the time period from 2005 to 2015. However, both the e-governance and e-participation data is based on a survey which took place infrequently in past years. Hence, e-governance data is limited to the following years: 2005, 2008, 2010, 2012 and 2014. In subsection 3.2, I study statistical properties and developments of the respective
Empirical Analysis of the Status Quo of Global e-Governance
indicators. Thereafter subsection 3.3 provides a more detailed econometric assessment of the determinants.
3.1. Data The article utilizes time-series data from 2005 to 2015, consisting of 99 developing countries and 34 OECD countries. The e-governance and eparticipation data is gathered from the United Nations E-Government Survey. This survey is based on the following principles: i) e-governance is a tool for effectively promoting social inclusion and economic opportunity for all. ii) The survey describes the development of each country and highlights the progress made and the challenges faced. iii) The survey focuses on the provision of socio-economic and environmental services to the citizens through ICT, and finally iv) the survey assess the readiness of countries in respect to the ultimate goal of e-governance, the so-called ‘inclusion of all’. Similarly, I use the e-participation index (EPI). The EPI is derived as a sub-index in the E-Government Survey of the United Nations. It extends the dimension and focuses on the online services that facilitate provision of information by governments to citizens (“e-information sharing”), interaction with stakeholders (“e-consultation”), and engagement in decision-making processes (“e-decision making”) (UN 2014). In addition, I have a long timeseries from 1970 to 2014 about broadband subscription data, real GDP growth, GPD per capita, and unemployment rates.
3.2. Descriptive Statistics At first, I study the mean value of e-governance, e-participation and broadband. In addition, I distinguish between the 99 developing countries and 34 OECD countries in my study. Table 1 represents the mean values. The mean value of all variables is significantly higher for OECD countries. This is the first evidence that e-governance is higher and more developed in OECD countries. Additionally, I find greater values for e-participation and broadband subscription that indicate that the prerequisites are better developed in OECD countries.
Table 1. Mean Values, 2005 to 2012 Mean
Developing 0.44 Countries OECD 0.73 Countries Source: author calculations.
Broadband Subscription 2.96
Table 2. Standard Deviation, 2005 to 2012 Std. Dev.
Developing 0.52 Countries OECD 0.11 Countries Source: author calculations.
Broadband Subscription 4.27
Additionally, the standard deviation for e-governance reveals that OECD countries are more homogeneous than developing countries (Table 2). However, it is surprising that this finding is not the case for the standard deviation of e-participation and broadband. Here, surprisingly the standard deviation is lower for developing countries than OECD countries. To get an impression about the aggregate numbers, I study the development of these variables over time. Again I distinguish between developing and OECD countries. Figure 1 represents e-governance, eparticipation and broadband subscription data from 2005 to 2012 for all developing countries in my sample. The broadband data (green bars) show a significant upward trend over time. The estimation of a linear regression for broadband subscription reveals a beta coefficient (slope) of 0.68 with an Rsquared of 0.99. The same regression does not demonstrate any trend for e-governance or e-participation data. Hence, I cannot find any development in these data over time. Finally the comparison of level in Figure 1 with the OECD data in Figure 2 demonstrates that developing countries have a lower e-governance level and thus lower respective prerequisites than OECD countries.
Empirical Analysis of the Status Quo of Global e-Governance
Figure 2 illustrates the same variables for OECD countries. In comparison to Figure 1 you can immediately see the higher level of e-governance, eparticipation and broadband subscription over time. Similar to data of developing countries both e-governance and e-participation have no trend over time, but broadband data is continuously growing year by year.
OECD Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes No No No No Yes
Broadband subscription (green bars) is upward trending with a beta coefficient (slope) of 1.76 and an R-squared of 0.89. Even if the slope is of 1.76 and thus greater for OECD countries than for developing countries with
Empirical Analysis of the Status Quo of Global e-Governance
0.68, the overall trend seems to have flattened especially in recent years. The last conclusion is justified by the results of a polynomial regression that yields a negative square coefficient of -0.03 and a corresponding higher R-square of 0.99. Thus, there is a slight convergence to a steady state in terms of the development of broadband in OECD countries. This evidence is cross-checked with the most recent data from the last egovernance report of 2014 conducted by the United Nations (UN). The report reveals a world ranking of countries and the change of the ranking positions to 2012. According to the report the leading e-governance countries are The Republic of Korea, Australia and Singapore (Table 3). The overwhelming majority of the top thirty e-governance countries are OCED countries in 2014. This confirms the evidence that OECD countries are leading in the notion of e-governance in comparison to developing countries. The data confirms that the changes in the group of OECD countries are rather small while developing countries sometimes display major movements up- or downwards. Finally, I compute correlations of e-governance to the prerequisite measures of e-participation and broadband. Table 4 illustrates a significant positive correlation of both variables and for all countries. For the OECD countries the positive correlation is even greater than for developing countries.
3.3. Regression Model The conceptual framework of my e-governance model is as follows: I study the independent variables such as the technical factors measured by online access and the environmental factors such as the macro-economic performance. The organizational dimension is not included because it is almost impossible to quantify. Table 4. Correlations, 2005 to 2012 Std. Dev. Developing Countries OECD Countries Source: author calculations.
e-Participation 0.57 0.70
Broadband subscription 0.64 0.68
This theoretical framework draws upon Davis’s (1989) Technology Acceptance Model (TAM). Apart from psychological factors the end-user acceptance of ICT systems is critical. Several studies have utilized this model as a starting point (Kolsaker and Lee-Kelley 2008, Shareef et al. 2011). Some studies find significant support of the TAM model dimensions, however, others do not (Carter and Belanger 2004, Gilbert, Balestrini and Littleboy 2004). I study the determinants of e-governance in comparison to the previous literature in a more general manner. This is possible due to a newly designed data sample that covers almost 135 countries and a time period from 1970 to 2012. To find some answers, I estimate several panel regression models. The so-called fixed effects panel regression has the following form: 𝑒𝐺𝑜𝑣𝑖,𝑡 = 𝑐 + 𝛼 ∗ 𝑒𝑃𝑎𝑟𝑖,𝑡 + 𝛽 ∗ 𝐵𝑟𝑜𝑎𝑑𝑖𝑡, + 𝛾 ∗ 𝐺𝐷𝑃𝑔𝑖𝑡, + 𝛿 ∗ 𝑈𝑛𝑒𝑚𝑝𝑙𝑖,𝑡 + 𝜃 ∗ 𝐺𝐷𝑃𝑝𝐶𝑖,𝑡 + 𝜖𝑖,𝑡
where the index i is for the respective country and t for time. The respective variables are e-governance (eGov), e-participation (ePar), Broadband Subscription (Borad), real GDP growth (GDPg), unemployment (Unempl) and GDP per capita (GDPpC). The last expression 𝜖𝑖,𝑡 is a standard error term which is identically, independently and normally distributed. The regression is specified with country fixed-effects. The regression output of the three different model specifications is summarized in Table 5. Table 5 reveals several important findings. In ‘Model I’ both the dependent variables e-participation and broadband are significant at 1 percent. Moreover, both coefficients are positive and thus confirm that e-participation and broadband are important prerequisites for e-governance. The F-test and adjusted R-square underline that the regression sufficiently explains the variance of e-governance across countries and time. ‘Model II’ and ‘Model III’ extends the set of independent variables and includes macroeconomic measures such as GDP growth and unemployment rate. Interestingly, broadband now gets insignificant but the unemployment rate and GDP per capita is significant at 1 percent. The coefficient sign shows that richer countries with higher GDP per capita have higher levels of e-governance. This result explains the high e-governance level in OECD countries in comparison to developing economies. The coefficient sign for unemployment is, however, negative. Naturally this means a lower unemployment rate implies higher egovernance. This evidence falls in-line with the observation that e-governance is higher in OECD countries due to high GDP growth and lower unemployment. Hence, this confirms the finding that the e-governance level is closely related to the macroeconomic performance of countries (UN-Report,
Empirical Analysis of the Status Quo of Global e-Governance
p.19, 2014). Overall, e-governance is not only determined by ‘good governance’ measured by e-participation, but is similarly dependent on the macroeconomic and financial sources of a country. Table 5. Panel regression output for e-Governance, 1970 to 2012 Variables Constant
Model I 0.45*** (0.006) 0.19*** (0.016) 0.002*** (0.000)
Model II 0.54*** (0.014) 0.20*** (0.019) 0.001 (0.000)
Model III 0.54*** (0.014) 0.21*** (0.018) 0.001 (0.000)
Table 6. Forecasting of e-Governance, 2005 to 2012 Model I Model II Root Mean Squared Error 0.03 0.03 Theil Inequality Coefficient 0.03 0.03 Variance Proportion 0.00 0.02 Covariance Proportion 1.00 0.98 Observations (N) 373 326 Source: authors calculations. Forecast sample: 2008 2012
Model III 0.03 0.03 0.01 0.99 236
In a second step, I use the regression results of Model I to Model III and compute the forecast of e-governance contingent on the model estimates. Table 6 summarizes the forecasting parameters. The predictive power of the three models is good. In fact, the root mean squared error is low and the variance proportion is low as well. This guarantees that a forecast of the variable e-governance likely remains in a corridor of the standard deviation. To demonstrate this graphically, I compute the explicit forecast of e-governance for the United States (US). Figure 3 denotes the e-governance level in blue and the forecast of e-governance in red. First of all, the red line is close to the blue line in the forecasting horizon. Second, the forecast remains inside the corridor of two standard deviations on the up- and downside. Overall, this confirms that models I to III are sufficient forecasting models of e-governance. In turn, the major determinants are as I have already indicated above: (i) the prerequisite variables such as e-participation and online access and (ii) the economic performance of countries.
Source: authors calculations. Figure 3. e-Governance Forecast for US.
Empirical Analysis of the Status Quo of Global e-Governance
4. DISCUSSION In this section I draw some policy recommendations based on my empirical findings. My results suggest that the level of e-governance is driven by both (i) prerequisite and (ii) economic measures. But these measures are just one side of the coin, i.e., the supply side. Naturally, a successful implementation and utilization of e-governance requires the consideration of the demand side as well. If there is no demand for some kind of “e”-service there will be no further development. The highest return of e-governance services will most likely occur if both sides benefits equally. The supply side represents the government and the demand side the citizens. A good example is increasing provisions of pubic online-education. This does not reduce costs for the government and citizens in the first place. However, it helps to provide better education to everyone, particularly to remote areas of a country. At the same time, this example illustrates the challenges and limitations of e-governance services. How can we provide good online education concerning the individual learning background or learning curve? What motivational factors can be implemented to overcome an asocial online learning experience? What about privacy and security issues? The last question is probably most relevant in health care issues. Nevertheless, the further development of e-governance requires a strengthening of the prerequisites at first, such as online access. This is a key finding in my study and a recommendation of the UN e-governance Report (2014). Furthermore, the government has to implement e-governance services together with feedback tools. Feedback is essential to get more information about problems and users. This demand side information may reveal challenges but assists with prioritizing in future developments. All the information and data is a strategic asset but it must be guaranteed that it is only to the benefit of citizens and not detrimental or even harmful to users. Using government data is fundamental for efficient processes in particular if resources are scarce due to limited tax-payers money. The economic and social effects of e-governance are far reaching because they have the potential to improve the efficiency, productivity, economic growth, transparency as well as an accountability of countries. Better knowledge about the demand of citizens may also lead, according to the theory of fiscal federalism, to better government decision-making (Oates 1972, 1985, 2005). There is no doubt the closer policy is to the citizens the better they will know the needs of peoples. Thus via e-governance the government has the opportunity to proactively shape its policies into a better future.