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Roadmap for establishing a common

channel for digital skills development

Developing employees’ digital skills in the Jönköping

Region

MASTER

THESIS WITHIN: Informatics NUMBER OF CREDITS: 30 Credits

PROGRAMME OF STUDY: IT, Management and Innovation AUTHOR: Efosa Ehigiator, Ahmed Alathami

TUTOR: Christina Keller, Johannes Schmidt JÖNKÖPING Dec. 2019

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Acknowledgments

We would like to express our gratitude to God who made it possible for us to complete this thesis. We would also like to appreciate our supervisors Johannes Schmidt and Christina Keller for their valuable insights, feedback, encouragement and advices during our research.

We would also like to thank the entire Informatics department at Jibs from the professors to our course mates for their supports and feedback.

We would also like to thank our interviewees; Mr. Jan Karlson of the Digital board. Mr. Fredrik Karlsson, Mr. Håkan Hammarin and Mr. Kenneth Hellman of Nässjo municipality; also Mr. Gunnar Bergman, Mr. Roger Wegert and Mr. Dimitrije Gilezan of Jönköping municipality; finally, Mr.Andersson Martin, Mrs. Gunilla Cedervall of Habo municipalities for participating in our research and providing us with detailed insights on their experiences and relevant information related to our topic.

Last but not least, we would like to thank our families for their prayers, encouragement and support during the whole thesis period.

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Master thesis in Informatics, 30 Credits

Title: Roadmap for establishing a common channel for digital skills development: developing employee’s skills in the Jönköping region Authors: Efosa Ehigiator, Ahmed Alathami

Tutor: Christina Keller, Johannes Schmidt Date: December 2019

Key terms: Digital skills, Innovative learning, E-learning, Cloud Computing

Abstract

Background

: In the past few decades, organizations has shifted towards digitalization.

Making it necessary for employees within an organization to acquire the necessary digital skills to cope with digitalization. These skills are necessary for employees to carry out their daily activities without setback. It is therefore important for an organization to provide a channel or an avenue for employees to acquire these skills without stress or difficulty.

Purpose

: The purpose of the thesis is to explore an innovative strategy for digital skills

development for employees, which can foster communication and collaboration and improve employees work performance within the organization.

Method

: A qualitative study was used to conduct the research. The authors used

semi-structured interviews to collect data from employees of the municipalities being studied. The interviewees were employees from Nässjö, Jönköping and Habo municipalities. From the interview findings an analysis was performed comparing the findings between the three municipalities.

Conclusion

: The results outline some of the benefits of using innovative learning

systems for digital skills development of employees and how these leaning systems can improve employees’ performance. Organizations should make it a priority to continually reinvest in developing employees’ digital skills in the public sector and need to be aware about the barriers to adopt innovative learning methods. Some of these barriers are lack of training programs, lack of managerial support among others. A coherent strategy is needed to address these barriers and facilitate skills development process. Further research regarding other alternative methods to improve employees’ digital skills that were not discussed in this research can be explored by other researchers using larger samples, different theories and data collection methods.

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Table of Contents

1.

Introduction ... 8

1.1 Background ... 8 1.2 Problem ... 8 1.3 Purpose ... 9 1.4 Research questions ... 10 1.5 Delimitations ... 10 1.6 Definitions ... 10 1.7 Disposition ... 11

2.

Theoretical Framework ... 12

2.1 E-government Initiatives in Public Organization ... 12

2.2 Digital Skills ... 13

2.2.1 Operational Skills ... 13

2.2.2 Formal Internet Skills ... 14

2.2.3 Information Internet Skills ... 14

2.2.4 Strategic Internet Skills ... 14

2.3 Innovative Learning: The Concept of E-learning ... 15

2.3.1 Benefits of E-learning ... 15

2.3.2 Ways of Implementing E-learning ... 16

2.3.3 Barriers in E-learning Implementation ... 17

2.3.4 E-learning in The Public Sector ... 19

2.3.5 The Implementation of E-learning in E-government Settings ... 21

2.4 Technology Readiness ... 22

2.4.1 E-learning Readiness and Motivation ... 23

2.5 E-learning Network Systems ... 25

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2.5.2 Advantages of Cloud-based E-learning: ... 29

2.6 Technology Adoption Framework ... 30

2.6.1 Technology Context ... 31 2.6.2 Organizational Context ... 31 2.6.3 Environmental Context ... 32

3.

Research Methodology ... 33

3.1 Research Philosophy ... 33 3.1.1 Interpretivism Philosophy ... 33 3.2 Research Approach ... 34

3.2.1 Research Methods: Qualitative ... 34

3.3 Research Strategy: Case Study ... 35

3.4 Data Collection ... 35 3.4.1 Primary data ... 35 3.4.2 Secondary Data ... 36 3.5 Research Quality ... 37 3.5.1 Credibility ... 37 3.5.2 Reliability ... 37 3.5.3 Validity ... 38 3.5.4 Transferability ... 38 3.5.5 Research Ethics ... 38 3.6 Data Analysis ... 38

4.

Empirical findings ... 40

4.1 Habo Municipality ... 40 4.1.1 Municipality Overview ... 40 4.2 Jönköping Municipality ... 42 4.2.1 Overview ... 42 4.2.2 Interview Findings ... 42

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vi 4.3 Nässjö municipality ... 44 4.3.1 Overview ... 44 4.3.2 Interview Findings ... 44

5.

Analysis ... 48

6.

Conclusion ... 53

7.

Discussion ... 55

7.1 Implications for Research ... 56

7.2 Implications for practice ... 57

7.3 Limitations and Future Research ... 57

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Figures

Figure 1: Thesis Disposition ... 11

Figure 2: Learning Framework. ... 18

Figure 3: Cloud Computing for E-learners ... 26

Figure 4: Visual Model of NIST Working Definition of Cloud Computing ... 27

Figure 5: Cloud Deployment Models. ... 28

Figure 6: TOE Framework By. ... 32

Figure 7: Research Onion. ... 33

Figure 8: E-learning Using Cloud Computing Concept ... 56

Tables

Table 1: Benefits of e-learning. ... 16

Table 2: Dimensions of E-learning. ... 18

Table 3: Benefits and Limitations of E-learning Using Cloud. ... 30

Table 4: Interview Overview ... 36

Table 5: Interview Summary ... 48

Appendix

Appendix 1: Abbreviations ... 72

Appendix 2: Interview Guide ... 73

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1. Introduction

The research background and the problem areas are presented in the first part of the chapter. The chapter continues with the purpose and the research questions. The final parts of the chapter outline the delimitations and definitions.

1.1 Background

In recent years, the technological revolution has spread to most parts of the economy. The industrial sector has benefitted hugely from digitalization, especially in areas such as processing and manufacturing. Advances in automation, internet of things (IoT), big data and analytics has created numerous opportunities and increased the entire value chain of industries. Society has moved from a society characterized by the conditions of industrialism to the present knowledge society where creativity and ingenuity stimulates and drives the society (Hargreaves, 2003). In today’s world of globalization, knowledge and learning are considered as vital element for acquiring competitive advantage (Longworth & Davies, 1996). According to Odlyzko (1997) to handle the information needs of the future, electronic media must be used.

To take advantage of this development as an individual, it is necessary to achieve a digital literacy. Digital literacy, according to Martin and Grudziecki (2007), is the awareness, attitude and ability of individuals to use digital tools for communication, expression and social action in specific life situations. A lack of these skills might result in disadvantages or even exclusion from global literacy communities (Sutherland-Smith, 2002). Digital literacy can be acquired through various methods. For instance, digital literacy can be acquired through reading a voluminous textbook about some digital concepts or a one-sided lecture from a digital expert making the process time consuming and expensive. In recent years, there are more innovative, less time consuming, less expensive and flexible ways of learning and developing digital skills than the traditional classroom teaching. For instance; e-learning, flipped classroom and mobile learning. The use of Internet technologies combined with suitable learning strategies assist to provide flexible, open and dynamic learning environments (Khan, 2005). Developing digital skills has become more of an interest in not just individuals and organizations, but to society in general. Furthermore, the Europe Commission 2020 strategy shows the importance of making society more technological oriented and functional. The strategy aims to provide a holistic approach, which will increase growth and improve efficiency that will be of benefit to the inhabitants. One of the aspects of the strategy is the regional digital agenda that was launched in May 2010. This agenda aims at boosting the economy of Europe by providing a well-functioning economy and improving the social benefit of inhabitants on a regional level (Regional digital Agenda för Jönköpings län, 2010).

1.2 Problem

Digitalization is a key component for public organizations processes and work efficiency. Across the world, governments aim for transformation of public administration, digital government consider the use of information technology to improve government operations and serving their citizens (Lindgren & van Veenstra, 2018). Innovative solutions lead to better ways to deliver and improve services using less resources. The uses of new digital technologies in public e-service is considered essential in order to

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contribute to solutions to today’s societal challenges (Millard, 2015). Digitalization is not only about technology it is also about cultural changes of the society

and government; and changing the way we think and operate, also the way that every country in the world are looking to insure benefits from technological change. Public e-service development is enabled by organizational change (Van Veenstra et al., 2011). Millard (2015) argue that public e-service development is associated with a multitude of challenges such as understanding the user’s needs and expectations. Lack of digital skills can act as a barrier to digitalization. Cloud industry forum (CIF) and Public sector interest group (SIG) (2017), highlighted the problem of 40 percent of public sector organizations in UK do not have the right skills in place to adapt to digital transformation. Developing these skills is one of the biggest challenges for governments and organizations. These skills shortages are inhibiting governments’ capacity to adapt cloud computing and are therefore putting a brake on the governments’ drive to radically change the way it offers services to citizens through digital transformation (Clark, 2018). Barriers of digitalization, digital skills development are prevalent challenges face by organizations in the public sector. The regional digital agenda for Jönköping region pinpoints effective digital communication between authorities, region residents and business. The purpose of developing digital communication solutions is to increase the quality and efficiency of the services offered to the residents. The services should be mobile, and thus available independent of time and place (Region Jönköpings län & Länsstyrelsen Jönköpings län, 2010). To be able to accomplish this goal, a significant amount of digital skills development needs to be offered to the employees of the municipalities in the region. Our study targets essential problems encountered by Jönköping region relating to digital skills development:

• Lack of collaboration between municipalities:

The municipalities hardly collaborate or share resources among each other. Each municipality has its own budget and resources. Projects are embarked on

independently without contacting, contracting or seeking opinions from other municipalities.

• Lack of communication between municipalities;

The municipalities lack well-defined communication channels among them. They rarely share ideas or information among themselves. Each municipality is self-governed. Most employees in the municipality do not have a detailed knowledge about other municipalities.

• Scarcity of expert for digital skills development:

There is a lack of experts for skills development in the municipalities.

Alternative ways of skills development must be explored; and should be cost and time efficient as well.

These three problem areas will be elaborated further in the thesis.

1.3 Purpose

The purpose of the thesis is to explore new non-classroom strategies for digital skills development for employee-training in a public organization.

The study was performed in three municipalities in Jönköping region, Sweden; Jönköping, Habo and Nässjö.

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1.4 Research questions

To accomplish the purpose of our research study, the following research questions were answered:

• What form of innovative learning solution is required to improve digital skills adoption in a public sector organization such as a municipality?

• Which IT solution is adequate for integrating innovative learning, collaboration and communication among municipalities in Jönköping region? • What barriers are there for adoption of an innovation learning solution within

a municipality?

1.5 Delimitations

The data collected in this study are solely from Habo, Jönköping and Nässjö municipalities. Hence data from the other ten municipalities in Jönköping region are not included in this study. The authors interviewed employees from the two specific departments of IT and Education. Thus, employees from other departments were excluded from the study.

1.6 Definitions

Digital skills, as a broader concept, encompasses several skillsets (e.g., the competences to use software and digital devices; a variety of complex cognitive, and sociocultural skills) and related literacies involving information evaluation and knowledge gathering (Martin & Madigan, 2006).

Centralization is the degree to which power and control in a system are concentrated in the hands of a relatively few individuals (Rogers, 1995).

Innovative approaches to learning refer to a wide variety of instructional approaches which have also been referred to as ‘new learning’, natural learning, powerful learning or active learning that allow for a more active role of students in their own learning process compared to more traditional approaches (Blok et al., 2006; Bolhuis & Voeten, 2001; De Kock et al., 2004; Hickey, 1997; Schuitema et al., 2011; Simons et al., 2000).

Digitalization is a term referring to the actual process of change, driven by technology in industries (Khan, 2016).

E-government is defined by many researchers, among them are Heeks (2006, p.1) who defines e-government as “all use of information technology in the public sector”.

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1.7 Disposition

In this chapter an overview and roadmap for the reader articulate what will be addressed in each chapter of the study. As shown in figure below Figure 1.

Figure 1: Thesis Disposition

Research

• Introduction:

• Theoritical framework :This chapter provides a broad concept like digital skills, innovative learning, e-learning and cloud computing that relates to the topic being researched. It ended wih the introuduction of the TOE frame work.

• Research methodlodgy: This chapter describes how the qualitative study was conducted and the validity of the study.

Validation

• Empirical findings:This chapter represents the results of data collection doing the interview processes. The chapter also provides overview of each municipality.

• Analysis:The chapter aims at analyzing the result of the findings; it combines some of the framework context with the interview result.

Result

• Conclusion: This chapter concludes the research. The researched questions are answered in this chapter.

• Discusion: final chapter Provides a discussion on the contribution of the study, implications for research,implications for practice, limitations and recomendations for further research.

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2. Theoretical Framework

In this section, the theoretical framework in connection to our study is presented. First, challenges and success factors of e-government initiatives in public organizations are introduced. Second, different definitions of digital skills are explained. Third, the concept of e-learning is introduced as an example of innovative learning. Fourth, the concept of cloud computing is introduced as a tool for e-learning implementation. Last, a framework for predicting technology adoption is presented.

2.1 E-government Initiatives in Public Organization

Information technology and technological communication are more and more integrated into public activities (Geron, Finatelli, Faria & Romeiro, 2011). Evolution in information technology and communication to deliver efficient services to citizens has made governments create e-government initiatives. Alateyah et al. (2012) state that technology has prompted governmental organizations to reconsider their internal and external relations and transactions. Therefore, in order to succeed and build for the future, the administrative processes of government must be transferred to electronic systems. Electronic government or e-government can be seen as the use of information and communication technologies for enhanced access and delivery of government services to citizens, businesses and government employees (Silcock, 2001). E-government “… refers to the delivery of [government] information and services online through the Internet or other digital means.” (Muir & Oppenheim, 2002).

Giritli Nygren, (2009b) defined e-government is moving at the boundaries between the public sector, new technology and changed administrative forms. Fang (2002) defined e-government as a way for e-governments to use the most innovative information and communication technologies, particularly web-based Internet applications, to provide citizens and businesses with more convenient access to government information and services, to improve the quality of the services and to provide greater opportunities to participate in democratic institutions and processes. Moreover, many studies highlight that e-government is a substantial component in terms of improvement. (OECD, 2003) illustrated the reason is to serve as a tool for reform; renews interest in public management reform; highlights internal consistencies; and underscores commitment to good governance objectives.

New information systems change administrative practices (Fountain, 2001). The challenge is to use technologies to improve the capacities of government institutions, while improving the quality of life of citizens by redefining the relationship between citizens and their government (Kumar, Mukerji, Butt & Persaud, 2007). Providing better regulations, policies and services help government improve relationship with its citizens. Gil-Garcìa and Pardo (2005) based on a literature review identified challenges for e-government initiatives:

• Information and data quality challenges

• Information technology challenges: Dynamic information needs, usability, security issues, technological incompatibility, technology complexity and technical skills and experience

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behaviour, users or organizational diversity, lack of alignment of organizational goals and project, multiple or conflicting goals, resistance to change, and turf and conflicts.

• Legal and regulatory challenges: Restrictive laws and regulations, one-year budgets, and intergovernmental relationships.

• Institutional and environmental challenges: Privacy concerns, autonomy of agencies, policy and political pressures, and environmental context (social, economic, demographic).

In the public sector, (Oliveira, Girardi & Gouveia Neto, 2011) stated that leadership and top management support, will increase the sharing of information among agencies, enhance quality, despite the difficulties which could arise due to pressure by the time shortage and the heavy workload. Managers have direct impact on employees in providing awareness, communication and improving performance and morals of employees in achieving organizational objectives. Young and Poon (2012) evaluated five critical factors of success: top management support (TMS), project methodology, user involvement, high-level planning and staff suitability.

The frequent alteration of e-government in regulations, procedure and requirements are efficient. Changes in the area of e-government are very dynamic (Veljkovic & Stoimenov, 2011). With the evolution of the learning methods using the information technology and communication. Veljkovic & Stoimenov (2011) stated that effective deployment of e-learning governments could raise the level of technology and application user skills. Contribution to the thesis

The regional digital agenda which is to be implemented in Jönköping region is an example of an e-government initiative in public administration. The literature on challenges and success factors of such initiatives will also be considered in the analysis and discussion of this thesis.

2.2 Digital Skills

The emergence of the Internet has made it necessary to have some basic or detailed digital skills, in order to keep up with the ever-growing technology. The topic of digital skills has become very relevant in recent years. It has a strong effect on the Internet use of individuals after they have reached physical access to the Internet, according to digital divide research since 2000 (Van Dijk, 2005). In the following text different types of digital skills are presented.

2.2.1 Operational Skills

According to van Dijk (2005) operational skills are defined as the skills used to operate computers and networks as well as hardware and software. Under operational skills, there are many sub terms specifying more specific skills, such as instrumental skills (Steyaert, 2000), operational skills (van Dijk, 2005), technical competence (Mossberger et al., 2003), technical proficiency (Søby, 2003), computer literacy, IT literacy and IT fluency (Bawden, 2001).

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14 2.2.2 Formal Internet Skills

According to Van Deursen & van Dijk (2009) Formal Internet skills Navigate the Internet by using hyperlinks (e.g., menu links, textual links, image links) in different menu and website layouts, maintaining a sense of location while navigating on the Internet.

2.2.3 Information Internet Skills

Information Internet skills is locating required information through the following processes; choosing a website or a search system to seek information, defining search options or queries, selecting information (on websites or in search results) and evaluating informational sources (Van Deursen & van Dijk., 2009).

Two of the concepts that falls under information internet skills are information competence (Mossberger et al., 2003) and information literacy (Bawden, 2001). The American Library Association (ALA) was the first organization to present an accepted definition of information literacy. According to ALA; an information literate person is: ”able to recognize when information is needed and has the ability to locate, evaluate and use the needed information effectively.” Information literacy is the ability to access, evaluate and use information from a variety of sources (American Library Association, 1989). Literature relevant to skills in online information searching is spread across different areas that tend to stay separate, and as a result, the information is often not well integrated (Jenkins et al., 2003). For users to get the information they want, they need to search through varieties of processes to get the required information. The first measurable step is choosing a specific system, which depends on the information seeker’s previous experience with the task domain, the scope of his/her personal information infrastructure, and the expectations about the answer that may have been formed (Marchionini & Maurer, 1995). The second step is to search in an adequate and unique way that can provide quality result. When using search queries, advanced search operators such as quotation marks can improve the precision of search results, but this must be learned (Marchionini & White, 2007). Thirdly, being able to choose the results that are important and suitable to what you are searching for. Results are often presented in lists that can be simple lists, hierarchical lists, visualizations, snippets or metadata records (Greene et al., 2000). The last subskill in this category is to be able to compare and evaluate what you have. This calls upon specific skills that enable users to check the actual correctness of data and the reliability of the sources (Gilster, 1997).

2.2.4 Strategic Internet Skills

Van Dijk (2005) defines strategic skills as the capacity to use computer and network sources as the means for particular goals and for the general goal of improving one’s position in society. An individual is able to take the right process, action, decision and gain the tangible benefit in achieving the required goals. It becomes easier to navigate and search through the internet, and much faster to search for information that are relevant. According to van Deursen & van Dijk., (2009) strategic skills appear to be the most complex of all the types of digital skills distinguished and have never been measured at all.

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15 Contribution to the thesis

Digital skills are key component for employees in Jönköping municipality. One important goal of the digital agenda is to develop employees’ digital skills. In this thesis we will explore adequate solutions for skills development.

2.3 Innovative Learning: The Concept of E-learning

E-learning is rapidly becoming an important tool for learning. E-learning provides a quick and effective way to share information. This growth is driven by the need for and potential of providing education in less expensive ways, increased access to information, effective learning and greater flexibility (Lockwood & Gooley, 2012). There are several ways of labelling and categorizing the concept of e-learning. According to Khan (2005), there are computer-based learning or computer-aided learning, computer-assisted instruction, electronic learning, learning technology and technology-enhanced learning, technology based learning, web based learning, Internet-based learning, Advanced distributed learning, web based instruction, online learning, network learning, distance learning and distributed learning. Furthermore, e-learning includes web-based learning, computer-based learning, virtual classrooms, digital collaboration, internet, intranet, audio and videotape, internet or satellite TV, and CD-ROM (Islam & Selim, 2006). According to Khan (2005), e-learning systems are used for open, flexible, and diverse e-learning environments. Moreover, “E-learning systems can be analyzed as an inventive approach for delivering, learner-centered, interactive, and facilitated learning environment anyplace, anyone, anytime by utilizing the features and resources of different digital technologies along with other types of learning materials suited for an open, distributed, and flexible learning environment” (Khan 2005, p. 3).

2.3.1 Benefits of E-learning

Researchers have observed several benefits for using e-learning. Table 2-1 presents benefits observed by Cantoni et al. (2004). E-learning has made it possible for learners to access learning materials digitally anywhere and anytime. This could be achieved through videos, pdfs, animations, and audio. Interactions is essential in the learning process and it focuses on the needs of individual learners in the learning process; it gives immediate feedback through interaction with other e-learners through different methods such as chat rooms, blogs and social media.

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Faster Learners can skip material they already know.

Work from anywhere and anytime E-learners can take training sessions when they want, it can be updated easily and quickly (online e-learning sessions are especially easy to keep up to date because the updated materials are simply uploaded to a server).

Increase retention and a stronger grasp on the

subject Many elements that are combined in e-learning to reinforce the message, such as video, audio, quizzes, interaction, etc.

Easily managed for large groups Easy to assign schedule and assign training for learners to track their progress

Improve retention Improve the types of content (images, sounds and text work together).

Creating interaction That engages the attention (games and quizzes etc.) Providing immediate feedback Encouraging interaction with other e-learners and

e-instructor's (chat rooms, discussion boards, instant messaging and email all offer effective interaction for e-learners).

Table 1: Benefits of e-learning.

(Cantoni et al., 2004)

2.3.2 Ways of Implementing E-learning

E-learning system implementation is dependent on the level of availability of influential factors like budgeting, infrastructure planning, human resource development and learners’ skills and attitude towards the technology (Khan, 2005; Uhomoibhi, 2006). In adopting e-learning in public organization, all stakeholders must be on board. There should be a well-defined strategy from the adoption phase, through the diffusion phase and to the implementation phase. It should be strategically planned as well. A systematic process of planning, designing, development and evaluation helps to lower the barriers to successful implementation and creates an online environment where learners can actively learn and obtain support (Khan 2005; Uhomoibhi, 2006).

There are different aspects to consider when implementing e-learning; it should be easily accessible and affordable, fulfil the require goals and objectives of the learners and facilitate learning capabilities through i.e. creating a local platform to facilitate the process. It should help in achieving self-satisfaction for learners and profit for the organization, while reducing cost in the process. One of the most important factors for institutions is the profit they earn as well as the satisfaction of the learner and a low rate of dropouts (Khan 2005).

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A strong foundation is required in order to have an effective implementation of e-learning. Alignment between all stakeholders and strong communication are two important factors for a strong foundation of successful implementation of e-learning. It is necessary to make sure that the communication is in order and involves all key stakeholders at the decision-making stage or any other early process. There should be consistent scheduled meetings with all involved individuals to discuss the newly arising issues in the project to come up with a solution. Most of the pitfalls of e-learning are tied to technological issues, thus it is important to involve IT experts throughout the project to mitigate the problems in implementation process. Creation of helpdesk for reporting IT related problems is necessary. Selecting the vendors is a crucial step in the implementation process. During vendor selection it is necessary to make sure that the vendors have an outstanding and proven record. Strong communication and feedback from vendors are also very important for successful implementation (Brodsky, 2006).

2.3.3 Barriers in E-learning Implementation

Several circumstances can cause e-learning implementation barriers. Management differences could act as a barrier, if managers are not willing to assist or motivate employees in e-learning process and when there is conflict of interest among managers the e-learning process cannot be materialize. Lack of efficient technology and ethical reasons (cultural diversity, bias, political influences among others) could act as additional barriers. E-learning barriers are diverse and can be classified as personal, organizational, situational, instructional and technological (Mungania, 2003). Wong (2007) categorizes e-learning limitations into three main areas; technological limitations, personal issues and other limitations.

The lack of hardware, limited Internet coverage and low bandwidth are all considered as technological barriers in implementation of e-learning (Wong, 2007). Vendors should give a complete guidance to the learners about this new and non-traditional system to psychologically prepare new learners (Dearnley, 2003; Wong, 2007). Learners may not fully understand the process or do not want to change from the traditional methods. (Wong, 2007). Hence, to mitigate this failure there is a need to investigate key factors that encompass different dimensions of an open, flexible and advanced distributed learning environment for diverse learners (Khan, 2005).

Khan in his framework provided some detailed barriers facing e-learning implementation. These are pedagogical, technological, interface design based, evaluation, management, resource report, ethical and institutional barriers as shown below (see figure 2-1 and table 2-2).

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Figure 2: Learning Framework.

(Kahn, 2005, p. 14)

Table 2: Dimensions of E-learning.

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19 2.3.4 E-learning in The Public Sector

The rapid evolution of services and complicated processes in the digital area, requires comprehensive IT knowledge. Basic e-government services include actions like downloading documents or filling online forms, that could be easily accomplished by e-government users with basic IT knowledge, however sophisticated e-services require more demanding actions, one example would be electronically signing the form and sending it back to the government officials(Veljkovic & Stoimenov, 2011). Hence, the need for developing employees’ skills and experience to facilitate the sophisticated e-services is essential. Sonntag (2003) argue that education of employees in e-government can be implemented using one of the following approaches: conventional learning, presence courses, offline learning and e-learning, Educating e-government employees in the conventional way using paper and the traditional face-to-face classroom-based methods, can be difficult for both educators and learners.

The different systematic collection of e-learning provides a profound connection between the learners and instructors. Panda and Swain (2009) stated that different terminologies have been used for electronic learning, (online learning, networked learning, virtual learning, etc.) e-learning bridge the gap between the instructor and the learner through electronic technology. E-learning can be delivered through different methods. Henry (2001) introduce e-learning as the appropriate application of the Internet to support the delivery of learning, skills and knowledge in a holistic approach not limited to any particular courses, technologies or infrastructures. E-learning provides many advantages in the private and public sector which we have already mentioned in the previous sections. Roffe (2002) stated, the benefits of e-learning, it provides just in time delivery, accessibility from any site, cost effectiveness, learner centered learning, rapidly updated content, uniformity of content and interactivity. Furthermore Rosenberg (2001) specifies in particular eleven benefits of e-learning in organizations: lower costs, enhanced business responsiveness, consistent or customized messages, need dependent, timely and dependable content, 24/7 learning, no “ramp-up” time, universal, community builder, scalable, leveraged corporate investment in the Web and increased value of customer service. Thus, one of the significant benefits of e-learning is providing a key role for strategic learning solution at work. E-learning is being increasingly recognized as an important supportive structure for both formal and informal learning at work (Wang, 2016). Wang (2016) added that e-learning in organizations enable employees to access the training materials from anywhere and at any time.

Moreover, the adoption of new technology influences the employees’ acceptance of e-learning. Models like the Unified Theory of Acceptance and Use of Technology (UTAUT) and Technology Acceptance Model (TAM) can investigate how employees and non-employees accept and use new technology. Wang (2016) proposes the UTAUT model to predict how employees are determined to use, and their actual use of the e-learning system. Bringing employees together to share information, promote interaction to deliver knowledge can give advantages to organizations in public and private sector to achieve their objectives. Public sector managers view e-learning as an important instrument for obtaining skill-based organizational outcomes (Nisar, 2004). Langford and Seaborne (2003) argues that e-learning when inserted in the public sector, is a vehicle that meets organizational objectives, encourages the use of new technologies, and improves

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the service provided to citizens; furthermore, the access to web-based learning has become a key factor in retaining quality to public sector employees.

Furthermore, Pereira et al (2015) argues that adoption is not essential to accept technology, but the satisfaction of the technology is critical to improve the working performance in public organizations. Hence, employees’ adoption of new technology to improve work performance is not the main issue but the focus on employee’s willingness to use technology. Pereira et al (2015) stated e-learning services in public organizations demonstrate unique features compared to other organizations; the focus is not in the adoption or acceptance of a technology, but on user satisfaction as a result of high performance and the employee’s willingness to use technology.

Moreover, Pereira et al (2015) proposes these two models; the Decomposed Expectancy Disconfirmation Theory (DEDT) and Technology Readiness Index (TRI) illustrated that the DEDT being a model designed specifically for e-learning, enables higher level of understanding of the performance by investigating their symptoms and the TRI has great applicability in evaluating new technologies in public, to include in its scope constructs reverse order. Some of the barriers can play a role in the use of technology and hinder work performance. Pereira et al. (2015) state that resistance to changes in the public sector tends to be higher due to greater stability of staff in the office, creating barriers in the use of new technologies and further reason is that the courses offered are free participation, therefore readiness is the key for the user to have desire to take the courses.

Open educational resources (OER) can play a key role for the public sector to adopt digital learning resources. Hamond et al., (2007) defined open educational resources (OER) as teaching, learning, and research resources that reside in the public domain or have been released under an intellectual property license that permits their free use or re-purposing by others; such as textbook, software, tests, streaming videos and any other tools.

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2.3.5 The Implementation of E-learning in E-government Settings

The method of implementing e-learning varies for different aspects; for e-government, learning management systems can be seen as a framework that handles all aspects of the learning process (Watson & Watson, 2007).

Often projects start with few resources like online guides for e-government portals and manuals for specific administrative procedures (Conci & Bramati, 2007). Moreover, Veljkovic and Stoimenov (2011) stated that learning management system provides a platform for the governments’ online learning environment by enabling the management, delivery and tracking the education for employees and e-government users. This platform can be accessed by employees with one click through any gadget. E-government employees should have the ability to access e-learning platform both from the workplace and from their home (Veljkovic & Stoimenov, 2011). Overtime, these platforms developed and included new features. According to (Bere et al., 2014) argue that the platforms offer textual e-resources such as case studies and linked data, as well as interactive forums and online tests. As stated by Veljkovic and Stoimenov (2011), e-government departments in charge of education has a responsibility to manage users and courses. Furthermore, they have the responsibility to educate employees on digital literacy and administrative privilege to the e-learning platform; they can create/modify, delete courses, create quizzes, questionnaires and exercises for learners.

Ebrahim and Irani (2005) elaborate on an e-government architecture, with challenges associated with introducing different features at the technical and organizational levels. The most common challenges related to the technical level include updating materials, usability accessibility, and system damages. Ali and Magalhaes (2008) described the most commonly barriers related to technology to be system crashes, bandwidth and infrastructure upgrading, accessibility and usability. Ali and Magalhaes (2008) illustrated that the fact user need to master a new set of skills (use of online tools, communicate effectively) and deal with specific procedures (passwords, permissions, etc.); is the main reason behind technical support and perceived difficulties in using such a system.

According to Baldwin-Evans (2004) some challenges related to the organizational barriers include:

• Lack of time available for training, • Cost versus value.

• Lack of appropriate content related to specific needs.

• Language barriers as most of the content is delivered in English. • Difficulties in measuring e-learning effectiveness.

• Lack of strategic planning and direction. • There is no alignment with business objectives. • Lack of e-learning awareness.

• Lack of incentives.

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Langford and Seaborne (2003) argue that one of the challenges is the lack of knowledge and skills needed to engage in e-learning. Another related challenge is the lack of facilitators and managerial support Stoffregen et al. (2016).

Stoffregen et al. (2016) has elaborated on barriers to the use and development of open e-learning in the public sector, they stated that a contextual barrier framework was developed which outlines more than 40 barriers to consider in the organizational context, social and technical dimension.

Each dimension by Stoffregen et al. (2016) are described as follows:

• Contextual barriers: describe the challenge that emerge in time and space from certain situation, organization or task.

• Social barriers: focus on human as the main subject of inquiry and challenges. • Technology barriers: focus on artefacts and entities with digital features, and

address or require digital and electronic processes.

• Hence, barriers to implementing e-learning will be explore in further section of this research. to explore the challenge and barriers the implementation of e-learning in public sector.

Contribution to the thesis

Innovative learning solutions would enhance the learning processes of employees’ in the municipalities; more employees have the possibility to access the learning system platform. One of the most prominent learning solutions is E-learning. The e-learning system enables employees to have access to text, image, audio, video, animations any time. The concepts and implementation of e-learning would be discussed further in the thesis.

2.4 Technology Readiness

Technology readiness is important in adopting new technology. A study done by Meuter et al. (2003) shows that 55% of Americans suffer from some degree of technophobia. It simply means people avoid technology especially if they are not comfortable with the technology or willing to use it. According to Parasuraman, (2000) “Technology Readiness (TR)” refers to people’s propensity to embrace and use new technologies for accomplishing goals in home life and at work. Lin, Shih, & Sher (2007) further developed the Technology Readiness Acceptance Model (TRAM) model, building on some attribute of the TAM model, which was developed by Davis, Bagozzi, and Warshaw (1989) that reflects general facets of potential drivers and inhibitors of technology acceptance. This model (TRAM) has four different sub-levels that affect the technology readiness. These are: 1) optimism; which shows positive overview of a new technology and different benefits it could provide to people’s lives, 2) innovativeness; perceived as what is different with this new technology and how it could be a technological pioneer, 3) discomfort; describing how people are not in control when adopting a new technology and finally 4) insecurity; simply entails are people don’t feel secure and familiar with the functionality of the new technology.

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Technology can bring about both positive and negative emotions. If is not properly managed it might lead to anxiety. Related to this anxiety are computer anxiety, the fear, apprehension and expectations people feel when considering possible or actual use of computer technology (Igbaria & Parasuraman, 1989; Kay, 1993). Often, it depends on people’s state of mind regarding accepting a new technology. The technology readiness (TR) construct can be viewed as an overall state of mind resulting from a gestalt of mental enablers and inhibitors that collectively determine a person’s predisposition to use new technologies (Parasuraman, 2000).

2.4.1 E-learning Readiness and Motivation

Motivation comes from the Latin word “movere”, which simply means to move. It creates a reflection of something going up, keeping us working and helping us to achieve our goals (Kroth, 2007). Motivation plays a significant role in technology readiness. Motivation has a significant impact on learners’ attitudes and learning behaviours in educational environments (Barron et al., 2005). When there is a significant decrease in motivation, it would be difficult for the learning process to strive on to the desired level. According to Keller (1983), motivation is defined as a concept which affects the direction and magnitude of a behaviour and which affects the efforts occurring as a result of the behaviour. Employees’ motivation in the work setting is crucial because when employees are motivated, more effort is generated towards work activities and they are happier and more willing to spend time and energy in order to achieve the set goals of the organization. When an employee is motivated, he or she shows enthusiasm and eagerness towards the work and a strong determination to implement and accomplish the work tasks (Moran, 2013).

Employees can be motivated in two ways; intrinsic and extrinsic motivation. Intrinsic motivation comes from a person’s self-desire to achieve or to improve his or her capabilities. It is the eagerness to learn, to gain knowledge and to explore self-values and capabilities (Ryan & Deci, 2000). People who are intrinsic motivated tends to enjoy their job and derive satisfaction doing their job. Such people have the tendency to be engaged in their jobs, do their work with passion and willingness, striving for best results and self-reward as well as continuously improving their skills and abilities (Wigfield, 2004). Extrinsic motivation focuses more on performance in order to achieve the desired result. There are factors that create extrinsic motivation, for example, competitions, appraisals, external rewards, or punishment (Dewani, 2013). All organizations regardless of size needs to motivate or have motivated employees; also, there must be some strategy in place for this process to be effective. According to Rothberg (2005), companies that put their personnel in the centre of the business, maintaining a positive and strong relationship with its employees, persuading them towards task fulfilment are proved to result in higher effectively and productivity. Several studies have proven over time that motivated employees perform task way better than their demotivated counterpart. This is because motivated employees are more innovative and are willing to try new process or technology. which also leads to maximization of profits (Matthew, Grawhich & Barber 2009).

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24 2.4.2 Age influence on E-learning adoption

Research suggests that age is an important demographic variable that has direct and moderating effects on behavioural intention, adoption, and acceptance of technology (Chung, Park, Wang, Fulk, & McLaughlin, 2012). Venkatesh et al. (2005), argue that performance expectancy has a stronger influence on younger employees within the organizational context. Other researchers did not find or replicate the same effect. Chung et al. (2010) found no moderating effect of age on Perceived usefulness (PU’s) relationship with intention to engage in online communities. Based on an e-learning context, Wang et al. (2009) also failed to find a moderating effect of age on the relationship between performance expectancy and intention to use a mobile learning system.

Furthermore, in their research, Venkatesh et al. (2005) found a moderating effect of age on the relationship between effort expectancy (similar to perceived ease of use PEOU) and behavioural intention within their UTAUT model; with the relationship stronger for older users. Other researchers for instance Wang et al. (2009) support this finding within their study of m-learning acceptance. However, Chung et al. (2010) failed to find a moderating effect of age on the impact of perceived ease of use (PEOU) on Behavioral intention (BI) within the context of online community engagement.

According to Czaja et al., (2006), in terms of computer and Internet self-efficacy, it has been found that older people have low self-efficacy in use of technology. This may be due to the fact that older generation may feel less motivated to learn a new technological process at that age. Previous research also found that age differences influence the perceived difficulty of learning a new software application (Morris, Venkatesh, & Ackerman, 2005). Anxiety can be another influence on accepting a new technology. There is clear evidence that younger adults have lower levels of computer anxiety than their older counterparts (Saunders, 2004) and that lower levels of computer anxiety are associated with less reluctance to engage in opportunities to learn new Internet skills (Jung et al., 2010).

Venkatesh et al. (2003) similarly found a moderating effect of age on the relationship between social influence (similar to social norms) and behavioural intention, with the relationship stronger for older users. Wang et al. (2009) found that age moderates the relationship between social influence and BI, and the effect was stronger for older adults who used m-learning technology. There are still some irregularities and inconsistency regarding the research on the influence of age in adopting new technology or e learning acceptance, leaving an opportunity for more research on this topic.

Contribution to the Thesis

It is important for employees in Jönköping municipalities to have the desire to accept new technology to achieve their goals. Technology readiness levels examined technology requirements and demonstrate technology capabilities. Some of the factors influencing Technology readiness are explored in this thesis.

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2.5 E-learning Network Systems

E-learning requires the internet and servers to process data and applications; allowing consumers and businesses to use applications on any computer with internet access. There are several network systems and data storage tools that facilitate e-learning processes. For example, fibre channel solutions, Small computer System Interface (SCSI).

FC (Fiber Channel) could be used in high-end storage applications due to its improved physical interface and scalability compared to parallel SCSI (O’Keefe,1998).

Fiber channel is a fast and reliable data transfer system that scales to meet the requirement of any enterprise (Fibre Channel Association, 1998). The main advantages of this system are its speed, connectivity, high performance, distance connections; but is quite expensive especially for smaller organizations. For larger organization, fibre Channel pricing will provide an opportunity to displace other networking technologies (O’Keefe,1998). SCSI is a standard which defines physical connection and transmission methods, as well as high-level command and message sets for peripheral devices (Weimer, 2003). Weimer (2003) illustrated that SCSI in contrast, can be thought of as two separate protocols, a lower-level protocol which covers physical connections and upper-level protocol which defines a command and messaging system for a wide range of peripheral device types. Protocol defines how the devices communicate with each other via the SCSI bus (Troppens et al., 2011).

The SCSI interface combines network and storage feature and provides an industry-standard, high-bandwidth and switched interconnection network.

According to Storusint (1999), SCSI remains a viable and cost-effective technology although Fibre Channel is best-suited technology for some high-bandwidth applications, distance and cabling ease and server cluster RAID storage.

Cloud computing is another form of network that can support the e-learning processes and activities. Cloud computing enables for efficient computing by centralizing data storage, processing and bandwidth. Cloud computing provides an appropriate pool of computing resources with its dynamic scalability and usage of virtualized resources as a service through the Internet (Bora & Ahmed, 2013). Cloud computing is one of the popular and more cost-effective tool for computing resources and delivery services over a network.

Bora and Ahmed (2013) argues that, technology is used for more efficient and cost-effective computing by centralizing storage, memory, computing capacity of PC’s and servers. Masud and Huang (2012) stated that e-learning cloud is a migration of cloud computing technology in the field of e-learning, which is a future e-learning infrastructure, including all the necessary hardware and software computing resources engaged in e-learning.

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An E-learner has flexible access to e-learning cloud. This cloud includes learning objects, virtual workshops, chat rooms, e-store and individual learner history which enables the e-learner to gain knowledge about a specific information or subject.

An example of an E-learning cloud architecture is presented in figure 3.

Figure 3: Cloud Computing for E-learners

QAIT DevLabs (2015)

2.5.1 Basic Concepts of Cloud Computing as a Tool for E-learning

Before discussing cloud-based e-learning, the authors will provide a general overview on cloud computing based on the National Institute of Standard and Technology (NIST) concept.

There are different definitions of cloud computing. The most common and widely popular definition is from Mell and Grance (2011). According to the National Institute of Standards and Technology (NIST), “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” (Mell & Grance, 2011, p.2). Also, NIST provided a Visual Model which shows the essential characteristics, service models and deployment models of cloud computing. This can be seen in figure 4 below.

Cloud computing has three services models (Software-as-a-Service, Platform-as-a-Service and Infrastructure-as-a-Platform-as-a-Service). Four deployment models (Hybrid cloud, Private cloud, Community Cloud and Public Cloud) and five essential characteristics (Broad network access, Rapid elasticity, Measured service, On-demand self-service and Resource pooling).

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Facebook, Twitter, Gmail or YouTube are personal global online applications made possible by the cloud computing concept (Marston et. al., 2011).

Figure 4: Visual Model of NIST Working Definition of Cloud Computing

Service Models of Cloud Computing:

Infrastructure as a Service refers to on-demand provisioning of infrastructural resources, usually in terms of virtual machines (VMs); the cloud owner who offers IaaS is called an IaaS provider (Zhang et al. 2010). The cloud service provider (CSP) is responsible to control and manage the underlying Cloud infrastructure (mainly hardware) while the consumer is responsible for the management of the virtual machine (Mell & Grance 2011). No maintenance or updates are involved; this will all be handled by the software provider (Armbrust et al., 2009). Google compute engine and Amazon Elastic compute cloud (Amazon EC2) are some examples of IaaS.

Platform as a Service refers to providing platform layer resources, including operating system support and software development frameworks (Zhang et al. 2010). The cloud service provider (CSP) is responsible to control and manage the underlying Cloud infrastructure (e.g., servers, network, storage, operating system) while the consumer can control and manage only the deployed applications (Mell & Grance 2011). Google app engine and Amazon web service (AWS) are some of the examples of PaaS.

Software as a Service refers to providing on-demand applications over the Internet (Zhang et al., 2010). The providers are taking care of the servers, storage and network settings, while the client has virtual instances of that (Armbrust et al., 2009; Buyya et al., 2009). Consequently, the end user cannot modify the underlying infrastructure; it is only possible to configure some user-specific settings (Mell & Grance 2011). Office 365, Facebook and Google are some of the examples of SaaS.

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28 Deployment Models:

Figure 5 shows a detailed description of the deployment model.

Figure 5: Cloud Deployment Models.

(Brown 2009).

Private cloud: Private clouds are designed for exclusive use by a single organization (Zhang et al. 2010). The services in a private cloud are consumed by multiple users, and they are managed operated and owned by the enterprise itself, a third party or a combination between them (Mell & Grance, 2011). This model can be managed by an organization or by a cloud provider.

Community Cloud: The cloud infrastructure is provided to a group of members in a community or an organization. All risks, policies, costs, compliance and security are shared among members. The services in a community Cloud are consumed by multiple users, and they are managed operated and owned by the enterprise itself, a third party or a combination between them (Mell & Grance, 2011).

Public Cloud: A cloud in which service providers offer their resources as services to the general public; it offers several key benefits to service providers, including no initial capital investment on infrastructure and shifting of risks to infrastructure providers (Zhang et al., 2010). Due to its availability to the public, it increases security and privacy concern. The services in a public Cloud are consumed by multiple users, and they are managed operated and owned by an enterprise, a governmental organization or a combination between them (Armbrust et al., 2009; Mell & Grance, 2011).

Hybrid Clouds: A hybrid cloud is a combination of public and private cloud models that try to address the limitations of each approach (Zhang et al., 2010). Parts of its services infrastructure are in the private cloud and the other in the public cloud. It offers more flexibility compare to public and private cloud.

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Virtual Private Cloud: An alternative solution to addressing the limitations of both public and private clouds is called Virtual Private Cloud (Zhang et al 2010). Virtual public cloud enables service providers to configure their security settings, structures, programs through virtual private network. This virtualized network layer enables seamless transition from an on-premise service infrastructure to a cloud infrastructure (Zhang et al., 2010).

2.5.2 Advantages of Cloud-based E-learning:

There are several advantages when implementing e -learning with cloud computing. - Low cost: Incorporating e-learning with cloud technology minimizes cost for

organizations. Employees can use their gadgets to access the e-learning applications. They can run the applications from cloud through their PC, mobile phones, tablet PC having minimum configuration with internet connectivity (Chaudhary & Saxena, 2015).

- Improved performance: The cloud technology includes all e-learning applications needed for employees to improve their work performance. Since the cloud-based e-learning applications have most of the applications and processes in cloud, client machines do not create problems on performance when they are working (Chaudhary & Saxena, 2015).

- Instant software updates: The cloud automatically updates itself thereby updating the e-learning applications. Chaudhary & Saxena (2015) argues that, cloud-based application for e-learning runs with the cloud power, the software’s are automatically updated in cloud source; so, e-learners get updates instantly.

- Improved document format compatibility: Cloud technology supports various file formats; and is compatible with the PC, Mobile phones, Laptops and Tablet. Some file formats and fonts do not open properly in some PCs/mobile phones; the cloud powered e-learning applications, opens the file from the cloud (Chaudhary & Saxena, 2015). Thereby eliminating compatibility problems.

- Data security: Data security (application and software) is a major security concern because they could be breach at any time since they are located on remote servers. Even if it seems not very reasonable, the cloud computing provides some major security benefits for individuals and companies that are using/developing e-learning solutions (Kusuma et al., 2012).

Benefits and limitations of using learning in the cloud is presented in table 3. Using e-learning in the cloud has its benefit and limitations. E-e-learning enables the possibility of an application to be accessible everywhere; also, it supports teaching and learning processes and the sectors (public and private) can enjoy the software for free or pay per use. Other benefit includes twenty-four hours access to several infrastructure and content when needed; moreover, it is open to business environment and advance research. Lastly, it improves functional capabilities and there are lots of opportunities on offline usage. Some of the limitations of using the cloud base e-learning are; most application does not run in the cloud and there are always risks related to the protection of data. Also, there could be a lack of support from the organization. Furthermore, issues with intellectual

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properties and dissemination politics may occur; moreover, protection of sensitive data and solutions maturity may be affected. Lastly, there might be a lack of confidence in the system, standards adherence issues and working process/methods might be affected by lack of internet.

Table 3: Benefits and Limitations of E-learning Using Cloud.

(Masud & Huang, 2012).

Contribution to the thesis

Jönköping municipalities do not have a common channel for communication, collaboration and knowledge sharing. The authors explored several channels i.e. fiber channel, Small computer system interface SCSI and cloud computing as a common channel for information sharing, communication and data storage.

2.6 Technology Adoption Framework

Several frameworks can be used to predict or test for technology adoption. Some of the frame works used for technology adoption on individual levels are the technology adoption model (TAM) (Davis, 1985), theory of planned behaviour (TPB) (Ajzen, 1985), unified theory of acceptance and use of technology (UTAUT) (Venkatesh et. al., 2003), theory of reasoned action (TRA) (Fishbein & Ajzen, 1975) (Oliveira & Martins, 2011; Venkatesh et. al., 2003).TAM has been validated as a powerful and parsimonious framework for explaining user acceptance of IS innovations (Davis, 1989). TAM is mainly use to explore the factors which influence the acceptance of new technology, but

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TAM is largely focusing on individual level to use Technology and it is not appropriate for organizational adoption situations which is the main area of the study.

On the organizational levels are the diffusion of innovation theory (DOI) (Rogers, 1995) and the Technology-Organization-Environment framework (TOE) (Tornatzky & Fleischer, 1990).

DOI theory is an approach that investigates how a new technology diffuses (Oliveira and Martins 2011). DOI is a theory of how, why, and at what rate new ideas and technology spread through cultures, operating at the individual and firm level (Oliveira and Martins 2011). DOI theory sees innovations as being communicated through certain channels over time and within a particular social system (Rogers 1995). This theory proposes two categories of factors that may influence a company’s adoption of innovations; innovation characteristics and organizational characteristics (Hsu et. al., 2014).

The TOE framework is consistent with Rogers’ (1983) theory of innovation diffusion (Pan and Jang, 2008). The TOE framework explained the Technological, organizational and environmental contexts in adopting technology in an organization. The authors of the thesis are using the TOE framework because it covers all main contexts in adopting new technology hence fitting perfectly in the research study.

The TOE framework was developed in 1990 (Tornatzky & Fleischer, 1990). It provides three contexts that influences technology adoption. These are the technological, organizational and environmental contexts. These three parts consider both inherent and motivational factors for an adoption of new technological innovation (Borgman et al., 2013). There are different variations of the TOE model in different literatures. The authors are using the model from low et. al. (2011).

2.6.1 Technology Context

The technological context illustrates the factors of the technological innovations that are expected to affect adoption processes. These are relative advantage, complexity and compatibility. Relative advantage refers to the degree to which a technological factor is perceived as beneficial to the company (Low et al., 2011). Complexity refers to “the degree to which an innovation is perceived as relatively difficult to understand and use” (Rogers, 2003, p. 257). Compatibility refers to “the degree to which an innovation is perceived as consistent with the existing values, past experiences, and needs of potential adopters” (Rogers, 2003, p. 240). A security breach is the occurrence of breach in which a private or public organization loses data, individual records, or other critical information (Bishop, 2012).

2.6.2 Organizational Context

The organizational context illustrates the factors in the organization that are expected to influence the adoption processes. These factors are top management support, firm size, technology readiness. Top management support is deemed to be important for providing the resources needed to adopt a new technology (Low et al., 2011). Firm size is also considered to have impact on technology adoption (Low e. al., 2011). Technology readiness refers to the existing infrastructure of companies and the ability of the IT human resources to understand and adopt a new technology (Low et al., 2011).

References

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