Utilization of Electronic Government Services in Mexico: A Matter of Trust
Claremont Graduate University
Introduction
An increasing number of government initiatives focused on the implementation of online services are being established in several countries. In nearly every country the government has some sort of Internet presence . However, the use of e-government services by citizens is still not an extended practice, even in countries that lead the world in e-government technologies. According to the Pew Internet and American Life Project , 34% of American adults have used government websites. In fact, a recent report shows that Americans are more likely to contact the government via telephone rather than face-to-face or online . In Europe, citizens show a higher preference to use government services through traditionl delivery channels (face-to-face, telephone, fax and mail) . In less industrialized countries, little published information exists about individuals’ use of e-government services. Research has mostly been conducted at the macro level to understand the socio-economical factors that impact the successful implementation and development of e-government initiatives (e.g. political stability, adequate legal framework, economic environment, culture of services) .
Lack of trust in the government and in the reliability of the Internet to conduct transactions has been found to be an important determinant of use of public services online . Studies suggest that a cognitive process takes place when individuals evaluate the degree of trustworthiness of the factors that intervene in the online government-citizen relationship—i.e. the attributes of government agency and the legal and technological safeguards that guarantee a secure transaction (i.e. data encryption, seals of secure transaction) . Trust is a critical element particularly in those services that involve the disclosure of personal and financial information (e.g. tax filing/payment, vehicle registration, traffic ticket payment). However, there is evidence that the creation of perceptions of trust is not uniform across cultural borders. Recent research in e-commerce suggests that a variety of contextual and cultural factors have implications on the production of perceptions of trust of potential customers of online services (e.g. familiarity and experience with the Internet, the cash and self-service culture, unreliable postal service, lack of regulatory systems for electronic payments) . This study proposes that local and cultural constraints need also to be addressed in the context of e-government. The consideration of local needs and dynamics can be particularly relevant in less industrialized countries that have historically coped with corruption in public services and where access to the resources needed for the use of ICTs is still limited for the majority of the population (e.g. education, access to computers, conectivity). Moreover, despite the growing interest in e-government in developing regions, much of the existing literature in trust and e-government is mostly based on industrialized nations and therefore limited when applied to other settings .
This exploratory study seeks to answer the following research questions: Do the attributes of the government agency (e.g. ability and integrity) influence the formation of perceptions of trust about the government in relation to the utilization of electronic government services in Mexico? Do perceptions about the reliability and security of the Internet affect trust in relation to utilization of electronic government services in Mexico? As the first step in studying the cultural factors that influence the formation of perceptions of trust with respect to e-government services, I conducted two focus group sessions in Aguascalientes, Mexico. The findings of this study will be employed to refine a survey, which will be applied in Mexico and the United States in the second stage of my dissertation research.
Studying e-government utilization in Mexico will be useful to identify themes that are relevant for the Mexican culture and that might have been overlooked in previous research. To date, little published information exists about Mexicans’ perceptions in relation to e-government use. In addition, this study will provide evidence of the extent to which differences in the utilization of e-government services correspond to the local sociocultural reality. This paper is organized as follows: First, I provide an analysis of the literature on trust and e-government services. Second, I describe the current state of e-government services in Mexico. Third, I describe the research methodology employed in the collection of data for this study. Fourth, I present the focus group results including demographic data, followed by a discussion of the findings. Finally, I conclude the paper with a discussion of the limitations of this study and directions for future research.
Background
E-government Services and Trust
E-government has been broadly defined as the use of Information and Communication Technologies (ICTs) to improve the internal processes of government and the delivery of information and services to citizens . Much has been said about the benefits of e-government to citizens. For instance, more convenient and reliable services , decreased corruption (transparent processes, reduced bureaucrats’ discretionary power) , increased trust in the government among others. However, current research shows that citizens are not employing the promised benefits of e-government services .
The lack of interest that citizens show on the use of e-government services can have a variety of explanations. For example, trust has been found a key component in online transactions that involve the disclosure of personal and financial information since it mitigates perceptions of risk or adverse consequences when deciding to purchase products or services online . For purposes of this study, trust is defined as the set of beliefs about the online vendor and the Internet that lead to the willingness to engage in an online transaction . The effect of trust on the decision of conducting online purchases has been extensively reported in electronic commerce studies . Recent research in Information Systems and Political Science suggests that lack of trust in public agencies and the Internet can also prevent citizens to obtain public services online. For example, Rand Europe conducted a cross-country survey to examine citizens’ views of e-government compared to traditional modes of interacting with government. Participant countries included the European Union Member States, the United States and Switzerland. Findings reveal that people perceive the convenience of time and location of online services, but individuals tend to prefer traditional service delivery methods when the transaction involves disclosure of personal information or when limited experience exits about the use of the Internet. Similarly, Reddick suggests that experienced users of the Internet need to trust the state government to actively engage in online transactions. Trust in the federal and local governments were not found significant predictors of e-government services use in this study. Carter and Belanger administered a survey in a community event which reflected that citizens with high levels of trustworthiness in the Internet and the state government are more likely to use transactional services. They extended previous work in Electronic Commerce (technology acceptance model and diffusion of innovation theory) to assess users intentions to use the services provided by the Department of Motor Vehicle and the Department of Taxation in Virginia, U.S.A.
The previous analysis of the literature on trust and the utilization of e-government services suggest among other things that: First, trust in the Internet is characterized as a set of specific perceptions about the legal and technological mechanisms that make the Internet a reliable and secure environment for transactions . For example, potential customers of e-government services tend to feel more comfortable carrying out transactions over the Internet if the website displays seals that guarantee a secure transaction and use data encryption for the transmission of information. Second, trust in the government is related to impressions about the attributes of public institutions. Individuals’ perceptions of e-government are usually based on their impressions about the traditional government —that is, people who distrust the government tend to be less positive about e-government services. For instance, people who have confidence in the ability, integrity and benevolence of the government are more likely to interact with the public sector online .
However, despite growing interest on trust and utilization of e-government services, little is known about the creation of perceptions of trust about public agencies and the online environment in developing countries. Most existing research is based on evidence from industrialized countries, primarily the United States and the European Union Member States. This reflects the fact that e-government is an emergent area of research, and that the implementation of e-government technologies is still in its early stages in many countries . However, there is evidence that the socio-cultural characteristics of the environment influence the formation of perceptions of trust and shape the way in which people make choices with respect to the use of ICTs . For example, Lunden & Walczuch found that potential customers of online stores in societies that do not tolerate high levels of uncertainty (e.g. Latin American countries) are more likely to develop trust through a cost-benefit analysis of the potential risk involved in the online transaction. People in these cultures tend to value the ability (or competence) of the online vendor more deeply and strive for clear rules that provide feelings of security and normality about the online transaction. Resistance to technological innovation is common in these cultures. Additionally, Gefen and colleagues found that a shared code of moral values about appropriate behavior between the government agency and citizens contributes to the creation of trust when using e-voting systems in the U.S.A. and South Africa. Thus, it is important to add to the current body of knowledge in e-government, evidence that considers the particular socio-cultural circumstances of the society where e-government technologies are implemented.
E-government Services in Mexico
Mexico has made gradual progress in the use of ICTs for government operation and provision of information and services to citizens. According to the 2005 UN E-Government Readiness Report, Mexico ranks in the 31st place among the 179 UN member sates, and 2nd in Latin America. The e-government readiness index assesses the technological sophistication and functionality of e-government portals for the provision of information and services, the country’s telecommunications infrastructure capacity, and the adult literacy rate. At the state level, the use of ICTs for e-government provision is still in its early stages. According to a preliminary evaluation of e-government portals in Mexico, almost half of 32 state portals (47%) provide informational services and links to state agencies; and only 25% provide transactional services . Three states from northern Mexico, Sonora, Sinaloa and Nuevo Leon, lead the e-government rankings . Some of the public services available online or through automated kiosks include fulfillment/payment of income taxes, payment of traffic tickets and request of personal documents (e.g. passport, birth/marriage/divorce certificates).
Regarding the demand side of e-government services, little published information exits about individuals’ perceptions of public services provided through the Internet or automated kiosks. However, indirect evidence about the way Mexicans will embrace e-government can be taken from e-commerce research, due to the direct relationship between e-commerce and e-government diffusion . According to the Mexican Association of Internet (AMIPCI) , e-commerce (online shopping) usage in Mexico had an accelerated increase (81%) in the last year, with 219 million dollars in online sales. In 2004, Mexicans preferred online stores including travel, departmental stores (music, books, electronics) and entertainment services (concert tickets). Despite the recent rapid growth of online shopping, online sales only represent 1.4% of the total sales in the industries previously mentioned. In addition, the actual percentage of Mexicans who have conducted transactions online is still small; 17.7% of Mexicans have access to the Internet, and of those only 5.8 % have conducted online transactions (2005 Census-Inegi). The greater disparities in access to resources such as education, income, telecommunication infrastructure, access to ICTs, the cash culture, and unreliable postal service seem to be the main reasons impeding the Mexican society to fully embrace online shopping and perhaps will also have a significant impact in the assimilation of e-government services.
Overview of E-government services in Aguascalientes
Aguascalientes is a state in central Mexico with a population a little over one million inhabitants (2005 Census-Inegi). To conduct the focus group interviews in Aguascalientes is particularly relevant for this study since this state has a solid and reliable infrastructure in e-government services. The state government portal ranks in the 13th place (from a total of 32 states) in terms of functionality and sophistication according to a recent study . It offers access to a variety of informational and transactional services. A total of fifteen public services are offered including request of personal documents (e.g. the unique population registry identification (CURP), birth certificates, marriage/divorce certificates, etc.), renewal of motor vehicle registration, payment of traffic tickets, online crime report, among others. Statistics still show low rates in computer use and Internet access in Aguascalientes. According to the 2005 Census (Inegi 2005), only 29% of the population use computers, and 68% of those who use the Internet (18%) access the Internet from other place than home. In Aguascalientes, any citizen can have access to e-government services at automated kiosks aimed at segments of the population that have limited access to computers and Internet. Cash payments are also accepted in these terminals.
Methodology
Two focus group interviews were conducted in Aguascalientes, Mexico. Twenty-five students at the Autonomous University of Aguascalientes (UAA) accepted to participate in the focus group sessions. Volunteers were divided in two groups of 12 and 13 participants respectively. A focus group protocol was designed to guide the discussion. Questions were grouped in four sections according to the following themes: 1) impressions about electronic government services over traditional delivery services methods, 2) perceptions of trust in relation to the reliability and security of the Internet and their impact on electronic transactions, 3) perceptions of trust in the Government and their effect on electronic transactions, 4) other important barriers in the use of e-government services. At the end of the session, participants completed a survey comprising questions related to demographic characteristics, and computer and Internet usage.
In addition, interviews were conducted with the State’s Chief of Automated Kiosks Operation, and Chief System’s Engineer, to gain understanding of the development and operation of e-government services in Aguascalientes.
Results
Participants Demographic Data
Demographic data is presented for the total of participants (25) in the two focus groups. Frequencies and percentages were calculated for demographic characteristics, computer and Internet usage.
Table 1. Demographic Characteristics
|
Characteristic |
Frequency |
Percentage |
|
Age |
|
|
|
21 |
8 |
32 |
|
22 |
10 |
40 |
|
23 |
4 |
16 |
|
24 |
2 |
8 |
|
32 |
1 |
4 |
|
Total |
25 |
100 |
|
Gender |
|
|
|
Female |
6 |
24 |
|
Male |
19 |
76 |
|
Total |
25 |
100 |
The majority of participants were between 21 and 22 years old (72%) and two thirds of them were male (76%) (Table 1). In terms of computer use, all participants use computers at home (100%), 92% in the school, 52% cybercafes, 32% in relative’s homes, and 36% at work (Table 2). As for Internet use, 76% of participants access Internet at home and 92% in the school. Seven participants responded that they utilize Internet at work (28%) and twenty-four in cybercafes and a relative’s home (94%). Almost half of participants have used Internet in the past five years. Only 12% are recent users of Internet (2 years). The majority utilize the Internet four or more days per week (72%), with only 12% saying they use it two days a week (Table 2).
Table 2. Internet and Computer Use Characteristics
|
Characteristic |
Frequency |
Percentage |
|
Computer Use |
|
|
|
Home |
25 |
100 |
|
Work |
9 |
36 |
|
School |
23 |
92 |
|
Cybercafe |
13 |
52 |
|
Relative’s Home |
8 |
32 |
|
Other |
5 |
20 |
|
I don’t use computers |
0 |
0 |
|
|
|
|
|
Internet Use |
|
|
|
Home |
19 |
76 |
|
Work |
7 |
28 |
|
School |
23 |
92 |
|
Cybercafe |
14 |
56 |
|
Relative’s Home |
10 |
40 |
|
Other |
2 |
8 |
|
I don’t have access |
0 |
0 |
|
|
|
|
|
Internet Usage Over Time |
|
|
|
Less than 1 year |
0 |
0 |
|
1 year |
0 |
0 |
|
2 years |
3 |
12 |
|
3 years |
1 |
4 |
|
4 years |
7 |
28 |
|
5 years |
2 |
8 |
|
More than 5 years |
12 |
48 |
|
I don’t have access |
0 |
0 |
|
Total |
25 |
100 |
|
Internet Usage per Week |
|
|
|
1 day |
1 |
4 |
|
2 days |
3 |
12 |
|
3 days |
3 |
12 |
|
4 days |
5 |
20 |
|
5 days-daily |
13 |
52 |
|
Total |
25 |
100 |
According to table 3, online shopping is still not a widespread practice. Only 20% of all participants have bought products online. The preferred method for online purchases is the bank deposit. For those who still prefer to go to the point of sale, the primary obstacles for online shopping include disclosure of credit card and personal information, and high shipping costs.
Table 3. Use of Online Shopping
|
Characteristic |
Frequency |
Percentage |
|
Conducted online shopping in the last year |
|
|
|
Yes |
5 |
20 |
|
No |
19 |
80 |
|
Missing |
1 |
0 |
|
Total |
25 |
100 |
|
Preferred Payment Methods Online |
|
|
|
Credit Card |
2 |
0 |
|
Deposit |
11 |
0 |
|
Cash |
1 |
0 |
|
Check |
0 |
0 |
|
Other |
0 |
0 |
|
Total |
|
|
|
Barriers for Online Shopping |
|
|
|
I don’t find what I’m looking for |
0 |
0 |
|
Not familiar with payment methods |
0 |
0 |
|
Shipping delays |
0 |
0 |
|
Shipping is expensive |
2 |
0 |
|
Prefer to buy in the store |
0 |
0 |
|
Don't like to provide information about my credit card |
5 |
0 |
|
Don't like to disclose my personal information online |
5 |
0 |
|
Other |
1 |
0 |
|
|
|
|
Focus Group Findings
This section summarizes the main findings of the focus group discussion. Findings are presented according to the major topics addressed in the discussion.
General Impressions about Electronic Government Services
Participants in both focus groups have visited state and municipal government online sites. Only two participants have used federal websites. However, participants said that they have made greater use of online information than transactional services. In terms of preferred methods for obtaining services, personal attention by public servants is the most used method. Although some participants have used self-service methods such as automated kiosks and Internet portals, this is not a common practice among all participants. For those who have obtained services through electronic channels, the most used services include: request of birth certificates and the unique population registry identification (CURP), renewal of motor vehicle registration, payment of income taxes, and use of mailboxes for comments and suggestions in government portals.
In general, participants showed a lack of awareness of which services are offered through the Internet and automated kiosks. Participants who have conducted e-government transactions became aware of services by exploring government websites, using online search engines or information passed through word-of-mouth from family and friends. Participants concurred that the government have not employed a strong publicity strategy to inform citizens about the benefits of electronic services.
Trust in the Government
Participants showed a generalized sense of distrust in the Government. They make judgments of trustworthiness about the government based on the performance of public servants. Experiences with public servants exhibiting bureaucratic and inefficient practices are discouraging participants to use government services through the Internet. Participants believe that public servants will not be responsive if any problem arises from the online transaction. For instance, one participant who had a negative experience with services described how this influenced his lack of confidence in electronic services:
I paid 68 pesos for requesting a land use permit. When I came back to the office to pick it up the officer told me that I had requested the wrong permit. I told him that it was not my fault and that they had told me what permit I had to request… I asked him to credit the money back to the new permit or give me my money back instead. However, he said that was not possible that I had to pay for the new permit as well… If this happens when you obtain the service in person, I cannot imagine what it would happen when something like this occurs with services through the Internet. Who will take responsibility for mistakes? For them (public servants), you (the citizen) are always responsible for mistakes.
Participants also suggested that face-to-face interaction with public servants is the mechanism they use to cope with the lack of confidence in public servants. They want to make sure that everything went okay with the purchased service. For most participants, the lack of human presence when using the Internet to receive services introduces a certain level of anxiety about online transactions. This is not surprising since Mexicans have traditionally interacted in person with the government to receive services . The provision of services through electronic means implies breaking current habits in the purchasing behavior of Mexicans. Another participant also expressed his distrust in online transactions and its preference for receiving services in person:
In my case, when I have requested some services in person, public officers did not know how to help me or how things really worked in their department… imagine that I request a service through the Internet and something goes wrong with the transaction… how I can feel confident that they are qualified to provide the service through the Internet (if they are inefficient). Therefore, I prefer to deal with them in person instead of using the Internet.
Another factor that impedes use e-government services is distrust of the government’s capability to keep personal and financial information confidential. Participants feared their financial information could be sold by public officers. This is particularly related to a highly publicized case in 2001, when public officials sold a database that included electorate information to one of the six largest information brokers in the United States.
Trust in the Internet
Participants perceive the Internet as an unsafe environment to conduct transactions. This was revealing since participants belong to a segment of the population that has a high level of exposure and familiarity to technologies. Although participants were aware of technological safeguards available for identity authentication and protection of personal information (e.g. data encryption), they still fear hackers could steal their financial information in the middle of an online transaction. For example one participant commented on his lack of trust in current technologies used for protecting information:
The security measures for protecting users of online transactions are not as reliable as in other countries... in the middle of a transaction a hacker can gain access to your credit card number. I would not trust in the banks and government to give them my credit card number...
In addition, participants showed their lack of confidence on banking institutions, which they fear could report erroneous or unauthorized charges related to e-government services. They noted that to dispute credit card or identity fraud can be a very complex and time-consuming process. Participants are not satisfied with the current consumer protection programs offered by bank institutions. They think that even though they could report problems to the bank they would be financially responsible for unauthorized charges. For example, one participant described the reasons for his lack of confidence in bank institutions:
My main concern (when using a credit card) is that you could not dispute erroneous charges to the bank. (The bank) would tell you that you used the service, I performed the transaction and it is not my problem if other person used your credit card number instead of you.
Although perceptions of uncertainty and risk about the use of credit cards have diminished in the last years in Mexico , participants’ responses suggested that there is still a generalized preference for the use of cash. For those few participants who have purchased online, the preferred method for online payments is the deposit. However, this method of payment is not necessarily suitable or convenient for e-government because citizens still would need to make a trip to the bank instead of receiving the service from home.
Collectivism and Purchasing Behavior
What others think or feel with respect of e-government services impacts the purchasing decision of potential consumers of e-government services. For most participants is essential to rely on the opinions of members of their social group with whom they identify (e.g. friends and family) when making decisions about purchases of products and services. This is a common cultural practice in collectivistic societies like Mexico where connectedness and relationships with others are emphasized . Individuals who act motivated by personal preferences or internal drives tend to be regarded as unauthentic or out of the group. Others’ opinions and views usually guide personal actions. For instance, one participant described how others’ opinions about online transactions could significantly impact the diffusion of e-government services:
You will have to give it some time to see whether electronic services work… maybe in one or two years if I see that a lot of people are making online transactions (with the government) I will be willing to do it too, but so far, I think only a few people are conducting electronic transactions… To me (in trusting a service), it is more important if a friend or a relative tells me that they did an online transaction and everything went okay instead of relying in electronic companies that ensure a secure online transaction. I trust more the opinions of somebody that I know.
The Chief of Automated Kiosks Operation also commented on the central role that others’ opinions play in the use of electronic services through automated kiosks:
… we have had many problems (with the automated kiosks) lately. We try to have them always working but if one person has a problem (with the transaction), that person is going to make that ten people do not use the kiosk. The negative experiences and perceptions of one citizen have a lot of impact in others opinions about our services.
Discussion
This study has identified different factors that are impeding individuals to fully participate of the benefits of e-government services.
First, resources such as full access to ICTs and skills to use the computer and the Internet do not necessarily influence the use of e-government services. Although the participants of this study come from a segment of the population with access to education and ICTs, they did not appear to be interested in conducting transactional services with the government through the Internet. This suggests among other things that the provision of government services comprises far more than just having access to computers and Internet connection (e-government kiosks), social and cultural practices need also to be taken into account for the diffusion of online services. For example, to overcome the obstacles of the cash culture (or the generalized sense of distrust in credit cards), some states in Mexico (e.g. Aguascalientes, Colima, Chiapas, Yucatan) are facilitating payments using cash through automated kiosks. Payments based on cash in kiosks might prevail until the levels of comfort in the use of credit cards change.
Second, trust in the government is another obstacle for the utilization of e-government services. Perceptions about the performance and integrity of public servants have a significant impact in the use of transactional services through the Internet. Specifically, individuals do not trust the government’s capability to protect their personal and financial information. Negative experiences with public services (in person) harm the reputation of e-government services. In Mexico, distrust in the public service has historical roots. Mexicans have historically coped with a culture of corruption in public services . For example, according to Transparency International, Mexicans paid about US $ 1 billion in bribes to obtain public services in 2003 . In that year there were almost 101 million acts of bribery related to 38 types of public services. One of the main challenges for the public sector is to educate citizens about the potential of e-government for reducing corruption. This might increase the use of services. To date, receiving public services in person appear to be the main mechanism individuals use to cope with the lack of trust in the public sector.
Third, individuals do not trust the safety of the Internet to carry out transactions that involve the disclosure of personal or financial information. The lack of confidence in the programs available for customer protection against credit card or identity fraud (e.g. VeriSign Secured seal) appears to be closely related to this. In addition, the cash culture that still prevails in Mexico is also feeding people’s fears about the use of credit cards for online transactions.
Finally, for potential users of e-government services is very important how others (e.g. family and friends) perceive online transactions. Relying on the opinions of close others to guide personal actions is a common practice in collectivistic countries like Mexico. The effect of persuasion on purchasing behavior has been widely documented in Social Psychology. For example, studies have found that consensus information, information that involves others’ views about a product or service, significantly impact purchasing decisions of members in collectivistic cultures (vs. individualistic cultures) . The findings of this study suggest that the cultural dimension collectivism may be another variable that could affect the cognitive process that take place when individuals evaluate the degree of trustworthiness about e-government services. However, additional research is needed to examine the influence of collectivism on the decision of using e-government services across different cultural contexts.
Research Limitations
Some limitations were identified in this study. First, the demographic information of participants does not necessarily reflect the characteristics of the entire population of Mexico. The sample of this study limits to an educated population with high levels of exposure to computers and the Internet. The replication of this study using other segments of the populations can increase our understanding of the implications of personal characteristics on the use of e-government services. Second, this study do not captures the evolution of perceptions of trust across time. That is, confidence in e-government services might evolve as the population becomes more acquainted to online transactions. Therefore, the findings of this study need to be viewed as preliminary evidence of the different factors that impact the formation of initial trust in e-government services.
Conclusions
Studies that consider the effect of cultural constraints and conditions in the use of Internet-based government technologies are still limited and mostly based on industrialized countries. The purpose of this paper was to identify the socio-cultural factors that contribute to the formation of perceptions of trust about the government and the Internet with respect to the use of e-government services in developing countries. Two focus group interviews were conducted in a state in central Mexico. Findings reflected that cultural practices such as the inefficient performance and dishonesty of public servants, the generalized sense of distrust in bank institutions and the purchasing habits in the population are impeding citizens to fully benefit from the potential of e-government services. In societies like Mexico where traditional resources needed for the use of information and communication technologies are still limited in the majority of the population (e.g. education, access to computers, connectivity), socio-cultural practices and dynamics introduce additional challenges for the diffusion of e-government. More important, the recognition of cultural priorities can make the difference between success and failure in e-government initiatives. The findings of this study will be used to improve a survey that will be applied in two cultural contexts in the second stage of this study.