Determinants of master data management adoption by local government organizations: An empirical study

Abstract

Master Data Management (MDM) is an approach for effective management of shared master data across organizations. In the public sector, MDM initiatives have been developed; however, the adoption among local government remains slow and there has been little interest in MDM adoption in extant research. Building on a Technology-Organization-Environment (TOE) framework, a conceptual model which highlights a set of potential determinants affecting the adoption of MDM by local government was developed. To validate the model, data were collected via survey from 224 responses from Malaysian local government department units. Using SEM-PLS, the study confirmed that data quality and data governance are two determinants of MDM adoption specific to the context of Malaysian local government, and four other determinants – complexity, top management support, technological competence, and citizen demand – are found to have significant effects on MDM adoption by local government. Surprisingly, three determinants – relative advantage, data security, and government policy – are found to have non-significant relationships to the adoption of MDM by local government. In addition, top management support is revealed to be a cornerstone of MDM technological competence in local government. The study contributes to the theoretical, contextual, and practical knowledge of MDM and IT adoption in the context of local government.