Master data management adoption model in Malaysia local government

Abstract

Master Data Management (MDM) is an approach for effective management of shared master data across organizations. MDM consolidates and integrates master data from multiple organizations to the central platform and publishes the centralized data to the authorized applications across different organizations. In the Malaysian public sector, few MDM initiatives have been developed, however, the adoption by local government remains slow. In addition, there have been limited studies on the MDM adoption. Hence, research is needed to investigate determinants that influence the MDM adoption by local government. This research aims to develop a model of determinants that influence the MDM adoption by local government. The research started with the identification of problem and knowledge gaps by reviewing existing MDM literature and MDM adoption reports in Malaysia. Then, two Systematic Literature Review (SLR) were conducted to identify potential determinants influencing the MDM adoption by local government. Based on the SLR results and with the underpinning theory of Technology-Organization-Environment framework, Diffusion of Innovation and Fit-Viability Model, a conceptual model was developed and verified by five experts. Next, a survey instrument was developed through content validity test with eleven experts and was pilot test with 30 respondents. Subsequently, data collection was conducted from local government department units in Malaysia and 224 responses were analysed to validate the conceptual model using Partial Least Square-Structured Equation Modelling analysis. The model validation revealed that six determinants of technological (complexity, quality of master data), organizational (data governance, top management support, technology competence) and environmental (citizen demand) have significant effects on MDM adoption by Malaysian local government, with p-value < 0.05. Surprisingly, three determinants of technological (relative advantage, data security) and environmental (government policy) are found to have non-significant effects on the adoption of MDM by local government with p-value > 0.05. In addition, top management support appeared as a cornerstone of MDM technological competence, with p-value < 0.05. Moreover, this research also confirmed the positive relationship between citizen demand and MDM adoption by Malaysian local government will be stronger when citizen population density is high, with p < 0.01 and the moderating effect of 0.1. To evaluate the developed model, a set of guidelines and strategy of MDM adoption for the Malaysian public sector were then developed and reviewed by MDM practitioners. Overall, this research contributes to the theoretical, contextual and practical knowledge of MDM and information technology adoption in the context of local government.