The Role of Government on Diffusion and Discontinuance of the Same ICT: Contrasting Cases of UAE and Taiwan

Although the significance of governmental involvement in fostering business development has been widely researched, there appears an inadequate understanding of how different types of governmental roles lead to contrasting innovation process for small businesses. Based on an interpretive case study, our research seeks to bridge such a knowledge gap by examining RFID projects implemented in two socially and culturally distinctive contexts. The project in the UAE leads to widespread routinization in its livestock industry while the ones in Taiwan result in abrupt discontinuance. Empirical findings show that despite various issues involved the contrasting types of governmental roles might be the most decisive factor leading to such opposite results. The role played by the UAE government is categorized as strategic enforcer while the one by Taiwan’s government as innovation initiator. The former is a directive and interventional role that seeks to transform the industry while the latter is a facilitative and provisional role with no regulative involvement. Insights gained from our comparative analysis suggest that to successfully diffuse ICT projects for local industries the role played by the government and subsequent supports entailed will need to be in line with their strategic objectives. Implications for future practice and research are provided.