An empirical investigation of information technology adoption behaviour in banks in Bahrain

This thesis is an empirical investigation of information technology (IT) adoption behaviour within the banking industry in a developing country, which is Bahrain. It aims to provide an understanding of IT strategy formation processes, the drivers of the adoption behaviour, the influence of vendors and others on the adoption process, the characteristics of these banks' cultures and their effects on the banks' adoption approach, and the banks' approach to collective IT projects. The nature of the research questions mentioned above suggests the necessity of qualitative research. There are eleven case studies presented in the thesis based on semi structured and unstructured interviews with representatives of top management and IT units within the banks. Other informants from other non-banking organisations were interviewed as well, to further clarify some of the topics raised by these banks. The IT strategy formation process within the banks went into different phases. During the early phases they were more ad hoc in nature. In later phases new patterns emerged amongst the banks. The incursion of the strategic discourse within these banks and subsequently their adoption behaviour were influenced by the changes that occurred within the banks' external and internal environments. Three forms of strategy formation patterns were identified. The first was amongst two of the small local banks. The strategies were informal, ad hoc in nature, and driven by a 'one man show'. The political influence of the sole product champions was essential for the adoption of the strategy and IT within these banks. The second form of strategy formation pattern was identified with three local banks: two big banks, followed thereafter by one small bank. The strategy formation was formal, influenced by the consultants who set the path to formalise the process, and the process took place within systems steering committees which included the top management and representatives from the support units. By virtue of their power and authority, the views of the top management dominated within the systems steering committees; however, input from the IT units was essential as the top management lacked the knowledge to take informed decisions without them. The board of directors was involved in the process of approving the IT strategies. We have termed this process "formal-rational", although in some cases it was not remote from the micro-political struggle. The third form of strategy formation process was identified with branches of foreign banks. These banks' strategies were 'imposed strategies' from their groups outside Bahrain, were global in nature, had a 'trickle-down' effect, and were less responsive to local changes and needs in Bahrain. (Abstract shortened by ProQuest.)