Keeping Up with Demand: Implementation of Sharing Economy Platforms within State and Local Government

The proliferation of sharing economy services and activities across industries is changing the expectations and patterns of engagement by consumers. While some state and local governments have proactively moved towards adoption, many more are either hesitant to do so or wholly unaware. The inevitability of rapid change by such a model can seem insurmountable to public organizations built for slow and purposeful evolution. The purpose of this study is to understand the components necessary for effective and targeted implementation of sharing economy services and processes within government. The central focus of this study is to develop a conceptual model from which to evaluate evidence and identify themes to help managers create their own approach toward adoption. Additionally, literature on the topic presents a set of uniformly important requirements toward deliberate deployment and planning. Through a systematic review using thematic synthesis, an assessment of both scholarly and grey literature is conducted to identify major themes for answering the research question. Findings from this study support the proposed conceptual model and provides a framework for use by managers within state and local government for developing individualized approaches based on the needs and capabilities particular to each organization.Running head: KEEPING UP WITH DEMAND i Keeping Up with Demand: Implementation of Sharing Economy Platforms within State and Local Government Mackenzie Thiessen April 2018 Dissertation submitted to the Faculty of the Graduate School of the University of Maryland University College in partial fulfillment of the requirements for the degree of Doctor of Management Dissertation Advisors: W. Christopher Cason, DM J. Heather Welzant, Ph.D. K. Candis Best, Ph.D. KEEPING UP WITH DEMAND ii Abstract The proliferation of sharing economy services and activities across industries is changing the expectations and patterns of engagement by consumers. While some state and local governments have proactively moved towards adoption, many more are either hesitant to do so or wholly unaware. The inevitability of rapid change by such a model can seem insurmountable to public organizations built for slow and purposeful evolution. The purpose of this study is to understand the components necessary for effective and targeted implementation of sharing economy services and processes within government. The central focus of this study is to develop a conceptual model from which to evaluate evidence and identify themes to help managers create their own approach toward adoption. Additionally, literature on the topic presents a set of uniformly important requirements toward deliberate deployment and planning. Through a systematic review using thematic synthesis, an assessment of both scholarly and grey literature is conducted to identify major themes for answering the research question. Findings from this study support the proposed conceptual model and provides a framework for use by managers within state and local government for developing individualized approaches based on the needs and capabilities particular to each organization. Keywords: sharing economy, on-demand platforms, government, service delivery, regulation, information and communication technology KEEPING UP WITH DEMAND iii Acknowledgement I would like to thank my family for supporting me throughout this process. To my fiancé, Travis, thank you for being an open ear, and for the daily reminders to stay focused and on track. To my parents, your encouragement in my pursuit of this challenge, and serving as a living example of what dedication and resiliency looks like, has been an invaluable gift. Regarding my Dissertation Committee, their direction and guidance is a reflection of their commitment not only to the students they teach, but also to the pursuit of higher education. Dr. Best and Dr. Welzant, your thoughtful reflection and instruction regarding my research are highly appreciated. To Dr. Cason, the chair of my committee, a special thank you is in order for keeping me grounded and truly helping to expand my academic knowledge base. It has been an honor to work with all of you. I would lastly like to thank the two subject matter experts that provided review and critique on the focus of my research. Your analysis and insights were exceptionally helpful in my path towards developing a strong and well-thought-out research study. KEEPING UP WITH DEMAND iv Table of Contents Abstract .......................................................................................................................................... ii Acknowledgement ......................................................................................................................... iii Table of Contents ........................................................................................................................... iv Chapter 1 – Introduction and Research Objective .................................................................... 1 Background ............................................................................................................................... 1 Thematic Discussion .................................................................................................................. 3 The Problem ............................................................................................................................... 4 Research Objective .................................................................................................................... 5 Organization of the Dissertation .............................................................................................. 8 Chapter 2 – Literature Review .................................................................................................. 10 Overview of Sharing Economy Platforms ............................................................................. 10 Technology Management within Government ..................................................................... 19 How Governments Manage Innovation ................................................................................ 27 Theoretical Lens & Conceptual Model ................................................................................. 36 Principal/Agent Platform Sustainability Model ................................................................... 37 Chapter 3 – Methodology ........................................................................................................... 40 Evidence Based Research in Practice .................................................................................... 41 Systematic Review as a Method of Research ........................................................................ 42 Inclusion / Exclusion Criteria ................................................................................................. 45 Search Terms ........................................................................................................................... 47 Dataset Selection ...................................................................................................................... 48 Using TAPUPAS as an Assessment Tool ............................................................................... 49 Analysis through Thematic Synthesis ................................................................................... 50 Data Management through ATLAS.ti ................................................................................... 51 Framework for Synthesis ........................................................................................................ 52 Analysis of Data Output ......................................................................................................... 53 Expert Panel as Evidence ....................................................................................................... 60 Chapter 4 – Findings .................................................................................................................. 63 Summary of Findings in Relation to the Research Question .............................................. 64 KEEPING UP WITH DEMAND v Conclusions from Findings ..................................................................................................... 74 Chapter 5 – Conclusions, Implications, and Trends ................................................................ 75 Overall Conclusions ................................................................................................................ 75 Implications for Management and Trends ........................................................................... 77 Limitations and Areas for Future Research ......................................................................... 83 Summary ................................................................................................................................. 84 References .................................................................................................................................... 86 Appendix A .................................................................................................................................. 99 Appendix B ................................................................................................................................ 100 Appendix C ................................................................................................................................ 101 Appendix D ................................................................................................................................ 123 Appendix E ................................................................................................................................ 125 Appendix F................................................................................................................................. 125 Running head: KEEPING UP WITH DEMAND 1 Chapter 1 – Introduction and Research Objective An otherwise homebound individual is able to schedule publicly-supported transportation to take them to their next medical appointment. Another resident needs their trash and recycling collected two days early; to make this happen they simply notify the municipality through their mobile-based services application. A local government is planning a substantial five-year upgrade to their water infrastructure; instead of purchasing the additional equipment necessary, they enter into a sharing agreement with another community in a neighboring county. A rural county is enhancing information and communication technology at their health clinic for improving integration and response times for medical centers across the state. Major metropolitan regions partner with emergency responders, community centers, health providers, and other state or local agencies to collect, integrate, and share data for the benefit of its citizenry. Each of these examples illustrates some of the ways local and state government are stepping into the sharing economy. As sharing economy platforms continue to proliferate across the private sector, government organizations are beginning to test similar on-demand models for internal processes and public services. The primary benefits of sharing economy platforms are improved efficiency and reductions in cost. Managers of government organizations would be better served by approaching sharing economy, on-demand platforms with a better understanding of their benefits, risks, and lessons learned as experienced in other sectors. Background Over the past seven years the sharing economy has seen notable growth through the proliferation of on-demand services. In a 2015 study by Colby and Bell (2016), the number of companies providing sharing services grew by nearly 300% over the previous two years. A KEEPING UP WITH DEMAND 2 principle contributor for the rise of the sharing economy is the advent of “big data” a term that often refers to technology firms’ use of data analytics to extract value from vast datasets gathered through interactions between people and machines, typically smart devices. As the sharing economy expands in size and reach throughout the private sector, government organizations are beginning to consider the ways this technological revolution might support their own services and processes (Cohen & Kietzmann, 2015). Before going any further, though, it is important to define precisely what the sharing economy is. Kathan, Matzler, and Veider (2016) define the sharing economy as “non-ownership, temporary access, and redistribution of material goods or less tangible assets such as money, space, or time” (p. 663). Other terms commonly used to refer to the sharing economy include the on-demand economy, the collaborative economy, and the gig economy. Cusumano (2015) offers a similar definition of the sharing economy as “web platforms that bring together individuals who have underutilized assets with people who would like to rent those assets short-term” (p.32). Unfortunately, because the sharing economy model is still developing, any definition of it will remain informal, contested, and provisional. Some of the first sharing economy platforms were made available via mobile smart-devices. Botsman and Rogers (2012) indicate a majority of sharing on-demand services operate through platforms heavily reliant on the most up-to-date information and communication technologies. As the user base for these systems continues to expand, so too will the importance of strong and reliable information technology servers and platforms. Such capabilities and safeguards to data and system reliability are an absolute requirement for government organizations implementing or expanding their own processes and services to the public. Public sector concerns over system reliability—including a fear of data breaches—may contribute to KEEPING UP WITH DEMAND 3 their reluctance to implement such systems, as government actors wait until the private sector has sufficiently addressed these issues. Thematic Discussion The implementation of on-demand sharing economy systems within government organizations requires a specific set of additional parameters unique to these entities. To begin, the collection and storage of data on individuals receiving services from government organizations is often personal in nature and therefore subject to the Privacy Act and other rules, regulations, and laws governing private information. Furthermore, government organizations must ensure the reliability and performance of sharing economy platforms used to directly deliver service or to improve internal processes that are indirectly related to services delivery. Any system malfunction or disruption of certain government services could result in significant negative consequences for service providers and users, alike. The bureaucratic and institutionalized processes of government organizations can often make them inflexible, and therefore unable to implement on-demand services and processes. Government organizations planning to implement sharing economy platforms can draw inspiration from their own recent experiences with technology implementation more broadly. There are numerous parallels between more established information technology systems and those of sharing economy platforms; hesitant managers of government organizations can learn much about more recent innovations by understanding their similarities to those that have come before. Understanding policy impacts of changes in service and processes using on-demand platforms should also be considered. Compared to the public service sector, private industry initiatives often operate according to a different set of motivations, such as economic competitiveness. As a result, private sector innovations—including, those related to the sharing KEEPING UP WITH DEMAND 4 economy—may evolve unevenly and without regard for the values of public organizations, including equity and fairness. Managers of government entities must consider the long-term impacts of services and internal processes to determine when and how sharing economy platforms can be used in their organization. The Problem With a preliminary understanding of some current definitions for the sharing economy, public managers must determine if such a business model is compatible with the processes and services their organization provides. Even for those with confidence of the potential for such on-demand platforms, questions remain regarding their effectiveness outside the private sector. Current constraints on public resources and an aversion to radical shifts in program implementation by heavily bureaucratic institutions pose a problem for management in public organizations (Walker, 2014; Cebron & Love, 2002). At the same time, public organizations cannot afford to ignore the continued expansion of the sharing economy. The increasing adoption of some of the model’s tenets will no doubt alter the expectations of consumers of public services. Often, government entities are viewed as lagging behind their counterparts in the private and non-profit sectors regarding technology implementation and the adoption of new systems of operation (Cebron & Love, 2002). Whether public organizations take a proactive approach to the sharing economy or not, it is likely they will be pulled into some level of adoption to maintain service expectations and relevancy. Unfortunately, there remains a significant gap toward assisting scholars and practitioners in addressing some of the problems stated above. While an abundance of research and literature has been established on the implementation and consideration of sharing economy platforms in the private sector, such is not the case for public sector organizations. Significant enough KEEPING UP WITH DEMAND 5 differences exist between important considerations regarding implementation and the provision of service delivery between these two sectors that simply cross-walking research on the private sector will not suffice. Doing so discounts the inherently different motivations and standards by which both private and public sector and organizations engage with their clients. This study aims to address the identified gap by proposing a research question specific to needs of government organizations, keeping in mind their particular nuances in implementation and deployment of technology and innovation more broadly. Now that a brief overview of the sharing economy and its relationship to government organizations has been provided, consideration can be given to the development of a formalized research question. Up to this point, the relevance and importance of the sharing economy on public organizations has framed the need for further research and consideration on the topic. Rather than walking blindly through the process of identifying and attempting to implement sharing economy services and processes, public organizations would be better served by understanding the considerations and best practices that will help them make the best evidence-based decisions. That is the goal of this study. The research question to be considered here: how can managers of state and local government embrace sharing economy platforms to advance organizational processes and services? Research Objective As sharing economy platforms continue to proliferate in the private sector, public sector organizations will experience greater pressure to adapt to and offer similar service capabilities. By understanding which components of sharing economy platforms best fit public-sector service delivery and internal process efficiency, their implications on the organization and service KEEPING UP WITH DEMAND 6 recipients, and how to navigate the process to ensure data security and service reliability are all necessary for successful transition. Simply put: “government organizations cannot afford to use the same trial and error approach adopted by commercial organizations and have an obligation to implement new technologies responsibly and in a way that does not compromise privacy and security. At the same time, there is also added stakeholder pressure on government officials to be accountable for public finances spent on information and communications technology (ICT) projects” (Kinder, 2010, p. 28). Managers of government organizations with a better understanding of these factors can feel more confident approaching the prospect of implementing sharing economy platforms and their relevant considerations to help ensure success. The objective of this study is to analyze research regarding sharing economy platforms and the ways in which public sector organizations can take advantage of their capabilities. While the body of research on sharing economy platforms is still developing, the fields of technology adoption and innovation management within the public sector is well established. Authors such as Feller (1980) have long addressed technology adoption within the public sector. Similarly, public sector innovation management continues to be developed through the works of Teodoro (2009), Melitski, Gavin, and Gavin (2010), and others. In addition to answering the research question, a second objective of this study is to help frame the conversation around what remains to be understood about implementing sharing economy service platforms for use in government organizations. This study aims to help public sector managers navigate the decision-making and implementation process for sharing economy platforms—a process that that until now has lacked formalization. KEEPING UP WITH DEMAND 7 The outcome of this study will provide new l