Evaluating the Design of ICT Implementation: Financial Impacts of Standardized System Specifications
Abstract
This paper examines whether the specific design of information and communication technology (ICT) implementation plays a critical role in enhancing the fiscal efficiency of local governments. Although ICT has been widely promoted through e-government initiatives to improve government operations, the effectiveness of implementation specifications has received limited attention. We study Japan’s Regional Information Platform (RIP), a standardized system specification that facilitates interoperability across municipal administrative systems and weakens vendor lock-in. Building on a model of municipal procurement under switching costs, we show that standardization reduces expenditure through two channels: weakened vendor lock-in that lowers system costs, and improved cross-departmental interoperability that reduces labor input. Using variation in RIP adoption across Japanese municipalities, we estimate difference-indifferences models and find that RIP adoption substantially reduces per capita total expenditure. The decline is also driven by decreasing system-related and persone expenditure. These findings suggest that e-government outcomes depend not only on ICT adoption itself but also on implementation design.
Citation Information
@article{narukinotsu2026,
title={Evaluating the Design of ICT Implementation: Financial Impacts of Standardized System Specifications},
author={Naruki Notsu and Shuko Harada and Yu Osaki},
journal={International Tax and Public Finance},
year={2026},
doi={https://doi.org/10.21203/rs.3.rs-9316835/v1}
}
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