PUBLIC POLICY RESEARCH FUNDING SCHEME

公共政策研究資助計劃

Project Number : 項目編號：

2013.A6.025.13A

Project Title : 項目名稱：

Green Information Technology Adoption in Hong Kong: An Empirical Analysis and Policy Implications for Sustainable Development 香港綠色信息技術的應用：可持續發展的實証分析與政

策影響 Principal Investigator : 首席研究員：

Professor Eric W. T. NGAI 倪偉定教授

Institution/Think Tank : 院校 ／智庫：

The Hong Kong Polytechnic University 香港理工大學

Project Duration (Month): 推行期 (月) ：

20

Funding (HK$) : 總金額 (HK$)：

329,906.30

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PUBLIC POLICY RESEARCH FUNDING SCHEME

Final Report

Green Information Technology Adoption in Hong Kong:An Empirical Analysis and Policy Implications for Sustainable

Development

Project No.: 2013.A6.025.13A

Prepared by: Prof. Eric W. T. NgaiDepartment of Management & MarketingThe Hong Kong Polytechnic University

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TABLE OF CONTENTS

ABSTRACT..............................................................................................................3

Chapter 1

INTRODUCTION ......................................................................................... 51.1 Significance and Value......................................................................... 51.2 Research Objectives............................................................................. 7

Chapter 2

LITERATURE REVIEW................................................................................... 82.1 Antecedents of Green IT Adoption.................................................... 82.2 Taxonomy of Green IT Adoption….................................................. 8

Chapter 3

THEORETICAL DEVELOPMENT................................................................ 103.1 Institutional Theory and Sustainable Development........................ 103.2 Influence of Decision Maker’s Perception on Green IT/IS

Adoption.............................................................................................. 113.3 Influence of Influence of Institutional Pressures on Intention to Green

IT/IS Adoption...... ...................................................................................12

Chapter 4

RESEARCH METHODOLOGY....................................................................... 154.1 Measurement...................................................................................... 154.2 Pilot Study........................................................................................... 16

Chapter 5

DATA ANALYSIS.............................................................................................. 175.1 Sample Characteristics........................................................................ 175.2 Measurement Model............................................................................ 185.3 Structural Model.................................................................................. 20

Chapter 6

DISCUSSIONS..................................................................................................... 236.1 Discussions and Theoretical Contributions......................................... 236.2 Policy Implications and Conclusions................................................... 236.3 Green IT/IS Strategy Recommendation ……….................................. 256.4 Limitations and Future Research Directions....................................... 26

References............................................................................................................ 27

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Green Information Technology Adoption in Hong Kong: An Empirical Analysis and Policy Implications for Sustainable Development

ABSTRACTConsidering extensive energy usage and wastage in business, the literature has prompted organizations to leverage the enabling effects of Green Information Technology/System (IT/IS)to balance the increasing rate of productivity improvement through IT/IS and environmental sustainability (Jenkin et al. 2011; Molla 2009; Molla and Cooper 2009; Molla et al. 2011; Molla et al. 2009). Despite the recognized potential of Green IT/IS in existing literature or industrial experiences, environmental issues underlying IT/IS often have no clearly defined ownership in organizations. Moreover, IT/IS is usually not considered in the assessment of organizational environmental practices (Jenkin et al. 2011). As such, we aim to investigate the driving forces and conditions for Green IT/IS adoption using the Institutional Theory. Specifically, the presentstudy aims to investigate the influence of institutional forces in fostering; and draw out the policy implications from accumulated empirical evidence based on a survey conducted in Hong Kong.

With these conceptual issues as backdrop, we have conducted a survey study using listed companies in Hong Kong as a sample frame and collect the empirical evidence on green attitude and Green IT/IS adoption in Hong Kong. In addition, implications from these regularities will be investigated for policy purposes. The results obtained will have significant theoretical and policy implications that may advance the theory and contribute to Green IT/IS policies and practices to reduce the environmental effects of IT. Theoretically, the results will explain the process on how a set of external forces push the organization toward Green IT/IS adoption. Government and industry associations can obtain a series of policy implications for public consumption on the use of IT equipment or data centers, whereas others can find ways to promote Green IT/IS adoption by enforcing the driving factors and creating favorable conditions for organizations. Results from partial least squares analyses suggest that normative and mimetic pressures, attitude toward Green IT/IS, relative advantages of Green IT/IS have a significant influence on organizational adoption of Green IT/IS. Our findings show that the relative advantages of Green IT/IS is the most crucial factor that influences an organizational decision maker’s intention to adopt Green IT/IS.

JENKIN ET AL.2011; MOLLA 2009; MOLLA AND COOPER 2009; MOLLA ET AL. 2011; MOLLA ET AL. 2009

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JENKIN ET AL. 2011

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CHAPTER 1: INTRODUCTION

Whether environmental performance comes at the expense of firm competitiveness has long been under debate. In the 1980s and early 1990s, researchers believed that environmental practices took away organizational resources and distracted organizations from implementing business strategies (Montabon et al. 2007; Pil and Rothenberg 2003; Sarkis and Cordeiro 2001; Wagner et al. 2002). Since the recent decade, however, researchers have recognized the intangible benefits of environmental management. Furthermore, the notion that environmental performance is a potential driver for competitive advantage has emerged. Extant literature presents that environmental management, especially that involving green innovations, enhances an organization’s public image, improves relations with government offices and local communities, improves productivity, and saves costs primarily because of increased efficiencies in resource/energy use and pollution management (Hui et al. 2001; King and Lenox 2002; Matouq 2000; Matuszak-Flejszman 2009; Montabon et al. 2007; Pil and Rothenberg 2003; Wagner et al. 2002; Zhu et al. 2005). In addition, studies reported that companies engaged proactively in environmental management—such as improving resource productivity to avoid pollution—generate more business opportunities and global competitiveness (Matouq 2000; Montabon et al. 2007).

Escalating evidence on the potential of environmental practices in bringing sustainable development, which aims to balance economic development and enhancement of environmental performance, has given rise to a new breed of IT/IS: Green IT/IS. IT/IS accounts for 2% of the global carbon emission, and 26% and 95% of the total energy consumption in office buildings and data centers, respectively, which become part of the larger problem of environmental sustainability (Jenkin et al. 2011; Molla and Cooper 2009; Molla et al. 2009; Zhang et al. 2011).To worsen the situation, IT/IS explosion is consuming large fractions of business energy costs.However, more than half of this energy is wasted on inefficient technologies, poorly designed systems, or uninformed behaviors (Jenkin et al. 2011). In addition, IT products have short life spans, and their manufacture and disposal have resulted in toxic hotspots (Molla et al. 2009;Zhang et al. 2011). Considering extensive energy usage and wastage in business, the literature has prompted organizations to leverage the enabling effects of Green IT/IS to balance the increasing rate of productivity improvement through IT/IS and environmental sustainability(Jenkin et al. 2011; Molla 2009; Molla and Cooper 2009; Molla et al. 2011; Molla et al. 2009).Elliot (2007) has pointed out that Green IT/IS is a critical and sustainable topic in the IT/IS field.

1.1 SIGNIFICANCE AND VALUEGreen IT is designed with the initiative that apply environmental sustainability to the design, production, sourcing, use, and disposal of the IT technical infrastructure, as well as within itshuman and managerial components (Bose and Luo 2011; Butler 2011; Jenkin et al. 2011; Molla

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and Cooper 2009; Molla et al. 2009). Green IT addresses issues, such as designing energy-efficient chips and disk drives, reducing the energy consumption in data centers, using renewable energy sources to power data centers, reducing electronic waste from obsolete computing equipment, and promoting telecommuting and remote computer administration to reduce transportation emissions (Jenkin et al. 2011). Green IS refers to the use of IS to support and enable both business processes and products that create environmental sustainability (Butler 2011; Jenkin et al. 2011). Green IS could be applied, for example, to track and monitor environmental variables (such as energy used, water used, and so on), reduce transportation costs using a fleet management system and the dynamic routing of vehicles to avoid traffic congestionand minimize energy consumption, and support teamwork and meetings for globally locatedemployees (Jenkin et al. 2011). Despite the potential of Green IT/IS in balancing economic development and environmental performance, environmental issues underlying IT/IS often have no clearly defined ownership in organizations. Furthermore, IT/IS is usually not considered in the assessment of an organization’s environmental practices (Jenkin et al. 2011). As such, the study aims to investigate the driving forces and conditions for the adoption of Green IT/IS using the Institutional Theory. The present study contributes to the literature on Green IT/IS, particularly on Green IT/IS adoption, by analyzing how institutional forces affect green attitude and intention to Green IT/IS adoption. The current findings develops theories and policyimplications for the foundation of future research aimed at improving Green IT/IS adoption.

In addition, the present study aims to bridge the theoretical and empirical gap in Green IT/IS literature. Our study provides a better understanding of why organizations intend or not intend to implement Green IT/IS. Theoretically, the process on how a set of external forces push anorganization toward the intention to Green IT/IS adoption is explained. Practically, we expect that a better understanding of the institutional and technical drivers for Green IT/IS adoption would explain ways to promote it by enforcing the driving factors and creating favorable conditions for organizations. For example, if the research results find that mimetic pressure acts as a strong and significant driver for Green IT/IS adoption, the government may devote more resources to encourage organizations to share their experiences on environmental performance management with the industry incumbent. The government may provide tax rebate or monetary incentives in exchange for sharing the experiences of organizations with outstanding Green IT/IS practices. These implications may be transformed into public policies for driving environmental sustainability. The implementation of these Green IT/IS policies creates a new institutional environment that pushes organizations toward Green IT/IS adoption.

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In view of the potential of Green IT/IS in balancing economic development and environmental performance, we aim to investigate the driving forces and conditions for the adoption of Green IT/IS using the Institutional Theory. Specifically, this study has the following research objectives:

1.2 RESEARCH OBJECTIVES:

1. Investigate the influence of institutional forces in creating the top management green attitude.

2. Explore the technological conditions that help transform green attitude into the actual adoption of Green IT/IS.

3. Investigate the moderated mediating role of top management green attitude and IT architecture modularity in explaining the influences of institutional forces on Green IT/IS adoption.

4. Draw out policy implications from the accumulated empirical evidence based on the survey conducted in Hong Kong.

5. Propose a feasible Green IT/IS strategy and policy in Hong Kong.

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CHAPTER 2: LITERATURE REVIEWLiterature on Green IT can be classified into the following categories: initiation, design andimplementation, adoption, and benefits (Califf, Lin & Sarkar, 2012). Research on the initiation ofGreen IT usually describes the concept and generates attention from practitioners and scholars, such as those of Watson, Boudreau, and Chen (2010) and Melville (2010). Both of these studies articulate the concept by providing a general direction for future research. Research on the design and implementation of Green IT generally describes the framework for or issues concerning the implementation of Green IT in an organization, or the details of the design of Green IT initiatives. For example, Schmidt, Erek, Kolbe, and Zarnekow (2009) outline the steps for implementing sustainable IS management. Research on the benefits of Green IT focuses on demonstrating the benefits of organizational Green IT adoption. For example, Bose and Pal (2012) investigate the relationship between the adoption of green supply chain management and the stock price of the organization. Finally, research on Green IT adoption usually investigates the antecedents of organizational Green IT adoption. Concerning the literature of the adoption of Green IT/IS, there are mainly two research areas namely antecedents of Green IT adoption and taxonomy of Green IT/IS adoption. We briefly describe the two areas as below.

2.1 ANTECEDENTS OF GREEN IT/IS ADOPTIONIn the literature, a number of theoretical perspectives have been used to investigate the antecedents of Green IT/IS adoption. They are Belief-Action-Outcome Theory (e.g., Mitha, Khuntia & Roy, 2010), Diffusion of Innovation (e.g., Lei & Ngai, 2012), Institutional Theory(e.g., Butler & Daly, 2009), Inter-organizational Knowledge Transfer View (e.g., Tarafdar, Modi, Roy & Datta, 2010), Organizational Information Processing Theory (e.g., Lei & Ngai, 2012),Theory of Absorptive Capacity (e.g., Cooper & Molla, 2012), Theory of Reasoned Action (e.g., Sarkar & Young, 2009), Resource Based Theory (e.g., Jung, Kim & An, 2011), Resource Dependency Theory (e,g., Tarafdar et al., 2010), Stakeholder theory (e.g., Cai, Chen & Bose, 2013) and Norm-activation theory (e.g., Lei & Ngai, 2014). Among these theoretical perspectives, the Diffusion of Innovation Theory and Institutional Theory are most frequently applied in the Green IT/IS adoption literature. The Diffusion of Innovation Theory has specified five antecedents of IT/IS adoption, which are the technological characteristics of the focal IT/IS: relative advantage, compatibility, trialability, observability, and complexity. In the Green IT/IS adoption literature, most of the studies have used partially adopted the Diffusion of Innovation Theory. For example, in the study conducted by Nedbal, Wetzlinger, Auinger and Wagner (2011) has only included two of the technological characteristics proposed by the Diffusion of Innovation Theory, i.e., compatibility and complexity. The Institutional Theory argues that organizational actions are mainly motivated by the motive to seek legitimacy (DiMaggio & Powell, 1983), i.e., the external forces from the environment. The external forces are normative pressure, coercive pressure and mimetic pressure. The Institutional Theory is often employed in studies on Green IS adoption (Butler 2011; Butler and Daly 2009; Chen et al. 2009; Hasan and

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Dwyer 2010; Kuo & Dick, 2010). Moreover, the Institutional Theory has been employed to study the actions of organizations in addressing green issues (Jennings and Zabdbergen 1995).

2.2 TAXONOMY OF GREEN IT/IS ADOPTIONSeveral theoretical models/frameworks have been used to study the adoption of Green IT/IS. This includes Diffusion of Innovation Theory (e.g., Bose & Luo, 2011), Technology-Organization-Environment Framework (e.g., Nedbal et al., 2011) and Natural Resource-Based View (e.g., Chen et al., 2009). Natural Resource-Based View classifies different types of Green IT/IS initiatives into three categories: pollution prevention, product stewardship, and sustainable development (Chen et al., 2009). The Technology-Organizational-Environment Framework classifies different antecedents of Green IT/IS adoptions into three categories: technological, organizational and environmental factors (Bose & Luo, 2011). The Diffusion of Innovation Theory classifies different stage of Green IT/IS adoption namely initiation, adoption and routinization (Lei & Ngai, 2012).

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CHAPTER 3: THEORY AND HYPOTHESES

3.1 INSTITUTIONAL THEORY AND SUSTAINABLE DEVELOPMENTIn recent years, the Institutional Theory has been widely adopted to examine organizational reactions to technological innovations (Bjorck 2004; Butler 2011; Hu et al. 2007; Kuo and Dick 2009; Liang et al. 2007). The Institutional Theory is mainly applied to explain the adoption of IT. Butler (2011), and Kuo and Dick (2009) extended the application of the theory on sustainability development to the use of Green IT/IS. Institutional pressure from sustainable development can be classified into coercive, mimetic, and normative pressures (Dimaggio and Powell 1983). Coercive pressure stems from both formal and informal forces exerted on organizations and decision makers to follow or adopt certain institutionalized rules and practices. These forces include legal frameworks, cultural expectations, parent organizations, market competition, and industry networks and associations (Dimaggio and Powell 1983; Hu et al. 2007). Mimetic pressure stems from uncertainty (Gosain 2004). DiMaggio and Powell (1983) argued that an organization facing a problem with ambiguous causes and unclear solutions or a symbolic environmental uncertainty tends to imitate other organizations. Normative pressure is exerted from professionalization through training, associations, and networks that define the standards of operation (Kikulis 2000). The two important sources of normative forces are the cognitive base produced by universities and professional training, and professional networks and associations. Such mechanisms create a pool of almost interchangeable individuals working across organizations. These individuals maintain similarities in orientation and disposition, which may affect organizational behavior (Dimaggio and Powell 1983).

Within the context of sustainable development in Hong Kong, coercive pressure arises from various regulations and frameworks that guide the development of environmental practices within an organization, such as ISO 14001. Coercive pressure also arises from legal policies and regulations on environmental sustainability. These coercive forces influence organizations in the design of Green IT/IS, which have become institutionalized through time. Mimetic pressure arises from the uncertainty about causes and solutions. Limited information on how to achieve a balance between business development with IT/IS and environmental performance often leads organizations to look for solutions in the practices of other organizations. This practiceaccelerates the process of institutionalization. Normative pressure in the domain of sustainable development results from the increasing promotion of environmental protection by government and business associations. For example, the Environmental Protection Department (EPD) in Hong Kong has launched the “Helping the Restaurant Trade Environmental Programme” in 2000 to improve the environmental performance and working conditions of restaurants, reduce costs,and raise the image of trade. The organization of conferences and introduction of environmental permits and licenses also impose normative pressure on organizations and strengthen the process of institutionalism. The proposed research model is shown in Figure 1.

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Figure 1. The Research Model

3.2 INFLUENCE OF DECISION MAKER’S PERCEPTION ON GREEN IT/ISADOPTIONGreen IT adoption refers to the degree to which the notion of environmental sustainability is incorporated into the design, production, sourcing, use, and disposal of IT technical infrastructure, as well as within its human and managerial components (Bose and Luo 2011;Butler 2011; Jenkin et al. 2011; Molla and Cooper 2009; Molla et al. 2009). For example, Asia Tone Limited, one of the leading providers of colocation data center and cloud computing services, has reduced the energy consumption in their data center through the hot–cold aisle design. Green IT adoption focuses on equipment utilization and the energy efficiency of the IT infrastructure, of which the financial return is direct and evident. However, the adoption of Green IT may require a substantial amount of financial investment, time, and effort to restructureand reorganize the IT infrastructure. Initiating such changes in the organization requires top management to possess a positive attitude toward Green IT, as explained in different behavioral theories, specifically the Theory of Planned Behavior (TPB). On the other hand, Green ISadoption refers to the extent of the use of IS to support and enable both business processes and products that create environmental sustainability (Butler 2011; Jenkin et al. 2011). For instance, Tradeport Hong Kong Limited, which offers logistics facilities and supply chain services to customers, has adopted Green IS through the reduction of energy consumption by controllingand monitoring their air conditioning consumption. Green IS focuses on the design and implementation of information systems that contribute to sustainable business processes; thus,

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the performance influence of Green IS is relatively indirect, compared with that of Green IT. The performance influence of Green IS is difficult to quantify or estimate during the planning process;hence, initiating its adoption in the organization requires top management to possess a positive attitude toward Green IS, as in the same case as Green IT adoption.Positive attitude toward Green IT/IS, which refers to an organizational decision maker’s positive or negative perception and affect toward environmental sustainability and the consequence of Green IT/IS adoption (Molla et al. 2011), is a critical antecedence to its adoption. As explained in the TPB (Ajzen 1991), the more favorable the attitude, the more positive affective attitude towards Green IT/IS could be, and the stronger the intention to adopt Green IT/IS could be.Moreover, the positive attitude towards Green IT/IS would

Hypothesis 1: A decision maker’s attitude towards Green IT/IS will positively affect his/her intention to adopt Green IT/IS in his/her organization.

Relative advantage of Green IT/IS refers to a person’s belief and perception on benefits that the Green IT/IS can bring to an organization, such as better economic performance and environmental performance (Lei & Ngai, 2014). Because of the profit seeking nature of businesses, an organizational decision maker’s intention to adoption the pro-environmental practices should be driven by the desire for achieving their potential benefits (Liang, Saraf, Hu and Xue, 2007; Schaefer, 2007). Moreover, in the Green IT/IS literature, the seeking of better performance and more benefits are frequently mentioned as the main reason for the organizational adoption of Green IT/IS (Butler & Daly, 2009; Elliot & Binnery, 2008; Mann et al., 2009). Therefore, it is predicted that relative advantage of Green IT will lead to an organizational decision maker’s intention to adopt Green IT/IS in his/her organization.

Hypothesis 2: Relative advantage of Green IT will positively affect a decision maker’s intention to adopt Green IT/IS in his/her organization.

3.3 INFLUENCE OF INSTITUTIONAL PRESSURES ON INTENTION TO

GREEN IT/IS ADOPTIONOrganization’s action is also driven by the desire to seek for legitimacy. In the Green IT literature, institutional theory is usually used to predict the organizational adoption of Green IT/IS (Chen et al., 2009; Lei & Ngai, 2012). Under the institutional theory, there are three typesof forces that are argued to affect an organization’s action, i.e., mimetic pressure, normative pressure and coercive pressure (DiMaggio & Powell, 1983; Liang et al., 2007). Institutional theory argues that the actions of organizations are driven by the desire to seek legitimacy and political power (Berger and Luckmann 1967; Scott 1987; Selznick 1957; Tolbert and Zucker 1983), but not origin from the organization itself (Heugens & Lander, 2009). In the following paragraphs, we would like to argue that these institutional pressures would positively affect an organizational decision maker’s intention to adopt Green IT/IS.

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Mimetic pressure refer to the perception that the focal subject is attracted to imitate the practices of others because of the perceived benefits of the practices (Lawrence, Winn & Jennings, 2001;Strang and Macy 2001). Given the inherent uncertainty of the outcomes of Green IT/IS initiatives, top management tends to mimic the actions of their peers or competitors to protect their organization against the potential risk of breaching environmental policies and regulations,which could cause serious losses in company finances and organizational reputation. Reports on the success of Green IT/IS, such as experience-sharing reports on the EPD website, are good references for top management to mimic the environmental practices of the industry incumbent.Therefore, we propose that mimetic pressure will directly affect a decision maker’s intention to adopt Green IT/IS in his/her organization:

Hypothesis 3: Mimetic pressure will positively affect a decision maker’s intention to adopt Green IT/IS in his/her organization.

Normative pressure refers to the perceived expectations from the stakeholders of the focal organization on performing a particular action which are considered to be legitimate and appropriate (Liu, Ke, Wei, Gu & Chen, 2010). In general, it stems mainly from widely accepted industry norms regarding the implementation and consequences of Green IT/IS (Butler 2011). When an industry comes up with a shared understanding of sustainable development, industry members will collectively develop a set of general practices against environmental pollution. In the case of Hong Kong, for example, the EPD holds liaison meetings with different industry associations (such as the food and restaurant trade and vehicle repair associations) to improve its organization’s environmental performance and working conditions, reduce costs, and raise the trade’s image. They organize various activities, including exhibitions, conferences, talks, workshops, seminars, and technical visits to create a norm for sustainable development. Studies have found that useful information and ideas gathered from professional associations are, to some degree, influenced by the initiatives of organizations to implement changes (Hu et al. 2006;2007). Aside from the industry norms, certain consumer groups tend to prefer greener product or services. “Being green” has emerged as a marketing strategy in recent years. Organizations thatfail to employ green practices are seen as less competitive than their direct competitors that have already fulfilled such customer expectations. These groups of customers place certain pressuresto produce greener products or services using Green IT/IS. Hence, we argue that normative pressure will positively influence a decision maker’s intention to Green IT/IS adoption in the organization.

However, in the context of this research study, we will not hypothesize the relationship between coercive pressure and a decision maker’s intention to adopt Green IT/IS in his/her organization, although the literature usually predict coercive pressure will positively affect the organizational adoption of Green IT/IS or pro-environmental practices. Coercive pressures refers to the pressure concerning a particular action which is originated from law and regulation (Delmas & Toffel,

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2004). Since our study attempts to investigate the adoption of Green IT/IS in a single area, and the organizations in the same area are subjected to the same set of law and regulation, it is very likely that those organizations are perceiving the similar level of coercive pressure concerning the adoption of Green IT. Moreover, there is no existing law and regulations in Hong Kong which require organizations to adoption Green IT/IS. Therefore, it would be very difficult to capture enough variance among the coercive pressure in the empirical study and it would be difficult to find empirical support for the relationship between coercive pressure and the intention to adopt Green IT/IS.

Hypothesis 4: Normative pressure will positively affect a decision maker’s intention to adopt Green IT/IS in his/her organization.

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CHAPTER 4: RESEARCH METHODOLOGYA field survey has been conducted to test the research model. The unit of analyses used in the present study is organizational based. The sample frame is drawn from companies listed on the Hong Kong Stock Exchange (HKEx). The sampling frame comprises of 1798 listed companiesin Hong Kong. We use publicly listed companies in Hong Kong as the sample frame because we believe that listed companies (1) possess more systematic planning and resources for Green IT/ISadoption; and (2) local organization are under the common framework of environmental policies and political culture that reduce the influence of these contextual factors on the research results. This study targets on organizations of different industry and types of organization, since environmental protection (such as energy saving, materials recycling) should be an issues to both the service and manufacturing industry.

Hong Kong is selected as the context for validating the research model. In recent years, Hong Kong is experiencing a rising concern on environmental protection. The local government is developing different sponsorship programs or campaigns to encourage and promote environmental performance in organization. For instance, the Environmental Campaign Committee (ECC) leads a Hong Kong Awards for Environmental Excellence (HKAEE) to encourage organizations to adopt green management and green innovations, provide organizations an opportunity to benchmark their commitment towards environmental excellence.On the other hand, the local environmental protection associations are gaining more bargaining power that could be shown by the rising numbers of campaigns against the environmental unfriendly practices in organizations. For example, the Greenpeace is holding several campaigns to urge the fashion industry to stop using toxic chemicals in their products. In addition, the local communities are having more concerns towards the influence of toxic pollutants towards their health. In line with the local government's mission, bargaining power of the local environmental protection associations and the need of the community, organizations in Hong Kong is experiencing different pressures towards green management. Such contextual environment allows us to investigate the research question on whether the top management perception towards the institutional environment is associated with their green attitude.

4.1 MEASUREMENT

All the measurement scales were adapted from existing literature to fit the Green IT/IS context in Hong Kong. Attitude towards Green IT/IS was accessed with a 4-item semantic differential scale adapted from Bhattacherjee and Premkumar (2004). The semantic differential scale were anchored between 4 adjective pairs “Bad idea…Good idea”, “Foolish move…Wise move”, “Negative step…Positive step”, and “Ineffective idea…Effective idea”. Mimetic pressure was accessed with a 3-item scale. Respondents responded to a 7-point scale (scales are anchored from 1”strongly disagree” to 7“strongly agree”). A sample item is “Our main competitors who have adopted green IT/IS have greatly benefited”. Normative pressure was accessed with a 3-item scale. Respondents responded to a 7-point likert scale (scales are anchored from 1”very low” to

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7”very high”. A sample item is “The extent of Green IT adoption by your company’s suppliers”. Both the mimetic pressure and normative pressure were adapted from Liang et al. (2007). Relative advantage of Green IT/IS was accessed with a 3-item scale adapted from Lin and Ho (2011), Respondents responded to a 7-point likert scale (scales are anchored from “strongly disagree” to 7”strongly agree”). A sample item is “The Green IT can enhance our company’s reputation”. Intention to Green IT/IS adoption was accessed with a 3-item scale adapted from Khalifa & Davison (2006). Respondents responded to a 7-point likert scale (scales from anchored from “strongly disagree” to “strongly agree”). A sample item is “I am contemplating (consider seriously) to adopt Green IT”.

4.2 PILOT STUDY

A pilot study has conducted before starting the formal questionnaire survey. We chose convenience sampling to conduct the pilot tests. Respondents were recruited from theMBA/DBA classes of the Hong Kong Polytechnic University. The candidates were requested to fill in the questionnaire and presented their opinion towards the readability and structural design of the questionnaire. Two questionnaire pilot tests were used in this study. In the first pilot test, 10 responses were returned. We improved the content of the questionnaires and Chinese translation of two question items which were found to be difficult to understand. In the second-round pilot test, 15 responses were returned. No major problem was reported. Based on the feedback from the pilot-test, the questionnaire was modified and a final questionnaire was developed. Data from pilot study were discarded after fulfilling the objectives of the pilot run.

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CHAPTER 5: DATA ANALYSIS

The present study uses Structural Equation Modeling to test the proposed hypotheses. The partial least squares (PLS) method is suitable for the part of the research focused on theory development and refinement, which places minimal demands on measurement scales and does not impose normality requirements on the data (Gefen and Straub 2000).

5.1 SAMPLE CHARACTERISTICS

Data were collected by conducting surveys in Hong Kong listed companies. In total 79 companies have returned their questionnaire (i.e.79 responses from a sampling frame of 1798listed companies). The overall response rate was 4.3 percent. After conducting the initial screening for outliers and removing the uncompleted responses, a final sample of 73 was resulted. Table 1 shows the company demographics.

Approximately 34 percent of the respondents are at the top management level, and 15 percent of the respondent are the IT managers. All of the respondents are at the managerial level of their own organization. The companies which have responded our survey represented a wide variety of industries; the top six industries represented are manufacturing, service, utilities and transport, property development, trading, and information and communication technology. Approximately half of responded companies have more than 500 employees. However, approximately half of responded companies have less than 10 IT staff. Approximately 16 and 33 percent of the responded companies have allocated less than 1 percent of the total capital budget to the investment in IT and environmental projects respectively.

N PercentageRespondent Titles

Chief Executive Officer 4 5.48%President / VP / Managing Director 2 2.74%CIO / CFO / COO 2 2.74%General Manager / Assistant General Manager 12 16.44%Director / Assistant Director 5 6.85%Departmental Manager / Unit Manager 12 16.44%IT Manager 11 15.07%Project Manager 4 5.48%Operation Manager 6 8.22%Others 15 20.55%

IndustryManufacturing 15 20.55%Property Development 9 12.33%Service 13 17.81%Health Care 3 4.11%Education 2 2.74%Financial and Insurance 6 8.22%Information and Communication Technology 5 6.85%

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Trading 8 10.96%Utilities and Transport 10 13.70%Others 2 2.74%

Number of Employees100 or below 20 27.40%101 – 200 3 4.11%201 – 300 6 8.22%301 – 400 3 4.11%401 – 500 3 4.11%501 or above 37 50.68%N/A 1 1.37%

Number of IT Staff10 or below 38 52.05%11 – 20 10 13.70%21 – 30 5 6.85%31 – 40 2 2.74%41 – 50 1 1.37%51 or above 14 19.18%N/A 3 4.11%

IT InvestmentLess than 1% 12 16.44%1% to 2% 11 15.07%3% to 4% 12 16.44%5% to 6% 12 16.44%7% to 8% 5 6.85%9% to 10% 6 8.22%11% to 12% 7 9.59%13% or above 3 4.11%N/A 5 6.85%

Environmental Project InvestmentLess than 1% 24 32.88%1% to 2% 21 28.77%3% to 4% 9 12.33%5% to 6% 7 9.59%7% to 8% 2 2.74%9% to 10% 2 2.74%11% to 12% 2 2.74%13% or above 1 1.37%N/A 5 6.85%

Table 1. Sample demographic (n =73)

5.2 MEASUREMENT MODEL

To assess the reliability and validity of the measurement model using PLS, we assessed the composite reliabilities, Cronbach’s alpha and average variance extracted (AVE) (Barclay et al., 1995; Chin, 1998). The composite reliabilities and Cronbach’s alpha should be greater than 0.7 in order to be considered as acceptable for research and AVE should be greater than 0.5 in order

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to be considered as suitable for research (Barclay et al., 1995; Fornell and Larcker, 1981). The results supported the claim that the composite reliabilities, Cronbach’s alpha and AVE are adequate, which are shown on the Table 2.

Items Mean S.D. CR Cronbach’s Alpha

AVE Correlation of Constructs and Average Variance Extracted(1) (2) (3) (4) (5)

(1) Green Attitude

5.638 0.908 0.956 0.938 0.843 0.918

(2) Relative Advantage of Green IT

5.280 0.839 0.873 0.783 0.697 0.580 0.824

(3) Mimetic Pressure

4.056 0.808 0.934 0.895 0.826 0.308 0.350 0.909

(4) Normative Pressure

4.014 0.961 0.907 0.847 0.765 0.201 0.310 0.254 0.875

(5) Intention to Green IT Adoption

5.178 1.053 0.967 0.949 0.907 0.560 0.561 0.398 0.408 0.952

Table 2. Indices for Measurement Model Validations

We also assessed the discriminant and convergent validity of the measurement model by two approaches. The first approach is to compare the square root of the AVE of each construct and the correlations of the focal construct to the indicators of other constructs (Thatcher and Perrewé, 2002). The approach requires that the square root of AVE should be higher than those correlations. The second approach is to examine the factor loadings of indicators (Chin, 1998).Since the square root of the AVE of each construct are higher than the correlations of the focal construct to the indicators of other constructs, and the indicators loaded higher on their corresponding constructs than on other constructs, we can claim that the discriminant and convergent validity is adequate. The factor loadings and cross-loadings are shown on Table 3.

Green Attitude (GAtt)

Intention to Green IT Adoption (GITA)

Mimetic Pressure (MP)

Normative Pressure (NP)

Relative Advantage of Green IT (RAGIT)

GAtt1 0.936 0.451 0.259 0.169 0.569

GAtt2 0.927 0.584 0.230 0.267 0.550

GAtt3 0.906 0.441 0.341 0.107 0.534

GAtt4 0.905 0.567 0.310 0.183 0.477

GITA1 0.478 0.949 0.331 0.369 0.531

GITA2 0.519 0.975 0.366 0.425 0.533

GITA3 0.594 0.933 0.432 0.371 0.538

MP1 0.165 0.423 0.896 0.292 0.279

MP2 0.280 0.290 0.924 0.168 0.329

MP3 0.395 0.361 0.906 0.224 0.347

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NP1 0.109 0.305 0.249 0.886 0.242

NP2 0.185 0.391 0.213 0.898 0.332

NP3 0.222 0.364 0.209 0.839 0.231

RAGIT1 0.493 0.459 0.418 0.285 0.869

RAGIT2 0.479 0.408 0.177 0.082 0.798

RAGIT3 0.483 0.532 0.261 0.385 0.837

Table 3. Factor Loadings and Cross-loadings

5.3 STRUCTURAL MODEL

We used the SmartPLS to calculate the correlations among the constructs and the R2 values. Bootstrapping procedure was used to generate the t-statistics (Chin, 1998). The results of the structural model testing are shown on Figure 2 and Table 4. Table 5 shows the estimates of total effects of antecedents of the intention to green IT/IS adoption.

Figure 2. Results of Path Model

Attitude towards Green IT/IS demonstrated a statistically significant and positive relationship with the intention to Green IT/IS adoption ( = 0.322, p < 0.01). Decision makers with more positive attitudes towards Green IT/IS would have higher intentions to adopt Green IT/IS in their organizations, thus supporting Hypothesis 1.

R2 = 0.336 R2 = 0.474

R2 = 0.122

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Hypotheses SupportedH1: Attitude towards Green IT/IS will be positively related to intention to Green IT/IS adoption ( = 0.322, p < 0.01)

Yes

H2: Relative advantage of Green IT/IS will be positively related to intention to Green IT/IS adoption ( = 0.250, p < 0.01)

Yes

H3: Mimetic pressure will be positively related to intention to Green IT/IS adoption ( = 0.153, p < 0.01)

Yes

H4: Normative pressure will be positively related to intention to Green IT/IS adoption ( = 0.227, p < 0.01)

Yes

H5: Mimetic pressure will be positively related to relative advantage of Green IT/IS ( = 0.350, p < 0.01)

Yes

H6: Relative advantage of Green IT will be positively related to attitude towards Green IT/IS ( = 0.580, p < 0.01)

Yes

Table 4. Summary of the Proposed Hypotheses

Relative advantage of Green IT/IS demonstrated a statistically significant and positive relationship with the intention to Green IT/IS adoption ( = 0.250, p < 0.01). Decision makers who have perceived higher relative advantage of Green IT/IS would have higher intentions to adopt Green IT/IS in their organizations, thus supporting Hypothesis 2.Mimetic pressure demonstrated a statistically significant and positive relationship with the intention to Green IT/IS adoption ( = 0.153, p < 0.01). Decision makers who have experienced higher levels of mimetic pressures would have higher intentions to adopt Green IT/IS in their organizations, thus supporting Hypothesis 3.Normative pressure demonstrated a statistically significant and positive relationship with the intention to Green IT/IS adoption ( = 0.227, p < 0.01). Decision makers who have experienced higher levels of normative pressures would have higher intentions to adopt Green IT/IS in their organizations, thus supporting Hypothesis 4.Mimetic pressure demonstrated a statistically significant and positive relationship with the relative advantage of Green IT/IS ( = 0.350, p < 0.01). Decision makers who have experienced higher levels of mimetic pressures would perceive higher levels of relative advantage of Green IT/IS, thus supporting Hypothesis 5.Relative advantage of Green IT/IS demonstrated a statistically significant and positiverelationship with the attitude towards Green IT/IS ( = 0.580, p < 0.01). Decision makers who

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have perceived higher levels of relative advantage of Green IT/IS would have more positive attitude towards Green IT/IS, thus supporting Hypothesis 6.

Intention to Green IT/IS Adoption

Attitude towards Green IT/IS 0.322Mimetic Pressure 0.306Normative Pressure 0.227Relative Advantage of Green IT/IS 0.437

Table 5. Total Effects of Antecedents of the Intention to Green IT/IS Adoption

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CHAPTER 6: DISCUSSIONS

6.1 DISCUSSIONS AND CONTRIBUTIONS

Our study provides insight into the antecedents of an organizational decision maker’s intention to adopt Green IT/IS, including normative and mimetic pressures, attitude toward Green IT/IS, relative advantages of Green IT/IS, and the relationships among these antecedents. The analysis supported all of the proposed hypotheses. Our study complements previous studies (e.g., Butler, 2011; Chen et al., 2009; Lei & Ngai, 2012) on Green IT/IS adoption that suggest that institutional pressure is a major factor that contributes to the organizational adoption of Green IT/IS. Moreover, this study extends previous studies by showing that the influence of mimetic pressure would be both direct on intention to adopt Green IT/IS and indirect on intention to adopt Green IT/IS through relative advantages of Green IT/IS and Green Attitude.

Our study shows that the relative advantages of Green IT/IS is the most crucial factor that influences an organizational decision maker’s intention to adopt Green IT/IS. This finding is consistent with previous conclusions that organizational innovations and actions are generally driven by the desire to improve an organization’s operational effectiveness and performance (Lee & Shum, 2007; Mehrtens, Cragg & Mills, 2001). This implies that the factors from rational models still play important roles in the decision making, which may involve ethical judgements.Lastly, our findings illustrate that applying the institutional theory, the research model can be used to predict an organizational decision maker’s intention to adopt Green IT/IS. In the present study, we show that mimetic pressure, which is one of the institutional pressures, affects the perceived relative advantages of Green IT/IS, a factor in the rational model. Therefore, this finding implies that institutional pressures affect not only an organization’s action and innovation motivated by the desire to seek for legitimacy but also the desire to seek for increased benefits and effectiveness. This provides a theoretical implication that institutional pressures do not lead to the mindless adoption of Green IT/IS but to the intention to adopt Green IT/IS as a result of the desire to seek effectiveness.

6.2 POLICY IMPLICATIONS AND CONCLUSIONS

We believe that the results of the present study provide useful policy implications to policymakers in Hong Kong about what they can do to help organization to adopt Green IT/IS.

First of all, our study shows that the relative advantage of Green IT/IS would play a very important role on the intention to Green IT/IS of decision makers in their organizations. According to the results, among all the factors that would affect an organizational decision maker’s intention to Green IT/IS adoption, the relative advantage of Green IT/IS has the highest total effects (see Table 5). This implies that the organizational adoption of Green IT/IS is largely motivated by the potential benefits of Green IT/IS adoption enjoyed by the organization.

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Therefore, policymakers can emphasize on the potential benefits of Green IT/IS adoption to an organization, such as the reduction of operation cost and improvement of environmental performance, as well as organizational image after Green IT/IS adoption (Mithas, Khuntia & Roy, 2010; Schmdit, Erek, Kolbe & Zarnekow, 2010), when they are promoting the organizational adoption of Green IT/IS, instead of emphasizing on altruistic goals of Green IT/IS adoption, such as the importance of corporate social responsibilities (CSR) and the awareness of environmental problem (Kuo & Dick, 2010; Molla, 2009; Sayeed & Gill, 2008; 2009; Seidel, Recker, Pimmer, & vom Brocke, 2010; Wati & Koo, 2010). Moreover, as we found that the Green IT/IS adoption is highly driven by benefits, policymakers can provide some substantial incentives for the organizations to adopt Green IT/IS.

Second, the results of our study clearly imply the importance of institutional pressures, i.e., including normative and mimetic pressures, on the promotion of organizational Green IT/ISadoption. This implies that the promotion of organizational Green IT/IS is not limited to the directly provision of financial incentives and the promotion of potential benefits of Green IT/IS adoption, it can also be indirectly promoted by the creation of institutional pressures. For example, since the normative pressure of Green IT/IS adoption refers to the perceived expectations from the stakeholders of an organization to adopt Green IT/IS and the extent that the stakeholders of an organization have adopted Green IT/IS, the efforts of policymakers for promoting the Green IT adoption in a particular industry may create the normative pressure of Green IT/IS adoption on another industry, since the focal industry is potentially the supplier and customer of other industries. The confirmation of mimetic pressure would implies that if policymakers want to their efforts on the promotion of organizational Green IT/IS adoption, they can start with convincing high-profile organizations in every industries to adopt Green IT/IS. It is because the Green IT/IS adoption and the positive consequences of Green IT/IS of the high-profile organization are highly visible to organizations, thus, a strong mimetic pressure of Green IT/IS adoption is formed.

Last but not least, our study shows that organizational decision makers’ attitudes towards Green IT/IS would affect their intentions to adopt Green IT/IS in their organizations. Since attitude refers to “an individual’s positive or negative evaluative affect about performing a particular behavior” (Chau & Hu, 2001, p. 701), the results of the study demonstrated that the adoption of Green IT/IS is not only motivated by the cost-benefit evaluation of Green IT/IS adoption, i.e., relative advantage of Green IT/IS, but also the affective attitude towards Green IT/IS. This implies that the policymakers make good use of the storytelling campaigns to cultivate the organizational decision makers’ positive affective attitudes towards Green IT/IS adoption, as storytelling is an effective tool to help people build positive affective attitude towards a particular behavior (Merchant, Ford & Sargeant, 2010).

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Drawing on institutional theory and rational models, we developed and tested a Green IT/IS adoption model. Our research model reconciles two independent and well-established perspectives on the Green IT/IS adoption literature by investigating the effects of institutional pressure and the relative advantages of Green IT/IS on Green IT/IS adoption. In addition, we attempted to explicate how a decision maker’s attitude toward Green IT/IS would mediate the influence of the relative advantages of Green IT/IS on the intention to adopt Green IT/IS. Analyses based on decision makers from 73 Hong Kong organizations support all of the hypotheses proposed in our study. This study contribute to the literature on Green IT/IS adoption by redirecting the focus on the significant role of the desire to seek for increased effectiveness on the formation of the intention to adopt Green IT/IS, which is a rarely discussed topic in the literature (Lei & Ngai, 2013). Although seeking environmental sustainability is the ultimate goal of adopting Green IT/IS, seeking increased effectiveness and profitability is still a major factor that motivates organizational decision makers to decide to adopt Green IT/IS in their organizations.

6.3 GREEN IT/IS STRATEGY RECOMMENDATIONThe establishment of laws and regulations concerning Green IT/IS is a feasible solution to promote the organizational adoption of Green IT/IS. However, the law-making process may take years in Hong Kong. Therefore, the Hong Kong Government may consider alternatives to promote the organizational adoption of Green IT/IS, instead of over-emphasizing laws and regulations.

The relative advantage of Green IT/IS is its critical role in influencing an organizational decision maker’s intention to adopt Green IT/IS. Thus, Green IT/IS strategy and policy should focus on cultivating the relative advantage of Green IT/IS perceived by an organizational decision maker. We suggest that the Hong Kong Government consider several strategies and policies to promote Green IT/IS adoption in Hong Kong organizations.

First, the Hong Kong Government can cooperate with universities and research institutes to establish a commonly acceptable index for corporate Green IT/IS adoption. The index should be capable of reflecting the level of Green IT/IS assimilation and the environmental performance of an organization. The establishment of such an index can boost the quantification and visibility of both the levels and outcomes of Green IT/IS adoption, and thus help exert mimetic pressure on Green IT/IS adoption. Organizations can easily observe the benefits enjoyed by firms that have adopted Green IT/IS through the Green IT/IS adoption index because the index increases the visibility of the outcomes of Green IT/IS adoption. Moreover, the capacity of the Green IT/IS adoption index to quantify the outcomes of Green IT/IS adoption provides objective support to the relative advantages of Green IT/IS adoption promoted by governments. Hence, the relative advantages of Green IT/IS adoption would be more convincing to organizations.

Second, the Hong Kong Government can establish a Green IT/IS adoption partnership scheme. The partnership scheme consists two parts. The first part involves the provision of subsidies for the participating organizations to adopt Green IT/IS and ultimately improve their energy

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efficiency and waste reduction. The second part entails implementing a demonstration project. The government may consider organizing demonstration tours and visits for trade and industry associations to the participating organizations that have successfully adopted Green IT/IS and improved their energy efficiency and waste reduction. This policy can help cultivate mimetic pressure, as both the public and other organizations can observe the real-life example and benefits of Green IT/IS adoption.

6.4 LIMITATIONS AND FUTURE RESEARCH DIRECTIONS

The present study has several limitations. First, sampling was limited to decision makers in the listed companies in Hong Kong. Therefore, the results might contain limited generalizability to the companies and organizations outside of the sample population. Second, our study focuses on the factors affecting an organizational decision maker’s intention to adopt Green IT/IS and not the actual adoption of Green IT/IS. Therefore, we hope that future works would further investigate the factors that could affect the actual adoption and assimilation of Green IT/IS.Third, in view of the limited sample, our study did not consider the influence of coercive pressures on an organizational decision maker’s intention to adopt Green IT/IS. Therefore, in the future, we intend to conduct further study in different populations to more accurately capture the variances in the coercive pressures and empirically test the effects of coercive pressure on Green IT/IS.

We suggest a number of ways to further extend our findings in future studies. First, we found that different perspectives can be merged to predict an organizational decision maker’s intention to adopt Green IT/IS. Further studies on Green IT/IS should not be limited to a particular perspective but should try to reconcile different perspective into a theoretical framework. For example, further studies can attempt to reconcile the norm activation model and institutional theory to investigate the organizational adoption of Green IT/IS.Second, the adoption and assimilation of an organizational innovation, that is, the realization of the benefits of an innovation in the post-implementation stage, may not share the same set of antecedents, as the completion of innovation adoption is a poor predictor of the assimilation of an organizational innovation (Larsen & Myers, 1999; Seddon, Cheryl & Song, 2010). Therefore, future studies should investigate the factors that would lead to the realization of the benefits of Green IT/IS.

Lastly, although our study have found a number of antecedents of general Green IT/IS adoption, it does not provide enough insight into the adoption of any specific type of Green IT/IS initiatives. Given that Green IT/IS covers a wide range of IT initiatives, and different kinds of IT initiatives may not share the same set of characteristics, the adoption of different types of Green IT/IS may be caused by different factors (Lei & Ngai, 2013). Therefore, future studies should investigate the antecedents of different specific groups of Green IT/IS initiatives.

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