Perceptions of value from smart city Dubai, an expatriate view: a data report

Matthew Brown^*Jeongsoo Han

• Middlesex University Dubai, Dubai, United Arab Emirates

The United Nations predicts that by 2050 over two billion people will be living in urban areas (United Nations, 2021). This increase is precipitated in large part by the growth of smart cities, these are developments in urban living where transnational networks have emerged as partly denationalised platforms for intertwined global capital and labour mobility and these cities offer international career opportunities and professional and social networks (De Falco, 2019). Smart cities are view by some to be the future of urban living and the UAE and Dubai in particular has focused heavily on smart city development to foster economic growth and make the city an attractive place to live and work (Lima, 2020). Smart cities are often a focus of expatriate talent, and Dubai is no different with approximately 90% of its population being expatriates (Government of Dubai, 2019). The Dubai Government has been very successful in increasing Foreign Direct Investment by acquiring quality international talent (Haak-Saheem, 2020) and quality of life, in which smart cities play a part, is an increasingly important factor in international talent acquisition (Rodríguez-Sánchez et al., 2020) particularly in the UAE (Kokt and Dreyer, 2018).These cities are enabled by the development in ICT, big data, and AI (Ranchordás, 2020) and enable much greater access and interaction to city services for citizens, while making greater efficiencies through the use of technology. These cities' services encompass a wide range of domains (Giffinger and Gudrun, 2010); economy (covering business competitiveness and entrepreneurial activity), people (looking at social and human capital), governance (covering participation and public engagement), mobility (looking at transport and ICT), environment (around natural resources and sustainability) and, finally, living (concerned with quality of life). These six domains form the basis of most definitions of smart cities (Camero and Alba, 2019;Erdogan, 2021). This complexity provides a diverse range of city experiences, which have not fully been examined through the lens of consumer behaviours.Given the increasing demand for global talent, the apparent rise in smart cities and the complexity of the smart city phenomenon it is becoming increasingly important to understand what is perceived to be valuable to an expatriate to work in a smart city context to ensure the cities are developed in a way that is most fitting for expatriates in this public sector setting.It is important to remember that value is highly subjective in nature (Holbrook, 2006;Cluley and Radnor, 2020). Value cannot be created in isolation and requires multiple actors to co-create it, (traditionally customer and service provider) and furthermore, that value can only be realised through usage (Vargo and Lusch, 2008). It is in that individualistic and context-specific setting that the experience and behaviour of smart city users is examined in this data.Turning to the context of smart cities, while there is much written on the smart cities generally, little has been focussed on the value co-creation area in what is a public sector space (Ojasalo and Kauppinen, 2024), nor users' perception of that value (El-Haddadeh et al., 2019). The aforementioned subjective nature of value and the individuals' behaviour and experience within that value context also needs further exploration (Eggert, Kleinaltenkamp and Kashyap, 2019). The needs and preferences of users are also under explored (Wirtz, Müller and Schmidt, 2021) as is the behavioural relationship between individual and service network (Peronard and Ballantyne, 2019). Value creation within smart cities and other public sector areas are increasingly being termed public value, to contrast from the more traditional private sector value creation. Public value is somewhat under researched (Cavallone and Palumbo, 2019;Hansen and Fuglsang, 2020;Yap et al., 2021), partially in relation to ICT (Verma, 2020).Finally, public value in relation to expatriates; this is a group whose ICT-related behaviour and experience have not been fully explored, particularly in relation to the smart city context (Arifa, El Baroudi and Khapova, 2021).The aims of this research are to redress the gaps identified above, firstly to explore value cocreation in smart cities, which is overlooked in the current literature, secondly to examine the behavior of users in a public sector digital environment and finally to add to the current body of knowledge on expatriates' value creation experience.Data was collected using an online survey method via the SurveyMonkey application between the 8th and 26th of September 2023 in Dubai, UAE. As a result, a total of 445 responses were collected for further analysis, this sample size was considered sufficient as determined by a sample calculator (RoaSoft, 2004), which details a sample size of 385 based on an expatriate population the size of 2 million in Dubai, a confidence level of 95% and a confidence interval of 5%. Given that the sample had more than exceeded the 385 respondents required the three-week data collection period was deemed sufficient.The survey employed existing measurement constructs of information exchange, convenience, touchpoints, city experience, dimensions of value, and perceived service value. Information exchange relates to the quality of the content of the site or app, examining the suitability of the information for the user's purposes, e.g. accuracy, format and relevancy (Barnes and Vidgen, 2003). Convenience has long been examined in relation to services, and this is no different in the smart city realm. Convenience examines the extent to which the user interface (e.g. app, website, service centre) is simple, intuitive, user friendly, time saving and effortless (Chang and Chen, 2008). Touchpoints is a slightly newer concept, it concerns itself with any point at which a customer interacts with the service provider across multiple channels and, therefore, is similar to service encounters (Jaakkola and Terho, 2021). The city experience focuses on the overall satisfaction experienced by users based on purchase or interaction and consumption experience (Verhoef, Franses and Hoekstra, 2002). The four dimensions of value developed by Sweeney and Soutar (2001) have been widely used to examine aspects of value creation.The four dimensions are functional value (performance/quality), functional value (price/value for money), emotional value and social value. Quality can be defined broadly as superiority or excellence, as such perceived quality can be defined as the consumer's judgment about a product or service's overall excellence or superiority. In terms of price/value for money this construct concerns itself with the utility derived from the product due to the reduction of its perceived short term and longer-term costs.Emotional value derives from the product or service's ability to arouse feelings or affective states.Emotional value examines the associated feelings when participating with a service. The social value construct examines the utility derived from the product's ability to enhance social self-concept. The construct of perceived service value is newer to the literature and is focused in part on e-government activity, it is a mediator between service quality and citizens' continuous-use intention. The intention to use is a consequence of service quality, service value, and satisfaction (Li and Shang, 2020).Responses were captured through 7-point Likert scales for analysis purposes. The selection of constructs was based on a detailed examination of current literature in the field examining those constructs that had been widely used by other studies, which provided confidence in their suitability as well as their relevance to the topic at hand.Table 1 shows the detailed measurement items for all nine constructs. Minor adaptations were made to some of the measurement items of each construct to reflect the smart city context in some areas.Additionally, Table 1 shows the normality of the dataset using skewness and kurtosis values. Skewness examines the symmetry of distribution within a dataset, ensuring even distribution of data; suitable values should be between -2 and +2, whereas kurtosis looks at the flatness of the data, showing consistency rather than peaks and troughs. Suitable values should be between -7 and +7 (Byrne, 2010;Hair et al., 2010). Based on the recommended criteria, the results confirm that the dataset is normally distributed, providing confidence to proceed with further reliability and validity tests. The survey's demographic data reveals a diverse respondent pool. The majority of participants were female (60.4%), followed by males (37.5%), with a small percentage (2.0%) preferring not to disclose their gender. In terms of age, over half of the respondents (55.1%) were between 18 and 24 years old, while 14.6% were aged 25-34, 14.4% were 35-44, 10.3% were 45-54, 4.5% were 55-64, and only 1.1% were 65 or older. Regarding expatriate experience, 62.9% had been expatriates for over 10 years, whereas 21.8% had spent 0-3 years abroad, 9.2% between 4-7 years, and 6.1% between 8-10 years. Regionally, the largest proportion of respondents came from the Subcontinent (59.0%), followed by Europe (17.0%), Africa (9.8%), the Americas (4.2%), the Middle East (4.5%), Oceania (2.0%), and Asia (3.5%).Education levels varied, with nearly half (47.6%) holding a bachelor's degree, 34.2% possessing a postgraduate qualification, 17.5% having completed high school, and a small fraction (0.7%) only reaching middle school. Employment status showed that 43.8% were students, 38.9% were employed full-time, 7.6% worked part-time, 4.5% were self-employed, 2.2% were homemakers, and 2.9% were unemployed. In terms of monthly income, the majority (60.2%) earned less than 20,000 AED, while 9.7% earned between 20,001 and 25,000 AED, and smaller percentages fell into higher income brackets, with 9.4% earning above 50,000 AED. This data provides a comprehensive overview of the survey respondents' demographic background.To confirm the reliability and validity of the dataset, a confirmatory factor analysis (CFA) was first conducted with AMOS (Analysis of Moment Structures). It is a statistical software used for structural equation modeling (SEM) that is particularly useful for conducting reliability and validity tests, as it allows researchers to assess measurement models through CFA (Arbuckle, 2019). As a result of the CFA, the goodness of fit indices (χ²/df = 2.337, p< .01, CFI=.937, NFI=.895, IFI=.937, and RMSEA=.055) shows that the measurement model demonstrates a good fit with data (Bagozzi and Yi, 1988;Hu and Bentler, 1999). Specifically, χ²/df (Chi-square divided by degrees of freedom) values between 2 and 3 suggest a reasonable model fit (Kline, 2016). CFI (Comparative Fit Index) and IFI (Incremental Fit Index) values above .90 generally indicate a good fit by comparing the proposed model to a null model (Byrne, 2016). However, IFI values slightly below .90 may still be considered acceptable, particularly in complex models or when sample sizes are limited (Hu and Bentler, 1999;Kline, 2016). NFI (Normed Fit Index) values approaching .90 also indicate an acceptable fit (Bentler and Bonett, 1980), while RMSEA (Root Mean Square Error of Approximation) values below .06 suggest a close approximation of model fit to the population data (Hu and Bentler, 1999).In addition, further reliability and validity tests were undertaken, and the results are shown in Table 2. The Cronbach's Alpha (CA) coefficients for all the constructs exceed .80, suggesting high internal consistency of the multiple measurement items of each construct (Taber, 2018). The composite reliability (CR) values for all the constructs are also greater than .80, and the average variance extracted (AVE) values exceed .50. The results confirm the reliability and convergent validity. Lastly, as shown in Table 2, the lowest value of the square root of AVE is greater than the highest correlation coefficient, confirming the dataset's discriminant validity. The reliability and validity test results suggest the adequacy of the dataset for further inferential analysis (Fornell and Larcker, 1981). The dataset itself provides insight to both city managers and academics who can turn their attention to improving public sector value co-creation in relation to expatriates, understanding the importance of information sharing via ICT and making it clear to users. The data demonstrates the importance of convenience in smart city services as well as the need for suitable touchpoints at which to engage with services. The data also provides insight into the city experience more generally in relation to the offline elements of the services. The data examines value more generally by using the established four dimensions of value which provides further evidence of their reliability while giving further insight into value in the expatriate and public value arenas. Turning to perceptive service value which is designed to focus on e-government this construct provides further evidence of the overall value created in a smart city environment, while providing further validation of this newer concept.Furthermore, as the dataset represents individuals of diverse national backgrounds living outside their countries of origin, it would be particularly useful for those investigating the expatriate experience.Despite the potential use of the dataset, certain limitations of the data should be considered.The data was collected through a cross-sectional quantitative survey, which may constrain the depth of insights. To enhance understanding, future research could incorporate qualitative methods to provide a more comprehensive perspective on value creation for expatriates in the context of smart cities.Additionally, as the data was collected exclusively in Dubai, UAE, the generalizability of the findings may be limited.