Information Technology (IT) provides Public Sector Organizations the capability to provide real increases in organizational effectiveness by aiding in the efficient exchange of information. This facility, while similar in execution to the private, has a nuanced difference in terms of organizational goals. Adoption of Web 2.0 IT promises to markedly improve this capability by presumed gains in efficiency. However, the presumed, associated gain in effectiveness promised by adoption of these technologies may be stymied/enhanced by organizational constraints or incentives, particularly as they may relate to information sharing. The ongoing research question is:  “Do organizational attitudes  to information sharing have an effect on an organization’s implementation of Web 2.0 technologies?”. The research is centered on a particular subset of the technologies (the Service Oriented Environment) but has applicability to ideas such as virtualization and cloud computing.

Theory suggest that organizations, in particular Federal Organizations should react rationally (Cyert and March). However, there is more than sufficient evidence (James Wilson and others) to indicate that Federal Organizations often act irrationally. Further, this irrationality is often focused on the control of information in an organization as a basis for organizational influence. This paper will address these issues and relate them specifically to information sharing issues to include that of information privacy.

This research uses a multifaceted case study approach as advocated by Yin. This case study includes an examination of theory, relevant literature (boundaries – Dallenbach; bounded rationality – Simon; the virtual state – Fountain) to include a framework of relevance, and the methodological approach. The central method for the case study will be a modified replication of a survey instrument developed by Wilem and Beulens in 2007. In preparation for this survey a pilot was developed and distributed to an organization. This paper will explain the analytical method (Structured Equation Methods), examine the question set and provide some very high level results from the pilot.