Digital Transformation of Public Services: Institutional Barriers and Policy Implications for Smart Government
Keywords:
Institutional Barriers, Digital Transformation, Smart Governance, Public Services, IndonesiaAbstract
Digital transformation has become a strategic priority for governments seeking to improve public service delivery and achieve smart governance objectives. However, the successful implementation of digital transformation initiatives is often constrained by various institutional barriers that limit organizational adaptability and innovation. This study aims to examine the influence of institutional barriers on digital transformation and analyze its implications for smart governance in Indonesia. A quantitative research approach was employed using survey data collected from 150 respondents who had experience utilizing digital public services. Data were gathered through a structured questionnaire using a five-point Likert scale and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The findings indicate that institutional barriers significantly and negatively affect digital transformation, suggesting that regulatory constraints, organizational resistance, inadequate inter-agency coordination, limited digital competencies, and insufficient leadership support hinder the effectiveness of digital transformation initiatives. Furthermore, digital transformation was found to positively and significantly influence smart governance, demonstrating its role in enhancing transparency, accountability, responsiveness, citizen participation, and public service quality. The mediation analysis reveals that digital transformation significantly mediates the relationship between institutional barriers and smart governance. The study contributes to the digital governance literature by integrating institutional barriers, digital transformation, and smart governance into a unified analytical framework within the Indonesian public sector context. The findings emphasize that achieving smart governance requires not only technological advancement but also institutional reforms that support innovation, collaboration, and organizational readiness. Therefore, policymakers should prioritize regulatory harmonization, capacity building, leadership development, and inter-agency integration to accelerate digital transformation and strengthen smart governance implementation in Indonesia.
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