Digital Government Improves Public Sector Performance Beyond Technology Alone

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Mataram- Digital government has been shown to improve public sector organizational performance, but its success depends heavily on leadership, human resource capacity, and organizational readiness. These findings were reported by Muh Irpan of Universitas Mataram in a systematic literature review published in January 2026 in the International Journal of Business and Applied Economics (IJBAE).

The study is highly relevant as governments worldwide have invested heavily in digital transformation to modernize public services. However, improved technology does not always translate into better performance. This phenomenon is often described as the digital productivity paradox, where advanced digital systems fail to deliver expected gains in efficiency and service quality.

Technology Alone Is Not Enough

Amid globalization, fiscal pressure, and rising public demand for transparent and efficient services, governments across the globe have accelerated the adoption of digital government initiatives. Yet, according to Irpan, digitalization should not be understood merely as moving services online.

“Digital government represents a comprehensive organizational transformation rather than a purely technological upgrade,” Irpan explains. Without adaptive leadership, capable civil servants, and supportive organizational culture, digital tools risk delivering limited or even negative outcomes.

Research Approach

The study reviewed 22 peer-reviewed academic articles published between 2014 and 2024, sourced from Scopus, Web of Science, and SINTA/Garuda databases. Using the PRISMA 2020 framework, the review ensured methodological rigor and consistency.

The selected studies covered a wide range of countries across Asia, Europe, Africa, and Latin America, providing a global perspective on how digital government affects public sector performance in different institutional contexts.

Key Findings

The synthesis of the literature reveals several critical insights:

  • Performance gains are largely indirect

Digital government improves efficiency and service quality primarily through mediating factors such as organizational agility, digital leadership, and human resource management.

  • Human resources matter more than technology

Employee skills, training, organizational culture, and leadership quality have a stronger impact on performance outcomes than hardware or software investments alone.

  • Service quality drives public trust

Digital initiatives enhance citizen trust and satisfaction only when they deliver tangible improvements, such as faster response times, easier access, and data security.

  • Local context shapes outcomes

Differences in fiscal capacity, infrastructure, inter-agency coordination, and leadership quality lead to varied results across regions and countries.

  • Advanced technologies require careful governance

The use of artificial intelligence can boost efficiency, but excessive reliance on human intervention may undermine performance if governance mechanisms are weak.

Overall, the review finds that more than 80 percent of the relationship between digital government and organizational performance is mediated, rather than direct.

Policy Implications

The findings offer important lessons for policymakers, particularly in developing countries. Digital transformation should not focus solely on new platforms or applications. Instead, governments need to invest in:

  • civil servant capacity building,
  • adaptive and visionary leadership,
  • cross-agency coordination, and
  • citizen-centered service design.

According to Irpan, digital government succeeds when technology is treated as a strategic enabler rather than an end in itself. Without organizational readiness, digital initiatives may widen service gaps and weaken public trust.

Author Profile

Muh Irpan, S.E., M.M.
Universitas Mataram.

Research Source

Irpan, M. (2026).
Digital Government and Public Sector Organizational Performance: A Systematic Literature Review.
International Journal of Business and Applied Economics (IJBAE), Vol. 5 No. 1, January 2026, pp. 53–72.
DOI: 10.55927/ijbae.v5i1.549
URL: https://nblformosapublisher.org/index.php/ijbae

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