Government Roles and Dynamic Capabilities in Digital Transformation Projects

Abstract

Digital transformation initiatives have been strategically deployed by governments to enhance efficiency, increase digital competitiveness, and gain leverage internationally. While previous studies have examined government roles in IT transformation initiatives, they often focus on specific settings due to the challenge of obtaining comprehensive data across multiple initiatives. This study advances the literature by using a dynamic capabilities and government roles perspective to analyze three digital transformation initiatives over a 20-year period in the healthcare sector. The findings propose a 2x2 framework that generalizes government roles in digital transformation initiatives. Depending on the clarity of the problem and solution, three roles are identified: champion, corrector, and monitor. We also demonstrate how dynamic capabilities manifest differently for each role through three interrelated processes: digital infrastructure, digital competence, and digital governance transformation.