Dynamic capabilities and ICT utilization in public organizations: An Empirical testing in local government

Abstract

This paper explores whether the dynamic capabilities view (DCV), a popular strategic management approach in private firms, can be applied in public sector organizations. Existing frameworks in the public sector mainly focus either on exogenous sources of dynamism or public managers' critical role in driving strategic initiatives, failing to explore the internal processes of organizational change. Against this backdrop, the paper creates and tests – through a survey in 255 out of the 325 Greek municipalities - a conceptual framework shedding light on i) the dynamic capabilities (DCs) necessary to enhance information and communication technologies (ICT) utilization in the public sector, ii) the mechanisms through which DCs lead to performance improvement, and iii) the antecedent organizational resources to these DCs. Our contribution is fourfold. First, we prove that key resources and respective dynamic and operational capabilities should be built for creating more efficient and effective interfaces with individual citizens and businesses. Second, we operationalize and measure specific DCs, exploring their antecedent resources and explaining how DCs can, directly and indirectly, influence performance improvement. Third, we respond to the need of the DCV for empirical studies tailored in specific and underexplored settings unveiling a more comprehensive picture of DC's role and impact. Fourth, we offer policy implications favoring agile and user-centric eGovernment practices at the individual public organizations and central policy entities level.