How Do Digital Capabilities Affect Organizational Performance in the Public Sector? The Mediating Role of the Organizational Agility

Abstract

As public sector agencies face rising imperatives to digitally transform citizen services, data systems, and internal operations, questions persist as to whether investments in big data analytics and automation capabilities, evidenced to drive organizational performance in private industry, translate to bureaucratic government contexts. This research quantitatively investigates the link between digital capabilities and organizational performance in the Jordanian ministry of Justice. Survey data collected from 292 public officials assessed capabilities in data-driven decision making, flexible automation, and interactive constituent communications alongside organizational agility and performance indexes spanning efficiency, quality, and satisfaction metrics. Structural equation modeling analysis reveals that digital capabilities relate significantly to heightened agility and all targeted performance areas. Improved agility mediates over half the performance impact attributable to upgraded technical systems, highlighting the vital role of evolving digitally enabled flexibility in realizing returns on analytics and process modernization initiatives. Findings validate the applicability of conclusions on digitization returns formed in corporate environments to public sector contexts, contingent on bundled change management programming enabling both technical and adaptive capacity building across the workforce. As global regions expand e-governance programs premised on harnessing emerging technologies to enhance civic institutions, this research offers generalizable models guiding multifaceted preparations to amplify impact.