The role of dynamic managerial capabilities and organizational readiness in smart city transformation

Abstract

This study focuses on the dynamic managerial capabilities of smart city managers and the organizational readiness of a city administration required to drive smart city transformation. After reviewing the literature, we conducted semi-structured interviews with smart city managers in 40 smart cities. We identified five dynamic capabilities that effectively contribute to smart city transformation: seizing, sensing, innovation, integrative, and empowering capability. Our analysis also reveals that a city administration's organizational readiness plays a critical role in these transformative processes and relies on four factors: innovation readiness, resource readiness, a participatory and collective mindset, and strategic readiness. Based on our findings, we suggest a theoretical framework composed of 10 propositions that describe the mutual influences of these dynamic managerial capabilities and organizational readiness factors, together with their contributions to smart city transformation. We conclude with a discussion of the limitations and the implications for future research and practice.