Digital Transformation Empowerment Capabilities in Public Service Systems

Public service systems use empowerment capabilities to implement digital transformation (DT). DT empowerment capabilities help to tackle disruptions, navigate uncertain situations, and adapt service systems. We draw on multiple theoretical arguments and the extant literature on empowerment and DT to develop a DT empowerment capability (DTEC) model in public service systems. This model highlights the dimensions of DTEC in public service systems and their impact on digital service adaptation (DSAD). We developed the conceptual model using a systematic literature review and thematic analysis. We validated the model through two rounds of surveys: public welfare service systems (n = 275) and financial public service systems (n = 245). Partial least squares-based structural equation modeling (PLS-SEM) show two primary dimensions (i.e. technical and business) and five sub-dimensions (i.e. tools & technologies, information access, DT knowledge & skills, training & development, and decision-making) of DTEC. Complementing those insights with a configurational approach, using a fuzzy-set qualitative comparative analysis (fsQCA), we find that none of the DTEC alone is either necessary or sufficient for DSAD. Also, neither business nor technical DTECs alone, but only their different combinations, can sufficiently influence adaptation. This study finds that multiple configurations combining empowerment capabilities exist that are associated with the success of DSAD of public service agencies resulting from digital transformation, as do multiple configurations that lead to its failure. Our results contribute to the research stream of public service systems by carving out which and how dimensions of DTEC influence DSAD.