Digital Transformation Strategy in Improving Public Service Efficiency: A Study on the Implementation of Smart Governance in Tojo Una-Una Regency, Indonesia

Mustainah M,; Nuraisyah; Hartawan; Intam Kurnia; Imam Sofyan; Marthiana Lahay; Ishak Basir; Dean Rilando

doi:10.55927/ijis.v5i10.96

Authors

Mustainah M, Tadulako University
Nuraisyah Tadulako University
Hartawan Tadulako University
Intam Kurnia Tadulako University
Imam Sofyan Tadulako University
Marthiana Lahay Tadulako University
Ishak Basir Tadulako University
Dean Rilando Tadulako University

DOI:

https://doi.org/10.55927/ijis.v5i10.96

Keywords:

Digital Transformation, Smart Governance, Public Services, SPBE, SWOT Analysis

Abstract

This study aims to analyze digital transformation strategies in improving public service efficiency through the implementation of smart governance in Tojo Una-Una Regency, as well as to determine the strategic position and recommend strategies that can be implemented to address the geographical challenges of an archipelagic region in government digitalization. The research uses a descriptive analytical qualitative approach with purposive sampling of 25 informants, including local government officials, civil servants, academics, community members, and the private sector. Data was collected through in-depth interviews, participatory observation, document studies, and focus group discussions during the 2024-2025 period. Data analysis was conducted using the Miles-Huberman-Saldana model with eight research dimensions, reinforced by quantitative SWOT analysis through IFAS and EFAS to determine the organization's strategic position. Research results show that digital transformation in Tojo Una-Una has made significant progress with the SPBE score increasing from 2.13 to 3.06, the construction of 84 BTS towers, and the implementation of various digital innovations such as AKSI-BPKAD. However, there are still challenges with uneven infrastructure, human resource competency gaps, and organizational culture resistance. SWOT analysis produced coordinates (-0.06; +0.32), placing the organization in Quadrant II (WO Strategy/Turnaround). In conclusion, the organization's strategic position shows internal weaknesses but external opportunities are wide open. The right strategy is to leverage national policy support, technological developments, and multi-stakeholder partnerships to overcome infrastructure limitations and HR gaps, so digital transformation can run effectively and sustainably in the archipelago region.

References

Al-Ansi, A. M., Garad, A., Jaboob, M., & Al-Ansi, A. (2024). Elevating e-government: Unleashing the power of AI and IoT for enhanced public services. In Heliyon (Vol. 10, Issue 23). Elsevier Ltd. https://doi.org/10.1016/j.heliyon.2024.e40591

Brunetti, F., Matt, D. T., Bonfanti, A., De Longhi, A., Pedrini, G., & Orzes, G. (2020). Digital transformation challenges: strategies emerging from a multi-stakeholder approach. TQM Journal, 32(4), 697–724. https://doi.org/10.1108/TQM-12-2019-0309

Castelnovo, W., Misuraca, G., & Savoldelli, A. (2016). Smart Cities Governance: The Need for a Holistic Approach to Assessing Urban Participatory Policy Making. Social Science Computer Review, 34(6), 724–739. https://doi.org/10.1177/0894439315611103

Ciancarini, P., Giancarlo, R., & Grimaudo, G. (2023). Digital Transformation in the Public Administrations: a Guided Tour For Computer Scientists. http://arxiv.org/abs/2305.05551

De Guimarães, J. C. F., Severo, E. A., Felix Júnior, L. A., Da Costa, W. P. L. B., & Salmoria, F. T. (2020). Governance and quality of life in smart cities: Towards sustainable development goals. Journal of Cleaner Production, 253. https://doi.org/10.1016/j.jclepro.2019.119926

Ellström, D., Holtström, J., Berg, E., & Josefsson, C. (2022). Dynamic capabilities for digital transformation. Journal of Strategy and Management, 15(2), 272–286. https://doi.org/10.1108/JSMA-04-2021-0089

Gasco-Hernandez, M., Nasi, G., Cucciniello, M., & Hiedemann, A. M. (2022). The role of organizational capacity to foster digital transformation in local governments: The case of three European smart cities. Urban Governance, 2(2), 236–246. https://doi.org/10.1016/j.ugj.2022.09.005

Gong, C., & Ribiere, V. (2021). Developing a unified definition of digital transformation. Technovation, 102. https://doi.org/10.1016/j.technovation.2020.102217

Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021a). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639

Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021b). A Systematic Review of the Literature on Digital Transformation: Insights and Implications for Strategy and Organizational Change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639

Hong, S. G., & Lee, D. H. (2023). Development of a citizen participation public service innovation model based on smart governance. In Service Business (Vol. 17, Issue 3, pp. 669–694). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/s11628-023-00536-w

Jiang, H. (2021). Smart urban governance in the ‘smart’ era: Why is it urgently needed? Cities, 111. https://doi.org/10.1016/j.cities.2020.103004

Kuhlmann, S., & Heuberger, M. (2023). Digital transformation going local: implementation, impacts and constraints from a German perspective. Public Money and Management, 43(2), 147–155. https://doi.org/10.1080/09540962.2021.1939584

Matt, C., Hess, T., & Benlian, A. (2015). Digital Transformation Strategies. In Business and Information Systems Engineering (Vol. 57, Issue 5, pp. 339–343). Gabler Verlag. https://doi.org/10.1007/s12599-015-0401-5

Meijer, A., & Bolívar, M. P. R. (2016). Governing the smart city: a review of the literature on smart urban governance. International Review of Administrative Sciences, 82(2), 392–408. https://doi.org/10.1177/0020852314564308

Mergel, I., Edelmann, N., & Haug, N. (2019). Defining digital transformation: Results from expert interviews. Government Information Quarterly, 36(4). https://doi.org/10.1016/j.giq.2019.06.002

Mora, L., Gerli, P., Ardito, L., & Messeni Petruzzelli, A. (2023). Smart city governance from an innovation management perspective: Theoretical framing, review of current practices, and future research agenda. Technovation, 123. https://doi.org/10.1016/j.technovation.2023.102717

Nadkarni, S., & Prügl, R. (2021). Digital transformation: a review, synthesis and opportunities for future research. Management Review Quarterly, 71(2), 233–341. https://doi.org/10.1007/s11301-020-00185-7

Nesti, G. (2020). Defining and assessing the transformational nature of smart city governance: insights from four European cases. International Review of Administrative Sciences, 86(1), 20–37. https://doi.org/10.1177/0020852318757063

Pittaway, J. J., & Montazemi, A. R. (2020). Know-how to Lead Digital Transformation: the Case of Local Governments.

Saarikko, T., Westergren, U. H., & Blomquist, T. (2020). Digital transformation: Five recommendations for the digitally conscious firm. Business Horizons, 63(6), 825–839. https://doi.org/10.1016/j.bushor.2020.07.005

Turner, H., Rogers, B., Kneebone, S., Ramirez, D., French, M., Sawailau, M. J., Volavola, F., Baran, S., Matavesi, K., Newton, O., Luveniyali, M. B., Tela, A., & Vakarewa, I. (2024). An organizing framework to break down Western-centric views of knowledge in North–South research. In Sustainability Science (Vol. 19, Issue 2, pp. 647–664). Springer. https://doi.org/10.1007/s11625-024-01478-6

Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022

Viale Pereira, G., Cunha, M. A., Lampoltshammer, T. J., Parycek, P., & Testa, M. G. (2017). Increasing collaboration and participation in smart city governance: a cross-case analysis of smart city initiatives. Information Technology for Development, 23(3), 526–553. https://doi.org/10.1080/02681102.2017.1353946

Wang, H., Feng, J., Zhang, H., & Li, X. (2020). The effect of digital transformation strategy on performance: The moderating role of cognitive conflict. International Journal of Conflict Management, 31(3), 441–462. https://doi.org/10.1108/IJCMA-09-2019-0166

Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001