Digital Capacity Building Strategy of Local Government in Palopo City

Authors

  • Aulia Ayu Utari Management Study Program, Universitas Atma Jaya Makassar Author
  • Bima Pratama Management Study Program, Universitas Atma Jaya Makassar Author

DOI:

https://doi.org/10.71435/689221

Keywords:

Digital Capacity Building , Local Government , Digital Governance

Abstract

Purpose: This study aimed to analyze the digital capacity building strategy implemented by the local government of Palopo City and examine the influence of human resource digital competence, institutional support, and technological infrastructure readiness on digital governance implementation effectiveness.

Subjects and Methods: The study employed a quantitative descriptive and explanatory design using a cross-sectional survey approach. Data were collected from 128 government employees involved in digital administrative activities through structured questionnaires and analyzed using descriptive statistics and multiple linear regression with SPSS Version 26.

Results: The findings revealed that all independent variables significantly influenced digital governance effectiveness. Human resource digital competence emerged as the strongest predictor, followed by institutional support and technological infrastructure readiness. The regression model explained 64.2% of the variance in digital governance effectiveness. Challenges related to system integration and interdepartmental coordination remained evident despite positive organizational readiness.

Conclusions: Effective digital governance requires integrated strategies combining employee digital competence, institutional commitment, and sustainable technological infrastructure development within local government institutions.

References

Alenezi, M. (2023). Digital learning and digital institution in higher education. Education Sciences, 13(1), 88. https://doi.org/10.3390/educsci13010088

Alieva, J., & Powell, D. J. (2023). The significance of employee behaviours and soft management practices to avoid digital waste during a digital transformation. International Journal of Lean Six Sigma, 14(1), 1-32. https://doi.org/10.1108/IJLSS-07-2021-0127

Atobishi, T., Moh’d Abu Bakir, S., & Nosratabadi, S. (2024). How do digital capabilities affect organizational performance in the public sector? The mediating role of the organizational agility. Administrative Sciences, 14(2), 37. https://doi.org/10.3390/admsci14020037

Cetindamar Kozanoglu, D., & Abedin, B. (2021). Understanding the role of employees in digital transformation: conceptualization of digital literacy of employees as a multi-dimensional organizational affordance. Journal of Enterprise Information Management, 34(6), 1649-1672. https://doi.org/10.1108/JEIM-01-2020-0010

Curzi, Y., & Ferrarini, F. (2024). High-performance work systems and firm innovation: the moderating role of digital technology and employee participation. Evidence from Europe. Management Research Review, 47(13), 51-68. https://doi.org/10.1108/MRR-11-2022-0751

David, A., Yigitcanlar, T., Li, R. Y. M., Corchado, J. M., Cheong, P. H., Mossberger, K., & Mehmood, R. (2023). Understanding local government digital technology adoption strategies: A PRISMA review. Sustainability, 15(12), 9645. https://doi.org/10.3390/su15129645

Díaz-Arancibia, J., Hochstetter-Diez, J., Bustamante-Mora, A., Sepúlveda-Cuevas, S., Albayay, I., & Arango-López, J. (2024). Navigating digital transformation and technology adoption: A literature review from small and medium-sized enterprises in developing countries. Sustainability, 16(14), 5946. https://doi.org/10.3390/su16145946

Durokifa, A., Johnson, U., Ramlachan, P., Mdhluli, S., & Magqirana, A. (2023). Strengthening developmental local government in South Africa: The role of capacity building. Journal of Public Administration, 58(2), 491-508. https://doi.org/10.53973/jopa.2023.58.2.a18

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

Hakim, A., & Hayat, A. (2024). Transforming Public Policy in Developing Countries: A Comprehensive Review of Digital Implementation. Journal of ICT Standardization, 12(3), 337-364. https://doi.org/10.13052/jicts2245-800X.1235

Hofisi, C., & Chigova, L. E. (2023). Rethinking the Role of Local Government in Service Delivery in South Africa: Towards Digital Transformation. E-Journal of Humanities Arts and Social Sciences, 64-76. https://doi.org/10.38159/ehass.20234147

Issah, O., Baah, S. A., & Asare, C. A. (2025). Digital Technology and Financial Institutions’ Sustainability: The Mediating and Moderating Effect of Staff Competency and Training Programs. African Journal of Procurement, Logistics & Supply Chain Management, 8(3), 65-89. https://doi.org/10.4314/ajplscm.v8i3.4

Kim, J., & Park, Y. (2025). Influence of organizational digital transformation competencies on individual job performance: the mediating effects of organizational supportive learning environment and individual readiness for change. Industrial and Commercial Training, 57(1), 53-68. https://doi.org/10.1108/ICT-07-2024-0062

Laelawati, K., & Yulianah, Y. (2025). Managing Employees in the Digital Era: Adaptation Strategies and Competency Development. Jurnal Ilmiah Multidisiplin Indonesia (JIM-ID), 4(10), 1356-1365.

Manda, M. I. (2022). Power, politics, and the institutionalisation of information systems for promoting digital transformation in the public sector: A case of the South African’s government digital transformation journey. Information Polity, 27(3), 311-329. https://doi.org/10.3233/IP-200233

Pemmasani, P. K., & Abd Nasaruddin, M. A. (2022). Strengthening public sector data governance: Risk management strategies for government organizations. International Journal of Modern Computing, 5(1), 108-118.

Popa, M. (2024). Navigating Data Privacy in Digital Public Services: Public Perceptions and Policy Implications. Romania Case Study. Revista de Management Comparat International, 25(3), 511-524.

Prayitno, A. (2023). Technological innovation in public administration transformation: Case study of e-government implementation in Indonesia. Journal of Governance, 8(4), 628-642.

Rahmayanti, A. (2024). The role of local government in the empowerment of MSME actors in Palopo City. Tamalanrea: Journal of Government and Development (JGD), 1(1), 36-46. https://doi.org/10.69816/jgd.v1i1.34465

Rohayati, T. (2024). Integrating human resources management and digital competencies: A strategic approach in higher education. Al-Ishlah: Jurnal Pendidikan, 16(2), 1118-1127. https://doi.org/10.35445/alishlah.v16i2.5286

Schoeman, I., & Chakwizira, J. (2023). Advancing a performance management tool for service delivery in local government. Administrative Sciences, 13(2), 31. https://doi.org/10.3390/admsci13020031

Setiawan, A., Tjiptoherijanto, P., Mahi, B. R., & Khoirunurrofik, K. (2022). The impact of local government capacity on public service delivery: Lessons learned from decentralized Indonesia. Economies, 10(12), 323. https://doi.org/10.3390/economies10120323

Sharma, R., Fantin, A. R., Prabhu, N., Guan, C., & Dattakumar, A. (2016). Digital literacy and knowledge societies: A grounded theory investigation of sustainable development. Telecommunications Policy, 40(7), 628-643. https://doi.org/10.1016/j.telpol.2016.05.003

Sharma, S., Kar, A. K., Gupta, M. P., Dwivedi, Y. K., & Janssen, M. (2022). Digital citizen empowerment: A systematic literature review of theories and development models. Information Technology for Development, 28(4), 660-687. https://doi.org/10.1080/02681102.2022.2046533

Shenkoya, T. (2023). Can digital transformation improve transparency and accountability of public governance in Nigeria?. Transforming Government: People, Process and Policy, 17(1), 54-71. https://doi.org/10.1108/TG-08-2022-0115

Sigurjonsson, T. O., Jónsson, E., & Gudmundsdottir, S. (2024). Sustainability of digital initiatives in public services in digital transformation of local government: Insights and Implications. Sustainability, 16(24), 10827. https://doi.org/10.3390/su162410827

Syed, R., Bandara, W., & Eden, R. (2023). Public sector digital transformation barriers: A developing country experience. Information Polity, 28(1), 5-27. https://doi.org/10.3233/IP-220017

Toleikienė, R., Butkus, M., Bartuševičienė, I., & Juknevičienė, V. (2025). Assessing Digital Governance Maturity in the Context of Municipal Resilience: The Triadic Model, Its Dimensions and Interrelations. Administrative Sciences, 15(11), 435. https://doi.org/10.3390/admsci15110435

Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in psychology, 12, 620766. https://doi.org/10.3389/fpsyg.2021.620766

Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing workplaces for digital transformation: An integrative review and framework of multi-level factors. Frontiers in psychology, 12, 620766. https://doi.org/10.3389/fpsyg.2021.620766

Wagola, R., Nurmandi, A., Misran, & Subekti, D. (2023, July). Government Digital Transformation in Indonesia. In International Conference on Human-Computer Interaction (pp. 286-296). Cham: Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-36001-5_37

Wang, Y., Huang, X., Zhang, T., Jiang, B., & Wang, X. (2024). Impact of fiscal decentralization and local government competition on the supply of basic public services: Based on the empirical evidence of prefecture-level cities in China. Heliyon, 10(4). https://doi.org/10.1016/j.heliyon.2024.e26511

Weerakkody, V., Omar, A., El-Haddadeh, R., & Al-Busaidy, M. (2016). Digitally-enabled service transformation in the public sector: The lure of institutional pressure and strategic response towards change. Government Information Quarterly, 33(4), 658-668. https://doi.org/10.1016/j.giq.2016.06.006

Wiwi, W., Nur, A. C., & Mahyuddin, A. A. (2024). Digital Government (A Study of the Value of Usefulness and Technology Adoption in the Regional Development Information System/SIPD of Palopo City). International Journal Of Public Policy and Bureaucracy, 1(1), 128-138.

Wright, T. (2013). Information culture in a government organization: Examining records management training and self‐perceived competencies in compliance with a records management program. Records Management Journal, 23(1), 14-36. https://doi.org/10.1108/09565691311325004

Downloads

Published

2026-02-22

How to Cite

Digital Capacity Building Strategy of Local Government in Palopo City. (2026). Asian Digital Governance Problems, 3(1), 15-33. https://doi.org/10.71435/689221