The role of organizational capacity to foster digital transformation in local governments: The case of three European smart cities

Abstract

Organizational capacity is required to explain what it takes for local governments to succeed in their digital transformation. However, the current literature largely ignores how local governments are adapting their organizational dynamics in order to change. This paper aims to contribute to better understanding how local governments enhance their organizational capacity to achieve digital transformation. We conduct a comparative case study that includes three cases of digital transformation through smart city initiatives in Milan, Barcelona, and Munich. Our findings show that these cities made decisions to enhance specific attributes of their organizational capacity mainly related to the dimensions of management (having a strategy, leadership, and a dedicated unit) and collaboration (public-private partnerships, collaboration with citizens, collaboration with other levels of government).