Collaborating and co-creating the digital transformation: Empirical evidence on the crucial role of stakeholder demand from Swiss municipalities

Digital-era governance is one of the central challenges of the twenty-first century and marks a fundamental paradigm shift in public administration. Based on the concepts of collaborative capacity and organizational maturity for co-creation, this study explores the factors that determine municipal administrations’ capacity to engage in digitalization-related collaborations. Using unique survey data from 720 Swiss municipalities, this study investigates the relevance of intra-organizational and extra-organizational factors in stimulating local governments’ likelihood of engaging in cross-sectoral and inter-organizational partnerships to implement the digital transformation. It reveals that extra-organizational impulses by digital change agents and stakeholder demand—in contrast to intra-organizational resources—are highly influential factors for municipalities to engage in digitalization-related collaborations. This study presents novel insights into the specific barriers to change and the success factors of co-creation in the process of municipalities’ digital transformation to inform theory, practice, and policy design.