An investigation of digital transformation initiatives in South African rural local municipalities

Abstract

Background: Most organisations are undertaking digital transformation to enhance value-creation processes. Likewise, local municipalities are adopting digital technologies such as social media, cloud computing, and artificial intelligence to improve service delivery to citizens. However, despite the potential benefits of digital transformation, most initiatives are failing to deliver expected outcomes. As a result, rural local municipalities and citizens are missing out on opportunities presented by digital technologies.
Objectives: The study employs the dynamic capability view as a theoretical lens to understand why rural local municipalities are struggling to enhance service delivery performance through digital transformation initiatives.
Method: A deductive qualitative research design was utilised through in-depth interviews with nine different departmental managers in rural local municipalities in the Limpopo Province. A hybrid thematic analysis was conducted to leverage both theory-driven and data-driven approaches, thereby enhancing the study.
Results: Rural local municipalities are struggling to integrate emerging technologies into their business models. This struggle stems from a lack of dynamic capabilities that support digital transformation. The results show that local municipalities face issues, such as the digital divide and infrastructural, technical, financial, policy, and strategic challenges.
Conclusion: Digital transformation in rural local municipalities promises efficient operations and enhanced service delivery. However, local municipalities and citizens will continue to miss out on the benefits of digital transformation due to a lack of the required capabilities.
Contribution: The study contributes to the ongoing discourse on digital transformation by highlighting the importance of dynamic capabilities in public-sector initiatives. Thus, adding microfoundations to build dynamic capability for digital transformation in rural local municipalities.