Strategic Digital Transformation and Organizational Performance in Public Sector Institutions in Indonesia
Keywords:
Strategic Management, Digital Transformation, Organizational Performance, Public Sector Organizations, Digital GovernanceAbstract
Strategic digital transformation has become an important approach for improving the performance of public sector institutions in the era of digital governance. Governments are increasingly integrating digital technologies into administrative processes to enhance efficiency, improve decision-making capabilities, and strengthen public service delivery. The successful implementation of digital transformation strategies allows public organizations to modernize bureaucratic systems and respond more effectively to the growing expectations of citizens. This study aims to analyze the influence of strategic digital transformation on organizational performance in public sector institutions in Indonesia. The research adopts a quantitative approach using survey data collected from employees working in government institutions that have implemented digital governance initiatives. Data were analyzed using statistical techniques to examine the relationship between strategic digital transformation and organizational performance. The findings indicate that digital transformation strategies have a significant positive impact on organizational performance, particularly in improving administrative efficiency, institutional responsiveness, and service effectiveness. The adoption of digital technologies enables public organizations to streamline bureaucratic procedures, manage data more efficiently, and enhance coordination among administrative units. However, several challenges remain, including differences in digital infrastructure, limited technological competencies among employees, and organizational resistance to technological change. The study highlights the importance of strengthening digital infrastructure, developing employee digital competencies, and integrating digital transformation into strategic management practices to ensure sustainable improvements in public sector performance. Overall, strategic digital transformation represents an essential component of modern public administration and plays a crucial role in enhancing the effectiveness and efficiency of public organizations.
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