Public sector digitalisation: not all positive impacts for knowledge assets

Digitalisation can enhance knowledge assets within public administrations, thereby fostering value creation. Yet, it also poses risks such as inefficiencies, hidden costs, and value destruction, which can have negative impacts on human, structural, and relational capital. Despite their significance, these phenomena have received limited attention in the literature, leaving substantial research gaps concerning the impact of digital transformation on public employees, administrative procedures, and other knowledge assets. This paper explores the learning, compliance, and psychological costs arising from the recent digitalisation of a social service in the Friuli Venezia Giulia Region in Northeastern Italy. The research highlights the importance of monitoring and managing such burdens for knowledge assets so as to mitigate the adverse effects of digitalisation on public administration.