Exploring Digital Transformation as a Catalyst for Institutional Agility in the Delivery of Public Services

ABSTRACT Digital transformation has turned into a pivotal force in modernizing public administration, enhancing efficiency, transparency, and service delivery. The aim of our research study is to explore the role of change management and institutional agility in the context of digital transformation within public institutions, and their effect on cost management, public data management, service delivery and beneficiaries' engagement. Based on the institutional theory, we designed a conceptual model, and we used PLS‐SEM as a research method for testing the nine hypotheses. The findings revealed that change management induced by digital transformation had a significant impact on institutional agility and on beneficiaries' engagement, and also institutional agility induced by digital transformation was correlated with effective cost management of institution, efficient management of public data, increased delivery of public services and beneficiaries' engagement. Besides its contribution to literature on public management, our research brings valuable suggestions for decision makers from public sector.