Digital Integration and Institutional Trust: The Mediating Role of E-Government Transparency in Enhancing Citizen Satisfaction

Abstract : Digital transformation in local governance has increasingly been positioned as a catalyst for building public trust and enhancing citizen satisfaction. However, empirical evidence on how digital integration translates into trust-based outcomes through transparency mechanisms remains underexplored, particularly in developing-country contexts. This study examines the mediating roles of e-government transparency and institutional trust in linking digital integration to citizen satisfaction within decentralized governance structures. Using data from 280 active users of integrated digital services in Malang City, Indonesia, collected between August and September 2025, this research employs Structural Equation Modeling (SEM) to test a sequential mediation model. Findings reveal that digital integration significantly enhances e-government transparency (β = 0.51, p < 0.001), which in turn fosters institutional trust (β = 0.48, p < 0.001). Institutional trust emerges as the strongest predictor of citizen satisfaction (β = 0.62, p < 0.001), with full mediation confirmed via bootstrapping. The study contributes to digital government literature by demonstrating that technology-enabled transparency functions as a trust-building mechanism rather than merely an information disclosure tool. Theoretically, the research extends trust-based governance frameworks by positioning e-government transparency as an interactive accountability interface that bridges technological capability and citizen confidence. Practically, the findings suggest that local governments should prioritize digital platforms that enable real-time monitoring, two-way communication, and responsive feedback systems to cultivate sustained institutional trust.