Assessing the impact of WoredaNet usage on dynamic capabilities: a structural equation modeling of Woredas in Ethiopia

Abstract

Purpose The paper aims to assess the impact of a government digital platform, WoredaNet on the dynamic capabilities (DCs) of government organizations, that provides government services to citizens in Ethiopia. Design/methodology/approach The study adopted a quantitative strategy using 10 local government administrative regions in Ethiopia (Woredas), which digitally innovate using the government digital platform. This study sampled 970 employees from government organizations to better understand the usage of digital government in low-income countries to enhance service delivery through DCs. The study adopted a conceptual formative model using the covariance-based structural equation modeling (SEM) technique. The model integrated seven latent variables, namely, WoredaNet usage, adaptive capability, absorptive capability, innovative capability, opportunity-sensing ability, opportunity-seizing ability and opportunity-reconfiguring ability. The relationships between the latent variables were then created, and 15 hypotheses were designed. Findings The research showed that government organizations’ ability to adapt, absorb and innovate is enhanced by using WoredaNet. The study revealed how government organizations could enhance their opportunity seizing and opportunity reconfiguring capabilities by leveraging their adaptive, absorptive and innovative capabilities. On the other hand, the findings of the study indicated that there is no significant relationship between WoredaNet usage and the microfoundations of government organizations. This could be because of the varied nature of government organizations. And hence, could be addressed by considering the same formative model on narrower segment of government organizations. Originality/value The paper contributes to digital government literature in revealing how DCs of government organizations in resource-constrained low-income countries could be assessed effectively using formative models.