Mechanisms Influencing the Digital Transformation Performance of Local Governments: Evidence from China

Abstract

The transformation of the government into a digital entity is imperative, serving not only as a catalyst for the modernization of China’s governance system and capacity but also as a cornerstone for advancing the digital economy and the establishment of a digital China. This paper presents a multi-level analytical framework designed to assess the digital transformation performance of local governments. Utilizing a dataset comprising macro-regional and micro-individual data from Hubei province, we conduct an extensive analysis to examine the underlying mechanisms that influence the digital transformation performance of local governments and employ the hierarchical linear model (HLM) as the primary analytical instrument. The results of our analysis show that individual-level government–citizen interactions, government image, and district-level department collaborative capacities exert substantial and positive influences on the digital transformation performance of local governments. Furthermore, it is worth noting that department collaborative capacity plays a significant and positive moderating role in the relationship between government image and the digital transformation performance of local governments. These findings not only offer valuable insights for optimizing policy formulation but also contribute to a more comprehensive understanding of the mechanisms underlying the digital transformation performance of local governments.