Digital Governance Capability as a Dynamic Strategic Capability in Public Sector Digital Transformation Under Institutional and Technological Uncertainty

Abstract

Purpose: This paper repositions digital governance capability as a dynamic strategic capability enabling public institutions to govern emerging technologies effectively and sustain adaptability, resilience, and public service innovation under institutional and technological uncertainty. Methodology: The study employed a conceptual analytical literature review informed by an interpretivist-constructivist orientation. Evidence was purposively collected from seven scholarly databases (Google Scholar, JSTOR, Scopus, ScienceDirect, SSRN, IEEE Xplore, and ProQuest) and five institutional repositories (OECD, UNESCO, World Bank, African Development Bank, and Smart Africa). Sources published mainly between 2000 and 2024, together with seminal pre-2000 theoretical works, were screened for relevance, methodological quality, geographic diversity, and alignment with the objectives. The evidence was analyzed through a three-stage thematic synthesis comprising initial coding, development of descriptive themes, and analytical interpretation across global, African, and Kenyan public-sector contexts. Findings: Digital governance capability comprises six dimensions: digital oversight mechanisms, ethical and regulatory governance, data governance, cybersecurity governance, strategic digital alignment, and accountability and transparency mechanisms. Institutional pressures drive capability adoption while technological uncertainty demands adaptive governance responses. Governance capability mediates the relationship between environmental drivers and three outcomes, strategic adaptability, organizational resilience, and public service innovation moderated by leadership support, organizational learning culture, and digital readiness. Kenyan evidence from eCitizen, IFMIS, and KRA illustrates a progression from digital government through digital governance toward AI-enabled governance. Unique Contribution to Theory, Practice, and Policy: The study advances an integrative framework bridging three governance theories within public sector digital transformation discourse. The six-dimension model offers public leaders an actionable governance diagnostic. For policy, it provides emerging economy governments, particularly Kenya a contextually grounded framework for designing national digital governance policies under institutional complexity.