Optimizing Public Services Through Digital Innovation in Local Government Institutions

Abstract

This study explores the role of digital innovation in optimizing public services within local government institutions, emphasizing the transformative potential of technology in enhancing governance effectiveness. Utilizing a qualitative research approach, this paper employs a comprehensive literature review and library research method to analyze existing theoretical frameworks, empirical studies, and policy documents related to digital transformation in the public sector. The findings reveal that digital innovation—encompassing e-government platforms, digital infrastructure, and data-driven decision-making—has significantly contributed to improving service delivery, increasing transparency, and fostering citizen engagement at the local level. However, successful implementation is often hindered by institutional resistance, limited digital literacy, and inadequate infrastructure in many local contexts. The study also highlights best practices from various countries where local governments have successfully integrated digital tools into public service delivery, leading to increased administrative efficiency and citizen satisfaction. Furthermore, it emphasizes the importance of strategic planning, capacity building, and stakeholder collaboration in achieving sustainable digital transformation. This research contributes to the growing body of knowledge on public sector innovation and offers practical insights for policymakers, administrators, and scholars seeking to understand and implement effective digital strategies in local governance. By synthesizing interdisciplinary perspectives, the paper underscores the need for adaptive governance models that embrace technological change while addressing socio-political and organizational challenges. The study concludes that digital innovation, if strategically managed, can serve as a catalyst for more responsive, transparent, and efficient local government services.