Digitalization and collaborative governance in small municipalities: performance gains or administrative overload?

Purpose Small municipalities face a fundamental governance puzzle: the collaborative arrangements and digital platforms designed to overcome their resource constraints may simultaneously generate the overload that undermines them. This study examines how governance structure and digitalization jointly shape performance in small municipalities through an analysis of a digitally mediated one-stop shop system in the Friuli Venezia Giulia Region, Italy. Design/methodology/approach A survey of SUAP managers in 153 municipalities with populations under 5,000 was conducted. Data were collected between September and November 2025, yielding 124 valid responses. Findings Associated governance enables both network and digital performance, yet it can simultaneously weaken the performance benefits of horizontal collaboration, revealing a governance overload dynamic. Digitalization alone does not improve performance; it must be embedded in appropriate governance arrangements. Originality/value The study shows that governance formalization and digitalization carry inherent boundary conditions in resource-constrained settings. This offers a transferable governance insight for small public organizations facing mandated digital reforms.