Impact of institutional change programs on digital and sustainable public sector governance

Purpose Institutional change (IC) programs in the public sector are often driven by sustainability and digitalisation as contextual factors, contributing to the development of digital and sustainable governance (DSG) systems. This study aims to explore the longitudinal impact of ICs on DSG advancements. Design/methodology/approach We collected and analysed data of 200 public sector organisations in two European countries and conducted a longitudinal analysis, focusing on the impact of European Union-funded IC programs. Findings Results show that steps towards digital governance (DG) are demonstrably linked to environmental efforts, and EU-funded IC programs could have a long-term positive impact on digital and environmentally sustainable governance in Europe. Findings, however, highlight the unbalanced nature of sustainability governance, as environmental and policy-related conditions and activities seem to be overemphasised. Practical implications Environmental policy seems to be established, but future DG initiatives should consider more environmental polity conditions and activities (e.g. dedicated departments), as well as economic and social sustainability to ensure well-balanced governance systems. Originality/value To the best of our knowledge, this is the first study that explores empirically how prior IC programs affect future DSG in the public sector.