Determinant factors of government change capability towards smart cities: A dynamic capability perspective

This study investigates critical factors shaping government capability for organizational change within smart city initiatives. Despite Indonesia's significant investment in smart city programs, uneven implementation and inconsistent results highlight gaps in understanding how digital and organizational capabilities impact performance. This research addresses these gaps by examining how Information Technology Capability (ITC), Organizational Change Capability (OCC), 21st-century digital skills (DS), and innovativeness (INN) collectively influence organizational performance (OP). The study employs a multilevel quantitative survey design with multisource data collection, involving 1384 middle and lower-level managers from the Surabaya City government in Indonesia. Data was analyzed using multilevel modelling in MPlus 8.3, examining relationships at both individual and organizational levels. ITC has a positive effect on OP but not on OCC. OCC also enhances OP, yet it does not mediate the ITC–OP link. DS strengthens the ITC–OCC path, and INN strengthens the OCC–OP path. This study addresses digital transformation in smart city programs by using an organizational change capabilities perspective, focusing more on the middle manager role rather than IT infrastructure or other technical capabilities.