Sustainability of Digital Initiatives in Public Services in Digital Transformation of Local Government: Insights and Implications

This study examines municipalities’ challenges in digital transformation, focusing on an Icelandic municipality. It aims to determine whether these challenges align with those reported in academic literature, particularly in public service delivery and the sustainability of digital initiatives from an operational perspective. A mixed-methods approach, including interviews with municipal employees and a survey, was used to analyze the municipality’s experiences. An evaluation framework introduced by Lafioune et al. guided the analysis. Key findings highlight the importance of senior management support, adequate funding, staff collaboration, and effective data management for making successful and digital transformation sustainable in the long run. Resistance to change, especially among staff, emerged as a significant obstacle to long-term sustainability. The study reveals that the challenges Icelandic municipalities face are consistent with broader research on digital transformation in public administration. The research emphasizes the need for a comprehensive approach integrating technological, organizational, and cultural changes to ensure a sustainable result from these initiatives. It also underscores the potential of digitalization to enhance public service accessibility and efficiency, promoting social cohesion, equity, and long-term sustainability. Practical recommendations include fostering strong leadership, securing strategic funding, and promoting a collaborative culture to ensure the success of digital initiatives in public services.