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The paper aims to assess the impact of a government digital platform, WoredaNet on the dynamic capabilities (DCs) of government organizations, that provides government services to citizens in Ethiopia.

The study adopted a quantitative strategy using 10 local government administrative regions in Ethiopia (Woredas), which digitally innovate using the government digital platform. This study sampled 970 employees from government organizations to better understand the usage of digital government in low-income countries to enhance service delivery through DCs. The study adopted a conceptual formative model using the covariance-based structural equation modeling (SEM) technique. The model integrated seven latent variables, namely, WoredaNet usage, adaptive capability, absorptive capability, innovative capability, opportunity-sensing ability, opportunity-seizing ability and opportunity-reconfiguring ability. The relationships between the latent variables were then created, and 15 hypotheses were designed.

The research showed that government organizations’ ability to adapt, absorb and innovate is enhanced by using WoredaNet. The study revealed how government organizations could enhance their opportunity seizing and opportunity reconfiguring capabilities by leveraging their adaptive, absorptive and innovative capabilities. On the other hand, the findings of the study indicated that there is no significant relationship between WoredaNet usage and the microfoundations of government organizations. This could be because of the varied nature of government organizations. And hence, could be addressed by considering the same formative model on narrower segment of government organizations.

The paper contributes to digital government literature in revealing how DCs of government organizations in resource-constrained low-income countries could be assessed effectively using formative models.

This paper aims to identify the dynamic capabilities of government organisations in Woredas of Ethiopia that digitally innovate on the existing government digital platform, the WoredaNet.

The study adopted a qualitative interpretive case study strategy using three government administrative regions in Ethiopia (called Woredas), which digitally innovate using the government digital platform, the WoredaNet. A structured interview protocol was implemented for data collection. In total, 5 respondents representing users, information and communication technology (ICT) staff and management were selected from each of the Woredas (districts), yielding a total of 15 respondents.

Drawing from the dynamic capabilities literature, the findings reveal that the digital platform governance model plays the strongest role in digital government innovation. Specifically, the Woredas exhibit highly developed adaptive capabilities through learning from the affordances offered by the digital platform. Also, despite the collaborative nature of their absorptive capabilities, there are no clear organisational structures to manifest these capabilities (integrating new learnings). The innovative capabilities (creating digital government products or service innovations) are constrained by the governance model, which is centralised in one ICT unit.

The research is limited to one of the Regional States of Ethiopia. Further studies would be needed to consider other regional states and more Woredas.

The research provides a means through which dynamic capabilities can improve digital innovation on government digital platforms, despite the scarcity of resources, especially in low-income countries.

The paper contributes to digital government and dynamic capability literature in revealing how digital innovations in government agencies might be organisationally enhanced through distributed digital platform governance models.