Technological capacity in the public sector: the case of Estonia

• Published in: International review of administrative sciences 2018-06, Vol.84 (2), p.214-230
• Main Authors: Lember, Veiko, Kattel, Rainer, Tõnurist, Piret
• Format: Article
• Language: English
• Subjects: Public administration; Public sector; Technological change; Technology
• ISSN: 0020-8523; 1461-7226
• DOI: 10.1177/0020852317735164

Technology is clearly a critical factor in the lives of organizations, yet there are only a few studies that deal with technology and public organizations. In this article, we propose to understand technological change in the public sector, in particular, how technology influences administrative capacity, through a new concept of technological capacity. We use the case of Estonia – internationally associated with a strong e-state profile – as an exploratory case to answer two research questions: ‘Why and how does technological change take place in the public sector?’ and ‘How does technological change influence administrative capacity in public organizations?’ We demonstrate how dynamic and static change in technological capacities is influenced by four different public sector feedback and selection mechanisms. We conclude that in spite of the neglected position of technology in the public administration literature, technology is an intrinsic factor in how administrative capacity evolves. Points for practitioners This article argues that technological change in the public sector is not just a matter of technical skills; rather, technology fundamentally changes how public organizations function and how services are delivered. There are, however, key differences in the speed and direction of how technology’s impacts unfold in various organizations and services. Some organizations master developing dynamic technological capacities and experience rapid and transformative changes, while others do not and accordingly go through incremental changes. This difference has both internal and external causes. Those organizations that show dynamic technological capabilities manage ambidexterity well: seeking new solutions while managing to offer high-level services. We provide new explanations as to why this is the case.