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By: Steven Wall

Supervisor: Anders Ivarsson Westerberg Södertörn University | School of social science Master’s dissertation 30 credits

Business administration | spring semester 2020

Master’s program in public administration and leadership

Digitalization in public administration

A comparative case study about digitalization in two

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Acknowledgement

I would like to sincerely thank my supervisor Anders Ivarsson Westerberg for his help and support throughout the entire process of me writing this thesis. I would also like to show my appreciation and gratefulness for all of the respondents for their time as well as knowledge, which has been invaluable for my work. Furthermore, I would like to express my admiration and gratitude to all of the lecturers and teachers I have had throughout my time at Södertörns

Högskola.

Steven Wall

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Abstract

Background and problem: The technological development in recent times has created new

norms for daily life. Therefore, the public sector is currently going through a process of digitalization to meet the needs of modern citizens. However, the process has proven to be extremely challenging for municipalities across the nation. As studies have shown there are significant differences between municipalities regarding their efforts related to digitalization.

Purpose: The purpose of this study is to develop an understanding of how municipalities are

working on digitalization and why there are significant differences between them. Furthermore, the study aims to gain knowledge about the organizational structures, strategies and solutions that have been implemented by municipalities to achieve their objective.

Method: To fulfil the purpose of the study, a comparative case study of two separate

municipalities has been conducted. Furthermore, two additional departments with each respective municipality have been included to provide additional depth and variation in this study. The empirical information has been collected through semi-conducted interviews and public documents.

Conclusions: Digitalization in municipalities is an on-going process, which is complicated in its

nature since it represents enormous organizational changes. In order to deal with the challenges of digitalising, municipalities in both cases in this study have developed their own strategies, which are based on an translation of the national strategy for digitalization. Furthermore, both municipalities have created similar organizational structures to lead the process of digitalization. However, it has been concluded in this study that digitalization of municipalities is largely driven by individual enthusiasm, instead of formal structures. There are certain additional factors, which affect digitalization in both municipalities and ultimately create differences between them, these factors include – organizational history and maturity, degree of centralisation, resources,

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Introduction

This section will introduce digitalization in public administration and provide information regarding its background. A discussion regarding the problems surrounding digitalization in municipalities will be included. Finally, the aim and research question for this study will also be presented in this section.

Technological development has continuously shaped and changed the world throughout human history. Therefore, the belief that technology can help solve human problems and facilitate growth has been solidified and ingrained in most cultures throughout the world. The idea of a technological transformation of the different aspects of human life is universally considered a step towards improvement and overall better quality of life (Cöster, Ekenberg, Gullberg, Westelius & Wettergren, 2017).

Citizens across the world use technological solutions provided by different organizations and governments to perform a wide variety of tasks such as communication and trade (Dunleavy & Margetts, 2015). The ability to do so much, so quickly and reliably through technological means that furthermore continue to improve rapidly over time can be recognised as one of the most prominent features of the way of life in the 21st century (Swedish government, 2017b).

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There is a problem

In order to deal with the increased expectations, the Swedish government has developed a national strategy for digitalization, which aims to create a modern public sector (Swedish

government, 2017). The goal for the strategy is to digitalise the public administration with while ensuring equality and maintain the same level of quality for all citizens in the entire country (Swedish government, 2017). However, like most European countries municipalities in Sweden practice a level of self-governance, albeit to an extent. For example, local political

representatives in municipalities across Sweden possess the authority to allocate resources within different departments that fulfil different functions (SKR. 2019a). Which also creates a necessity for each municipality to translate and implement the national strategy in the best way possible according to their own requirements as well as their own ability to do so.

Like most complex organizations the resources and competence available to municipalities differ dramatically. Therefore, the national strategy goes through a lengthy process of channelling and translation, which alters its significance as well as its capacity to facilitate a change, which is uniform in its nature (SKR, 2019a). Consequently, most municipalities have developed their own strategies for digitalization based on the national strategy.

Studies conducted by SKR (2016) and Internetstiftelsen (2018) have shown that there are significant differences amongst municipalities in their ability to provide digital services and solutions to their citizens. Even though government analysis claim that most government

agencies and municipalities prioritise digitalizations as high or rather high on their to-do lists (E-delegationen, 2011). According to another study conducted by SKR (2016) only 57% of all municipalities claimed to prioritise digitalization as high or rather high in their near future plans. These findings represent a wide discrepancy amongst municipalities since more than 40% of the municipalities did not prioritise digitalization as of year 2014.

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Thereby, supporting previous claims mentioned above that municipalities struggle to move towards a common direction in processes of reformation or transformation due to the difference in fundamental conditions.

Chain of command

The national strategy for digitalization was designed to function as a foundation and guideline for the entire Swedish public sector in its process development (Swedish government, 2017b). The national strategy was meant to be broken down, translated and applied to all levels of the public administration in the country, guiding government agencies as well as municipal authorities along with all other public organizations towards a modern and digital public administration (Swedish government, 2017a).

The main purpose of the national strategy can be explained as a chain of command, commonly referred to as “Styrkedjan” in Sweden. Each link within the aforementioned chain of command performs its function, the links being the different levels of public authority in the country. The links together form a cohesive unit that provides strength and unity in order to achieve its common goal. Which in this case is to maintain a similarly high level of efficiency while also providing the best possible service for the Swedish citizens.

Christensen and Lægreid (2002) claim that in most attempts of reforming the public sector, the official debate is often grounded in the rational ideas of increasing efficiency by replacing the inefficiencies and minimising the negative effects of bureaucracy. There is a strong sense of belief that these changes will lead to a better moral and a higher level of trust for authority amongst the citizens (European Commission, 2009).

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As explained earlier, the transformation of the public administration in Sweden towards

digitalization has proven to be a complicated task, which has led to contrasting outcomes. There is a national strategy for digitalization developed by the government to help guide the public sector towards an equal modernisation through technology. However, studies have shown that the outcome has been rather inconsistent. Certain parts of the public administration have successfully increased their efficiency and service through digitalization both internally and externally. Whereas, others have failed to prioritise digitalization and therefore not been able to implement changes successfully. This is especially true for the municipal sector as there is a rather large gap between municipalities, which have succeeded in their efforts to digitalise and therefore received the recognition for their advancements. On the other hand, there are a significant number of municipalities, which have been lagging in this respect.

Aim of the study

The aim of this study is to develop a deeper and better understanding of how the process of digitalization is carried out in different municipalities. The study aims to gain in-depth knowledge about the organizational structures, strategies and solutions developed and implemented by municipalities in order to achieve their goal. By studying and analysing two separate municipalities the study intends to highlight the significant factors, which lead to the aforementioned differences as well as provide additional perspective regarding the challenges faced by municipalities in the process of digitalization.

Research question –

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Delimitations in this study -

Two municipalities have been studied in this study to develop an understanding of how municipalities are working to digitalise. But also, to develop an understanding as to why there are significant differences between them in relation to digitalization. Since, some municipalities have been able digitalise large parts of their organization and provide modern services to its citizens whereas others have been lagging behind in that respect. However, in order to get closer to the organizations and understand the process of digitalization, two departments within both municipalities have been chosen, which are the department of education and the department of culture and leisure.

The empirical information in this study will be restricted to the central departments of

communication and the chosen departments of education as well as culture and leisure in both cases. Furthermore, the politicians acting as heads of the committees for the chosen departments will also be interviewed in this study. As explained earlier, the purpose of this study is to develop understanding of how municipalities are working to digitalise but also to understand why

differences occur. More detailed information about the study will be presented in the methodology section.

What is digitalization?

Digitalization is often used as a blanket term, with a significantly wide range of meaning and context appropriated by the user. There is no single universal definition of this term, which can explain it in its entirety (Ochs and Riemann, 2018). However, for the purpose of clarity in this study, a summary of some of the most relevant definitions will be presented.

According to Ochs and Riemann (2018) digitalization is a process of transformation from an analogue to a digital way of doing things. For example, in this study it would mean the efforts executed by municipalities to modernise their operations from traditional paper-based application processes to digital web-based processes.

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processes, which have traditionally been manual. He continues to explain that digitalization is not limited to automation, instead it can lead to innovation and support the process of

implementation of new ideas with an inbuilt ability to adapt to different scales and sizes.

The background

In order to meet the ever-increasing needs of the citizens and combine its efforts towards a successful implementation of solutions the Swedish government introduced a national strategy for digitalization, with a vision that follows “ett hållbart digitaliserat Sverige”. Which translates to “A sustainably digital Sweden.” The strategy aims to speed up the process of digitalization of the public sector and guide it towards a common direction (Swedish government, 2017). The vision expressed in conjunction with the strategy seeks to facilitate an improved and easier daily life for the citizens, corporations and the entirety of society.

Furthermore, in order to successfully fulfil the vision, the government has identified an objective which follows “Sverige ska år 2025 vara bäst i världen på att ta tillvara på digitaliseringens möjligheter” (Swedish government, 2017). The objective is to ensure that Sweden as a country is the best in the entire world in its ability to utilise the opportunities facilitated by digitalization by the year 2025. The government states that it is outmost necessary to reach the objective in order to transform the public sector and ensure its operations are of the highest level possible (Swedish government, 2017).

"Digital Sverige” is the name coined by the government for the program to digitalise the Swedish public sector. The program includes a couple of core objectives. “en öppnare förvaltning som stödjer innovation och delaktighet” and “högre kvalitet och effektivitet i verksamheten” (ESV, 2017c). The objectives are to ensure an open public sector, which helps facilitate participation as well as innovation while simultaneously increasing efficiency and providing better quality of service.

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digitalise effectively and sustainably (SKR, 2019a). The strategy also seeks to create a level playing field for all municipalities through recommendations as well as solutions to ensure equality. The vision is to encourage all municipalities to digitalise on a similar level to provide highly digitalised and modern services to all citizens throughout the entire country. Regardless of the geographical location or the availability of resources, the strategy is of a universal character, which caters to all different sizes of municipalities with different circumstances (SKR, 2019c)

The Swedish vision for digitalization

Sweden is considered as one of the most developed countries according to most universal metrics such as the human development index or the literacy index (Internetstiftelsen, 2019). The

country has established its identity and reputation for being one of the most innovative and open societies that embraces change and commonly finds itself in the forefront of development in most aspects of life (UN-E Government survey, 2016).

A recent investigation conducted by the Swedish government (SOU 2016:89, 2016) concluded that the digitalization of the public services in the country was one of the best ways of improving efficiency within public administration. The investigation also highlighted digitalization as a necessity in order to meet the demands of service towards the citizens as well as the citizen’s actual needs. A government investigation (SOU 2015:28, 2015) provides validity to the government’s claims as it concludes that digitalization is one of the best ways to meet welfare demands of the citizens moving forward.

The government claims in its proposition (prop. 2009/10:175) that the actual benefits of

digitalizations are focused and designed with the citizens in mind. Further stating that the digital services will allow citizens to use their rights and perform their duties more effectively than before. Another investigation named “Digitaliseringens transformerande kraft” (SOU 2015:91, 2015) claims that by digitalising the public sector, it would be possible to cater services

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The Swedish government has developed plans to take digitalization and communication a step further by proposing an implementation of a so-called “electronic letterbox” (SOU 2013:22, 2013). The “Electronic letterbox” would allow citizens to communicate with the municipal authorities and government agencies as well find all relevant information, documents in one place. The purpose of these investigations and plans is to gradually shift the traditional face-to-face interaction between citizens and the government to a digital interaction. The investigations mentioned can be used to showcase the government's commitment as well as belief to a push towards digitalization of the public sector in the country.

The Swedish government states in its proposition “Offentlig förvaltning för demokrati,

delaktighet och tillväxt” (prop. 2009/10:175, 2009), the technological development has played a major role in creating a shift from the traditional analogue way of operating into a sophisticated and highly efficient modern era of public administration. The government also highlights the opportunities enabled by this shift as significant. Since transforming from a paper-based

administration to an electronic administration has enabled government employees to focus their resources towards more qualified tasks, such as improving the functionality of the organization and developing modern ideas based on innovation (prop. 2009/10:175, 2009).

Current state of digitalization

According to studies conducted by international organizations such as The United Nations suggest that Sweden ranks extremely high for its use of IT services. (ESV, 2017B). The studies highlight the well-developed infrastructure and access to Internet as one of the biggest

underlying factors for the widespread use of digital service in the country. However, the public sector in Sweden has failed to digitalise its organizations when compared to other European countries such as United Kingdom and The Netherlands (ESV, 2017A).

According to a comprehensive comparative analysis of digitalization and e-governance

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digitalization of public sectors in the Nordic countries are relatively high when compared to the rest of the world (Tinholt, et al, 2014).

When it comes to municipalities however, the results are even more mixed and inconclusive. Certain municipalities have come to build their reputation as leaders in utilising opportunities made possible through digitalization in the public sector. These municipalities have shown a strong interest and taken initiative to digitalise their operations and subsequently been rewarded with significant exposure through media. There is an official award handed out every other year by Kvalitetsmässan (2019) to municipalities, which successfully achieve an extraordinarily high level of digitalization within its organization.

The Lidingö municipality is one such example, it is an affluent suburb of Stockholm and it won the award for 2019. The reasoning for the award expressed by Kvalitetsmässan was that Lidingö municipality has shown great courage and determination to utilise the opportunities made available through digitalization in order to meet the inhabitants needs and demands. There were five other nominees for the award (Kvalitetsmässan 2019).

Digitalization has failed

An analysis conducted by the government agency ESV concludes that the public administration has failed to meet the standards and targets set by the government in the program “Digitalt först” (ESV, 2017C). The analysis stated government agencies within the public sector need to take more responsibility for their digitalization in accordance to the national strategy. A Similar study conducted by Riksrevisionen (2016) stated that the government agencies simply did not adhere to the government’s goal to be the best in the world at using digital solutions.

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However, Sundberg (2017) also argues for the enormous potential of digitalization as a way for the public sector to redeem and regain the public’s trust by successfully implementing these measures in manners, which lead to real benefits. Sundberg continues to explain that through technology the public sector can help provide a level of transparency and ease of communication to the citizens, which will dramatically improve the interactions between the citizens and the public administration.

The digital transformation which has been discussed so far entails changes to organizations processes, resources but also the end users both internally as well as externally (Henriette et al, 2015). Therefore, the need to alter ways of operation require detailed planning and a model of trial and error since it is almost impossible to anticipate the exact outcome or impact of the change itself. Furthermore, the shift also requires an increasingly higher level of co-operation between the organizations within the public sector in order to consistently provide services of a high quality (Cordella och Iannacci (2010).

There are many municipalities across the country which have over the past couple of decades consistently invested their resources into developing a functioning framework to create new digital service that work and provide actual benefit for their inhabitants (Jansson, 2013). However, as mentioned earlier not all efforts have paid off (Sundberg, 2017). There have been significant failures over the years, which have changed the narrative and sparked a different debate regarding the subject. As certain municipalities have been criticised for over-committing to ideas, which were unrealistic and lacked a cost-benefit analysis (Janowski, 2015).

Flak (2018) claims there are political, cultural as well as economic factors, which need to be considered since these factors have significance for the successful transformation. The impact of such factors needs to be anticipated in advance in order to produce solutions, which are adaptable and implementable. Another challenge for organizations in their process of transformation is to determine which projects to prioritise. It is often considered an area of conflict, since the citizens are always in the centre of these projects, which are designed to serve them (Von Leipzig et al, (2017). It becomes increasingly difficult for organizations to sort through the ideas and concepts, which would be the most effective in delivering, improved services to the citizens.

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a smaller improvement in an organization might prove to be a more reasonable and feasible alternative to the former depending on the circumstances (Almarabeh and AbuAli, 2010). Reddick and Anthopoulos (2014) support this notion by further illustrating consequences of failed actions of transformation as in certain cases according to their finding's organizations have had to resort back to the analogue way of operating because of a total failure to transform. The overly ambitious attempt of transforming major parts of an organization creates a sense of excitement and belief amongst people. However, in most instances these attempts fail to deliver and become a liability to the organization (Sundberg, 2017). Therefore, the debate about

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Theoretical framework

The Scandinavian institutional theory makes up the theoretical framework for this study. The section starts off with an introduction of the origins of the chosen theory and the ideas it is built upon in order to provide a context in which it can be understood and subsequently establishing its relevance and application in this study. The theory is then described in detail, including the specific terms, which are of special significance for this study. Finally, a justification and explanation for the use of the chosen theory is included in this section.

Introduction and background

In order to understand what Scandinavian institutional theory is and what it means, it is important to understand where it comes from. The origins of Scandinavian institutional theory can be found in the Institutional theory, which is sometimes also referred to as “Old

Institutionalism” or “Classical Institutional theory (Czarniawska & Sevon, 1996, p3).

Although the institutional theory has existed in some form since the late 1800s, it started to gain momentum and significance within the realms of organizational theory by the end of the 1970s. The researchers around that time started to question the idea that organizations are a rational tool, which seeks to achieve its goals by producing goods and services. Researchers argued that

organizations should be observed as institutions instead, and it is the actual environment and surroundings of the organizations as well as the norms, which dictate and effect what goes on within organizations. Further arguing for the fact that organizations are merely rational on the surface and not in their entirety. (Zetterquist, Kalling & Styhre, 2015) It is the questioning of the rationality of organizations, which forms the core and basis of this theory as well as the ideas, which have developed over time and evolved to encompass different perspectives, which will be discussed later on in this section.

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However, habits are a stark contrast to the institution since it is often local and specifically individual. DiMaggio and Powell (1991) present another perspective as they claim even though institutions are a result of collective actions performed by human beings, it does not necessarily mean they have been formed intentionally. Instead the researchers explain that institutions are a result of our need to create patterns to lead our actions. This explanation builds on the previous description provided by Czarniawska as it entails a significant aspect of necessity, which provides a clear perspective as to how institutions can be seen and studied.

Berger and Luckman (1966) provide further explanation for the argument put forward by DiMaggio and Powell by claiming that the patterns, which have been established, provide help towards saving energy instead of extraordinary actions such as reflection and creation of innovations. For example, the process of institutionalization has been described in the previous section of this study, the background, where the government created a national strategy for digitalization, which can bee seen as a pattern of collective actions, designed to create uniformity but also a clear form of help for the actors. March and Olsen (1989) continue to explain this notion by claiming that people and organizations alike, adapt themselves to appropriate behaviour in order to avoid chaos. The researchers explain that this aforementioned process happens as people who are entering institutions, try to figure out how to behave within it but also realise the existing rules. By doing so the members, who make up the institution gradually create an order, stability and predictability but also flexibility and the ability to adapt.

There are other ideas and arguments to be found within the institutional theory regarding the functionality of institutions etc. However, in regards to the purpose of the chosen theory in this study, the understanding of what institutions are and how they can be observed provides a strong base, as it presents context regarding the conception and development of the ideas, which have evolved over time to form the Neo-institutional theory and subsequently the Scandinavian institutional theory.

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within the particular fields such as schools, governments etc. cannot be explained through individual actors. Instead the theory focuses on understanding what makes the actions of individuals to cause the aforementioned effect. The practices exercised seem to have a specific quality, which has been taken for granted and it ultimately creates structures, which enable the practices to self-maintain (Zetterquist et al, 2015).

Amongst other things, the Neo-institutional theory discusses the process of organizations become more similar to one another, which is called “Isomorphism”. This aspect is of special

significance in understanding the Scandinavian Institutional theory and how it will be used in this study as it is combines the organizational fields discussed earlier and the process of Isomorphism. There are three different types of isomorphism, it is however the “Imitating isomorphism” which is of special significance. As it explains how organizations opt to imitate other organizations, which are considered to be successful within its own organizational field, for example within the public sector. The term “Imitate” and the action of “Imitation” will be

discussed in detail in the Scandinavian institutional theory, it is however helpful to recognise its origin in order to specify the context in which it can be understood.

As the background and context has been provided in which the Scandinavian institutional theory can be understood, the following part in this section will dive deep into the chosen theory itself. An expansive description of some of the important ideas, concepts and arguments presented within the background will be specified and explained along with the context of this study to justify the use and relevance of Scandinavian institutional theory.

Scandinavian Institutional theory

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fields. The theory suggests that studying changes can develop new insight. Czarniawska & Sevon (1996) explain this point by stating “As studies about organization primarily focus on well established procedures, they fail to uncover new insight.” The researchers continue to explain that when organizations are working well, it becomes increasingly difficult to understand why that is happening. Since the organization could be using successful routines or operating within favorable market conditions. However, in order for the organization to be successful, it must have gone through a change along the way. By studying the change itself allows for the creation of a distance between the old practices, which have been abandoned in favor of new practices (Zetterquist et al, 2015).

Furthermore, the Scandinavian orientation of the institutional theory starts off with a dynamic focus and studies processes which encompass how identities are formed, how rules are

established but also how they are broken (Czarniawska & Sevon, 1996). Another aspect of the theory addresses the process of “de-institutionalization”. De-institutionalization describes how certain institutionalized norms which have derived from attractive ideas regarding change, gradually lose their status and ultimately disappear within the organizational context, the term will be discussed in detail later in this section.

Organizational change

According to Brunsson & Olsen (1990) the Scandinavian institutional theory provides an explanation as to why it difficult to implement reforms in similar ways to other changes in organizations. The researchers explain that the traditional point of view sees organizations as rational instruments, which perform certain tasks in order to achieve certain objectives. Furthermore, the traditional view also sees change as an occurrence through the process of rational choice between different alternatives and that the implementation of the change is

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which have already matured and established routines. As, it leads to the reform not having any real impact on the implementation of the change.

Brunsson & Olsen (1990, s17) state “reforms are easier to initiate than to decide and easier to decide than to implement.” An explanation for this statement is provided in the sense that, an active participation is required in order for a reform to be implemented, especially amongst the parts, which are to be reformed specifically. Since that requires a major shift in individual behaviors and ways of operating, it often proves to be extremely difficult as it leads to continuous challenges, which act as a resistance towards the implementation of the reform. However, the complexity and difficulties regarding change is not the only issue, the creation of stability is another major issue according to the researchers. Since changes are not restricted to the reform itself, instead it leads to many continuous changes, which are not always a result of a carefully thoughtful plan. Rather, Brusson & Olsen (1990) see them as a result of the

institution’s attempt at adapting itself to its environment.

The main feature of a reform is that it consists of a solution, which is better than the existing solution regarding a problem in the organization. Even though the new reform which promises improvement might have existed in some form previously, it is often forgotten as it is presented as a fresh idea and an opportunity to start over again in search of improvements. The forgetful nature of organizations is considered to be an organizational feature in this theory (Zetterquist et al, 2015). Furthermore, trends are discussed as an important part of the theory as it represents the idea of organizations adapting to their environment, which are dictated by trends. Trends will be discussed later in this section.

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Translation theory

Czarniawska & Sevon introduced another perspective regarding organizational change in a book named “Translating organizational change” (1996). The researchers argue that instead of

recognising changes in organizations as planned innovations or adaptations to the environment, the focus should be on how ideas travel, materialise and convert to the local environment. They continue to question the rationality of organizations and the notion that organizations make rational choices and that change is implemented once it has been decided. Czarniawska & Sevon (1996) claim that change is not implemented as it has been decided instead it often occurs after the decision has been made as it goes through a process of translation and adaptation as ideas travel through the organization.

It is important to note that within the Translation theory, the term “Translation” has a specific meaning. The literal definition of the term would suggest it deals with the translation of languages etc. However, in this theory, the term “Translation” means the translation of something from one specific context to another, furthermore, the definition includes that the “something” (which is being translated) gets reinterpreted and converted when it is translated from one context to another as explained by Callon (1986).

The background to this theory and the perspective, which considers change as travel of ideas is based on the questioning of why a change has been implemented. Since that question results in answers across a wide variety, such as historical background, administrative reasoning or that the older ways of doing things was not considered being satisfactory, political decisions etc.

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translation and the travel of ideas as the process, which can explain why changes are made and how they can be studied and subsequently understood.

Furthermore, Czarniawska & Sevon (1996) continue to explain that in order for an idea to become common knowledge it needs to be objectified in form of a book, a design etc. As that object thereafter represents the idea itself. Thereby, creating possibilities for a travel between local environments and situations. The researchers emphasise that the individuals who are driving the idea further are a major part of this process. However, another part is that idea becomes trendy and attractive as it gains popularity. It a combination of individual drive and the pull of the trend, which creates an attraction for people to want to participate and use the ideas within their own context. Furthermore, the theory provides two ways of explaining what happens when a change is implemented, which are imitation and editing.

Imitation

As mentioned earlier in this section, organizations may choose to implement a change as they seek to imitate another organization. This idea was initially developed within the

Neo-institutional theory, where it is labelled the concept of isomorphism, which suggests that organizations are becoming increasingly similar to one another due to the fact that they all belong to a particular organizational field. Therefore, the organizations within that field develop a tendency to become similar over time (Zetterquist et al, 2015). However, the Scandinavian institutional theory pays much closer attention to this phenomenon according to Czarniawska & Sevon (1996), as the researchers explain that the purpose of imitating someone else is to achieve the exact same or similar consequences. By doing so, organizations can save time and resources by avoiding mistakes and also eliminating the process of trial and error. This is made possible as the organization which choses to imitate another organization, can learn from other’s

experiences. Thereby, achieving the desired outcome associated with the imitation.

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is in fact a process through which something is created and transformed through a chain of translators.

Czarniawska & Sevon (1996) further discuss the topic of who imitates whom and why? The researchers provide a reasoning, which explains that organizations, which are considered

successful are recognised as such by the less successful organizations, which creates a necessity for the less successful organizations to imitate the successful organization. However, the decision of a majority of organizations to imitate some particular organization can also act as a motivation for imitation. The researchers further state that this idea is centred on the main point, which is that the western society imitates its winners, meaning it imitates ones, which are recognised as successful. Therefore, the winners get to set the standard, since they have proven their ability to produce the best results. The urge to imitate and the willingness to identify with successful winners is considered to be a social construction, hence it affects organizations in the same way as other parts of the society, since organizations are made up of individuals.

Editing

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Deinstitutionalisation

Deinstitutionalisation is another aspect within the Scandinavian institutional theory, which explains how certain trends fall out of favour within organizations and over time cease to exist. As Rovik (1996) explains that during a period of time, a specific trend gets recognised as the legitimate model for successful organization. Many organizations try to emulate the success by adopting this trend. However, over time the organizations come to forget this trend and seem to try to get rid of it one way or another, this process is called deinstitutionalisation.

Rovik (1996) explains why a trend might gradually lose its status within organizations mainly as a consequence of it being old. As the environment in which organizations operate goes through continuous changes, the older trend is simply not considered to be fresh or different anymore, furthermore over time the trend becomes increasingly scattered within organizations with the potential to create new issues. Furthermore, the continuous existence of the same trends renders organizations as similar to others. Hence, in the quest of maintaining their uniqueness,

organizations seek to adopt new trends and continue to evolve their identities (Zetterquist et al, 2015).

Justification for the use of the chosen theory

Now, that the Scandinavian institutional theory has been presented in detail along with its background, which provides the context in which it can be understood, a justification for its use in this study can be presented. The Scandinavian institutional theory is characterised by its use in field studies about organizational changes, which makes it a suitable fit for this particular study, since, digitalization in municipalities represents a series of organizational changes, which ultimately affects how municipalities perform their functions but also the people within the organization.

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doing so, the theory can help guide the analysis towards understanding the cause behind the differences between municipalities.

Furthermore, the chosen theory provides an explanation regarding the difficulties associated with the implementation of change, thereby providing a framework, which can be applied to

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Method

This chapter will present how the study has been designed and conducted along with reasoning and arguments for the choices made from the offset and throughout. The chapter will also explain how the theoretical and empirical material has been collected and used for the purpose of this study.

Design of the study

A comparative case-study has been chosen as the research strategy for this study. Two separate municipalities of similar character and size have been studied in order to develop a deeper understanding and knowledge about how these municipalities are working to digitalise their operations. In this study digitalization in these two municipalities represents two cases, which will be compared to one another in order to highlight and analyse their similarities, differences, as well as significant factors, which can help explain the differences in results.

According to Merriam and Nilsson (1994) a qualitative design aims to understand the

significance and content of a phenomenon. This study fits that mould, since it aims to understand the phenomenon of digitalization in municipalities. Furthermore, this study aims to provide information, which presents a bigger picture of how digitalization is carried out in municipalities. Therefore, a study of qualitative design is a good fit as opposed to a quantitative study, which solely aims to understand the components as explained by Merriam and Nilsson (1994).

In order to develop a complete understanding of digitalization as a phenomenon in municipalities a number of qualitative factors such as experience, values, political, co-operation, views etc. need to be studied and understood. These factors can be considered difficult or almost impossible to quantify. However, a qualitative design allows this study to get close enough to the

municipalities in order to gain the necessary knowledge about these factors.

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researchers to retain the important details regarding the respondent's positions as well as ability to make decisions for the purpose of analysis in the study, since these details have an impact on the actual understanding of cases. Therefore, a change of names for both municipalities achieves the desired anonymity while simultaneously retaining intricate details about the respondents.

Case study

Case studies focus on researching specific phenomenon by collecting information and studying the relationships between different variables (Bell, 2000). Bell continues to explain how a case is basically an interaction between different variables, which ultimately create and define what is commonly referred to as specific context. In most case studies the researcher collects information through interviews and observations, however, case studies are not limited to these methods of information gathering. Bell (2000) claims case studies are rather flexible in their ability to adapt in order to facilitate the collection of relevant information through a wide variety of methods. Furthermore, He explains how case studies allow the researcher to focus on a specific

phenomenon and identify the factors, which affect the phenomenon itself.

Case studies are well suited to projects, which aim to study a change or a process of development in organizations. A typical characteristic of a case study is to study a case or sometimes a few cases in several dimensions. This study will be following those characteristics by collecting empirical data from several respondents as well as collecting documents which are available to the general public. As mentioned earlier, organizations are rather complex in nature and there are several factors, which affect how organizations work. Therefore, it is necessary to conduct a thorough and deep study, which takes into account a wide variety of factors and their

implications on organizations in order to develop a deeper understanding of a phenomenon, which this study aims to do. Furthermore, the comparison between digitalization in two separate municipalities provides further depth to the study itself and enables the study to draw

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Shortcomings of case studies

According to Patton (1980) one major shortcoming of case studies is that it is almost impossible to statistically generalise the results and conclusions since they are based a single or few number of organizations. However, this study aims to develop deeper understanding of how two specific municipalities are working to digitalise their operations. Therefore, there is no real necessity to statistically generalise the findings. According to Kvale and Brinkmann (2014) statistical

generalisation of results can provide a guideline and help predict what would happen in a similar or a different situation, which this study does not aim to provide.

As explained earlier, the aim of this study is to develop a deeper understanding about how two separate municipalities are working to digitalise. Following the arguments explained above, a case study is the most suitable and relevant method for conducting research in this particular case. Furthermore, a comparison between two cases is supported by its ability to provide additional perspective regarding the challenges, similarities as well as differences between the cases.

Comparison and within-case analysis

As mentioned earlier, this study is comparing two separate cases of digitalization. However, it would have been possible to present the study as a comparison between four cases instead. The departments of education and the departments of culture and leisure in the two chosen

municipalities could have been compared outright. However, in order to stay true to the objective of this study which is to find out the factors, which lead to differences in the municipalities regarding digitalization. The emphasis is on understanding and recognising these factors on a municipal level by studying the chosen departments. Therefore, the departments are not the main subjects of interest, instead it is the municipalities in their entirety. Selecting two separate

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provide variation in study, which ultimately provides a better understanding of the intricacies, related to digitalization in municipalities.

Even though this study is comparing two cases of digitalization in separate municipalities. The departments studied in each municipality provide additional context and allows for further analysis within these cases. Since, the chosen departments within a municipality can be

compared to one another along with an overall comparison between the cases. This is referred to as within-case comparison in this study and it provides a deeper and more specific knowledge, which is used to help understand the cases of digitalization in the municipalities. A within-case analyse will be included in the following section in this study (Mills, Durepos & Wiebe, 2010)

Theoretical material and gap spotting

The material and information collected for the purpose of this study has focused on digitalization in the public sector. A wide range of articles, books as well as studies and reports are examined in the process to determine a gap in information. This process is usually called gap spotting and its purpose is to help the researcher identify an area within a particular subject, which have not been studied or researched in depth (Sandberg & Alvesson, 2011). Upon doing so, it was rather apparent that digitalization in the public sector in Sweden is a relatively unexplored area of research. There are quite a few studies about the topic, however most of these studies are conducted by civil engineers and law students focusing on the technical and legal aspects of digitalization in the public sector.

Most studies about digitalization in the public sector seem to focus disproportionally on large government agencies as opposed to municipalities. Furthermore, as mentioned in the

introductory part of this study, more than half of all interactions between citizens and public sector occur on a municipal level. Improving these interactions is one of the main objectives and reasoning behind digitalization. Municipalities are quite different to one another in many

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digitalization of public sector. The study aims to fill the gap in knowledge regarding the enormous differences, which are apparent in results amongst municipalities in Sweden.

The following terms were used to search for relevant literature and research articles for this study – Digitalization, public sector, e-governance, digital government, process of digitalization, digital transformation, digital innovation, digital co-operation, digital governance, change in public sector, governance, decision making in public organizations, development of

municipalities. All the searches were filtered to focus on the public sector and when possible on a municipal level.

Case selection

In order to study digitalization in the public sector on a municipal level two different

municipalities were identified as suitable organizations for this study. The reasoning behind the selection of these two municipalities can be explained with the help of local context as well as their standings in comparison to other municipalities regarding digitalization. As mentioned earlier both municipalities have been given fictional names in order anonymize the respondent’s identities. Pseudonymisation was also considered for this study however, as it would have negatively impacted the information, which has been gathered, as a major aspect of this study is to understand the factors which lead to differences between municipalities. Therefore, it was highly prioritised and important to maintain the context surrounding the decision-making and organizational aspects within the municipalities, as it is essential for the overall understanding of the subject of digitalization.

Case 1 - Digitalization in Industri municipality

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the municipality reorganised its structure and adopted a centralised governing structure to ensure a powerful shift towards digitalization across the board. Digitalization has been prioritised in the municipality and led by a central department, which has been allocated resources accordingly. This is rather unique as the centralised approach is uncommon amongst municipalities. However, cohesiveness and consistency have been lifted as the reasoning behind the push towards

digitalization with an emphasis on centralisation. Furthermore, the municipality has traditionally been rather centralised which also adds to the historical and cultural view on how digitalization should be executed in the municipality.

Case 2 - Digitalization in Skärgård municipality

Skärgård municipality has been recognised as sub-par in regard to digitalization. Digitalization has not been prioritised in the municipality for the longest time and there was a lack of structure to facilitate and organise work towards digitalization. The municipality has historically been notoriously decentralised in its structure and operations. Which is the exact opposite to the organizational approach implemented by Industri municipality. The decentralised structure remained prominent within the Skärgård municipality up until recent times, which continued to cause challenges for the municipality to effectively combine its efforts and lead the development towards a common goal. Which led to the realisation that a structural and organizational change was necessary. The municipality recently shifted its strategy and has been gradually trying to create a centralised governing structure towards digitalization of all areas of the organization. Skärgård municipality created a new centralised function, which is designed to provide help and support to all other departments with digitalization to a much greater extent than before.

However, the structural change was only implemented as recent as July 2019.

Selection of departments

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comparison since both departments have the exact same functions and responsibilities within the two municipalities.

The department of education

Digitalization is a prioritised aspect in the department of education since it is highlighted as one of the major objectives in the national guidelines for education. The implementation of

technology is necessary in the daily operation in the department of education as it relies upon spreading information and providing interactional services. The department accounts for almost 50% of the total budget expenditure for both municipalities, making it the department with the largest budget. Furthermore, the department of education is one of the most heavily regulated departments in all municipalities. The high level of regulation along with standardisation of large areas of operation within the department of education makes it easier to compare between two separate municipalities.

The department of culture and leisure

Contrasting to the department of education, the department of culture and leisure is the smallest of all departments within both municipalities. It has the smallest budget along with the least amount of resources and personal. Furthermore, the department of culture and leisure is the least regulated department compared to others and specifically compared to the department of

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circumstances between the chosen departments illustrates the wide spectrum of functions, which need to be systematically considered and adapted to achieve a common goal.

Collection of empirical data

Semi structured interviews

An inductive approach has been used in this study, since the collection of information was pre-planned and determined well in advance. Semi-structured interviews allow a deeper

understanding about the research topic as well as the research gap. However, they also help identify issues and factors related to the topic (Bryman and Bell, 2011). Therefore,

semi-structured interview was chosen to be the research strategy to obtain empirical information, since it would facilitate greater depth while also allowing issues and topics related to digitalization to be addressed in a more detailed manner. As Alvesson (2011) explains semi-structured interviews allow the respondents to talk freely about the topic instead of answering specific questions, which has the potential of limiting the scope of information as a result.

Two interview guides were created in order to collect relevant information while also ensuring all aspects of interest for this study was discussed in a systematic fashion. The interview guides consisted of the two themes, which are – organization and governance. The interview guide was sent in advance to each respondent before the actual interview was conducted. The interviews were conducted in Swedish, however they have also been translated to English and can be found in the “Appendix” section in this study.

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regions across the nation to digitalise. They represent the entity, which facilitates co-operation and development amongst municipalities.

The duration of interviews ranges from 30 minutes to 65 minutes in total, with an overall average duration for interviews being around the 45-minute mark. In certain cases, the limitation of time was caused by the respondent’s hectic schedules and busy timeframes, which would not allow for an interview longer 60 minutes. Six of the eleven interviews were conducted face to face, whereas the remaining five were conducted over telephone due to importance of social

distancing as a consequence of the coronavirus pandemic. All respondents have been informed about their rights regarding their participation and ensured their identities will be anonymised in this study. The interviews were recorded on the approval of the respondents and saved on the cloud service provided by Södertörns Högskola. All interviews were transcribed word by word to ensure all information was retained.

Selection of respondents

A goal-oriented selection as was implemented in this study as respondents with a clear understanding and responsibility regarding digitalization were identified and targeted for this study. The chosen respondents represent an important part of the organization, which works with the process of digitalization albeit on different levels.

In order to gain empirical data about digitalization and the specifics in the chosen municipalities as well the chosen departments, the following respondents were interviewed in this study -

Industri Municipality

Role Type of interview Date Duration

Director of Communication In person 25th of

February 2020 55 min Head of the department of

culture and leisure

Telephone 27th of March

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IT strategist for the department of education

In person 25th February

2020 30 min

Chairman of the education committee

Telephone 13th of March

2020 45 min

Chairman of the culture and leisure committee

In person 13th of March

2020 30 min

Skärgård Municipality

Role Type of interview Date Duration

Central IT strategist and Enterprise Architect In person 13th of February 2020 40 min

IT strategist for the department for education

In person 26th of February

65 min

IT strategist for the department of culture and leisure

In person 26th of February

2020 55 min

Chairman of the education committee

Telephone 19th of March 2020

40 min

Chairman of the culture and leisure committee

Telephone 19th of March 2020

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Sveriges kommuner och Regioner (SKR)

Another separate interview was conducted with two officers in the department of digitalization in SKR. These officers work to support and develop the fundamental base of technology in

municipalities in order to help them digitalise their operations. The interview lasted for 60 minutes and it was conducted digitally using the application program Microsoft Teams and the same program recorded the audio for the interview.

Thematic analysis

A thematic analysis of information has been performed in order to create a clear and solid structure for this study. The thematic analysis was used to sort through the information since the information is differentiated into separate categories which allows for a better use of the

information.

All information was thematically analysed from the offset and throughout in order to eliminate any risks or confusion. As Alvehus (2013) explains that it is often difficult to analyse a large amount of information because of the information overflow, which further complicates and in certain situations makes the analysis extremely challenging. The thematic analysis of all information gathered throughout this study has allowed it to fulfil the aim of the study, which was to understand how two separate municipalities are working to digitalise and why there are results differ significantly from one another. The themes developed through the process of thematic analysis for this study are Organization and Governance.

Collection of documents and method of analysis

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have been collected as part of an interview. The documents have been a great support in the preparation for interviews as well as analysis in this study.

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Empirical information

In this section, relevant empirical information, which has been collected, will be presented in detail for both cases. Each case will first be presented individually followed up by a summary and a systematic comparison between the cases in order to facilitate analysis and showcase the differences, similarities and other interesting findings in this study. The empirical data for each case will be presented in the chosen themes of organization and governance.

Case 1 – Digitalization in Industri municipality

Organizationisation

The organization structure in Industri municipality consists of one single administration divided in different departments instead of the traditional municipal structures where each department is considered a separate administration. However, the difference is mostly a formality as Industri municipality manages its organization in the exact same way as other municipalities.

The municipality has a designated Director of communications, which leads the department of communication. The director of communication is officially tasked with leading digitalization in the municipality and has the overall responsibility for the matter. As the municipality got serious about its work towards digitalization around four years ago, there was a change in approach, which has been explained, in the official annual document (Mål och budget 2020-2022). In Industri municipality, the citizens have always been at the core of all developmental changes and therefore the municipality decided to focus on the development of service and operations

internally as well as externally with the target group being the citizens from the offset and throughout (Digitaliseringsstrategi, 2018).

Lagging behind historically

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Industri municipality regarding digitalization has a rather humble origin. The municipality had historically failed to prioritise digitalise and was lagging in that respect up until recent times, which is about four to five years ago.” Meaning in the mid 2015 to early 2016 was the period of enormous shift towards a prioritisation of digitalization, which some members of the

municipality did not agree with.

However, the silver lining of the situation was that, since Industri municipality had been lagging and had failed to prioritise digitalization for such a long period. It allowed the central department of communication to develop a strategy and implement them with a degree of freedom which would most certainly not have been there, had the municipality found itself midst a half-hearted push towards digitalization. The fresh start enabled the municipality to make smart decisions when evolving its IT infrastructure which lead to significant improvements in a relatively short period as compared to other municipalities which had come longer in the process of

digitalization, however with mixed results causing difficulties to combine and utilise technology efficiently.

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departments in the process of purchasing new systems or services while following the relevant legal frameworks such as “Upphandslingslagen” and “Kommunallagen”.

Although it might seem like the legal aspect of the section might be a relatively small part of the department itself, it is however not the case. The legal process of purchasing new systems or services can be incredibly complicated and challenging for municipalities. This is due to the fact mentioned earlier in the study, all departments oversee their own organizational development, which includes purchasing of new systems or services to improve existing or create new services.

Centralised organization

The most significant reason behind the department of communications ability to provide help and support which leads to successful results is “the allocation of resources” according to the director of communications. The central department of communications in Industri municipality has a central pot of money which it can use to operate and improve different aspects of the municipality including the websites, other digital channels etc. Seven million kronor have been budgeted for the year 2020, which is explained by the director as “essential to enable the department to execute its functions.”

There is a strong agreement between the politicians and the management that certain aspects of the municipality's operations need to be centralised. This allows for a greater efficiency and also ability to form a cohesive administration, which provides a high level of service through

innovation while maintaining transparency across all the departments (Mål och budget, 2020). This ties into the previous section about the municipality being able to make effective decisions and start fresh. When asked about this the director added to the statement by explaining that the purchasing of services is still executed within the departments. Meaning the departments are in charge of the purchasing of new products and services, however had the topic been up for debate lately it would have most likely led to a new decision with a centralised purchasing process. The chairman of the education committee claims that “By having a strong centralised vision in the municipality it is easier for both officers and the citizens to adapt their expectations

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does not affect the department's ability to make decisions. There are no real power struggles between the central department and other departments when working together since the central departments prioritises the needs and requirements of other departments and thereby guides the process with the help of expertise.” The director of communication also presented a similar picture as the central department provides expertise and combines it with the knowledge in the departments. However, there are certain ground rules, which are maintained to ensure high quality and usability across all new additions to the organizations within the municipalities, and these are enforced in an informal way by the central department of communication. These ground rules are usually related to the graphical profile as well as the security of the services, since those two aspects need to be uniform across all departments in the municipality. Therefore, the departments have to follow the guidelines regarding the fundamental aspects communicated by the department of communication.

Organizational culture

The centralised organizational structure in Industri municipality has its roots going back in time. The municipality has historically been governed by the same political majority over with a shared sense of view in regard to organization. Over time this has led to a centralised organizational structure in Industri municipality, which is reflected in the naming and representation of the organization, there is one single administration with different offices instead of a collection of departments. However, in this study they will be called departments to avoid confusion.

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However, although the municipality is commonly associated with the centralised approach of governance, the IT strategist for the department of education explained that it is all about perspective. The respondent claimed that “The focus of most projects related to digitalization is on the external improvement and not internal.” Meaning the focus is put on developing and improving operations for the end user, which in this case are the citizens. This follows the unofficial mantra explained earlier in this section about the municipality focusing on improving its operations through digitalization externally towards citizens but not nearly as much on the internal development. When asked about the statement the IT strategist for the department of education claimed that “It is hopeless to try and focus on internal optimisation or development” albeit with a tongue in cheek tone. Which indicates a level of rigidity and consequently

frustration, as it becomes rather difficult to circumnavigate the bureaucratic measures, which involve separate parts of an entity.

How ideas are identified

The central department of communication maintains close dialogue with all departments with regular meetings and discussions about projects related to digitalization. There is always a structured plan developed in the beginning phase of new ideas where relevant departments are consulted, however there are always situations, which are less than ideal. The director of communication explained that sometimes “Certain departments decline the invitation to join a project only to later down the process changes their plans and express their desire to join.” The indecisiveness of the management leading the departments can be observed as a common issue since it is experienced regularly and often highlighted as a reason for projects to exceed their budgets or fail to meet their deadlines or both in some cases.

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be delayed since all departments focus on their own objectives which also makes planning and co-operating extremely difficult.”

Resources are key

The availability and allocation of resources is one of the most important factors dictating how and which projects get chosen and implemented. As mentioned earlier the budget for the

department of communications, specifically for the section of digitalization, which is tasked with working on new projects, has an annual budget of 7 million kronor for the year 2020 (Mål och budget 2020-2022). According to the director of communications “The budget is not significant enough to make a difference on its own, since most of the budget is spent on ensuring the quality of products and services incorporated in the municipality.” The central department of

communications is not in-charge of leading the development of other departments in the

municipality, it is however involved in the process to ensure the standards, which have been put in place.

Which takes us to the departments in the municipality, each department bears the responsibility for funding its own organizational development. Which means it is up to the departments to reach out to the central department with ideas along with an illustrative plan of how the ideas or concepts can be turned into a project, which will improve the services with the help of digital means. It is however, completely voluntary, and the decision-makers within the departments have different approaches to this system.

The director of communications states “Some of the heads of departments are extremely enthusiastic about digitalization and want to participate as much as they can albeit with

restrictions due to their own objects. However, there are others who actively avoid participating which makes it much harder to have a productive dialogue.” As a result, certain departments have been involved in a large number of projects whereas others have opted to not participate. The director of communications also explained “The departments which are actively involved in projects also show more enthusiasm about joint projects with other o departments as the

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