Digitalization of Local Governments in Germany

Table of Contents

1. Frontmatter

2. 1. Introduction: Digitalization and Local Governance in Smaller Medium-Sized Municipalities

   Tomás Vellani

   Abstract

   As a high-priority task in German municipalities, digitalization has attracted significant attention from scholars. However, the majority of research is focused on large municipalities, while some studies focus on digital villages and rural areas. The medium-sized municipality, particularly the smaller medium-sized municipality—a subtype between 20,000 and 50,000 inhabitants—has been mostly ignored by empirical research. Competing perspectives in the literature alternately argue that smaller medium-sized municipalities are in a favorable or unfavorable position for digital transformation based on shorter administrative paths, the purportedly simpler and more agile governance of smaller sizes, economies of scale, and (lacking) capacity. This introductory chapter presents the research design and conceptual foundation required to address this research gap and puzzle. It introduces the questions that guide the study, namely, what characteristics does the governance of digital policy have, which factors influence it, and how does governance influence digital service provision. The chapter explains the mixed-methods design used, introduces key terminology such as digital transformation, digital policy, and governance, and discusses the competing scholarly perspectives on the potentials and limitations of this size.

3. 2. The Governance of Digital Policy: A Methodological Framework

   Tomás Vellani

   Abstract

   The qualitative part of the exploratory sequential mixed-methods study uses process tracing to reconstruct the historical trajectories in three chosen smaller medium-sized municipalities pioneering digitalization. It addresses the first two research questions: namely, what characteristics does the governance of digital policy have and which factors influence it? This chapter introduces historical institutionalism as a research approach, operationalizes the dependent variable governance of digital policy, and discusses explanatory factors for the governance of digital policy in the literature. The methodological considerations underpinning the study are discussed, such as causal chains, within-case inference, and data collection in process tracing. The criteria for selecting the three municipal case studies are presented.

4. 3. Trajectories of Digital Policy in Smaller Medium-Sized Municipalities

   Tomás Vellani

   Abstract

   Three case studies provide detailed accounts of digitalization in pioneering smaller medium-sized municipalities. The historical development of digital policy and its governance is reconstructed using process tracing and is divided into phases based on specific configurations of governance. The chapter presents within-case inferences, focusing on long-term continuities and discontinuities in key dimensions of governance, namely actors, scope, organizational distribution, (de)centralization, institutionalization, personnel capacity, and mode of change. The case studies examine explanatory factors influencing transitions between phases of governance, such as political support from the mayor, the presence of digital champions, pilot projects, external grants, and sufficient financial resources.

5. 4. The Governance of Digital Policy in Smaller Medium-Sized Municipalities

   Tomás Vellani

   Abstract

   This chapter discusses findings from three case studies of pioneering smaller medium-sized municipalities in the field of digitalization. It describes the governance of digital policy and its explanatory factors from a comparative perspective, focusing on commonalities and differences across cases; it then presents a typology of organizational structures for the governance of digital policy and puts forward a model of a self-reinforcing positive feedback loop to explain dynamics of change over time. Across pioneering municipalities, a shared trajectory of growth of the policy field can be observed over time. There is a defined trend toward increasing institutionalization of the policy field, growth in personnel capacity, expanding policy scopes from e-government to both e-government and e-participation, and larger and more diverse actor constellations. However, the configuration of the growth trajectory is case-specific. Significant variation in organizational structures and in (de)centralization can be observed over time and across cases. Both modes of radical and incremental change are present. Certain factors have an influence on the governance of digital policy: political support of the mayor, the presence of digital champions, pilot projects and external grants, changes to the legal framework, and the financial situation of the municipality help explain the trajectories of growth. The interaction of explanatory factors configures a historical institutionalist positive feedback loop. A snowball effect in which a municipality’s previous trajectory in digital policy, the existence of engaged individuals and institutions for the governance of digital policy, and political support make the acquisition of funds easier, promoting institutionalization, more personnel resources being allocated to the governance of digital policy, and more scope for growth in terms of tasks and objectives. The typology of organizational structures for the governance of digital policy typifies the variance in smaller medium-sized municipalities according to institutionalization, capacity, and cross-sectional or line organization. Interdepartmental digitalization officers, interdepartmental digitalization teams, digitalization officers, digitalization departments, de facto digitalization officers, and IT departments can all be found in charge of digitalization at this size.

6. 5. The Digitalization of Smaller Medium-Sized Municipalities: A Quantitative Perspective

   Tomás Vellani

   Abstract

   This chapter uses data manually collected from all 473 municipal websites of this size to examine the characteristics of digital policy governance and its influence on service provision. It categorizes the population of smaller medium-sized municipalities according to a typology of organizational structures and introduces the digital policy index. The index aggregates data on the availability and complexity of online services. Findings indicate that smaller medium-sized municipalities tend to have medium-low availability of online services, while medium-high availability is also relatively common. Very low service provision is rare, and a very high level of service availability is extremely rare. Regarding the governance of digital policy, nearly two-thirds of municipalities lack an organizational structure with a clear mandate for digitalization. Among those municipalities that do have such structures, digitalization departments are the most prevalent, followed by digitalization officers, interdepartmental digitalization teams, and interdepartmental digitalization officers. Line approaches to the governance of digital policy are more common than cross-sectional approaches at this size. Teams are also more frequently responsible for digitalization than individuals. E-government services are significantly more widespread than e-participation offerings. The study identifies significant correlations between organizational structures and digital policy index scores, providing evidence that governance plays a crucial role. The presence of highly institutionalized organizational structures for digitalization correlates with better online service provision. However, not all highly institutionalized structures yield the same effects, underscoring the importance of a nuanced consideration of organizational structures.

7. 6. Conclusion: The Potentials and Limitations of Smaller Medium-Sized Municipalities

   Tomás Vellani

   Abstract

   This chapter synthesizes the qualitative and quantitative findings of an exploratory sequential mixed-methods study to address the challenges of digitalization capacity in smaller medium-sized municipalities. It highlights the characteristics of digital policy governance, the factors influencing it, and the relationship between governance and digital service provision. The quantitative findings reveal that most smaller medium-sized municipalities face significant challenges with digitalization. Nearly two-thirds of these municipalities have weak institutions for governing digital policy, and almost half exhibit a medium-low availability of online services. However, there are also pioneering municipalities with well-developed digitalization governance and a broad range of online services. A positive correlation between certain institutionalized organizational structures and online service provision underscores importance of governance in advancing digitalization. The case studies demonstrate that pioneering municipalities follow a trajectory of growth and institutionalization in the digital policy field over time, with case-specific variations in organizational structures, (de)centralization, and modes of change. The interaction of explanatory factors—such as political support from the mayor, digital champions, pilot projects, external grants, changes to the legal framework, and the municipality’s financial situation—creates a positive feedback loop that fosters growth trajectories. The conclusion highlights the limitations associated with municipal size in relation to digitalization while also recognizing the existence of pioneering municipalities. It advocates for a nuanced perspective on the factors that interact with size to either promote or constrain digitalization. The chapter proposes avenues for further research on change agents, the role of mayors, and policy diffusion, and it discusses practical implications and policy recommendations.

8. Backmatter