Digital maturity and performance of public organizations: the mediating role of dynamic capabilities

Purpose This study investigates how dynamic capabilities influence the relationship between digital maturity and organizational performance within the public sector, addressing the persistent challenges governments face in achieving effective digital transformation. Design/methodology/approach A research model was tested using survey data collected from employees within the Dutch national government. Partial Least Squares Structural Equation Modeling (PLS-SEM), including importance–performance map analysis (IPMA), was employed to analyze the data. Findings The results reveal a strong, significant relationship between digital maturity and dynamic capabilities. However, no significant direct or mediating effects were found between dynamic capabilities and internal or external performance. IPMA further indicates that digital maturity constructs are more impactful on external performance, with learning identified as a high-impact yet improvable dynamic capability. Originality/value This study contributes to the underexplored area of public sector digital transformation by offering empirical insights into the role of dynamic capabilities and providing guidance for performance-oriented digital strategies.