Smart city and e-government as drivers of community involvement in urban governance: the mediating role of digital literacy

This study examines how smart city initiatives and e-government practices influence community involvement in urban governance, with digital literacy serving as a mediating factor. Conducted in Indonesia, the research collected data from 120 respondents using a purposive sampling method and analyzed it through Partial Least Squares Structural Equation Modeling (PLS-SEM). Drawing on the perspective of urban innovation and governance, the research investigates the extent to which technological and institutional innovation foster participatory engagement in sustainable cities. The results demonstrate that smart city initiatives and e-government both exert significant positive effects on community involvement, underscoring their role as drivers of urban participation. However, digital literacy shows a negative direct effect on involvement, suggesting that while digital competence is enhanced, it does not automatically translate into deeper civic participation and may even shift engagement toward individualized rather than collective forms. Digital literacy does not consistently strengthen this relationship; while it improves citizens’ technical competence, its direct effect on participation remains limited. Mediation analysis reveals that digital literacy partially mediates the influence of e-government and smart city programs on community involvement. These findings highlight the complex relationship between technological innovation, governance mechanisms, and social participation. The study contributes to urban governance literature by uncovering how innovation in digital infrastructure interacts with civic capacities. Practically, the results suggest that policies must not only expand digital literacy programs but also align them with civic-oriented frameworks to ensure that technological innovation translates into more inclusive and sustainable governance practices.