The Iron Cage of Internal Efficiency: A Content Analysis of Digital Transformation Strategy Direction in Swedish Regions

This study conducts a content analysis of digital transformation strategy documents from 20 Swedish regions to investigate their strategic direction, with particular attention to the interplay between efficiency and innovation. The findings indicate a prevalent focus on internal efficiency, which aligns with the bureaucratic culture of the public sector. Analyzing 1699 mentions of "digital," the study employs Boolean coding to discern the regions' strategic activities, highlighting a dominant orientation towards exploitation over exploration. This suggests a misalignment with the dynamic capabilities and culture conducive to digital transformation success. The study advocates for a strategic shift towards ambidexterity, balancing efficiency with innovation and adjusting the focus between internal processes and external stakeholder engagement. It emphasizes the need for public sector organizations to reevaluate their strategic approaches and align them with ambidexterity and cultural transformation to realize digital transformation's promise fully. The study concludes with the imperative for future research to investigate the facilitators and barriers to achieving strategic and cultural alignment within the public sector.