ASSESSING THE IMPACT OF DIGITAL TRANSFORMATION ON PUBLIC SECTOR EFFICIENCY: A STUDY OF E-SERVICE ADOPTION AND GOVERNMENT PERFORMANCE "

Abstract

This study critically investigates the impact of digital transformation on public sector efficiency in Pakistan, with a particular focus on the adoption of e-services in Islamabad. Drawing on the Unified Theory of Acceptance and Use of Technology (UTAUT), the research explores how citizens' and government employees’ perceptions of awareness, satisfaction, and performance shape the  effectiveness of e-governance. Utilizing a quantitative approach, data was collected from 260 citizens and 220 public sector employees through structured Likert-scale surveys. Regression and ANOVA analyses reveal a statistically significant relationship between citizens’ awareness and satisfaction with perceived quality of e-governance, underscoring the growing relevance of digital tools in improving transparency, responsiveness, and service delivery. However, a negative performance correlation from the employee perspective signals institutional inefficiencies, lack of training, and resistance to digital change. These findings highlight a duality: while citizens exhibit higher digital engagement, public institutions struggle to match technological capability with operational reform. The research underscores the need for integrated policy approaches that combine infrastructural investments with capacity-building and institutional accountability. By bridging empirical gaps in South Asian digital governance literature, this study provides actionable insights for enhancing the transformative potential of ICT in the public sector.