The Impact of Digitalization on Revenue Generation, Public Participation, and Allocation Efficiency
DOI:
https://doi.org/10.47941/jacc.2763Keywords:
Digitalization, Local Government, Revenue Generation, Public Participation, Allocation Efficiency, Institutional Quality, E-Governance, Ghana, Public Sector AccountingAbstract
Purpose: The primary objective of the study is to assess how digital governance tools influence fiscal mobilization, citizen engagement, and optimal resource distribution at the local government level. It also aims to explore the mediating role of institutional quality, economic development, and political stability in shaping these outcomes.
Methodology: The study adopts a quantitative research approach using panel data from 2010 to 2022. Secondary data were collected from credible sources including the World Bank, Bank of Ghana, and Our World in Data. Ordinary Least Squares (OLS) regression was used to estimate the relationships among digitalization and the dependent variables, supported by diagnostic tests including multicollinearity, heteroscedasticity, and stationarity checks to validate model assumptions.
Findings: The results reveal that digitalization has a statistically significant positive effect on revenue generation but a significant negative effect on public participation. Its impact on allocation efficiency, however, was statistically insignificant. Institutional quality and political stability were found to significantly enhance allocation efficiency, while economic development was inversely related to both public participation and allocation efficiency. These findings underscore the contextual and institutional conditions necessary for digital governance to deliver inclusive and efficient outcomes.
Unique Contribution to Theory, Practice and Policy (Recommendations): The study highlights the importance of aligning digital reforms with institutional strengthening and inclusive design. Policymakers must complement technological investments with capacity-building, civic education, and targeted digital inclusion strategies to ensure equitable benefits. The findings also have implications for public sector accounting, suggesting a shift in the role of financial managers in digital governance contexts. Future research should adopt mixed-method designs to further explore the behavioral and contextual factors influencing digital transformation outcomes.
Downloads
References
Abdulai, A.-R., Kc, K. B., & Fraser, E. (2022). What factors influence the likelihood of rural farmer participation in digital agricultural services? experience from smallholder digitalization in Northern Ghana. Outlook on Agriculture, 52(1), 57–66.
https://doi.org/10.1177/00307270221144641
Abdulai, A.-R., Tetteh Quarshie, P., Duncan, E., & Fraser, E. (2023). Is agricultural digitization a reality among smallholder farmers in Africa? Unpacking farmers’ lived realities of engagement with digital tools and services in rural Northern Ghana. Agriculture & Food Security, 12(1). https://doi.org/10.1186/s40066-023-00416-6
Abraham, A. Y., Ohemeng, W., & Ohemeng, F. N. A. (2017). Female labour force participation: evidence from Ghana. International Journal of Social Economics, 44(11), 1489–1505. https://doi.org/10.1108/ijse-06-2015-0159
Agyei-Ababio, N., Ansong, E., & Assa-Agyei, K. (2023). Digitalization of revenue mobilization in an emerging economy: the new Institutional Theory perspective. International Journal of Information Systems and Project Management, 11(2), 5–22.
https://doi.org/10.12821/ijispm110201
Asiedu, K. F., & Deffor, E. W. (2017). Fighting Corruption by Means of Effective Internal Audit Function: Evidence from the Ghanaian Public Sector. International Journal of Auditing, 21(1), 82–99. https://doi.org/10.1111/ijau.12082
Astutiningrum, A., Prihatiningtyas, Y. W., & Djamhuri, A. (2023). New Institutional Theory: Implementasi Anggaran Berbasis Kinerja. Jurnal Riset Dan Aplikasi: Akuntansi Dan Manajemen, 2(2). https://doi.org/10.33795/jraam.v2i2.77
Ayakwah, A., Damoah, I. S., & Osabutey, E. L. C. (2021). Digitalization in Africa: The Case of Public Programs in Ghana (pp. 7–25). springer. https://doi.org/10.1007/978-3-030-70538- 1_2
Chen, C., Zhang, Y., & Wang, S. (2023). Digital transformation and firm performance: a case study on China’s listed companies in 2009–2020. Digital Economy and Sustainable Development, 1(1). https://doi.org/10.1007/s44265-023-00018-x
Cooshneapa, R., & Hackett, S. (2019). Testing an Addition to the Technology Acceptance Model (TAM). Academy of Management Proceedings, 2019(1), 18859. https://doi.org/10.5465/ambpp.2019.18859abstract
Fischer, C., Heuberger, M., & Heine, M. (2021). The impact of digitalization in the public sector: a systematic literature review. Der Moderne Staat – Zeitschrift Für Public Policy, Recht Und Management, 14(1–2021), 3–23. https://doi.org/10.3224/dms.v14i1.13
Goodnight, G. T. (2008). Strategic Maneuvering in Direct to Consumer Drug Advertising: A Study in Argumentation Theory and New Institutional Theory. Argumentation, 22(3), 359–371. https://doi.org/10.1007/s10503-008-9093-z
Ha, L. T. (2022). Socioeconomic and resource efficiency impacts of digital public services. Environmental Science and Pollution Research, 29(55), 83839–83859. https://doi.org/10.1007/s11356-022-21408-2
Herlina, H., Widyaningrum, D., & Theotista, G. (2023). Tipologi Financial Technology Paylater: Technology Acceptance Model (TAM). Formosa Journal of Multidisciplinary Research, 2(1), 207–216. https://doi.org/10.55927/fjmr.v2i1.2417
Janssen, B., & Nonnenmann, M. W. (2016). New Institutional Theory and a Culture of Safety in Agriculture. Journal of Agromedicine, 22(1), 47–55.
https://doi.org/10.1080/1059924x.2016.1249444
Mountasser, T., & Abdellatif, M. (2023). Digital Transformation in Public Administration: A Systematic Literature Review. International Journal of Professional Business Review, 8(10), e02372. https://doi.org/10.26668/businessreview/2023.v8i10.2372
Ningrum, A., Prihatiningtyas, Y. W., & Djamhuri, A. (2017). New Institutional Theory: Implementasi Anggaran Berbasis Kinerja. Journal of Research and Applications: Accounting and Management, 2(2), 107. https://doi.org/10.18382/jraam.v2i2.77
Phillips, N., Tracey, P., & Karra, N. (2009). Rethinking institutional distance: strengthening the tie between new institutional theory and international management. Strategic Organization, 7(3), 339–348. https://doi.org/10.1177/1476127009337439
Sidanti, H., Murwani, F. D., Wardhana, E. T. D. R. W., & Sopiah, S. (2021). Online purchasing intention using the technology acceptance model (TAM) approach. Economic Annals- ХХI, 193(9–10), 85–91. https://doi.org/10.21003/ea.v193-10
Silva, P. (2015). Davis’ Technology Acceptance Model (TAM) (1989) (pp. 205–219). igi global. https://doi.org/10.4018/978-1-4666-8156-9.ch013
Sozinova, A. A. (2021). Investigating the Prospects of New Institutional Theory in the Smart Economy (Vol. 198, pp. 2075–2081). springer. https://doi.org/10.1007/978-3-030-69415- 9_227
Uula, M., & Avedta, S. (2023). Technology Acceptance Model (TAM) on Banking. Islamic Marketing Review, 2(1). https://doi.org/10.58968/imr.v2i1.238
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Ernest Oti-Akenteng, Evans O. N. D. Ocansey, Felix Oppong Asamoah
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
