Abstract

Information technology has become a central vehicle for administrative reforms and public sector transformation and have given rise to the term e-government. This article delves into the significant subject of technology’s role in local government operations, particularly within the framework of the virtual organization model. The aim is to address the challenges faced by municipal decision-makers in managing relationships with citizens through the use of information and communication technologies, as well as the need for performance measurement tools in the context of public sector reform and digital governance. The goals of this study are (1) to propose a conceptual model of the virtual organization for local governments; (2) to develop a tool to measure the degree of virtuality of local governments offering e-services; and (3) to explore the relationship between the degree of virtuality score and population size. The virtual organization is defined as a strategic mindset of virtually organizing the local government around four vectors that represent the virtuality of the organization. We purport that a degree of virtuality score can be calculated based on the vectors of the virtual organization model: e-service, citizen experience, knowledge leverage, and institutional competencies. Data was collected in March 2021 from a purposeful sample of ninety-four elected officials or civil servants from Canada, the US, Greece, Iceland, Portugal, and Sweden. The degree of virtuality score of sixty-nine participating cities is presented, and the results show a positive correlation between population/city size and the degree of virtuality score. The development of the virtual organization model as a measurement tool to assess the level of virtuality in local government contributes to improving the effectiveness and efficiency of public service delivery, as well as increasing citizen engagement and satisfaction.