Government-Led digital transformation in FinTech ecosystems : Digital Transformation in Fintech systems

In this paper, we report on a qualitative exploratory case study of a national-level government-led digital transformation. We depart from most studies on government digital transformation that largely focus on improving existing services, bureaucratic processes, or adopting emerging digital technologies. Instead, we analyze the process of a government-led digital transformation aimed at addressing significant institutional voids within a resource-constrained context. Drawing from 60 interviews with stakeholders in the Ghanaian FinTech ecosystem, we theorize the concept of digital branching strategy as an alternative lens to envisage government-led digital transformation that considers the resource-constrained context and characteristics of governments. Our findings show that governments, especially those in resource-constrained contexts pursue digital transformation through exploring frugal innovations and leveraging established resources, structures, and relationships within an ecosystem. We subsequently develop a process model to explain the mechanisms of a national-level government-led digital transformation. Based on the findings and the model, our study offers critical insights to re-imagine government-led digital transformation in resource-constrained contexts by demonstrating how pursuing a digital branching strategy leads to planned and emergent outcomes because of the generative nature of the transformation.