Institutional Challenges in Implementing the ‘State in a Smartphone’ Model within the Context of Fragmented Public Governance of Digitalisation in Ukraine

Abstract

This article examines the institutional challenges of implementing the ‘state in a smartphone’ model within the context of fragmented public governance of digitalisation in Ukraine during the period 2019-2025. The methodological foundation of the study employs an integrative approach combining constructs from institutional economics and public administration grounded in systems analysis, with the concept of institutional complementarity serving as the central theoretical instrument. To address the research objectives, the study utilises stakeholder mapping methods, comparative benchmarking with international digitalisation models (Estonia, Poland, Denmark, Canada), and structural analysis of transactions within state information systems. The analysis reveals institutional fragmentation in public governance of digital transformation, manifested through the dispersion of resources among numerous budget holders, regulatory contradictions, and weak inter-agency coordination. The study investigates the structure and dynamics of the digital divide, which under wartime conditions has transformed from a matter of social equity into a question of survival, thereby generating new social stratification based on access to digital services. A systemic gap between technological modernisation and institutional transformation has been identified, giving rise to the phenomenon of ‘façade digitalisation’ – the creation of attractive digital interfaces without fundamental changes to bureaucratic processes. The research demonstrates that Ukraine presents a unique paradox: global leadership in citizen e-participation indices coexists with a mediocre position in overall digital government rankings, evidencing the asymmetry between civil society readiness and state institutional capacity. Five key contradictions within the Ukrainian model of digital transformation have been identified, and it is argued that without synchronous modernisation of the institutional environment, even successful technological solutions remain isolated islands of innovation, incapable of generating systemic transformation effects within the socio-economic system. The findings contribute to the theoretical understanding of digital transformation in post-Soviet contexts and offer practical implications for policymakers engaged in public sector digitalisation under conditions of institutional fragmentation and external shocks.