A public sector that adequately makes use of information technology can provide improved government services that not only stimulates business development it also intensifies citizen participation and economic growth. However, the effectiveness of IT and its governance at both national as well as on municipality level leaves much to be desired. It is often stated that this is due to a lack of digital skills needed to manage the IT function and alignment with business. Therefore, the aim of this study is to determine the effect that digital leadership competences and IT capabilities have on digital transformation readiness within Dutch municipalities. Based on an analyses of survey data from 178 respondents we recommend municipalities to implement a range of activities that all are related to realize the ability to constantly apply strategic thinking and organizational leadership to exploit the capability of Information Technology to improve the business.
