Digital Governance in Mahalla Institutions: Methods of Applying Innovations in the Activities of Small Businesses and Private Entrepreneurs
Keywords:
digital governance, mahalla institutions, small business innovation, Uzbekistan, local self-governance, e-government, entrepreneurship.Abstract
This study investigates the intersection of digital governance and mahalla institutions in Uzbekistan, with a particular focus on how innovative technologies are being applied to support and transform the activities of small businesses and private entrepreneurs operating within these community structures. Mahallas, as the primary units of local self-governance in Uzbekistan, occupy a pivotal role in mediating between state institutions and individual citizens, and their digital transformation represents both a governance challenge and a developmental opportunity. Drawing on a mixed-methods research design that combines quantitative survey data collected from 150 mahalla administrators and 200 small business operators across six districts of Tashkent, alongside qualitative interviews and secondary data analysis, this paper presents empirical evidence on the current state of digital adoption, identifies the barriers to effective implementation, and analyses the impact of digitalisation on entrepreneurial performance. The findings reveal that while digital governance initiatives have yielded measurable improvements in administrative efficiency and business outcomes, significant disparities in adoption rates persist across districts, driven primarily by deficiencies in digital literacy, infrastructure gaps, and institutional inertia. The paper concludes with policy recommendations oriented towards accelerating equitable digital transformation within mahalla governance frameworks.
References
Abdullaev, E., & Saidov, A. (2019). Institutional reform and local governance in Uzbekistan: The changing role of the mahalla. Central Asian Survey, 38(3), 324–341. https://doi.org/10.1080/02634937.2019.1614823
Acs, Z. J., & Audretsch, D. B. (2003). Innovation and technological change. In Z. J. Acs & D. B. Audretsch (Eds.), Handbook of entrepreneurship research (pp. 55–79). Springer.
Bélanger, F., & Carter, L. (2008). Trust and risk in e-government adoption. Journal of Strategic Information Systems, 17(2), 165–176. https://doi.org/10.1016/j.jsis.2007.12.002
Bruton, G. D., Ahlstrom, D., & Li, H.-L. (2010). Institutional theory and entrepreneurship: Where are we now and where do we need to move in the future? Entrepreneurship Theory and Practice, 34(3), 421–440. https://doi.org/10.1111/j.1540-6520.2010.00390.x
Carter, L., & Bélanger, F. (2005). The utilization of e-government services: Citizen trust, innovation and acceptance factors. Information Systems Journal, 15(1), 5–25. https://doi.org/10.1111/j.1365-2575.2005.00183.x
Creswell, J. W., & Plano Clark, V. L. (2017). Designing and conducting mixed methods research (3rd ed.). SAGE Publications.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160. https://doi.org/10.2307/2095101
Dunleavy, P., Margetts, H., Bastow, S., & Tinkler, J. (2006). Digital era governance: IT corporations, the state, and e-government. Oxford University Press.
Fountain, J. E. (2001). Building the virtual state: Information technology and institutional change. Brookings Institution Press.
Gil-Garcia, J. R., Pardo, T. A., & Nam, T. (2018). A comprehensive understanding of smart governments. In J. R. Gil-Garcia, T. A. Pardo, & T. Nam (Eds.), Smarter as the new urban agenda (pp. 1–19). Springer.
Gisselquist, R. M. (2014). Developing and evaluating governance indexes: 10 questions. Policy Studies, 35(5), 513–531. https://doi.org/10.1080/01442872.2014.946484
Government of Uzbekistan. (2020). Decree of the President of the Republic of Uzbekistan on the strategy 'Digital Uzbekistan 2030' (No. UP-6079). Official Gazette of the Republic of Uzbekistan.
Heeks, R. (2006). Implementing and managing eGovernment: An international text. SAGE Publications.
Ilkhamov, A. (2004). The limits of centralization: Regional challenges in Uzbekistan. In P. Jones Luong (Ed.), The transformation of Central Asia (pp. 159–181). Cornell University Press.
Liu, M. (2012). Migrant networks and new destinations: Uzbek labor migration to Moscow. Ethnic and Racial Studies, 35(7), 1224–1242. https://doi.org/10.1080/01419870.2011.607503
Megoran, N. (2008). Framing Andijon, narrating the nation: Islam Karimov's account of the events of 13 May 2005. Central Asian Survey, 27(1), 15–31. https://doi.org/10.1080/02634930802018840
Mukhopadhyay, B. (2016). E-government in Central Asia: Prospects and challenges. International Journal of Electronic Government Research, 12(1), 60–79. https://doi.org/10.4018/IJEGR.2016010104
Nam, T., & Pardo, T. A. (2011). Conceptualizing smart city with dimensions of technology, people, and institutions. In Proceedings of the 12th Annual International Digital Government Research Conference (pp. 282–291). ACM Press.
OECD. (2017). Government at a glance 2017. OECD Publishing. https://doi.org/10.1787/gov_glance-2017-en
Rasanayagam, J. (2011). Islam in post-Soviet Uzbekistan: The morality of experience. Cambridge University Press.
Ritchie, J., & Spencer, L. (1994). Qualitative data analysis for applied policy research. In A. Bryman & R. G. Burgess (Eds.), Analysing qualitative data (pp. 173–194). Routledge.
Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478. https://doi.org/10.2307/30036540
Williamson, O. E. (1985). The economic institutions of capitalism. Free Press.
Downloads
Additional Files
Published
Issue
Section
License
Copyright (c) 2026 Both journal and authors

This work is licensed under a Creative Commons Attribution 4.0 International License.



