Optimizing Local Government Performance Evaluation Systems Under Digital Transformation: A Public-Value Framework and an Expanded Case Study of Hangzhou, China

Abstract

Digital transformation has moved local government from electronic service delivery to data-driven, platform-based, and increasingly algorithmic governance. Yet many performance evaluation systems still rely on periodic reporting, manually submitted indicators, fragmented departmental targets, and internal administrative assessment. These arrangements are poorly aligned with the speed, complexity, inclusiveness, and accountability requirements of digital governance. This article develops an optimized framework for local government performance evaluation under digital transformation and strengthens it with an expanded case analysis of Hangzhou, China. Drawing on digital-era governance, public value theory, data-driven public sector theory, and algorithmic accountability, the study proposes a parsimonious five-dimensional architecture: governance effectiveness, public service value, data and platform capability, innovation and learning capacity, and trust, transparency, and accountability. Methodologically, the article adopts a design-science-oriented conceptual approach, policy-document analysis, and an illustrative case study. The Hangzhou case is examined through three connected layers: the evolution of the City Brain as a digital governance infrastructure, the government-service management monitoring system as a performance data mechanism, and DB3301/T 0472-2024 as an institutionalized local standard for digital evaluation of law-based government construction. The analysis shows that high-quality digital performance evaluation should not be treated as a technical dashboard. It must be embedded in legal standards, cross-department data governance, public participation, budgetary and corrective incentives, and ethical safeguards for privacy and algorithmic fairness. The paper contributes to digital economy and public administration research by shifting the focus from digitizing old performance indicators to creating dynamic, public-value-oriented, and accountable evaluation systems.