Bytes, barriers, and logics: the vicious circle of digital welfare in fragmented institutional contexts

Purpose This study examines the digitalisation of active labour market policies in Italy’s Veneto region, exploring how organisations navigate institutional pressures for digital adoption in a fragmented welfare system. Design/methodology/approach A multi-site ethnographic approach was employed, involving 400 h of observation and 96 semi-structured interviews across public employment services, municipal social services, social enterprises, and for-profit organisations. Findings Organisations exhibit varied responses to digitalisation pressures based on their institutional logics. Public employment services emerge as aligned organisations, integrating market and social welfare logics. Social enterprises represent contested organisations, grappling with conflicting demands. For-profit enterprises align with the dominant organisation type, prioritising market logic. Municipal social services exemplify estranged organisations, resisting market-driven digitalisation. Research limitations/implications The study’s focus on the Veneto region may limit generalisability to other contexts. Future research could explore comparative studies across different welfare state regimes. Practical implications Findings underscore the need for a coordinated approach to welfare state digitalisation in fragmented institutional contexts, considering varied organisational responses and potential consequences for service quality and accessibility. Originality/value This study contributes to the literature on institutional logics by demonstrating how fragmented institutional fields lead to heterogeneous organisational responses to digitalisation pressures. It extends understanding of the challenges in implementing digital technologies in welfare contexts, highlighting the complex interplay between institutional logics, organisational types, and technological change.