Volume 25, Issue 3 e70067
RESEARCH ARTICLE

Resolving the Effectiveness–Efficiency Paradox in AI-Enabled Public Services: Insights From the Resource-Based View and Public Value Theory

Novianita Rulandari

Novianita Rulandari

Master Program of Public Administration, Universitas Muhammadiyah Palangkaraya, Palangkaraya, Indonesia

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Andri Dayarana K. Silalahi

Corresponding Author

Andri Dayarana K. Silalahi

Department of Marketing and Logistics Management, College of Management, Chaoyang University of Technology, Taichung, Taiwan

Correspondence:

Andri Dayarana K. Silalahi ([email protected])

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First published: 15 July 2025

Funding: The authors received no specific funding for this work.

ABSTRACT

The integration of AI in public services creates a paradox where efficiency can undermine effectiveness, affecting service quality, citizen trust, and stakeholder satisfaction. This study addresses the dual outcomes of citizen and employee satisfaction, highlighting the moderating role of Human-AI collaboration in balancing these dimensions. Drawing on the Resource-Based View (RBV) and Perceived Value Theory (PVT), the research examines AI's impact on citizen satisfaction (effectiveness) and employee satisfaction (efficiency). Data were collected from 805 government employees and 699 citizens across multiple Indonesian public agencies over a 6-month period in 2024 and analyzed through Structural Equation Modeling (SEM). Results show that service accuracy, transparency, and trust enhance citizen satisfaction, while processing time, accessibility, and resource utilization improve employee satisfaction. Human-AI collaboration moderates the relationship between efficiency and service quality, aligning effectiveness and efficiency to achieve dual satisfaction. By addressing theoretical gaps in public administration and AI adoption, the study underscores Human-AI collaboration as a critical mechanism for integrating technological solutions with human oversight.

Conflicts of Interest

The authors declare no conflicts of interest.

Data Availability Statement

Data will be made available on request.

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