Governance innovation and digital-enabled stakeholder participation in community-based institutions: Evidence from catholic parishes in Tanzania

This study examined the influence of stakeholder participation in strategy formulation on organisational performance within community-based institutions, with particular emphasis on faith-based organisations engaged in local development. Participatory governance is conceptualised as an institutional innovation that promotes inclusiveness, transparency, accountability, and coordination in organisational processes. The study situates participation within the broader science, technology, and innovation (STI) framework, recognising digital and communication technologies as critical enablers of inclusive governance and local transformation. Despite its growing application, limited empirical evidence exists on how stakeholder participation, supported by technological innovation, contributes to relational and institutional value creation in developing country contexts. Primary data were collected from 401 respondents across 56 Catholic parishes in Northern Tanzania. A quantitative research design was employed, and Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyse the relationships among key constructs. The study introduces Ecclesial Participation Capital (EPC) as a mediating construct reflecting trust, shared ownership, collective identity, and alignment with institutional mission and values. The results indicate that stakeholder participation has a significant positive effect on EPC, which in turn enhances organisational performance across financial sustainability, operational efficiency, and community engagement. Furthermore, digital and communication technologies strengthen participatory governance by improving information flow, enhancing transparency, and enabling broader stakeholder inclusion and knowledge exchange. Mediation analysis confirms that EPC serves as a critical pathway through which participatory governance and technological innovation translate into improved organisational outcomes. This study contributes to the science, technology, and innovation literature by providing empirical evidence on how participatory governance, reinforced by digital innovation, enhances organisational performance through relational capital development. It also offers context-specific insights for strengthening the effectiveness, accountability, and sustainability of community-based organisations in Sub-Saharan Africa.