Abstract
As public sector organizations globally endeavour to modernize their operations through digital technologies, the integration of blockchain stands out as a promising solution. However, the adoption of blockchain in governmental contexts poses unique challenges due to the inherent tension between decentralization and centralization. This paper explores the governance mechanisms influencing the design and effectiveness of blockchain-based information systems (IS) in centralized public sector organizations. Drawing upon a synthesis of traditional governance, IS governance, and blockchain governance literature, we identify key adoption hurdles such as regulatory ambiguities, privacy concerns, and interoperability deficits. We also elucidate three critical factors shaping effective governance: decision-making processes, incentives and motivations, and situational and environmental factors. Through a design science research approach, we propose an integrative methodology for developing blockchain IS artefacts tailored to the complexities of government operations. Our study aims to contribute a comprehensive framework and guidelines to assist public sector organizations in effectively navigating blockchain technology adoption, thereby modernizing government operations and enhancing citizen-centric governance models.