Assessing Digital Innovation Strategies for Effective Cost Management in Federal Government Parastatals in Rivers State

Abstract

This study investigates the impact of digital innovation strategies on cost management practices within federal government parastatals in Rivers State, Nigeria. Specifically, it examines how administrative innovation, technological innovation, and process innovation influence cost reduction, resource optimization, and budget compliance. A descriptive survey research design was employed, with data collected through structured questionnaires administered to 120 respondents across selected federal parastatals out of these, 105 were validly completed and returned. The data were analysed using descriptive statistics and multiple regression analysis. The results revealed that all dimensions of digital innovation strategies significantly contribute to effective cost management. Administrative innovation was found to improve bureaucratic efficiency and reduce overhead costs. Technological innovation enhanced data accuracy, streamlined financial operations, and promoted transparency. Process innovation emerged as the most influential factor, significantly improving workflow efficiency and budgetary compliance. The study concludes that digital innovation is a critical tool for achieving fiscal responsibility and operational efficiency in the public sector. It recommends that federal parastatals institutionalize digital processes, strengthen ICT infrastructure, and continuously train staff to ensure effective implementation of innovation strategies. Government policies should further support the digital transformation agenda to enhance public sector performance and accountability.

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