The organizational dynamics of smart city projects are shaped by the interplay of governance roles and rules, which influence both internal structures and inter-organizational collaborations. While existing research often highlights technological advancements in governing large cities, medium-sized municipalities face distinctive challenges, including fragmented capabilities and resource limitations, particularly in managing the data ecosystem. This study investigates how municipalities organize and manage the Data Value Chain during smart city transitions, focusing on the roles and rules of internal and external actors in driving digitalization. Through a qualitative case study of Pescara, Italy—a leading medium-sized city in digital development—we examine how local governments build internal capabilities while managing partnerships with corporate, Semi-Public, and private firms. Our findings propose an analytical framework to highlight the interplay of competencies, roles, and rules within the DVC, shedding light on governance mechanisms at the intersection of internal organizational structures and external actors. This framework underscores critical aspects such as data sovereignty, competences, and organizational integration. By advancing the discourse on smart city governance, this research provides actionable insights for medium-sized municipalities to address resource constraints, strengthen inter-organizational collaboration, and effectively integrate the data ecosystem into the smart city context.
