The success of modernization initiatives in the public sector requires the presence of an institutional culture that supports the concepts of modernization and development. Studies have shown that the main reason for the failure of 70% of change initiatives in the world is the absence of a supportive institutional culture, as it turned out to be the main obstacle to the implementation of modernization initiatives and their failure to achieve the desired goals.
Institutional culture is defined as the sum of the collective attitudes, values, standards, traditions and practices of the people working in that institution. It greatly influences the values, attitudes and beliefs that employees adopt, and it leads them to act, interact and respond in subtle and often silent ways. As a result, what appears on the surface is only a reflection of their actions as a reaction and vice versa. Moreover, previous traditions, experiences, and practices may also control their way of thinking and behavior, instead of responding to the requirements of the current or future stage. This means that many entities, with the prevailing institutional culture within, operate in ways that fit the past but are not suitable for current or future circumstances, especially modernization initiatives that require a change in future systems and technologies, as well as in the values and behaviors of individuals, which could prevent achieving the desired goals, i.e. the failure to achieve effectiveness and efficiency in work.