Innovation and Sustainability

This article examined the institutional transformations induced by the digital economy, with particular emphasis on their behavioural and strategic implications for economic governance. The study aimed to classify new institutional forms that have emerged within digital ecosystems and to analyse their influence on coordination, compliance, and decision-making among economic agents. A conceptual framework was developed on the basis of content analysis, comparative institutional review, and theoretical synthesis, drawing on up-to-date academic and policy sources. The findings showed that traditional regulatory models based on hierarchical authority have been increasingly replaced by algorithmic governance, platform-mediated regulation, and behavioural mechanisms such as nudging and reputational scoring. These mechanisms transformed economic behaviour by fostering conformity, shortening decision cycles, and altering preference formation. Strategic institutional responses included the introduction of digital tools such as e-government platforms, algorithmic audits, and performance dashboards. Public and private institutions displayed varying levels of digital maturity, leading to asymmetrical outcomes in accountability, inclusiveness, and trust. The study produced a typology of institutional strategies and behavioural effects to illustrate the structural and cognitive dimensions of digital institutionalisation. It also explored co-evolutionary dynamics, showing how institutions and behaviours mutually adapt through feedback loops and reflexive governance. The research identified behavioural opacity, decision- making acceleration, and emotional heuristics as key characteristics of digital environments. The practical relevance of the study lies in its value for policymakers, digital system designers, and institutional reformers. The results provide a basis for understanding how governance can remain effective, fair, and legitimate in technologically mediated systems. By integrating institutional theory with behavioural economics, the article contributes to a deeper understanding of governance adaptation in the context of rapid digital transformation 

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