Aim: The rapid and unbalanced urbanization in developing countries, particularly in the metropolis of Mashhad, has led to the expansion of informal settlements lacking adequate planning and infrastructure. This study aims to analyze the relationship between principles of urban governance, Digital city indicators, and the upgrading of informal settlements, and to provide a conceptual–practical framework for sustainable urban management.
Material & Method: The research employed a mixed-methods and applied approach. Quantitative data were collected through a field survey of 384 residents of informal settlements, while qualitative data were obtained through in-depth interviews with 15 urban experts. Data analysis was conducted using correlation tests, multiple regression, path analysis and SEM, analytic network process (ANP), and qualitative coding.
Finding: The results revealed that principles of urban governance, particularly citizen participation, transparency, and effectiveness, exert the greatest impact on achieving Digital city indicators. The structural equation modeling (SEM) confirmed that Digital indicators such as digital participation and data management act as mediators between governance and settlement improvement. Stepwise regression identified participation and transparency as the most influential factors, while the T-test highlighted the decisive role of spatial data (GIS) in decision-making. Moreover, ANP results prioritized strategies such as developing digital participation, strengthening ICT infrastructure, and promoting digital literacy. Qualitative findings also identified institutional weaknesses, centralization, and the digital divide as key barriers.
Conclusion: Integrating participatory governance with smart technologies can transform informal settlements into data-driven, resilient, and participatory urban fabrics, paving the way toward spatial justice and sustainable urban development.
Innovation: By proposing a three-layer model (governance–Digital city–informal settlements), this research demonstrates that leveraging data-driven technologies and local institutionalization can serve as innovative strategies for urban management and planning of informal settlements, providing practical insights for policymakers and urban managers.