The article explores electronic government as a change intervention initiative in the Sabah State public administration. It discusses its influence on organizational strategy, structure and performance, and argues that people are the active carriers of institutional meanings and actions that facilitate change. The study was conducted based on a qualitative research design involving indepth interviewing with 18 participants and data triangulation from other secondary sources. Findings suggest that electronic government was a transformative approach to organizational change and development. Taking the Sabah civil service to a globalized level, it added broader dimension to the organization's strategic direction with a focus on long-term goals. The transformation began with the creation of new social structures where power relations were distributed across employee levels. This had an impact on the notion of leadership as the introduction of electronic government had led to a decentralization of decision mak...