Background: E-government initiatives aim to enhance public service delivery efficiency, transparency, and citizen accessibility. However, adoption rates and effectiveness vary significantly between urban and rural municipalities due to digital divides and resource constraints.

Objective: This study investigates the factors influencing e-government adoption and examines its impact on public service efficiency across urban and rural municipalities.

Method: This study uses a simulated dataset created for academic training purposes. A mixed-methods approach was employed combining survey data from 450 municipal employees and citizens with performance metrics from 60 municipalities over 3 years. Multiple regression and thematic analysis were utilized.

Key Results: E-government adoption was 42% higher in urban municipalities (β = 0.38, p < 0.001). Digital literacy showed the strongest predictor of adoption (β = 0.45, p < 0.001). E-government implementation improved service efficiency by 28% in urban areas but only 12% in rural areas.