Government organizations operate under policy turbulence, digital disruption, fiscal constraints, and growing demands for accountable and equitable services. This systematic literature review examines how institutional capability is translated into government organizational performance and whether organizational commitment explains this process. Following a PRISMA 2020-informed integrative protocol, 60 peer-reviewed sources were synthesized, comprising 48 contemporary studies (2020–2026) and 12 foundational or methodological anchors. The findings conceptualize institutional capability as a higher-order architecture in which organizational culture enables sensing, institutional leadership enables seizing, and risk governance enables transforming. Organizational commitment operates as an enactment mechanism that converts institutional routines and strategic direction into persistence, knowledge sharing, discretionary effort, and adaptive implementation. Public value provides the normative criterion for evaluating performance through service quality, accountability, equity, legitimacy, and citizen outcomes. The review proposes an integrated capability–commitment–performance model and a research agenda for local government.
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