This paper delves into the complex landscape of digital government (or e-Government) research, exploring the concept of public value. Drawing from extensive literature from public administration, particularly the works of Moore, Beck Jørgensen and Bozeman, and Rose et al., the study investigates the relationship between public value ideals, using structural equation modelling (SEM). Utilizing data from both citizens and public servants in a Swedish municipality, two models are constructed, reflecting the multifaceted nature of public values in practice. The findings highlight a disconnect between the perceived values of citizens and of public servants. While citizens prioritize efficiency and service as values to be created, public servants emphasize internal values of support for the public organization, referred to as an “institutional approach”. This study contributes to the ongoing debate on public value(s) in digital government by illustrating the importance of contextual viewpoints and question the role of service provision in relation to public values. It emphasizes the need to balance generative and institutional perspectives and advocates for further research to explore the shift from “serving” to “service” in the public sector ecosystem. Through these insights, this research is intended to inform more effective strategies for digital government and public sector management in contemporary societies.