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Objective To mitigate the effect of caregiver shortage, collaborative networks in Norwegian municipalities are exploring the possibilities provided by e-health and welfare technologies. However, extracting benefits from such technologies depends on many factors. Methods In this study, an extensive literature review is performed to compare e-health and other sectors in terms of the critical success factors in collaborative business process management. Using the dynamic capabilities view as a general theoretical lens, and a process orientation framework for operationalization, these factors are then conceptualized and validated in a cross-sectional study of cases in the Norwegian municipal e-health sector. Results The study contributes to e-health research by identifying the key factors that influence performance. These factors are significantly driven by government policies and regulations. Our findings challenge the assumption that welfare technology networks can be built from the bottom up without government intervention. Regulatory interventions are needed, to obtain process performance metrics and foster viable, long-term business models for the participating institutions. Conclusion The findings have an impact on research and practice, especially in local public management, for predicting and prescribing future development in this context. There are indications of significant gaps in government policies and regulations. Further research should examine whether and how these findings transcend the chosen context. [ABSTRACT FROM AUTHOR]