It was anticipated that governments’ use of Web 2.0 tools (hereafter Gov 2.0) would solve most egovernment issues and enable greater communication, participation and collaboration with citizens. This suggests the potential of Gov 2.0 as a communication and collaboration tool to enable citizens’ participation. However, the literature suggests that the current levels of citizens’ participation in Gov 2.0 have not lived up to previous expectations. The problem context is two-fold: on the supply side, governments generally tend to use Gov 2.0 for information dissemination and self-promotion without encouraging any interaction with citizens; reasons for this include the lack of time and the possibility of loss of control. Secondly, on the demand side, citizens are reluctant to participate in Gov2.0 activities because they do not trust the government and do not perceive the value of Gov 2.0. Current literature, however, provides only a limited view from these two perspectives. It tends to focus on either the government agencies or the citizens. To address this research gap, this PhD project will investigate the potential of Gov 2.0 by proposing a framework that links the supply and demand views of Gov 2.0 as a comprehensive solution to fully utilize its potential. In so doing, it uses a mixed methods research approach. This study is expected to contribute to both theory and practice. The theoretical foundation of the proposed framework builds on and extends value co-creation and citizen empowerment theories in a new context (i.e.Gov 2.0). The practical benefits include providing new insights into the ways in which Gov 2.0 can be used in order to take advantage of the digitally engaged population.