ORGANIZATIONAL STATUS AND PERFORMANCE: A CONCEPTUAL FRAMEWORK FOR TESTING PUBLIC CHOICE THEORIES

Popular belief is that ownership change (from public to private) brings about improved performance. But (i) ownership displays a spectrum, not an either/or; (ii) degree of competition is conceptually and often actually independent of ownership; and (iii) so is change-of-ownership's assumed instruments for improving performance, change in managerial incentive structures and reporting structures. The article surveys the relevant theories, popular and scholarly, and develops models for testing the relationships between status change (ownership) and performance (indices of productivity, profitability etc.), and between status change and internal organizational change (indices of reorganization and of linkage), in a small number of British organizations which underwent change in recent decades. Preliminary results of one or two analyses illustrate the methods and the possibilities.