UNEXPECTED ADVANTAGES OF LESS ACCURATE PERFORMANCE MEASUREMENTS. HOW SIMPLE PRESCRIPTION DATA WORKS IN A COMPLEX SETTING REGARDING THE USE OF MEDICATIONS

In this paper we argue that performance measurement can be done better by general, less accurate measurements than by complex – and possible more accurate – ones. The conclusions of this study are drawn from a case study of the Dutch Foundation for Effective Use of Medication. While most studies about performance measurements focus on the management of public service organizations, this case study – informed by the literature from Science and Technology Studies – focuses on the active role of the measurements themselves. In the paper we show that indicators do not have to be as complex as the practices they represent – as long as they are part of a chain of intermediary data that allow travelling from the general or simple indicators to detailed data in day‐to‐day practices and vice versa. Furthermore, general indicators enable stakeholders to obtain distance from each other. Rather than the involvement of stakeholders, it is this reflexive distancing that explains the degree of compliance to performance measurement and thereby the prospect for effective co‐governance.     

A replication of “Contracting out: For What? With Whom?”

In the 1980s, governments around the world adopted New Public Management ideas about inserting competition into government as a way to improve the performance of public organizations. In many nations, contracting out was one method of making governments more businesslike. Yet, there have been few studies of how government contracting behaviors have changed since the early 1980s. We replicate Ferris and Graddy's classic 1986 study of local government production and sector choice to assess how public procurement has changed over the past 35 years. Our findings show that today, contracting out is more commonly used across 25 local government service areas. In contrast to the original study, much of the growth has been in government-to-government contracts. For profit firms are also winning more contracts for high transaction cost work, while nonprofits are receiving fewer government contracts in nearly every service area. Our analysis suggests that contracting out remains of the highest importance in 21st-century governance and that additional research is needed on how to manage contracts to achieve the best value.     

Towards Performance,Quality and Environmental Management in Local Government: the Case of Spain

The search for improvements in the management and quality of public services seems to be a constant in all public administrations, and there is an ever-increasing use of management techniques and models from the business sector. The aim of this paper is to show which management systems are being used by Spanish local governments to improve their management in terms of economy, quality and the environment. Our analysis is based on a questionnaire sent to Spanish local governments about the tools they use and the factors that influence their implementation. The results show that more efforts are necessary to implement performance measurement and total quality management, but they also show some positive aspects, such as the usefulness of performance measurement and its application to decisions in those local governments that have implemented it.     

The Impacts of Different Regulatory Regimes on the Effectiveness of Public Procurement

The combination of two reforms in Russia, reform of public-sector entities and of public procurement, enables us to estimate the results of a transition from rigid to more flexible regulations in public procurement (PP). We consider two public universities in 2011–2012. The procurements of one university were regulated by rigid Federal Law during the entire period; the procurements of the other university were regulated by Federal Law until June 2011 and then by a more flexible regulation. Using the difference-in-differences methodology, we assess how the transition to this new regulation affects the main PP parameters. We show that more flexible regulation leads to a decline in bid competition but improves contract execution.     

Organisational choices in public procurement: what can public management learn from the private sector?

ABSTRACT

In the public context, the efficient and effective management of procurement activities has a crucial impact on the achievement of operational and broader government objectives. In particular, the potential contribution of procurement within local governments has been broadly recognized, and organisational procurement choices represent a strategic aspect that must be managed to contribute to these objectives. Through the analysis of data on 371 Italian municipalities, this paper discusses how to design procurement organisation variables for local governments. Three possible organisational models are identified (i.e., authoritative procurement, silo procurement, and local procurement) and discussed from the perspective of internal and external contingencies that may affect organisational decisions.     

Internal or External Production and Satisfaction with the Chosen Sourcing in Danish Municipalities: Different Theoretical Explanations

Abstract

There is a large literature on both why local governments and public organisations choose internal or external production of services and what explains the performance of internal and external production. A range of different theories have been used to answer these questions. However, these studies show mixed results. In this study we investigate four theories: transaction cost economics, neoclassical economics, the resource-based view of strategy and institutional theory. Can these theories explain whether local governments choose internal or external production and can they explain the satisfaction with the internal and external production? Do the same variables explain the choice and the satisfaction? Based on a survey of four different service areas in Danish municipalities, it is shown that different theoretical variables explain the choice and satisfaction with the sourcing mode. Internal expertise is strongly related to the choice of internal or external production, whereas most transaction cost variables are unrelated to this choice. However, other variables such as supplier expertise and technological uncertainty are related to satisfaction with service production. The results corroborate the view that different variables are needed for explaining the performance of suppliers and the choice between internal and external suppliers. Furthermore, the results suggest that the study of local governments' sourcing may benefit from integrating theories focusing on internal expertise and markets. Studies may also benefit from integrating economic theories, which assume rationality, with institutional theory emphasising more unreflective and socially determined behaviour.     

Government contracting and procurement: a critical process for both the public and private sectors

The costs and benefits of government purchases of goods and services from businesses are examined from the perspective of both public and private sector officials. Generally, governments see more benefits than costs, often because of fiscal stress. Businesses, especially newer, smaller firms are more likely to see more costs than benefits. The article concludes with ten projections for changes in public procurement systems by the year 2000. These are: (1) expansion of current vendor pools; (2) intergovernmental adoption of standardized forms and procedures for getting and staying on government vendor lists; (3) mainstreaming of purchasing into the government financial management decision-making loop; (4) more rigorous training requirements for government purchasing personnel; (5) greater use of public-private task forces to reform procurement policies and practices; (6) greater use of surveys inside and outside government to identify specific problem areas and structure reforms; (7) expansion of the auditing and contract monitoring section of purchasing departments; (8) extension of bidding/contract monitoring and evaluation requirements and procedures to subcontractors of prime government contractors; (9) greater efforts to include quality dimensions in cost estimates; and (10) more tension and litigation over “protectionism” in public procurement.     

PARALLEL STRUCTURES IN THE EGYPTIAN GOVERNMENT BUREAUCRACY: A PROBLEMATIC QUICK FIX

This paper investigates the proliferation of parallel structures – also known as project implementation units (PIUs) and technical offices (TOs) – within the Egyptian public administration system and the pressures since the 1990s that have led to their increasing numbers, including the current political turmoil. To determine whether these structures are a viable tool for the implementation of reform in Egypt, the paper examines international experience, analyses the literature, and assesses the results of a brief survey of staff working in the traditional bureaucracy and those in parallel structures. The paper concludes that while PIUs may sometimes be necessary for initiating reform in the short term, long term sustainable reform requires genuine commitment of both donor and recipient governments to improve governance, build capacity within the traditional national institutions, apply performance management with a focus on policy impacts, and adopt alternative mechanisms in implementing development projects such as general budget support.     

Public-Private Partnerships as Collaborative Projects: Testing the Theory on Cases from EU and Russia

ABSTRACT

How do public-private partnerships (PPPs) differ from traditional public procurement and what role should governments play in them? This article views PPPs as collaborative projects with imperfect information between parties. Typical public procurement contracts tackle asymmetric information problems yet limit feasibility of projects: some are not profitable enough to ensure private party participation. Partnership improves feasibility; this justifies PPPs as a form of public good provision and demonstrates how they differ from procurement. Four UK and Russian cases of PPP projects are analyzed within the above framework, focusing on types of contracts, contributions of both partners, and specific partnership elements.     

Innovation in Public Management: Is Public E-Procurement a Wave of the Future? A Theoretical and Exploratory Analysis

Project management has become an answer to many traditional organizational structuration and performance shortcomings, while gaining currency in business and public sector organizations. Public procurement systems have evolved into public electronic procurement systems with variations and distinctions in the age of globalization and digitalized complexities. This article examines the development of public e-procurement as an innovation in public management in the contexts of project management, public procurement management, and e-governance. It also links practice to theory—through a fourfold theoretical perspective—with contributions to the knowledge in public procurement, governance, and public administration.     

PERFORMANCE MEASUREMENT IN SPANISH LOCAL GOVERNMENTS. A CROSS‐CASE COMPARISON STUDY

This paper explores local government in Spain: the nature of and extent to which performance measures are developed and how they are used in some of the biggest Spanish local governments. The features of performance measurement in Spain raise the question of why non‐mandatory performance indicators are introduced and why specific initiatives are undertaken. A cross‐theory strategy allows us to build a wider explanation of the cases studied. This study shows that performance measurement systems are not neutral but conditioned by the environmental context of each local government to fit into its organizational structure. Spanish local governments are experimenting with different approaches – centralized/decentralized, top‐down/bottom‐up, internal/external use – to implement performance measures. A relationship between external use and the top‐down approach, and internal use and the bottom‐up approach can be found. Our results also show that the institutional image value of taking decisions under rational decision‐making models is the primary driver of implementation processes.     

Рublic Procurement in Russia: What Hinders Innovation?

ABSTRACT

Using public procurement to foster innovation is a widespread practice worldwide. However, in Russia public procurement has had no significant impact on developing innovation. Empirical research with expert interviews and qualitative and quantitative data analysis has revealed the reasons for poor performance to promote innovation, including tough anti-trust and anti-corruption rules, limited use of tenders as well as “life-cycle cost” criteria, and poor management by the procuring agencies. The analysis revealed the contradiction between the rules designed for fighting corruption and monopolies and the need to stimulate innovation through procurement.     

Beyond privatisation and cost savings: alternatives for local government reform

Unsatisfactory results from privatisation have caused local governments to seek alternative reforms. Inter-municipal cooperation, mixed public/private delivery and contract reversals are three alternatives that have gained traction in the last decade. These alternatives help local governments manage markets for public service delivery as a dynamic process. They maximise government/market complementarities and address a wider array of public goals beyond cost efficiency concerns. The alternative reforms show how local governments balance citizen, labour and community interests to ensure efficiency, coordination and stability in public service delivery.     

Public Administration in the Middle East and North Africa

ABSTRACT

This article highlights the objective of the special issue which is to understand the status of public administration in six profiled countries – Egypt, Jordan, Lebanon, Libya, United Arab Emirates (UAE), and Turkey – in the Middle East and North Africa (MENA). The special issue explores public administration as a concept—the diversity of guiding general principles that determines how governments administer the affairs of state in the context of their governance frameworks—and as praxis—the diversity of public administration structures, procedures and practice, and reform initiatives. It is evident that the countries profiled have adopted a mode of public administration and governance that mirrors its history, and its cultural, geo-political, socio-economic, and conflictive environments. In this context, the editors hope that the articles presented in this special issue will contribute to advancing the public administration literature in MENA.     

Infrastructure Public–Private Partnerships in the Developing World: Lessons from Recent Experience

Seeking to address inefficient and costly infrastructure delivery, governments over the past two decades have turned to public–private partnerships (PPPs) to build and operate infrastructure. The key characteristic of PPPs is the outsourcing and ‘bundling’ of project delivery components (for example, design, build, finance, operate), structured to incentivise the builder-operator to incorporate long-term operating cost considerations in the design and construction phases of a project and reduce coordination costs. This article reviews the benefits and drawbacks of PPPs and the experience to date, focusing in particular on developing economies. Relative to traditional procurement, PPPs are complex, and require governments to anticipate and plan for contingencies and conduct monitoring and enforcement of long-term contracts. We argue that institutional capacity is a key determinant of PPP success and in mitigating potentially welfare-reducing contract renegotiations evident in the Latin American experience.     

FROM RED TAPE TO WHICH PERFORMANCE RESULTS? EXPLORING THE RELATIONSHIP BETWEEN RED TAPE AND VARIOUS DIMENSIONS OF PERFORMANCE IN HEALTHCARE WORK UNITS

Decades of research on red tape have still to provide final answers as to whether red tape reduces performance. This may be due to not distinguishing the different dimensions that public service performance consists of. Shifting the focus to rules and their characteristics, this study analyses how the degree of compliance burden and lack of functionality of rules relates to overall and dimensional public performance. Building upon the argument that red tape reduces resources and motivation and by doing so influences performance, hypotheses are put forward regarding the relationship to performance. Using red tape reports from employees in 49 work units and performance rated by the supervisor, this study shows that performance is at its lowest when the rules have a high compliance burden and lack functionality. Moreover, the dimensional analyses show that compliance burden may be most detrimental for output, whereas lack of functionality reduces responsiveness and democratic outcomes.     

Is cooperation cost reducing? An analysis of public–public partnerships and inter-municipal cooperation in Brazilian local government

ABSTRACT

In local government systems worldwide, financial pressures have obliged local authorities to focus on cost-efficient methods for providing local services, including inter-municipal agreements and public–public partnerships. However, in comparison with municipal mergers, privatisation and other approaches to the problem, the cost impact of the cooperative provision has not yet been thoroughly examined empirically. Moreover, available empirical research has largely concentrated on waste disposal in developed countries. The present paper seeks to contribute to the empirical literature on inter-municipal agreements and public–public partnerships by comparing their impact on costs with ‘stand-alone’ provision in a range of non-waste local services. In contrast to the bulk of existing studies, our analysis takes place in a developing country context by examining Brazilian local government over the period 2013/15. We found that – on the whole – cooperative provision is less expensive than the ‘stand-alone’ provision for the services studied. Our results can be explained by the size and composition of the population, together with the politics for cooperation.     

Public Procurement Directives in the European Union: A Study of Local Authority Purchasing

Prompted by the Single European Market initiative, virtually all public procurement, except for defence equipment, is now subject to European Union rules which prohibit discriminatory (buy national) purchasing policies. This paper examines the impact of recent procurement Directives on local authority tendering and contract award behaviour (compliance), and considers whether the legislation has been successful in opening-up such public procurement to international competition. Although local authorities are making extensive use of the Official Journal to advertise their requirements, there is evidence that purchasers do not always adhere to the new legislation and it is not obvious that adherence to the legislation is improving. Moreover, an analysis of local authority contract award data for 1993 revealed that almost all contracts were won by domestic firms. However, doubts about the ultimate ownership of such firms and the sourcing of components means that there remains considerable scope for further work.     

ON THE PERFORMANCE OF COMPETITIVELY TENDERED, PUBLIC SECTOR CLEANING CONTRACTS

Quantitative analysis of competitive tendering and contracting typically focuses on their effect on the cost of providing public sector services. In this article we turn to the systematic factors that appear to influence the performance of cleaning contracts. This is defined as compliance with contract specification, public perception of service quality and other qualitative measures of service characteristics as observed by the contracting authority. Our analysis attempts to isolate particular features of contract design, monitoring and enforcement that influence performance positively or negatively. Econometric results based on a sample of public sector cleaning contracts suggest that contractor selection procedures and contract enforcement mechanisms have the greatest influence on performance.     

Cooperation,not cost savings: explaining duration of shared service agreements

Among local governments, inter-municipal cooperation is the growing reform; but the literature is silent regarding the determinants of longer-term shared service agreements. We conducted a survey of all local governments in New York State in 2013 to assess the level of sharing across 29 public services. The duration of shared service agreements varies from 1 to 80 years. What explains this difference? Our hierarchical linear model shows that service sharing agreements fall along a cooperation continuum, where cost savings are a determinant of shorter agreements, while the public values of service quality and cross-jurisdictional coordination explain longer-term agreements. We also find that positive past experience with sharing partners increases the duration of sharing agreements. Our analysis lays the foundation for new theories of shared services that build directly from the benefits of improved regional coordination, inter-municipal reciprocity and service quality, not from theories based solely on competition and costs.