Contracting out by the public sector: theory, evidence, prospects

1997 ◽  
Vol 13 (4) ◽  
pp. 67-78 ◽  
Author(s):  
S Domberger
1996 ◽  
Vol 17 (1) ◽  
pp. 11-17 ◽  
Author(s):  
Diana Grimwood‐Jones

2021 ◽  
Vol 7 (3) ◽  
pp. 369-389
Author(s):  
Gyeo Reh Lee

While public sector organizations have increasingly utilized New Public Management (NPM) strategies as a means of increasing the values of the market, a growing body of literature suggests that market-based reforms may generate indirect costs associated with negative organizational behaviors in the public sector. Focusing on probable consequences of government contracting out for the public workforce, this study examines the relationship between contracting out and voluntary turnover relying on a panel data of U.S. federal agencies from 2010 to 2017. The results present that contracting activity is associated with voluntary quits in the opposite direction depending on the level of job satisfaction. This finding disentangles the previous discussion on the relationship between NPM strategies and employee behavior.


2016 ◽  
Vol 9 (1) ◽  
pp. 57-71
Author(s):  
Mária Murray Svidroňová ◽  
Beáta Mikušová Meričková ◽  
Lýdia Gondášová

AbstractRecently growing attention has been paid to the issue of public-sector innovation: scholars have progressively developed a fully-fledged field of study in this direction, since remarkable differences exist between public and private organizations. Perhaps paradoxically, the decline of NPM itself from the 1990s onwards has paved the way to further developments of this field of study, surpassing the existent model through the exploration of innovative tools for stakeholders’ involvement in public decision-making. New Public Management reforms of public administration combined with the use of information and communication technologies have brought many innovations to the public sector, among others also public e-procurement. Our objective is to identify the driver and barriers of e-procurement use in contracting-out of public goods and services based on analysis in one selected region and its four municipalities in Slovakia. This study uses a qualitative and quantitative approach and is based on original data from our own research, including data collected within the LIPSE (Learning from Innovation in Public Sector Environments) research project. The main findings of our analysis are that the use of public e-procurement is an innovative tool for contracting out the public services and as such facilitates modern public-administration reforms based on information and communication technologies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Åge Johnsen

PurposeThis paper analyses the deregulation of the municipal audit market in Norway, in particular how organization of the service affected audit costs.Design/methodology/approachThe paper uses multiple regression analysis of administrative as well as survey data of organizational structure and audit costs from 312 municipalities in Norway in 2012.FindingsThe introduction of contracting out in the municipal audit market in Norway in 2004 contributed to a reduction in audit fees eight years after the deregulation, compared to the situation four years before the deregulation. The type of audit, mixing inter-municipal co-operation and contracting private auditors, was related to lower costs.Research limitations/implicationsThe data does not include audit quality and are restricted to one country.Practical implicationsThe municipalities that combined inter-municipal co-operation and contracting a private auditor achieved the lowest costs. Hence, neither pure in-house production (“make”) nor outsourcing (“buy”) but mixing several governance forms (hybrid organization) was related to low costs.Social implicationsContracting out is a core element of new public management (NPM) but has often been a contested tool in public policy. This paper provides empirical evidence on the effects of a reform of a professional service, which is relevant for many services in the public sector.Originality/valueThis paper contributes by filling some of the gaps in the public sector accounting and public management reform literature by studying the organization and costs of the municipal audit, specifically by including transaction costs, addressing plural governance forms in addition to pure in-house production, inter-organizational co-operation and market contracting and by studying long-term effects.


2020 ◽  
Author(s):  
Beáta Mikušová

The monograph responds to the issue of contracting out services in public sector. The aim of the monograph is to develop the theory of contracting out services in public sector and to propose solutions for the contract management in the public sector. To prove the assumption about low quality contract management in public sector in SR and CR as the reason of contracting out failure is the research issue developed from contracting out effectiveness to contract management quality. Original research issue – relationship between contracting out outcomes and quality contract management and innovative methodology testing this relationship brings valuable results in the dimension of contracting out theory in an international context and to define science-based ground for proposing solutions to the contract management in public sector.


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