The Impact of Different Public Contracting Management Models on the Inputs and Outcomes of Local Public Services
Many empirical studies have found that local public contracting reduces the inputs and outcomes of public services. However, few studies have examined what factors are associated with such inputs and outcomes. To address the limitation, this study conceptualizes two competing contracting management models (competitive and cooperative) and empirically tests the associations between these contracting approaches and service inputs and outcomes. The findings report that while local governments using competitive contracting elements have lower service inputs through reduced local operating expenditures and part-time employment; cooperative contracting elements do not necessarily produce enhanced service outcomes.
Amirkhanyan, A. (2009) Collaborative Performance Measurement: Examining and Explaining the Prevalence of Collaboration in State and Local Government Contracts, Journal of Public Administration Research and Theory, 19(3), pp. 523-554.
Amirkhanyan, A., Kim, H. J. & Lambright, K. (2010) Do Relationships Matter? Assessing the Association between Relationship Design and Contractor Performance, Public Performance and Management Review, 34(2), pp. 189-220.
Ammar, S., William, D., Yilin, H., Bernard, J. & Ronald, W. (2001) Using Fuzzy Rule–based Systems to Evaluate Overall Financial Performance of Governments, Public Budgeting and Finance, 21(4), pp. 91-110.
Bernard, T. (2009) The Determinants of Population and Employment Growth in Small Queensland Regions, Economic Analysis and Policy, 39(2), pp. 295-307.
Bertelli, A. & Smith, C. (2010) Relational Contracting and Network Management, Journal of Public Administration Research and Theory, 20(suppl 1), pp. 21-40.
Boyne, G. A. (2002) Bureaucratic Theory Meets Realty: Public Choice and Service Contracting in US Local Government, Public Administration Review, 58(6), pp. 474-484.
Brown, T. L. & Potoski, M. (2003) Contract-management Capacity in Municipal and County Governments, Public Administration Review, 63(2), pp. 153-164.
Brown, T. L., Potoski, M. & Van Slyke, D. (2006) Managing Public Service Contracts: Aligning Values, Institutions and Markets, Public Administration Review, 66(3), pp. 323-331.
Brown, T. L., Potoski, M. & Van Slyke, D. (2010) Contracting for Complex Products, Journal of Public Administration Research and Theory, 20(suppl 1), pp. 41-58.
Bryson, J. M., Crosby, B. & Stone, M. (2006) The Design and Implementation of Cross-sector Collaborations: Propositions form the Literature, Public Administration Review, 66(1), pp. 44-55.
Cope, S. (1995) Contracting Out in Local Government: Cutting by Privatizing, Public Policy and Administration, 10(3), pp. 29-44.
DeHoog, R. H. (1990) Competition, Negotiation, or Cooperation: Three Models for Service Contracting, Administration and Society, 22, pp. 3-17.
Dias, J. J. & Maynard-Moody, S. (2007) For-profit Welfare: Contracts, Conflicts, and the Performance Paradox, Journal of Public Administration Research and Theory, 17(2), pp. 189-211.
DiStefano, C., Zhu, M. & Mîndrilă, D. (2009) Understanding and Using Factor Scores: Considerations for the Applied Researcher, Practical Assessment, Research and Evaluation, 14, pp. 1-10.
Dicke, L. A. (2002) Ensuring Accountability in Human Services Contracting: Can Stewardship Theory Fill the Bill?, The American Review of Public Administration, 32(4), pp. 455-470.
Donahue, J. D. (1989) The Privatization Decision: Public Ends, Private Means (New York : Basic Books).
Downs, A. (1957) An Economic Theory of Democracy (Cambridge: Cambridge University Press).
Fernandez, S. (2007) What Works Best When Contracting for Services? An Analysis of Contracting Performance at the Local Level in the US, Public Administration, 85(4), pp. 1119-1141.
Fernandez, S. (2009) Understanding Contracting Performance: An Empirical Analysis, Administration and Society, 41(1), pp.67-100.
Fernandez, S., Smith, C. & Wenger, J. (2006) Employment, Privatization, and Managerial Choice: Does Contracting out Reduce Public Sector Employment, Journal of Policy Analysis and Management, 26, pp. 57-77.
Gen, S. & Kingsley, G. (2007) Effects of Contracting out Engineering Services over Time in a State Department of Transportation, Public Works Management Policy, 12(1), pp. 331-343.
Green, J. (1996) Cities and Privatization: Examining the Effect of Fiscal Stress, Location a Wealth in Medium-sized Cities, Policy Studies Journal, 24(1), pp. 135-144.
Hays, S. W. & Kearney, C. (1997) Riding the Crest of a Wave: The National Performance Review and Public Management Reform, International Journal of Public Administration, 20(1), pp. 11-40.
Hefetz, A. & Warner, M. (2004) Privatization and Its Reverse: Explaining the Dynamics of the Government Contracting Process, Journal of Public Administration Research and Theory, 14(2), pp. 171-191.
Hefetz, A. & Warner, M. (2012) Contracting or Public Delivery? The Importance of Service, Market, and Management Characteristics, Journal of Public Administration Research and Theory, 22(2), pp. 289-317.
Heinrich, C. J. (2009) Third-party Governance under No Child Left behind: Accountability and Performance Management Challenges, Journal of Public Administration Research and Theory, 20(suppl 1), pp. 59-80.
Heinrich, C. J. & Choi, Y. (2007) Performance-based Contracting in Social Welfare Programs, The American Review of Public Administration, 37(4), pp. 409-435.
Hood, C. (1995) The New Public Management in the Eighties, Accounting, Organization and Society, 20(2-3), pp. 93-109.
International City/County Management Association (2004) Evaluating Financial Condition: A Handbook for Local Government (Washington DC: ICMA).
Johnson, J. M. & Romzek, B. (2008) Social Welfare Contracts as Networks, the Impact of Network Stability on Management and Performance, Administration and Society, 40(2), pp. 115-146.
Johnson, R. A. & Walzer, N. (2000) Local Government Innovation: Issues and Trends in Privatization and Managed Competition (Westport: Quorum Books).
Johnston, J. M. & Girth, A. (2012) Government Contracts and Managing the Market: Exploring the Costs of Strategic Management Responses to Weak Vendor Competition, Administration and Society, 44(1), pp. 3-29.
Kettle, D. F. (1993) Sharing Power: Public Governance and Private Markets (Washington DC: The Brookings Institution).
Klijn, E. & Koppenjan, J. (2004) Politicians and Interactive Decision Making: Institutional Spoilsports or Playmakers, Public Administration, 78(2), pp. 365-387.
Kolderie, T. (1987) Contracting as an Approach to Management, Local Government Studies, 13, pp. 1-10.
Lambright, K. (2009) Agency Theory and beyond: Contracted Providers’ Motivations to Properly Use Service Monitoring Tools, Journal of Public Administration Research and Theory, 19(2), pp. 207-227.
Lamothe, M. & Lamothe, S. (2009) Beyond the Search for Competition in Social Service Contracting Procurement, Consolidation, and Accountability, The American Review of Public Administration, 39(2), pp. 164-186.
Lamothe, M. & Lamothe, S. (2010) Competing for What? Linking Competition to Performance in Social Service Contracting, The American Review of Public Administration, 40(3), pp. 326-350.
Landau, M. (1969) Redundancy, Rationality and the Problem of Duplication and Overlap, Public Administration Review, 29(4), pp. 346-358.
Lowery, D., Lyons, E. & DeHoog, R. (1995) The Empirical Evidence for Citizen Information and a Local Market for Public Goods, American Political Science Review, 89(3), pp. 705-707.
Marvel, M. K. & Marvel, P. (2007) Outsourcing Oversight: A Comparison of Monitoring for In-house and Contracted Services, Public Administration Review, 67, pp. 521-530.
McGuire, M. (2006) Collaborative Public Management: Assessing What We Know and How We Know It, Public Administration Review, 66(3), pp. 33-43.
McBeath, B. & Meezan, W. (2009) Governance in Motion: Service Provision and Child Welfare Outcomes in a Performance-based Managed Care Contracting Environment, Journal of Public Administration Research and Theory, 20(suppl 1), pp. 101-123.
Oh, Y. & Park, J. (2014) Citizen Participation and Economic Development Policy: Exploring Impacts of Citizen Participation in Local Economic Development on Local Economic Prosperity and Equality, The Korean Journal of Local Government Studies, 8, pp. 285-300.
Osborne, D. & Gaebler, T. (1992) Reinventing Government (Reading: Addison-Wesley).
Ostrom, V., Tiebout, C. & Warren R. (1961) The Organization of Government in Metropolitan Areas: A Theoretical Inquiry, American Political Science Review, 55(4), pp. 832-842.
O’Toole, J. L. & Meier, K. (1999) Modeling the Impact of Public Management: The Implications of Structural Context, Journal of Public Administration Research and Theory, 9(4), pp. 505-526.
Quinn, R. E. & Rohrbaugh, J. (1983) A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis, Management Science, 29(3), pp. 363-377.
Rainey, H. (2003) Understanding and Managing Public Organizations (San Francisco: Jossey-Bass).
Romzek, B. S. & Johnson, M. (2002) Contract Implementation and Management Effectiveness: A Preliminary Model, Journal of Public Administration Research and Theory, 12(3), pp. 423-453.
Romzek, B. S. & Johnson, M. (2005) State Social Services Contracting: Exploring Determinants of Effective Contract Accountability, Public Administration Review, 65(4), pp. 436-449.
Rosenbaum, A. (2006) Cooperative Service Delivery: The Dynamics of Public Sector-private Sector-civil Society Collaboration, International Review of Administrative Science, 72(1), pp. 43-56.
Savas, E. S. (2000) Privatization and Public Private Partnerships (New York: Chatham House).
Savas, E. S. (2002) Competition and Choice in New York City Social Services, Public Administration Review, 62(1), pp. 81-91.
Sclar, E. D. (2000) You Don’t Always Get What You Pay for, the Economics of Privatization (Ithaca: Cornell Univ. Press).
Selden, S. C., Sowa, J. & Sandfort, J. (2006) The Impact of Nonprofit Collaboration in Early Child Care and Education on Management and Program Outcomes, Public Administration Review, 66(3), pp. 412-425.
Stallmann, J. & Deller, S. (2011) State Tax and Expenditure Limitation Business Climate, and Economic Performance, Public Budgeting & Finance, 31(4), pp. 109-135.
Teske, P., Schneider, M. Mintrom, M. & Best, S. (1993) Establishing the Micro Foundations of a Macro-level Theory, American Political Science Review, 87, pp. 702-713.
Thompson, J. R. (2000) Reinvention as Reform: Assessing the National Performance Review, Public Administration Review, 60(6), pp. 508-521.
Tiebout, C. (1956) A Pure Theory of Local Public Goods, Journal of Political Economy, 64, pp. 416-424.
Trendle, B. (2009) The Determinants of Population and Employment Growth in Small Queensland Regions, Economic Analysis & Policy, 39(2), pp. 295-207.
Williamson, O. E. (1981) The Economics of Organization: The Transaction Cost Approach, American Journal of Sociology, 87(3), pp. 548-577.
Witesman, E. M. & Fernandez, S. (2012) Government Contracts with Private Organizations: Are There Differences between Nonprofits and For-profits?, Nonprofit and Voluntary Sector Quarterly, 20(4), pp. 1-27.
Van Slyke, D. M. (2003) The Mythology of Privatization in Contracting for Social Services, Public Administration Review, 63(3), pp. 296-314.
Van Slyke, D. M. (2007) Agents or Stewards: Using Theory to Understand the Government-nonprofit Social Service Contracting Relationship, Journal of Public Administration Research and Theory, 17(2), pp. 157-187.
Van Slyke, D. M. & Roch, H. (2005) What Do They Know, and Whom Do They Hold Accountable? Citizens in the Government-nonprofit Contracting Relationship, Journal of Public Administration Research and Theory, 14(2), pp. 191-209.
Yang, K. & VanLandingham, G. (2012) How Hollow Can We Go? A Case Study of the Florida’s Efforts to Outsource Oversight of Privatized Child Welfare Services, The American Review of Public Administration, 42, pp. 543-561.
Yang, K., Hsieh, Y. & Li, S. (2009) Contracting Capacity and Perceived Contracting Performance: Nonlinear Effects and the Role of Time, Public Administration Review, 69(4), pp. 681-696.
It is a condition that the authors assign copyright or license the publication rights in their articles, including abstracts, to Institute for Local Self-Government Maribor. This enables us to ensure full copyright protection and to disseminate the article, and of course Journal, to the widest possible readership in print and electronic formats as appropriate. Authors retain many rights under the Institutes' right policies, which can be found at journal.lex-localis.press. Authors are themselves responsible for obtaining permission to reproduce copyright material from other sources.