Neither market nor hierarchy: concurrent sourcing in water public services

Porcher, Simon (2016) Neither market nor hierarchy: concurrent sourcing in water public services. Journal of Public Administration Research and Theory, 26 (4). pp. 800-812. ISSN 1053-1858

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Abstract

Analytical frameworks of government service contracting decisions typically focus on the make-or-buy decision. In concepts, governments can either produce the service itself (make) or outsource production (buy). However, governments make and buy the same public services, a practice that is termed concurrent sourcing. Drawing on transaction costs economics and the resource-based view of the firm, this article examines empirically local governments’ propensities to concurrently source public services. Using a unique data set on water public services of more than 4,500 French municipalities for four years—1998, 2001, 2004, and 2008—we find that low transaction hazards, prior contracting experience, and low production capabilities have a positive impact on the level of concurrent sourcing. These findings demonstrate that organizations’ characteristics are a significant factor in sourcing decisions and suggest that capabilities and their interactions with transaction hazards deserve heightened attention in the study of public contracting.

Item Type:	Article
Official URL:	https://academic.oup.com/jpart
Additional Information:	© 2016 The Author
Divisions:	Management
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited:	30 Jun 2017 13:49
Last Modified:	24 Oct 2024 17:48
URI:	http://eprints.lse.ac.uk/id/eprint/82990

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