In Pursuit of Public Sector Efficiency and Value Innovation; the Blue Ocean Strategy

Yusheng Kong, Peter Yao Lartey, Fatoumata Binta Maci Bah, Nirmalya B. Biswas, Rupa Santosh Jaladi

Abstract


This paper examines key institutional drivers capable of fashioning an enabling environment for public sector efficiency. The study gathered evidence that  institutional variables such as Innovation, Performance orientation, Value Creation and Budget Flexibility are good predictors of public sector efficiency. The extracted variables per the Factor Analysis accounted for 77.3% variance. Implying that, the 4 extracted factors have significant impact on the dependent variable with relatively high significant alpha value of p< 0.000, per the multiple regression output , corresponding to relatively positive unstandardized coefficients. This implies that, the explanatory variables are prominent determinants with strong evidence to reject the null hypothesis at 95% critical value. However, the Adjusted Square R2 indicates a significant relationship between Efficiency and the explanatory variables at 50.3%. The study concluded that, the public sector needs substantial empirical evidence to enlighten the real impact of key institutional drivers of efficiency and a conventional standard for measuring efficiency.


Full Text:

PDF

References


Adhikari, P., & Gårseth, N. L. (2016). Implementing public sector accruals in OECD member states: Major issues and challenges. Accounting Forum, 40(2), 125-142. https://doi.org/10.1016/j.accfor.2016.02.001

Ahmed, P. K., & Rafiq, M. (2002). Case Study 10 - Lutheran Brotherhood: building skills and competencies through internal marketing Internal Marketing (pp. 255-257). Oxford: Butterworth-Heinemann.

Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation, 23(2), 74-86. https://doi.org/10.1016/j.intaccaudtax.2014.06.001

Arundel, A., Casali, L., & Hollanders, H. (2015). How European public sector agencies innovate: The use of bottom-up, policy-dependent and knowledge-scanning innovation methods. Research Policy, 44(7), 1271-1282. https://doi.org/10.1016/j.respol.2015.04.007

Ashraf, J., & Uddin, S. (2016). New public management, cost savings and regressive effects: A case from a less developed country. Critical Perspectives on Accounting, 41, 18-33. https://doi.org/10.1016/j.cpa.2015.07.002

Azar, O. H. (2008). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, W. Chan Kim, Renée Mauborgne. Harvard Business School Press (2005). Long Range Planning, 41(2), 226-228. https://doi.org/10.1016/j.lrp.2008.02.003

Aziz, M. A. A., Rahman, H. A., Alam, M. M., & Said, J. (2015). Enhancement of the Accountability of Public Sectors through Integrity System, Internal Control System and Leadership Practices: A Review Study. Procedia Economics and Finance, 28, 163-169. https://doi.org/10.1016/S2212-5671(15)01096-5

Balabonienė, I., & Večerskienė, G. (2015). The Aspects of Performance Measurement in Public Sector Organization. Procedia - Social and Behavioral Sciences, 213, 314-320. https://doi.org/10.1016/j.sbspro.2015.11.544

Baumgartner, R. J., & Rauter, R. (2017). Strategic perspectives of corporate sustainability management to develop a sustainable organization. Journal of Cleaner Production, 140, Part 1, 81-92. https://doi.org/10.1016/j.jclepro.2016.04.146

Blok, V., Wesselink, R., Studynka, O., & Kemp, R. (2015). Encouraging sustainability in the workplace: a survey on the pro-environmental behaviour of university employees. Journal of Cleaner Production, 106, 55-67. https://doi.org/10.1016/j.jclepro.2014.07.063

Boe, O., & Kvalvik, Ø. (2015). Effective Use of Resources in the Public Management Sector in Norway. Procedia Economics and Finance, 26, 869-874. https://doi.org/10.1016/S2212-5671(15)00896-5

Cardy, R. L., & Selvarajan, T. T. (2006). Competencies: Alternative frameworks for competitive advantage. Business Horizons, 49(3), 235-245. https://doi.org/10.1016/j.bushor.2005.09.004

Chan, K. W., & Mauborgne, R. (2005). Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. Harvard Business School Press, Boston, MA.

Cohen, D. J. (2015). HR past, present and future: A call for consistent practices and a focus on competencies. Human Resource Management Review, 25(2), 205-215. https://doi.org/10.1016/j.hrmr.2015.01.006

Córdova, F. M., Durán, C., & Galindo, R. (2014). Comparative Analysis of ICT in Public-private Systems: The OHIM Case in the European Union and the Internal Revenue System in Chile. Procedia Computer Science, 31, 95-104. https://doi.org/10.1016/j.procs.2014.05.249

De Bruecker, P., Van den Bergh, J., Beliën, J., & Demeulemeester, E. (2015). Workforce planning incorporating skills: State of the art. European Journal of Operational Research, 243(1), 1-16. https://doi.org/10.1016/j.ejor.2014.10.038

De Magalhães, C., & Freire, T. S. (2017). Contracting out publicness: The private management of the urban public realm and its implications. Progress in Planning, 115, 1-28. https://doi.org/10.1016/j.progress.2016.01.001

Elbanna, S. (2016). Managers' autonomy, strategic control, organizational politics and strategic planning effectiveness: An empirical investigation into missing links in the hotel sector. Tourism Management, 52, 210-220. https://doi.org/10.1016/j.tourman.2015.06.025

Farzin, M. R., Kahreh, M. S., Hesan, M., & Khalouei, A. (2014). A Survey of Critical Success Factors for Strategic Knowledge Management Implementation: Applications for Service Sector. Procedia - Social and Behavioral Sciences, 109, 595-599. https://doi.org/10.1016/j.sbspro.2013.12.512

Gursoy, D., & Swanger, N. (2007). Performance-enhancing internal strategic factors and competencies: Impacts on financial success. International Journal of Hospitality Management, 26(1), 213-227. https://doi.org/10.1016/j.ijhm.2006.01.004

Joyce, P. (2015). Strategic management in the public sector: Routledge.

Kim, W. C., & Mauborgne, R. (2009). How strategy shapes structure. Harvard business review, 87(9), 72-80.

Kromidha, E., & Córdoba, P. J. R. (2017). Discursive Institutionalism for reconciling change and stability in digital innovation public sector projects for development. Government Information Quarterly, 34(1), 16-25. https://doi.org/10.1016/j.giq.2016.11.004

Lapsley, I., & Rekers, J. V. (2017). The relevance of strategic management accounting to popular culture: The world of West End Musicals. Management Accounting Research, 35, 47-55. https://doi.org/10.1016/j.mar.2017.01.001

Maresova, P., & Kacetl, J. (2015). Cloud Computing in the Public Sector – Case Study in Educational Institution. Procedia - Social and Behavioral Sciences, 182, 341-348. https://doi.org/10.1016/j.sbspro.2015.04.781

Matei, A., & Drumasu, C. (2015). Corporate Governance and Public Sector Entities. Procedia Economics and Finance, 26, 495-504. https://doi.org/10.1016/S2212-5671(15)00879-5

Midin, M., Joseph, C., & Mohamad, N. (2016). Advancing Sustainable Development in the Public Sector via Stakeholders’ Engagement Disclosure Website. Procedia - Social and Behavioral Sciences, 224, 93-100. https://doi.org/10.1016/j.sbspro.2016.05.408

Omar, A., Weerakkody, V., & Sivarajah, U. (2017). Digitally enabled service transformation in UK public sector: A case analysis of universal credit. International Journal of Information Management, 37(4), 350-356. https://doi.org/10.1016/j.ijinfomgt.2017.04.001

Ozkan, T. O., & Basgoze, P. (2017). Pre-recovery emotions and satisfaction: A moderated mediation model of service recovery and reputation in the banking sector. European Management Journal, 35(3), 388-395. https://doi.org/10.1016/j.emj.2016.06.010

Scupola, A., & Zanfei, A. (2016). Governance and innovation in public sector services: The case of the digital library. Government Information Quarterly, 33(2), 237-249. https://doi.org/10.1016/j.giq.2016.04.005

Sour, L. (2017). Progress in the quantity of financial information in the public sector in Mexico following the LGCG. Contaduría y Administración, 62(2), 442-460. https://doi.org/10.1016/j.cya.2017.02.002

Strategic management: Fred R. David, Prentice-Hall (1995), 5th Edn, 1084 pp., £21.95. (1995). Long Range Planning, 28(6), 116. https://doi.org/10.1016/0024-6301(95)91131-6

Sutheewasinnon, P., Hoque, Z., & Nyamori, R. O. (2016). Development of a performance management system in the Thailand public sector: Isomorphism and the role and strategies of institutional entrepreneurs. Critical Perspectives on Accounting, 40, 26-44. https://doi.org/10.1016/j.cpa.2015.06.002

ter Bogt, H., & Tillema, S. (2016). Accounting for trust and control: Public sector partnerships in the arts. Critical Perspectives on Accounting, 37, 5-23. https://doi.org/10.1016/j.cpa.2015.10.002

van Helden, J., & Uddin, S. (2016). Public sector management accounting in emerging economies: A literature review. Critical Perspectives on Accounting, 41, 34-62. https://doi.org/10.1016/j.cpa.2016.01.001

Weerakkody, V., Omar, A., El-Haddadeh, R., & Al-Busaidy, M. (2016). Digitally-enabled service transformation in the public sector: The lure of institutional pressure and strategic response towards change. Government Information Quarterly, 33(4), 658-668. https://doi.org/10.1016/j.giq.2016.06.006

Yapa, P. W. S. (2014). In whose interest? An examination of public sector governance in Brunei Darussalam. Critical Perspectives on Accounting, 25(8), 803-818. https://doi.org/10.1016/j.cpa.2014.03.003




DOI: https://doi.org/10.5296/jpag.v8i1.12781

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Journal of Public Administration and Governance  ISSN 2161-7104

Copyright © Macrothink Institute

'Macrothink Institute' is a trademark of Macrothink Institute, Inc.

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.