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Performance of municipally owned corporations: Determinants and mechanisms

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  • Bart Voorn
  • Marieke van Genugten
  • Sandra Van Thiel

Abstract

Practitioners often expect service delivery by municipally owned corporations (MOCs) to differ substantially from delivery by municipal bureaucracy. However, research into the circumstances under which municipal corporatization is effective is scarce. We investigate determinants of MOCs’ performance based on a questionnaire sent to all Dutch MOCs, finding no evidence that many expected predictors of performance matter for performance. Key factors driving MOCs’ performance relate to size, resource access, and the interaction between their multiple principals. We suggest that in studying local corporatization, researchers should look less at traditional principal–agent conflict and more at intermunicipal coordination.

Suggested Citation

  • Bart Voorn & Marieke van Genugten & Sandra Van Thiel, 2020. "Performance of municipally owned corporations: Determinants and mechanisms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 191-212, June.
    • Handle: RePEc:bla:annpce:v:91:y:2020:i:2:p:191-212
    DOI: 10.1111/apce.12268
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