International Journal of Public Sector Management

Angela Benson; Steven Henderson

2005 International Journal of Public Sector Management

doi: 10.1108/09513550510591515

Purpose – To understand the effects of the best value regime on the public provision of recreation at the level of the leisure centre. Design/methodology/approach – A strategic auditing device is applied to 87 leisure centres to investigate the strategic variables of environmental stability and attractiveness, service strengths and financial resources. The analysis produces a typology of leisure centres, and evaluates the prospects of each type under best value. Findings – The findings suggest that a large number of leisure centres managed by local authorities will make limited headway in implementing best value. What is more, many face problems that will be exacerbated, rather than eased, by current policy. Leisure centres managed by Trusts generally face more benign local environments, which appear to offer greater prospects, but it is clear that Trust status itself offers few advantages outside a greater range of financial sources. Research limitations/implications – The research focuses on strategic choices as they face leisure centre managers. It does not directly explore the strategic and policy decisions made at other levels. Practical implications – The paper argues for subtler recreation policy (and by implication, the provision of public sector services generally) that pays due regard to the local conditions of service providers. Policy that focuses only on general prescription of managerial (and often rhetorical) practices will frequently lead strategies towards satisficing performance indicators that may be arbitrary, rather than focusing on problems and issues as they face professional leisure managers. Originality/value – The use of a formal strategy tool as the level of a service provider is novel, and augments work on hybrid firms facing strategic choices based not only on political factors but also private sector market‐oriented competitors. Further, useful comparisons are made between leisure centres managed by Trusts and those still controlled by a Local Authority. The data provided will also help to inform practical and academic debates concerning the application of quality standards and management practices in the leisure sector.

Andrew L.S. Goh

2005 International Journal of Public Sector Management

doi: 10.1108/09513550510591524

Purpose – The purpose of this article is to examine, appraise and highlight the significance of promoting innovation in aid of industrial development. Design/methodology/approach – A comprehensive range of published literature is critiqued first to understand why industrial development constitutes a major objective of a country's economic strategy and government policy. Then, through a theoretical review of industrial policy works, relevant issues (e.g. how efficient industrial development sustains economic growth) are highlighted for discussion. For instance, the importance of private sector‐led industrial development and the need to adopt a primary focus on innovation‐driven industrial policy. Findings – By drawing lessons from the developed world, the article explains why industrial policy‐making must address the pursuit of innovation as a prime mover of economic development; and further outlines the role of government in innovation‐driven industrial policy. As a case study, evolutionary perspectives of Singapore's industrialisation process are elaborated to illustrate a government's role in industrial policy‐making. Research limitations/implications – Future research could provide better guidance to address new emergent challenges of industrial policy‐making. Practical implications – The discussion on industrial policy issues raised in this article is expected to be of interest to policy makers, industry planners, academic researchers and business practitioners. Originality/value – This article offers insights into effective industrial policy‐making for developing nations that may help to transform their economies.

David Parker; Colin Kirkpatrick

2005 International Journal of Public Sector Management

doi: 10.1108/09513550510591533

Purpose – The aim of the paper is to examine alternative methods of regulating prices and/or profits of privatised utilities in low‐income countries with a view to identifying their strengths and weaknesses. Design/methodology/approach – The economics of regulation literature has favoured the use of a price cap over rate of return or cost of service regulation because of its greater incentive effects. A third alternative, sliding‐scale regulation, has been put forward as a compromise between the price cap and a controlled rate of return, which is said to combine the merits of both methods. This paper considers the operation of a price cap, rate of return regulation and sliding‐scale regulation in the context of low‐income economies by reviewing the theory in relation to the conditions likely to be found in low‐income economies. Findings – It is concluded that the case for the use of a price cap is much reduced in low‐income economies. This is because of its information requirements, need for regulatory expertise and, more broadly, the institutional endowment found in many low‐income countries. Research limitations/implications – It is recognised that this conclusion is tentative and deserves further research, comparing theory and practice. Practical implications – Countries need to consider carefully which method of regulation will work best in the context of the institutions of the country, rather than simply copy a method from the developed world. Originality/value – This is one of the first papers to challenge the prevailing belief that price cap regulation is superior to rate of return regulation in the context of economic development.

Rodney McAdam; Shirley‐Ann Hazlett; Christine Casey

2005 International Journal of Public Sector Management

doi: 10.1108/09513550510591542

Purpose – The aim of this paper is to explore the issues involved in developing and applying performance management approaches within a large UK public sector department using a multiple stakeholder perspective and an accompanying theoretical framework. Design/methodology/approach – An initial short questionnaire was used to determine perceptions about the implementation and effectiveness of the new performance management system across the organisation. In total, 700 questionnaires were distributed. Running concurrently with an ethnographic approach, and informed by the questionnaire responses, was a series of semi‐structured interviews and focus groups. Findings – Staff at all levels had an understanding of the new system and perceived it as being beneficial. However, there were concerns that the approach was not continuously managed throughout the year and was in danger of becoming an annual event, rather than an ongoing process. Furthermore, the change process seemed to have advanced without corresponding changes to appraisal and reward and recognition systems. Thus, the business objectives were not aligned with motivating factors within the organisation. Research limitations/implications – Additional research to test the validity and usefulness of the theoretical model, as discussed in this paper, would be beneficial. Practical implications – The strategic integration of the stakeholder performance measures and scorecards was found to be essential to producing an overall stakeholder‐driven strategy within the case study organisation. Originality/value – This paper discusses in detail the approach adopted and the progress made by one large UK public sector organisation, as it attempts to develop better relationships with all of its stakeholders and hence improve its performance. This paper provides a concerted attempt to link theory with practice.

Mark D. Domney; Heather I.M. Wilson; Er Chen

2005 International Journal of Public Sector Management

doi: 10.1108/09513550510591551

Purpose – To compare the profitability and technical efficiency of firms in a monopoly industry, airports, operating with different degrees of market power and under differing regulatory regimes, minimalist in New Zealand and interventionist in Australia. Design/methodology/approach – Unlike previous privatisation studies, this study measures efficiency and profitability separately. Using data envelopment analysis (DEA), the technical efficiency of privatised airports is assessed, and this independent measure is used in regression analyses to determine whether efficiency, regulation or privatisation is related to airport profitability. Findings – For firms with monopolistic characteristics operating under minimalist regulation, profitability is related to market power, not efficiency improvements. For firms operating in a regulated environment, profitability is related to regulation, which constrains market power but does not impede efficiency. Research limitations/implications – This study is limited by its small sample size and its generalisability due to its single industry and regional focus. However, the findings support assertions that the impact of privatisation cannot be assessed independently of industry structure and regulation. Practical implications – Policy makers considering SOE privatisation in non‐competitive markets should introduce either competition or regulation if firm efficiency is a desired outcome. Originality/value – Academics and policy makers should be aware that privatisation and competition are not only complementary, as per the extant literature, but they are essential bedfellows. In the absence of competition, regulation is required to control for market power.