Business techniques as an explanation of the autonomy-performance link in corporatized entities: Evidence from Dutch Municipally owned corporations

Abstract

Public services are often corporatized with the expectation that corporatization brings more business-like service delivery. However, the actual usage of business techniques is rarely studied as a factor that influences corporatization’s success. We study the mediating effect of business techniques on the autonomy-performance link among Dutch municipally owned corporations. We find that while the direct effect of autonomy on performance is statistically non-significant or negative, business techniques are both directly helpful for performance in MOCs and (partially) mediate the relationship between autonomy and performance.