Examining Local Government Service Delivery Arrangements Over Time

Abstract

While scholars of local service delivery arrangements are fully aware the process is dynamic, research has tended to take the form of cross-sectional studies that are inherently static in nature. In this article, the authors model the determinants of production mode accounting for past delivery decisions. They find, not surprisingly, that there are strong inertial effects; previous delivery mode is a strong predictor of the current service delivery arrangement. More interestingly, the impact of the transaction cost nature of services on production choice is conditioned on past decisions, such as the extent of contracting and the type of vendors used. There is also evidence that contract management capacity and the competitiveness of the contracting environment are influential.