How outsourcing affects the e-disclosure of performance information by local governments

Abstract

Performance information disclosure, especially e-disclosure practices, is widely considered to increase public sector accountability. This paper aims to examine the impact that public service delivery through outsourcing has on voluntary performance information disclosure with respect to direct delivery. The study draws on agency theory and organisational information processing theory to suggest that a greater degree of outsourcing in public service delivery might increase the likelihood that public administrations would disclose performance information through their websites. An empirical analysis conducted on a sample of 262 Italian municipalities supported this hypothesis. The study also showed that no unique set of factors could explain the differences in the electronic disclosure of performance information by Italian municipalities, but disclosure was observed to depend—at least in part—on how municipalities deliver public services.