The Cost and Benefit of Interdepartmental Collaboration: An Evidence from the U.S. Federal Agencies

Abstract

ABSTRACTOne of the prescriptions of the New Public Management is to encourage cross-departmental collaboration. However, scholars pointed out that the inter-unit collaboration not only provides strategic benefit but also incurs substantial costs to organizations. Nevertheless, the impact of the collaboration has not been examined in balance. This study examined the positive and negative effect of interdepartmental collaboration by analyzing the data obtained from the U.S. Federal Employee Viewpoint Survey. An analysis of structural equation modeling indicates that, as theory concerned, interdepartmental collaboration has both positive and negative effects on organizational performance. Theoretical and practical implications for the countries pursuing the similar reform are discussed.