The Direct and Moderating Effects of Perceived Transparency on Citizen Satisfaction: Evidence from China's Public Healthcare

Abstract

This study proposes a systemic view of transparency and an expanded model to explain citizen satisfaction with public services. The classic model consists of service quality, value, and satisfaction; we add transparency and delineate the direct and the moderating effects of transparency on value, quality, and satisfaction. We test the expanded model with survey data on public healthcare in China and generate evidence that while the classic model is robust, transparency is a double-edged sword regarding satisfaction: Transparency increases perceived value and satisfaction by inspiring citizen confidence; meanwhile, increased transparency enhances public knowledge of service products, raising expectations, which subsequently dampens the positive effects of service quality and perceived value on citizen satisfaction.