The dual effects of capabilities on public service performance: a quasi-experimental approach

Abstract

Public administration scholars have been presenting an increased interest on the effects of policy interventions, and on how capabilities can influence public service performance after the implementation of new regulations. By exploring a policy change in the Brazilian public procurement context, we verify a dual effect of capabilities on performance. Our quasi-experiment shows that while enhanced capabilities present in public managers and in winning private firms can enable price-savings, the presence of superior abilities in the government side hinders contracting lead-times. The alignment between broader societal goals expected by policymakers, existing cognitive orientation of public managers involved in public procurement, and accumulated capabilities in public and private actors seems to influence public procurement performance. Our findings contribute to expand the literature focused on the role of capabilities on public service performance and to promote an increased dialogue between public administration and strategic management.