In this paper we argue that the new public management has been a flawed paradigm for public services delivery that has produced very internally efficient but externally ineffective public service organizations. Subsequently we develop the SERVICE framework for sustainable public services and public service organizations. This framework is rooted within the public‐service‐dominant business logic and emphasizes the need for a focus on external value creation rather than internal efficiency alone.
This paper argues that the 'New Public Management' paradigm for public management theory and practice that has prevailed for the last thirty years is both flawed in theory and has failed in practice. We argue for an alternative to this paradigm that is rooted with the New Public Governance approach and that makes a reality of the Public Service-Dominant Logic for sustainable public services. We derive seven propositions for sustainable business practice for public services organisations from this approach.
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