NPM reforms and institutional characteristics in developing countries

Abstract

Purpose The purpose of this paper is to investigate the institutional factors affecting the reform of public sector in Morocco. In particular, this study focuses on the adoption path of one such reform, in which Moroccan municipalities had to adopt economic and development plans (EDPs). Design/methodology/approach The paper’s methodology adopts a qualitative approach. In particular, the paper adopts a mix of primary and secondary sources to analyze the historical development of the EDP reform in the Moroccan context, and the institutional factors involved in the implementation process. It contributes to the existing literature in two ways: it defines a tentative model that combines two approaches (new and old institutional theories); and it contextualizes the proposed model in the Moroccan context by examining the institutional process of implementing the reforms. Findings The reform that introduced EDPs in Morocco was the result of a collaboration between the Moroccan government and international donors. The introduction of EDPs was impeded by institutional features of Moroccan society. Therefore, the implementation of EDPs in Morocco did not change taken-for-granted ways of thinking, nor did it remove institutional restrictions and barriers. Municipalities were not affected by the modernizing effects of the reform. They are managed as traditional administrative structures, with very little capacity for organizational and management innovation. Originality/value The paper contributes to the debate on the adequacy of new public management (NPM) in less developed countries (LDCs), and in particular with regards to the use of strategic plans in Moroccan municipalities. In doing so, the paper attempts to define a tentative framework that combines new institutional and old institutional theory. The framework proposed helps to explain how NPM in LDCs was diffused and how institutional characteristics could hamper or foster the implementation of NPM reform.

The impact of the performance measurement system on the organizational performance of the public sector in a transition economy: Is public accountability a missing link?

“…world (Tallaki, 2019). Therefore, the potentialities of PMS and public accountability for performance improvements and how to implement PMS should be a concern of public managers in Vietnam and other transition economies.…”

“…However, with over 30 years of running the NPM doctrine, Hood and Dixon (2015) found the effects of NPM to be complicated, both positive and negative, depending on the institutional context of each country. Therefore, the recent literature in public governance research discusses many of the institutional aspects of NPM (Brignall & Modell, 2000;Tallaki, 2019).…”

“…Institutional theories are considered critical views in organization and management theory (Modell, 2009). Previous studies divide them into two streams: the old institutional economic theory and the new institutional social theory (Tallaki, 2019). The old institutional economic theory focuses on the processes of change within organizations (Barley & Tolbert, 1997;Burns & Scapens, 2000), and the new institutional social theory uses concepts like legalization to explain the pressure of outside organizations (DiMaggio & Powell, 1983;Meyer & Rowan, 1977).…”

“…Institutional isomorphism refers to the impact of external organizations, including international organizations, the government, superior agencies, and other public organizations' stakeholders. It develops according to three mechanisms: coercive, mimetic, and normative (Tallaki, 2019). Accordingly, institutional isomorphism requires public organizations to apply PMS to provide performance information to stakeholders to enhance control and assess accountability (Akbar et al, 2012).…”

“…Based on the new institutional social theory under the NPM framework (Tallaki, 2019), organizations need to have accountability with stakeholders about the use of public resources. This is achieved through the quality assurance of the annual reports published by public organizations (Coy & Dixon, 2004;Tooley & Hooks, 2010).…”