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Governmental Controls and Organizational Performance

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2018, 29(3), pp.25-52
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

Bae Kwanpyo 1 Young-Han Chun 2

1국회입법조사처
2서울대학교

Accredited

ABSTRACT

Quasi-governmental organizations are controlled by the government. This study empirically answers two questions, focusing on ‘public institutions’ in South Korea. First, do more governmental controls make their performance better? This study divided organizational performance into effectiveness, efficiency, equity, and procedural values. The results suggest that more controls over quasi-governmental organizations improve equity but reduce efficiency. The impact on effectiveness and procedural values can not be confirmed significantly. Second, how do they need to respond to the governmental controls? The external management efforts of managers and boundary spanning activities of boundary organizations, as organizational strategic responses, are expected to buffer the environmental shock and exploit the environmental resources. This study statistically examines whether they can moderate the performance impact of governmental controls. The results demonstrate that the positive impact on equity is not strengthened by them, but the negative impact on efficiency is mitigated by external management efforts and boundary spanning activities. Interestingly, the negative impact turns into a positive impact by external management efforts. These findings can be used as a reference for both the policy makers who are concerned with how to control the quasi-government organizations and the managers who are concerned regarding how to respond to the governmental controls.

Citation status

* References for papers published after 2023 are currently being built.