Overspending in Public Organizations

Does Strategic Management Matter?

Rhys Andrews*, George A. Boyne, Richard M. Walker

*Corresponding author for this work

    Research output: Contribution to journalArticle

    11 Citations (Scopus)

    Abstract

    In the wake of the financial crash, many governments across the globe are seeking to curb expenditure in public sector organizations. To assess the extent to which public organizations can make strategic choices that might result in lower expenditure, we explore the relationship between strategic management and overspending in English local governments. The effects of strategic stances and actions on overspending are tested using multivariate statistical techniques. The empirical results show that an innovative strategic stance results in overspending as does a commitment to the development of new services, while a reactive strategic stance and decentralized decision making are associated with lower levels of overspending. Our analysis provides support for arguments that public organizations can make strategic choices that result in tighter control of their budgets.

    Original languageEnglish
    Pages (from-to)39-61
    Number of pages23
    JournalInternational Public Management Journal
    Volume15
    Issue number1
    Early online date13 Jun 2012
    DOIs
    Publication statusPublished - 2012

    Fingerprint

    strategic management
    expenditures
    public sector
    budget
    commitment
    decision making
    Strategic management
    Public organizations
    Strategic choice
    Expenditure
    New services
    Public sector organizations
    Empirical results
    Crash
    Globe
    Decentralized decision making
    Government
    Strategic decision making
    Local government

    ASJC Scopus subject areas

    • Business and International Management
    • Public Administration

    Cite this

    Overspending in Public Organizations : Does Strategic Management Matter? / Andrews, Rhys; Boyne, George A.; Walker, Richard M.

    In: International Public Management Journal, Vol. 15, No. 1, 2012, p. 39-61.

    Research output: Contribution to journalArticle

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