Session Summary

Session Number:790
Session ID:S414
Session Title:Getting Work Done: Use and Consequences of Contracting and Co-production
Short Title:Contracting and Co-production
Session Type:Division Paper
Hotel:Swiss
Floor:3
Room:Vevey
Time:Wednesday, August 11, 1999 10:40 AM - 12:00 PM

Sponsors

PNS  (Mary Tschirhart)mtschirh@indiana.edu (812) 855-4944 

General People

Chair Green, Jack C. Pepperdine U. jgreen@pepperdine.edu (626) 355-5553 
Discussant Card, Michael  U. of South Dakota mcard@usd.edu 605-677-5536 

Submissions

The Effects of Ownership and Resources on Employment Externalization Among Small Enterprises in Russia 
 Russell, Raymond  U. of California, Riverside raymond.russell@ucr.edu (909)-787-5843 
 Hanneman, Robert  U. of California, Riverside robert.hanneman@ucr.edu (909)-787-3638 
  This paper examines the use of part-time employees and independent contractors among the 856,774 small enterprises in Russia in the first half of 1995, sorted into 108 combinations of industry and ownership. Independent contracting is especially common in the construction industry in Russia as in the U.S. (Davis-Blake and Uzzi, 1993), but the use of secondary employment in Russian agriculture is unusually low. As expected, private enterprises make significantly greater use of both part-time employees and independent contractors than enterprises that are owned by the central government, even after differences among ownership sectors in the size of enterprises and their distribution by industry have been controlled. Enterprises that are owned by municipal governments make even less use of contingent employees than enterprises owned by the central government, while enterprises with mixed or nonprofit ownership fall between the state-owned and private sectors by these measures. The responses of both forms of secondary employment to resources are consistent with Pfeffer and Baron's (1988) interpretation of employment externalization, in that both part-time employment and independent contracting are sensitive to measures of the supply and price of labor and of the profitability of its use.
 Keywords: part-time employees; independent contractors; Russian small enterprises
Competition as a Reform Strategy in Public Management  
 Steane, Peter David Macquarie U. PETER.STEANE@MQ.EDU.AU 61 2 9850 9136 
 Walker, Derek H. Macquarie U. WALKER@RMIT.EDU.AU 61 3 9660 2804 
 Public sector regimes in Australia are reforming their operations to enhance effectiveness and efficiency. Competition and contracts are presented as mechanisms facilitating such reform in areas such as costs, productivity and quality. This paper argues that short-term contractual arrangements such as compulsory tendering do not live up to such reformist expectations. As such unresolved questions preclude any final judgment about the benefits claimed for contracts and tendering in public management. An alternative view to reform based largely upon transaction costs, lauds the importance of networks in managing interdependency between organisations (Hahn 1984:323; Fukuyama 1995; Limerick and Cunnington 1993; Nahapiet and Ghosal 1998). This goes beyond simple strategic positioning to the formation of social capital that possesses long-term benefits for organisational effectiveness and efficiency. Furthermore, business practice suggests that success is linked to an ability to be flexible in environments noted for change more than constancy. However, the preference given to competitive compulsory tendering (CCT) and to competitive tendering and contracting (CTC) by state and federal governments in Australia limits the growth of networks at community levels. Public policy developments in the process of micro-economic reform as well as CCT and CTC are critically analysed in this paper in terms of their impact on the procurement process.
 Keywords: Public management; Competition; Australia
Transforming Stakeholder Value Creation: A Co-production Approach 
 Rouse, Michael J. De Montfort U. mjrouse@btinternet.com 1664 464 036 
 Öztel, Hülya  De Montfort U. hocor@dmu.ac.uk 116 250 6438 
 Public sector organisations are being pressured to model themselves after successful, private sector organisations in order to generate enhanced quality services that are efficient, effective and responsive. The concept of stakeholder co-production is, we argue, particularly promising for transforming value creation processes, dealing with complexity, enhancing organisational and stakeholder satisfaction and effectiveness, and for heightening innovation and organisational learning. In this paper we examine co-production as a key strategic element for public sector organisations, what co-production means in this organisational context, its relationship to value creation and stakeholder responsiveness, and the benefits public sector organisations and stakeholder groups can expect from this strategic perspective on value creation and service delivery. Based on our theoretically grounded discussion, we explore future directions for co-production and value creation in a public sector context.
 Keywords: Value Creation; Stakeholders; Co-production