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Improving performance in for-profit contracts: a study of buyer-seller communication and red tape

Kathleen Welsh Voges
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Kathleen Welsh Voges: Texas A&M University-San Antonio, San Antonio, United States of America

Management & Marketing, 2014, vol. 9, issue 4

Abstract: The use of for-profit contracts remains a popular privatization choice for public sector organizations in the United States. However, challenges with quality service delivery ensue prompting a better understanding of how best to deliver services. Based on the results of a study of 58 buyer (public sector)-seller (private for-profit sector) dyads, the findings suggest that the seller’s level of communication quality is positively related to end-user consumer’s level of customer satisfaction. However, the presence of red tape in the seller’s organization has a moderating and negative impact. Discussion of the findings provides insight into how private sector business organizations can improve performance outcomes with its important public sector customers.

Keywords: information exchange; red tape; buyer-seller dyad; privatization; for-profit contracts; performance outcomes. (search for similar items in EconPapers)
Date: 2014
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