Municipalities’ willingness to adopt process innovations: evidence for higher cost-efficiency

Hannes W. Lampe

Local Government Studies, 2017, vol. 43, issue 5, 707-730

Abstract: In the public sector, innovation is understood as a major driver of public service performance improvement and excellence. On the one hand, previous research has proven a positive effect of innovation adoption on performance in the public sector. On the other hand, a broad literature proves positive effects of innovation antecedents on innovation adoption. This study bridges this gap and analyses the effect of an innovation antecedent – willingness to adopt a process innovation (accrual accounting) – on municipalities’ service provision cost-efficiency. Therefore, the author makes use of a panel data set of German municipalities, located in the federal state of North Rhine-Westphalia. Evidence shows that a higher municipal willingness to innovate relates to higher cost-efficiency. A higher innovation willingness might have a maximal effect of 17 percentage points on municipality cost-efficiency.

Date: 2017
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DOI: 10.1080/03003930.2017.1324428

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