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- Title
Budgetary changes and organizational performance: Evidence from state transportation agencies.
- Authors
Chen, Can; Flink, Carla M.
- Abstract
Existing punctuated equilibrium theory (PET) literature identifies the causes of policy punctuations. However, there are a lack of theoretical and empirical studies on the effects of policy punctuations on organizational performance. This study extends PET from policy formulation to policy outcomes and explores how public agencies transfer budgetary inputs to organizational performance outcomes in the policy context of American state highway transportation infrastructure. Based on a longitudinal research design, the research employs a panel two‐way fixed effects regression model to analyze the performance consequences of budgetary changes for 50 states during an almost 20‐year period (1995–2013). The key findings indicate that state expenditure (highway maintenance) changes experience much more friction and volatility over time than performance (acceptable roads) changes. In addition, state highway transportation agencies can mitigate the impact of large budgetary cuts on organizational performance, but do not seem to capitalize on large budgetary gains to improve performance.
- Subjects
UNITED States; BUDGET reform; PUNCTUATED equilibrium (Social science); ORGANIZATIONAL performance; STATE transportation agencies; BUDGET cuts
- Publication
Policy Studies Journal, 2022, Vol 50, Issue 3, p595
- ISSN
0190-292X
- Publication type
Article
- DOI
10.1111/psj.12441