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      Antecedents and Consequences of Corporatization: An Empirical Analysis of German Public Hospitals

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      Journal of Public Administration Research and Theory

      Oxford University Press (OUP)

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          Abstract

          The idea of privatizing or corporatizing public enterprises to improve organizational performance is a central tenet of the new public management movement. Yet while privatization represents a well-established subject of inquiry, corporatization remains a research field scarcely trodden, leaving the public debate bereft of sound empirical evidence. Building on the contingency theory, principal-agent theory, and corporatization literatures, the purpose of this study is to help bridge this research gap by empirically assessing the postulated relationships on the antecedents and consequences of corporatization. Choosing public hospitals as research subjects, it builds on a comprehensive longitudinal dataset and proceeds in four steps: calculating efficiency scores using data envelopment analysis; investigating the antecedents of corporatization with logistic regression; constructing an appropriate control group consisting of noncorporatized public-law hospitals using genetic matching; and comparing changes in efficiency between corporatized and noncorporatized hospitals by means of a difference-in-difference approach. The results indicate that public-law hospitals were significantly more likely to be corporatized under certain circumstances, namely, in areas with a higher degree of spatial competition, during the years around a major change in the reimbursement system (2003–2005), and if they were legally dependent entities. In contrast, having lower baseline efficiency had no significant effect on the likelihood of corporatization. Furthermore, corporatization had a significantly positively effect on the efficiency of previously public-law hospitals. This effect was higher for hospitals that had been legally independent than for those that had been legally dependent. In sum, corporatization is likely an effective alternative to privatization, a finding that leads to a range of implications for practice and research.

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          Measuring the efficiency of decision making units

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            Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis

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              How Much Should We Trust Differences-In-Differences Estimates?

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                Author and article information

                Journal
                Journal of Public Administration Research and Theory
                Oxford University Press (OUP)
                1053-1858
                1477-9803
                April 01 2016
                June 25 2015
                April 01 2016
                June 25 2015
                : 26
                : 2
                : 309-326
                Affiliations
                [1 ]University Medical Center Hamburg-Eppendorf;
                [2 ]University of Hamburg
                Article
                10.1093/jopart/muv016
                f4a70b99-86a2-4860-bbfe-97e1639d7d14
                © 2015

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