Organizational Performance and Government Resource Allocation: Panel Evidence from Washington State’s Public Programs
Dr. Sungho Park (University of Alabama)
Journal Article in Public Performance & Management Review, 23 November 2022
Whether organizational performance shapes government resource allocations or not has long been a contentious issue, especially since the 1990s when the New Public Management movement vitalized performance-based budgeting across countries. To contribute to this ongoing debate, this study examines if different levels of organizational performance achievement affect annual budget changes, focusing on Washington State’s public programs from 2006 to 2015. This study finds a significant relationship between program performance and budget changes, particularly during fiscally hard times. The findings also suggest the reward mechanism associated with performance-based resource allocation, indicating that higher program performance may lead to budget increases.