Does Chief Executive’s Experience Moderate Consolidation’s Impact on Municipal Performance

Author(s):
Suzuki, K. (0000-0002-5403-4826); Avellaneda, C.N.
Published
2016
Publication type
Research paper

Abstract

A profound structural change is municipal merger. This come about through absorption of small

units or merge of units to create a new entity. Both are intended to improve efficiency by taking

advantage of economies of scale and scope. However, consolidation may temporarily and negatively affect other dimensions of performance. Nevertheless, experienced chief executives should mitigate the transitional challenges. This study tests the moderating effect of chief executive’s public

experience on the consolidation-performance relationship. This proposition is tested using data for all the 807 city-level Japanese municipalities for the 2006-2010 period. Two dimensions of performance are studied: efficiency in operational costs, and effectiveness in revenue collection. Findings reveal that merger through municipal absorption increases efficiency in operational costs but reduces revenue expansion. Merger through creation of a new municipality reduces municipal own revenue collection. Chief executive’s past experience neither mitigate nor accelerate the effects of municipal consolidation on performance.

municipal mergermayorexpertiseorganizational performance, municipal governmentJapan
Date issued
2016-09-16
Language
English
Publisher
Gothenburg: Quality of Government Institute
Is part of
Quality of Government Working Paper Series (2016), Pt. 2016:11
hdl
1887/79242
URL
https://qog.pol.gu.se/digitalAssets/1587/1587000_2016_11_suzuki_avellandela.pdf