Buyer control over outsourced service delivery in public service triads

Abstract

The aim of this research inquiry is to understand how, in public contracts, service delivery is controlled in relation to the separation between the buyer, service provider and service delivery. Moreover, to explore the influence of buyer separation, task programmability, and outcome uncertainty variables on a buyer’s control mechanisms during pre-tendering, during tendering, and post- tendering stages in public service contracting. Next, buyer risk mitigating strategies that facilitate maintaining control over service delivery in public sector service triads is investigated by comparing different public service triad types that have varying buyer separation, task programmability and outcome uncertainty levels. The research inquiry embraces a multiple embedded case study research design and is conducted in cooperation with Scotland Excel and seven Scottish Councils in four different service sectors – care homes, fostering, waste management, and engineering and technical consultancy. A unique form of thematic analysis that is suggested by Stake (2006), specifically for a structured analysis of qualitative multiple case studies is embraced by this research inquiry. The analysis method is conducted in two-levels, for embedded and for main cases of the research. Consequently, the research contributes to the gap in our knowledge in three fundamental area. First, a literature contribution by proposing a taxonomy of public sector buyer’s control difficulties over service delivery in service triad setting. Second, a literature contribution by identifying and elaborating an impacting variable for service triads buyer’s separation. Third, a theoretical contribution to the principal-agency theory by identifying new principal and agent relationship types that a specific for public sector service triads.