The role of dynamic capabilities on the effectiveness of organizational changes in public sector

Abstract

Purpose – Governments worldwide have used administrative reforms to align public organizations with the needs of their key stakeholders. However, despite successfully implementing, they do not consistently achieve the desired organizational performance. This paper explores the relationship between the implementation of administrative reforms and the performance of public organizations seen from a comprehensive perspective. For this purpose, we analyze the mediation role of three crucial dynamic capabilities. Design/methodology/approach – This research used a survey-based methodology. Structural equation modeling was used to analyze the data obtained from a sample of public officials and managers working in public organizations in the State of Ceará (Brazil). Findings – Results of this study suggest that dynamic capabilities can have a decisive role in implementing government policy proposals and helping public organizations align their outcomes with stakeholders' needs. In addition, they indicate the existence of two levels of capabilities and identify a road map for their implementation. Practical implications – From a practical point of view, by identifying these capabilities and their interrelationship, this study provides a roadmap to reduce the complexity of their use and help managers of public organizations deliver desired outcomes relating to the quality of individual and collective stakeholders. Originality/value – This study makes important contributions to literature, enabling scholars and practitioners to see the result of government policy proposals beyond the efficient use of public resources. It shows the role of dynamic capabilities as mediation instruments for changing public organizations, which can be used in administrative reform implementations and continuous improvement processes. Finally, it provides empirical research on the interaction between the three dynamic capabilities in the context of public organizations, differentiating these capabilities into two levels, which provides a road map for their implementation and development by public managers.