Do NPM Strategies Lead to Negative Organizational Behavior? Lessons from the Differential Effects of Contracting Out on Voluntary Turnover


  • Gyeo Reh Lee National Assembly Budget Office of Korea



Contracting Out, Job Satisfaction, Turnover, New Public Management


While public sector organizations have increasingly utilized New Public Management (NPM) strategies as a means of increasing the values of the market, a growing body of literature suggests that market-based reforms may generate indirect costs associated with negative organizational behaviors in the public sector. Focusing on probable consequences of government contracting out for the public workforce, this study examines the relationship between contracting out and voluntary turnover relying on a panel data of U.S. federal agencies from 2010 to 2017. The results present that contracting activity is associated with voluntary quits in the opposite direction depending on the level of job satisfaction. This finding disentangles the previous discussion on the relationship between NPM strategies and employee behavior.

Author Biography

Gyeo Reh Lee, National Assembly Budget Office of Korea

Gyeo Reh Lee is a tax analyst at the National Assembly Budget Office of Korea. Her research interests include public finance and public management often with an application to government contracting. She holds a Ph.D. in Public Affairs from the O’Neill School of Public and Environmental Affairs at Indiana University. She has recently published in the American Review of Public Administration, Asia Pacific Journal of Public Administration, Journal of Budget and Policy, and Public Personnel Management.






Research Articles