Enhancing the Effectiveness of Public Sector Performance Regimes: A Proposed Causal Model for Aligning Governance Design with Performance Logics

Abstract The ability of public organizations to effectively leverage performance-enhancing interventions depends on their alignment with the institutional and motivational determinants of public sector performance and on how these are reflected in governance design choices. A mismatch between performance logics and governance design may potentially render interventions ineffective or even detrimental. In this article, we deconstruct the theoretical foundations of such a mismatch and propose an interactional causal model to examine how governance design can either effectuate or inhibit the institutional and individual motivational determinants affecting performance. In doing so, we evaluate the fitness of governance designs against public sector attributes and constraints and identify actionable managerial interventions for improving the fit. The article argues that alignment between governance design and the logics underpinning public sector performance regimes is critical for producing outcomes that are effective and consistent with the traits and value systems of the public sector.