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Managing in the regulatory thicket: regulation legitimacy and expertise

Amirkhanyan, Anna A., Meier, Kenneth John and O'Toole, Laurence J. 2017. Managing in the regulatory thicket: regulation legitimacy and expertise. Public Administration Review 77 (3) , pp. 381-394. 10.1111/puar.12591

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Abstract

While the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This study investigates how the understanding of and attitudes towards government regulation among public, nonprofit, and for-profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Our findings suggest that managers’ perceptions of regulation legitimacy – views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates – positively affect service quality. Sub-group analysis suggests that the managers’ views of regulation matter in nonprofit and for-profit, but not public organizations. In nonprofit homes, performance declines when managers report higher regulatory expertise – better knowledge of the regulatory standards. In for-profit facilities, frequent communication with regulators lowers quality. These findings suggest that the regulated entities’ views of government regulation are central to their success, which necessitates improvements in the regulatory process.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Wiley-Blackwell
ISSN: 0033-3352
Date of First Compliant Deposit: 2 January 2017
Date of Acceptance: 8 December 2016
Last Modified: 20 Oct 2019 00:22
URI: http://orca-mwe.cf.ac.uk/id/eprint/97116

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