E-Government, transparency, reputation and performance. An empirical study in a sample of Spanish municipalities

Abstract

Different streams of the Resource-Based View of the Firm (RBV) research have tested diverse relationships among intangible strategic resources and performance in heterogeneous industries, which have made a considerable contribution to our knowledge about firms and competition. The RBV establishes that those organizations capable of creating and developing strategic resources will have a competitive advantage and will enjoy a superior performance. Despite the substantial research effort, scarce empirical work has been developed trying to test the resourcebased view postulates in the public administration domain. The aim of this study is to examine how a set of strategic resources (e-government, transparency and reputation) can be the drivers of performance in public organizations, developing a theoretical model based on the RBV. The methodology considers a structural equation model (SEM) in order to test the hypotheses formulated in a sample of 78 Spanish municipalities. A group of models were designed considering performance as the dependent variable, and measuring it in six different ways: with three indicators of performance (economic activity index per capita, employment, and performance factor) and three indicators of performance growth (economic activity index growth, employment growth and population growth). The empirical research revealed a positive relationship between e-government and transparency, transparency and reputation, e-government and reputation, and reputation and performance, while the relationship between e-government and performance was not supported. Based on empirical findings, several implications emerge for scholars and practitioners; mainly that the RBV presents an adequate perspective for analysing public organizations, and that the development of strategic resources highly linked to local governments could be a source of competitive advantages with a positive impact on several indicators of city performance, and this should be considered by practitioners.