OUTCOMES-BASED CONTRACTS AND THE HIDDEN TURN TO PUBLIC VALUE MANAGEMENT

Kimmitt, Jonathan; Muñoz, Pablo

Abstract

Despite long-standing criticisms of the paradigm, New Public Management (NPM) retains a
strong influence over organizations in public administration. Social Impact Bonds (SIB) are an
outcomes-oriented investment entity which has emerged from NPM with grand promises of
social change. Building on a longitudinal case study of a health-based SIB, this paper identifies
how key actors move away from NPM by resisting such management principles and shift
toward Public Value Management (PVM). The paper finds that this is possible when the public
interest and performance objectives are designed with a public value orientation whilst other
NPM principles shift over time through resistance and negotiation. The paper provides insight
into how key actors re-organize to embed public value in a financing and public service
delivery structure that is often regarded as flawed and inefficient. The paper offers several
contributions to public value literature, including the role of the state, as well as the emerging
literature on SIBs and outcomes-based contracts.

Citation

Kimmitt, J., & Muñoz, P. (in press). OUTCOMES-BASED CONTRACTS AND THE HIDDEN TURN TO PUBLIC VALUE MANAGEMENT. Organization,

• Journal Article Type: Article
• Acceptance Date: Aug 3, 2023
• Deposit Date: Aug 15, 2023
• Publicly Available Date: Aug 16, 2023
• Journal: Organization
• Print ISSN: 1350-5084
• Electronic ISSN: 1461-7323
• Publisher: SAGE Publications
• Peer Reviewed: Peer Reviewed
• Public URL: https://durham-repository.worktribe.com/output/1718046
• Publisher URL: https://journals.sagepub.com/home/org