Advances in Management and Applied Economics

The impact of organisational privatization on the performance of publicly owned enterprises

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• Abstract

  In this work we analyse to what degree the efficiency of a publicly owned non-monopolistic enterprise improves as a result of the introduction of strategic organizational reforms consisting of adopting ‘private-firm-like’ management practices, criteria, and governance structure; i.e. corporatization, commerciallization or ‘organizational privatization’ measures. The subject is addressed here through an in-depth analysis of a case study, which shows up fours moments of significant organizational strategic reforms of the above type over the course of 22 years. The present work also presents an improved methodological approach together with a novel quantitative approach for evaluating those changes in the firm’s efficiency that can be attributed to some given events. Our results give support to the hypothesis that the economic efficiency improve as a consequence of such organizational privatization strategic reforms, though improvements may entail a given time-delay.