Managerial Perceptions of Privatization: Evidence from a State Department of Transportation

Abstract

Mid-level managers have largely been ignored in studies of privatization’s stakeholders, despite their significant role in implementing privatization processes. This paper examines seeks to remedy that gap by examining managerial perceptions of privatization within a state department of transportation. Based on various theories of bureaucratic behavior, we hypothesize that professional identity will correlate with negative privatization perceptions and that stronger contractor-manager relationships and beliefs about privatization’s professional benefits will correlate with favorable perceptions. These hypotheses are tested with mail survey data from mid-level agency managers. Statistical modeling indicates that relationship quality is positively correlated with privatization perceptions; professional identity, when measured as a preference for technical work, is negatively correlated with privatization perceptions; and beliefs in privatization’s benefits do not correlate with privatization perceptions.