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Managing in the Regulatory Thicket: Regulation Legitimacy and Expertise
Author(s) -
Amirkhanyan Anna A.,
Meier Kenneth J.,
O'Toole Laurence J.
Publication year - 2016
Publication title -
public administration review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.721
H-Index - 139
eISSN - 1540-6210
pISSN - 0033-3352
DOI - 10.1111/puar.12591
Subject(s) - legitimacy , business , government regulation , public relations , government (linguistics) , perception , regulatory reform , public economics , public administration , economics , political science , politics , psychology , linguistics , philosophy , china , neuroscience , law , market economy
Although the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This article investigates how the understanding of and attitudes toward government regulation among public, nonprofit, and for‐profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Findings suggest that managers’ perceptions of regulation legitimacy—views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates—positively affect service quality. Subgroup analysis suggests that managers’ views of regulation matter in nonprofit and for‐profit organizations but not in 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 .