engleski

Influence of market orientation and stakeholder management on the performances of Croatian cities

The several decades long continuous pressures for enhancing efficiency and efficacy of the complex public sector have incited the application of various legal and governance solutions. The implementation of market orientation plays an important role in that respect because it enables numerous entities responsible for the development of all levels of public administration to respond more efficiently to the demands of its users and other stakeholders. The existing low level of fiscal and administrative decentralisation, fragmentation, low level of independence and, consequently, poor developmental potential of local self-government in Croatia is an additional shortcoming which does not relieve the Croatian local governments of their responsibility to fulfil their social mission. In the existing environment within the Republic of Croatia which does not prescribe a legal obligation to monitor the users` satisfaction nor does it directly encourage the continuous monitoring of performances of city governments (and other levels of public administration), the empirical research has determined a medium level of market orientation of city governments and a statistically significant differentiation of market orientation levels towards each of the nine analysed groups of stakeholders. In addition, the research has confirmed a positive and substantial influence of larger multiple stakeholder market orientation of city governments on subjectively measured total performances, i.e. organisational performances (financial and other indicators) and performances (satisfaction) of users of local public services.

local self-government, market orientation, performances, stakeholder approach

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