This study tests the predictive ability of a number of factors that affect local municipal business partnerships, including development policy, municipality size, geographical location, national priority and the characteristics of the municipality and its leader. Using original survey data and a variety of data sources, the research model tests the influence of these institutional, individual and environmental factors on the scope of municipal business partnerships. The paper suggests that political factors are still dominant in local decision making processes and finds a dramatic rise in business partnerships and mixed public-private delivery (joint contracting) of city services.
The adoption of alternative service delivery arrangements (ASDAs) is not a new phenomenon in Israeli local government. The current study is based on empirical quantitative research which examined the effect of economic and political factors on the scope of privatization and alternative service delivery arrangements (ASDAs) in local municipalities in Israel. The "economic constraint" model and the "political choice" model served as the theoretical framework for examining considerations underlying service privatization. The contribution of the current study to previous literature on ASDAs is in examining the effect of moderator variables on the scope of privatization (SOP). A study of 29 services in 106 local municipalities in Israel indicated that political factors have a dominant effect on the scope of privatization in local municipalities while the effect of economic factors is small and statistically insignificant. The following variables were found to have a statistically significant effect on the scope of privatization: number of employees, age of local municipality, employee costs and characteristics of the head of the local municipality.
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