Citizens and policy makers have long made assumptions about differences between public and private organizations. Researchers have tested a variety of propositions concerning differences in public and private organizations (Rainey, Backoff, & Levine, 1976) based on a number of differences including environmental factors (e.g., higher degree of market exposure for private organizations), greater legal constraints and political influences for public organizations, organizationenvironment transactions (e.g., greater scrutiny of public organizations), and internal structures and processes (e.g., greater complexity of objectives and fewer incentives for performance in public organizations). For example, due to the fishbowl effect and demands for accountability, public organizations are expected to be more cautious and more involved in red tape, whereas private organizations are expected to take more risks