Understanding the Role of Public Management and Organizational Stability in an Uncertain Environment: Evidence from Korean Public Corporations

• Published date: 01 March 2022
• Author: Sangyub Ryu,Taeyeon Kim
• Date: 01 March 2022
• DOI: http://doi.org/10.1111/puar.13348

Research Article

Understanding the Role of Public Management and Organizational Stability in an Uncertain Environment 303

Abstract: Theoretical discussions have emphasized the role of public management, and evidence from various

contexts across the globe supports the positive link between public management and organizational outcomes.

However, previous research has lacked a comprehensive approach to testing the management–performance link.

Furthermore, less is known about the management–performance link in the Asian context. Using a formal

model of public management, the present study examines the impacts of Moore’s management strategies—

managing upward, downward, and outward—on organizational performance. This study also investigates the

moderating effect of procedural stability on the negative relationship between environmental uncertainty and

organizational performance. Analyses of Korean public corporations partially confirmed the positive impacts

of public management on the performance of Korean public corporations. Furthermore, a moderating effect

of procedural stability was confirmed. Future studies are expected to comprehensively test the management–

performance link.

Evidence for Practice

• Managing upward and managing downward lead to better organizational performance, meaning top

managers need to put effort into managing their overhead principals and their subordinates to achieve their

organizational goals.

• Procedural stability and constituents’ uncertain requests lead to negative organizational performance,

meaning emphasis on rules and regulations, as well as environmental uncertainty, hinders organizations from

achieving their goals.

• Procedural stability moderates the negative impacts of constituents’ uncertain requests in organizational

performance, meaning consistent organizational goals and regulations alleviate the negative impacts of

constituents’ uncertain requests in achieving organizational goals.

For as long as new public management has

received scholarly attention, researchers have

sought to identify the various managerial factors

that efficiently determine organizational outcomes.

It has been reported that motivation, incentives,

structures, technologies, work processes, leadership,

goals, and environments determine organizational

outcomes (Rainey2009, 19). The conclusions of

previous studies have indicated that management

matters for organizational outcomes (Boyne2004;

Lynn Jr, Heinrich, and Hill2000; Meier and O’Toole

Jr2007; Moynihan and Pandey2005). However,

despite scholars’ efforts to examine the significant

determinants of organizational outcomes, previous

research has lacked a comprehensive understanding

of how public management leads to positive

organizational outcomes. Rather, most studies on

organizational outcomes have focused on certain

parts of the whole without considering hidden causal

relations.

To study the management–performance link

without missing the big picture, a formal model

approach is recommended. Previously, O’Toole

Jr and Meier(1999) reviewed a number of case

studies, as well as empirical studies, and developed

a formal model of public management. Since

then, this model has been adopted to examine the

management–performance link in various contexts,

including schools (Chun and Song2017; Meier

and O’Toole Jr2003; Suhaeniti and Ryu2019),

law enforcement (Nicholson-Crotty and O’Toole

Jr2004), the European Union (EU) (Thurner

and Binder2012), state agencies (Jacobson,

Palus, and Bowling2010), and even the White

House (Cohen, Vaughn, and Villalobos2012).

Although not all findings are identical, it has been

unanimously confirmed that organizational stability,

internal management, external management, and

environments are significant determinants of

organizational outcomes.

Understanding the Role of Public Management and

Organizational Stability in an Uncertain Environment:

Evidence from Korean Public Corporations

Sangyub Ryu

Taeyeon Kim

Yonsei University

Seoul National University

Taeyeon Kim is a postdoctoral researcher

at the Graduate School of Public

Administration, Seoul National University

in Korea. Her research focuses on public

management, organizational theory, and

human resource policy.

Email: ktypong@snu.ac.kr

Sangyub Ryu is an associate professor of

public administration at Yonsei University

in Korea. His research interests include

public management, human resource

management, and disaster management.

Email: sangyub@yonsei.ac.kr

Public Administration Review,

Vol. 82, Iss. 2, pp. 303–313. © 2021 by

The American Society for Public Administration.

DOI: 10.1111/puar.13348.