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What Do Citizens Think About Public Enterprises? Subjective Survey Data On The Legitimacy Of The Economic Activities Of The German Public Sector

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  • Marcus SIDKI
  • David BOLL

Abstract

We analyse the legitimacy of public enterprises that perform economic activities by focusing on the citizens’ subjective preferences, i.e. determining their political legitimacy. Using data from a representative survey conducted among 318 citizens of the German state of Rhineland‐Palatine, we explore determinants for the support of either privatisation efforts or the instrumental thesis, a widespread principle in German‐speaking countries, which considers public enterprises solely as instruments to fulfil economic policy objectives. Our results indicate that the respondents’ perception of the efficiency of public enterprises as well as their personal economic situation are important factors for the support of privatisation. The influential factors for the use of public enterprises as policy instruments are political ideology, the perception of a higher security of supplying goods and services as well as opinions regarding corporate social responsibility. The subjective preferences of a (democratic) country's citizens are thus an important reason why the public sector should or should not play an active part in providing goods and services. This can play an important role when decision makers from the public sector are keen to take into account the citizens’ approval or disapproval of privatisation measures.

Suggested Citation

  • Marcus SIDKI & David BOLL, 2019. "What Do Citizens Think About Public Enterprises? Subjective Survey Data On The Legitimacy Of The Economic Activities Of The German Public Sector," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(4), pages 615-639, December.
  • Handle: RePEc:bla:annpce:v:90:y:2019:i:4:p:615-639
    DOI: 10.1111/apce.12244
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    Cited by:

    1. Marcus Sidki & Lara Boerger & David Boll, 2024. "The effect of board members’ education and experience on the financial performance of German state-owned enterprises," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(2), pages 445-482, June.
    2. Timo Tremml & Sabine Löbbe & Andreas Kuckertz, 2022. "Board behavior’s impact on entrepreneurial orientation in public enterprises," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1183-1211, December.
    3. Dongmin Yao & Pengyuan Zhang & Xiaoyu Meng, 2023. "How to eliminate the uncovered market: A duopoly model with government intervention," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(2), pages 631-658, June.

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