Exploring differences between private and public organizations in business excellence models

Journal article, 2017

This study aims to explore the differences between public and private organizations in the paths of business excellence models and to identify the key drivers for creating business results and customer satisfaction. The partial least squares structural equation modeling technique is used to compare the path coefficients and to identify the key driver constructs for creating business results. The variation in endogenous constructs is found to be more difficult to explain or predict for private organizations than for public organizations, despite the fact that the performance of private organizations is almost always higher than or equal to the performance of public ones in all criteria. The effect of ‘leadership’ on ‘management of processes’ is significantly higher in public organizations than in private ones. However, ‘management of processes’ in public organizations does not seem to translate into ‘results’. The effect of ‘strategic planning’ on creating business ‘results’ is negative for public organizations and remains inconclusive, due to insufficient evidence, for private organizations. The results may not be generally applicable to other countries. However, they do support the move toward more tailor-made models for specific sectors. It is necessary to review the national business excellence model in order to fit specific sectors. This is the first study to investigate the differences between private and public organizations in the Swedish business excellence model.