Regulatory reform in the era of new technological development: The role of organizational factors in the public sector

Abstract

What is the role of organizational factors in fostering regulatory reform in response to new technological development? Existing studies provide useful frameworks to understand regulatory reform in rapidly changing circumstances but still lack a systematic analysis of how organizational factors affect regulatory reform in the public sector. To fill this gap, we examine the impact of several institutional elements that are central to defining organizational characteristics, such as job tasks, bureaucratic autonomy, and organizational culture. We theorize that regulatory reform is more likely when public sector organizations are more receptive to external changes, which are determined by these characteristics. We leverage original surveys from over 1,000 civil servants in Korea, one of the front runners in new technological development, and find support for our prediction. We find that the implementation of regulatory reforms is more likely when (i) organizational tasks are relevant to scientific and technological development, (ii) higher levels of bureaucratic autonomy are granted, (iii) agency heads demonstrate stronger leadership, and (iv) organizational culture is less authoritarian. Our study makes clear contributions to the literature on public management and regulation theory, and has important implications for regulatory reform in the face of new technological development.