Agency vs. Stewardship Theory in Local Government Contracted Mobile Apps

Abstract

This paper examines citizen satisfaction levels with local government contracted mobile platforms and applies two theories of the contracting relationship to them: principal-agent and stewardship theory. It uses survey data to compare citizen satisfaction factors for mobile phone applications (apps) contracted by Chinese local governments. It looks at contracting out, a key element of privatization, from a unique perspective. Most research on government contracting focuses on cost and quality in service delivery. This research looks at citizen satisfaction with contracted mobile platforms. Ordered logistic regression analysis is used on data from a user survey of local government contracted mobile apps in 30 cities in China. The study found that the strongest predictors of contracted mobile apps satisfaction were usability, overall app satisfaction, and trust, supporting the stewardship theory. The results challenge existing research showing that citizen satisfaction is influenced more by openness and trust than by cost, at least in mobile apps.