Influence of formal and informal institutions on outsourcing of public construction projects in Uganda.

This thesis examines how the process of outsourcing of public construction (OPC) projects is influenced by institutions and why. Extant literature focuses on explaining how outsourcing through competition improves efficiency with limited treatment of how institutions actually influence the OPC projects. The thesis develops an analytical framework for process-tracing that integrates institutional and social capital (SC) theories to examine what have hitherto been disparately employed to study their influence in policy reform implementation. By deploying this integrated framework, actors’ decision making in outsourcing process is analysed based on plural rationality at central (CG) and local government (LG) contexts. The thesis argues that actors in OPC simultaneously pursue material gains and SC investments while trying to minimise their transaction costs, in the process engaging in ‘forum shopping’ between formal and informal institutions. Depending on degree of social embeddedness, the process of outsourcing will incline to formality or informality. In the case of Uganda, findings indicate that the informal institutional regime dominates and no major difference in informal practices for both CG and LG levels exist although at CG level it may appear like formal institutions dominate in decision making. The thesis proposes that public policies should take cognisance of informal institutions as well as social structure in their design.

Name dc:type.qualificationname

d_ph

Level dc:type.qualificationlevel

d_ph

Grantor dc:publisher.institution

University of Birmingham

Year dc:date.issued

2010

Author dc:creator

• Kugonza, Sylvester

• JS Local government Municipal government