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Article
Publication date: 21 October 2013

Christopher John Hunt, John Staunton and Keitha Dunstan

Within the new public management (NPM) context, this paper aims to examine the inclusion of equity issues in pricing policy development and implementation in the water industry in…

1327

Abstract

Purpose

Within the new public management (NPM) context, this paper aims to examine the inclusion of equity issues in pricing policy development and implementation in the water industry in Australia.

Design/methodology/approach

A review of literature relevant to the pricing of water shows equity issues have four dimensions which tend to be, at best, only implicitly considered. An empirical illustration employing a transaction cost framework is provided of a case in which change in pricing mechanisms was strongly suggested.

Findings

An equity paradox emerges as an explanation of why 63.7 per cent of Queensland urban water entities chose not to adopt the user-pays pricing mechanism for water. This suggests that the balance between “equity” and “efficiency” continues to be required in policy development for water pricing. Equity of access and that of distribution continue to be significant factors. As well, equity of interest and of return must be considered, especially under a user-pays pricing mechanism.

Practical implications

In respect of NPM considerations, it is argued that consideration of the four dimensions of equity in the implementation of a water pricing policy will resolve contradictions with, and paradoxes met in dealing with efficiency.

Originality/value

The argument used in the paper is interdisciplinary. References and terms used include those which are social, economic, and environmental from an accounting and management perspective.

Details

Accounting, Auditing & Accountability Journal, vol. 26 no. 8
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 30 September 2014

Corrado lo Storto

This is a benchmarking study and the purpose of this paper is to investigate if there is any association between operational efficiency in the integrated water management industry…

Abstract

Purpose

This is a benchmarking study and the purpose of this paper is to investigate if there is any association between operational efficiency in the integrated water management industry in Italy and the typology of service providers, and as a consequence, the nature of concession contract.

Design/methodology/approach

The study is focussed on 38 optimal territorial areas (ATOs), e.g. a circumscribed geographical area where the provision of integrated water services is considered efficient. It uses Data Envelopment Analysis (DEA) to calculate ATO efficiency and a stepwise regression procedure performed to investigate the effect of contract type on the operational efficiency rate of the ATO.

Findings

This study shows that there are some inefficiencies in the water service supply industry in Italy. The estimated average pure technical and scale efficiency of ATOs are 92.62 and 93.91 percent, respectively, while the average technical efficiency is 87.61 percent and the lowest is slightly higher than 13 percent. Operational inefficiencies might not be determined by size only. In fact, results show that the water service provider and contract agreement typologies are associated with efficiency. In particular, operational efficiency is higher in those ATOs where the water service supply concession contracts that fit the schemes of the new legislative framework prevail or where the service is mostly provided by a private equity owned or by mixed public-private companies.

Research limitations/implications

It was assumed that any incremental level of water quality beyond the minimum acceptable threshold as required by law is not important to increase the operation efficiency score; henceforth, no variables measuring the water quality were introduced in the DEA model. The result of the study may be not fully representative of the Italian water service sector, because the unavailability of accurate and consistent public databank in Italy did not allowed to have a larger sample.

Practical implications

This paper is one of the first in Italy to investigate the association between the operational efficiency of the ATOs and the nature of water service providers and contract agreements used.

Originality/value

This paper is one of the first in Italy to investigate the association between the operational efficiency of the ATOs and the nature of water service providers and contract agreements used.

Details

Benchmarking: An International Journal, vol. 21 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 29 February 2024

Abdullah Murrar, Veronica Paz, Madan Batra and David Yerger

Several studies have examined the relationship between service quality and willingness to pay in many industries. However, this relationship has not been explored through the lens…

Abstract

Purpose

Several studies have examined the relationship between service quality and willingness to pay in many industries. However, this relationship has not been explored through the lens of customer perceived value and their willingness to pay for improving and sustaining water service. This study aims to examine the impact of technical and functional service quality dimensions on customer perceived value and assess the influence of customer perceived value and socio-economic factors on customers' willingness to pay for improving and sustaining the water service.

Design/methodology/approach

Technical service quality includes core water service such as water delivery and maintenance, while functional service quality refers to the appearance of facilities, employees’ dress, and communication. SERVQUAL questionnaire responses were collected from 333 Palestinian household customers. Cronbach’s alpha was conducted to measure internal consistency and convergent validity. Path analysis was utilized to evaluate a causal diagram by examining the relationships among the constructs.

Findings

The results showed that technical and functional service quality and relative price explain 52% of the customer perceived value variation. Additionally, the results revealed that customer perceived value, technical service quality, and relative price significantly impact the customer’s willingness to pay for improving and sustaining service. In contrast, the functional service quality and socio-economic factors have insignificant effects. These predictors explain 60% of the customer’s willingness to pay for improving and sustaining service.

Practical implications

The study suggests that water providers should prioritize improving and sustaining technical service quality to increase customer willingness to pay. Furthermore, they should be aware that other factors, such as employee appearance and politeness, are less influential in driving customers’ willingness to pay.

Originality/value

The study presents a water service improvement model that utilizes data from a developing country to assess the influence of perceived customer value, along with its dimensions, on the willingness to pay for improving and sustaining water service quality.

Details

The TQM Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-2731

Keywords

Book part
Publication date: 18 July 2007

Herwig Unnerstall and Frank Messner

The requirement of full cost recovery for water services including environmental and resource costs in accordance with the polluter pays principle in Art. 9 EU-Water Framework…

Abstract

The requirement of full cost recovery for water services including environmental and resource costs in accordance with the polluter pays principle in Art. 9 EU-Water Framework Directive is a unique provision in the history of the European environmental law. The wording of the provision is a compromise between the Council's and the Parliament's versions that mirrors different conceptual ideas on how to internalize environmental and resource costs. Art. 9 now contains a two-step concept for the achievement of the aim. The uniform implementation of the full cost-recovery calls for common accounting standards for the calculation of financial cost and a common methodology for the estimation of environmental and resource costs on the European level. In Germany, the requirements of the first step are partly fulfilled, but necessities of the second step are not being met at the moment.

Details

Ecological Economics of Sustainable Watershed Management
Type: Book
ISBN: 978-1-84950-507-9

Open Access
Article
Publication date: 9 September 2022

Akka Habib, Bencharki Bouchaib and Said Housni

The objective of this article is to propose a panel of management performance evaluation indicators at operator level. This panel would be the tool to be made available to an…

1162

Abstract

Purpose

The objective of this article is to propose a panel of management performance evaluation indicators at operator level. This panel would be the tool to be made available to an observatory that should be set up by regulation. The proposal comes at the right time given that Morocco is planning a major reform of the sector very soon. A framework law has already been promulgated for this purpose (Law 51-21 relating to the reform of public establishments).

Design/methodology/approach

The proposed panel is the result of (1) a review of the literature dealing with public management theories, in particular those relating to industrial and commercial public services and whose character is captive. The management of the latter requires a great deal of caution to preserve their economic balance and consequently their sustainability. (2) A review of experiences of countries is chosen because of contextual their similarities with Morocco like France having a similar legal background, Tunisia and Algeria chosen for geographical and economic similarities. The British experience is also discussed for what it represents as a liberal model in the management of public water and sanitation services, as opposed to the German model also studied and which stands as the only country where the management of public services has almost always been a communal prerogative. The analysis of these models has made it possible to identify management evaluation practices that could be adapted to the Moroccan context. (3) Research work by practitioners and reports from specialized international institutions (International Water Association [IWA]). (4) A critical analysis of a multitude of management and activity reports from 12 autonomous authorities and 4 private delegates covering 16 million inhabitants of the urban environment. A total of 15 indicators are developed. They aim to assess the effectiveness of management in terms of saving drinking water and preserving the natural environment from the pollution of water resources.

Findings

Approximately, 15 indicators for assessing water resource management in public water and sanitation services are proposed. These indicators relate to the efficiency of pipe networks, the performance of storage systems and losses in users' homes. Indicators specific to liquid sanitation systems, particularly with regard to the control of wastewater overflows into the public highway and their treatment before discharge into the natural environment, are also proposed.

Research limitations/implications

The application of the results of this research could be confronted with its appropriation by the operators. Indeed, the investment involved in setting up the proposed evaluation system, as well as the conflict of interest that may arise in the process of formalizing and standardizing the system at the national level, may slow down the process of setting it up.

Practical implications

In practice, the implementation of a system for evaluating the performance of water resource management in public drinking water and liquid sanitation services would make it possible to optimize the volume of water to be mobilized. Substantial savings are expected both at the level of the resource itself and at the level of the investments that accompany the realization of the mobilization and distribution infrastructures. These savings will be very useful for the creation of other similar services and to serve more people.

Social implications

The distribution of drinking water and liquid sanitation is a vital human need. These services are extremely captive. They are key factors in the socioeconomic development of the territory and the citizen. The impact is transversal and affects the lifestyle of the populations. On the one hand, it favors the sedentarization of the populations and on the other hand, preserves their health by fighting against the diseases of water origin. In addition, the comfort that it provides in the daily life of users is highly coveted when they are delivered in a modern way and arranged with modern technologies.

Originality/value

The regulation of public drinking water and liquid sanitation services in Morocco is the weakest link in the sector. The Ministry of the Interior is legally responsible for setting up a standard system for evaluating the management of these services to fill this gap (organic law 113-14 on municipalities). Unfortunately, this initiative is not yet underway. The opportunity to apply the results of this research is well timed. Morocco plans to launch a global reform of the sector starting in 2022–2023 (Law 50-21 on the reform of public institutions).

Details

Arab Gulf Journal of Scientific Research, vol. 40 no. 3
Type: Research Article
ISSN: 1985-9899

Keywords

Article
Publication date: 4 May 2021

Abdullah Murrar, Madan Batra and James Rodger

Service quality and customer satisfaction influence the financial performance of service organizations. Hence, the purpose of this paper is to investigate the path relationship of…

Abstract

Purpose

Service quality and customer satisfaction influence the financial performance of service organizations. Hence, the purpose of this paper is to investigate the path relationship of service quality to customer satisfaction to financial sustainability in the water service sector, which is vital to the sustainable future of mankind. Further, these three interrelated constructs and their dimensions are clearly articulated.

Design/methodology/approach

SERVQUAL questionnaire responses were collected from 635 household families, and the financial sustainability indicators of 56 water providers were gathered as well. Cronbach's alpha and factor analysis were conducted to measure the internal consistency and convergent validity. Path analysis was utilized to evaluate the causal diagram by examining the relationships among service quality, customer satisfaction and financial sustainability using the AMOS software package.

Findings

The results showed that the five dimensions of service quality explain 58% of the customer satisfaction variation. The responsiveness, empathy, assurance and reliability have significant impact on the customer satisfaction where p < 0.05, while the tangible dimension has an insignificant effect. The results also revealed that customer satisfaction has a significant impact on the financial sustainability indicators of the water providers, where p = 0.000 for the debt collection ratio indicator, and p = 0.003 for the financial efficiency ratio indicator.

Research limitations/implications

This research on financial sustainability is based on evidence about service quality and customer satisfaction in the Palestinian water sector. Future research on financial sustainability of the water sector may focus on the pricing mechanism and debt collection of water service.

Practical implications

The findings suggest that water providers should recognize the importance of service quality dimensions, which strengthen the customer satisfaction, which, in turn, is a significant driver for their financial sustainability. It is, therefore, sound to draw action-oriented managerial implications from these results.

Originality/value

The study adds to the literature of water service sector and is based on empirical evidence from primary data of household families and secondary data of water service providers from developing countries. This paper also contributes toward the strengthening of sustainability of the water service sector in Palestine – a worthy humanitarian cause. The study provides evidence useful for policy makers toward carving out policies aimed at strengthening the financial sustainability of the water service sector.

Details

The TQM Journal, vol. 33 no. 8
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 19 April 2011

Adila Shafqat

The main objective of this paper is to analyze the role of municipalities in waste water services in Bahawalpur city.

1452

Abstract

Purpose

The main objective of this paper is to analyze the role of municipalities in waste water services in Bahawalpur city.

Design/methodology/approach

The study was conducted by a variety of sources, such as regulations, status reports, position papers, as well as articles and research reports.

Findings

No technology, capital or expertise can protect the environment if local governance is not participatory and pluralistic. Local government refers to specific geographically delineated areas to deliver a range of specified services. But the role of governance is not only to provide services consistent to the residents but also to preserve the life and liberty of residents and to create and promote an environmentally sustainable development. This largely depends upon the relationship which local authorities are able to create with the local communities. These cross sectoral programs can improve the environmental performance of the municipalities in Bahawalpur, where many local problems are the result of the poor supervision and planning of municipal authorities. An articulation of legislation and participatory approach can be proclaimed at the local level if real progress is to be made towards sustainability.

Practical implications

Water and waste water services are highly capital‐intensive so district and city government should start projects and schemes in the urban center to govern all the wastewater systems properly. Involvement of the private sector in these services is also expected in new and more efficient ways. According to a good governance principle planning should take into account not only the economical and technical factors but also local participation, priorities and traditions etc. so the benefit and experience of different organizations can be utilized.

Originality/value

The paper focuses on the role of municipalities in water and waste water services in an area of Pakistan.

Details

Management of Environmental Quality: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 28 February 2023

Omoleye Ojuri, Grant R.W. Mills and Alex Opoku

This work aims to understand how social value is created and delivered using community-based water supply projects. It examines social value creation given the enabling concepts …

Abstract

Purpose

This work aims to understand how social value is created and delivered using community-based water supply projects. It examines social value creation given the enabling concepts – value co-creation and service ecosystems as business models for infrastructure.

Design/methodology/approach

Inductive reasoning, including qualitative research design, was applied to two water supply projects. The qualitative stage created social value co-creation features using the purposive sampling of 72 semi-structured interviews.

Findings

The qualitative analysis features social value co-creation, which includes a sense of social unity, end-user empowerment, Behavioural transformation, and knowledge transfer. Although value destruction also emerged while examining social value co-creation, the research identifies the “red flags” and value contradictions that must be avoided.

Research limitations/implications

The enablers of sustainable infrastructure projects should include social value, service ecosystems and value co-creation.

Practical implications

There is a need for the government and non-governmental organisations to create enabling platforms that involve a planned dialogical communication process supporting the development and enhancement of relationships of stakeholders to maximise social value from infrastructure projects.

Originality/value

The work offers a widened perspective of social value creation and a new framework called “Social value co-creation/destruction” (SVCC/SVCD) as the business model for sustainable infrastructure projects. It is the first attempt to illustrate social value creation in construction from service ecosystems and value co-creation perspectives.

Details

Built Environment Project and Asset Management, vol. 13 no. 4
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 1 March 2011

Mamata R. Singh, Atul K. Mittal and V. Upadhyay

The purpose of this paper is to develop a suitable benchmarking framework that encompasses multiple criteria of sustainable water supply services for assessing the performance of…

1194

Abstract

Purpose

The purpose of this paper is to develop a suitable benchmarking framework that encompasses multiple criteria of sustainable water supply services for assessing the performance of select North Indian urban water utilities and also to arrive at potential for input reductions (or efficient input levels).

Design/methodology/approach

The study considers 35 North Indian urban water utilities pertaining to two union territories (Chandigarh and Delhi) and three states (Haryana, Punjab and Uttar Pradesh) for sustainability‐based performance assessment using input‐oriented variable returns to scale data envelopment analysis (DEA) model. Important criteria considered for sustainable water supply services are service sufficiency, service reliability, resource conservation, staff rationalization, and business viability which in turn address the key sustainability dimensions (social, environmental and financial).

Findings

The approach when applied to a sample of 35 North Indian urban water utilities shows low‐performance levels for most of the utilities, with significant scope for reduction in operation and maintenance expenditure, staff size and water losses. State/UT‐wise analysis of sustainability‐based average efficiency presents the highest score for Chandigarh and the least score for Haryana, whereas the rest of the three states/UT score in between them.

Research limitations/implications

Limited data availability has constrained the incorporation of other sustainability criteria (such as services to the poor, tariff design, customer services, revenue functions, etc.) for efficiency analysis of urban water utilities. Also, estimation of efficiency scores does not encompass the effect of exogenous environmental factors which are beyond utilities' managerial control (such as topography, population density, water source, ownership status, etc.).

Practical implications

This framework would be useful for the regulator or operator of the facility to rank the utilities and devise performance‐linked incentive mechanism or price cap regulation.

Originality/value

This paper is a significant departure from the other international benchmarking initiatives/studies as it develops a holistic framework for benchmarking in the water sector that encompasses multiple criteria of sustainable water supply services using DEA as a tool.

Details

Benchmarking: An International Journal, vol. 18 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 3 December 2020

Emmanuel Kwame Nti, Camillus Abawiera Wongnaa, Nana Sampson E. Edusah, John-Eudes Andivi Bakang and Vasco Baffour Kyei

The purpose of this paper is to support the development of effective strategies that enhance community water supply systems. The study examined service constraints and willingness…

Abstract

Purpose

The purpose of this paper is to support the development of effective strategies that enhance community water supply systems. The study examined service constraints and willingness to pay for better services in community-managed water supply services using empirical evidence from beneficiaries of a small-town water supply system in Ghana.

Design/methodology/approach

A survey design of both descriptive and exploratory research is adopted, the descriptive survey handles the quantitative aspect, while the exploratory survey handles the qualitative aspect. The authors collected data using a structured survey questionnaire from 387 beneficiaries who were public standpipe and domestic users. Descriptive statistics, Kendall's coefficient of concordance and Cragg's two-step model were the methods of analysis employed.

Findings

The respondents ranked lack of capacity (managerial) as the topmost constraint of the community-managed water system. The findings indicate that 57% of the beneficiaries were not willing to pay, whiles 43% were willing to pay. Also, results from Cragg's two-step regression model indicate that different sets of factors affect willingness-to-pay and amount-to-pay decisions. The study revealed that while a willingness-to-pay decision is influenced by income, education, marital status and customer service, the estimated-amount-to-pay decision is more influenced by income and education.

Originality/value

Building on the empirical evidence, the findings indicated that the water and sanitation management team can increase the current fee of GH¢ 5.00/1 m3 (≈US$ 0.87) by increasing beneficiaries charge for a bucket of water from GH¢ 0.10p (≈US$ 0.017) to GH¢ 0.21p (≈US$ 0.036) for better services within the community. Importantly, the additional charge should take into consideration income and education which were noted to significantly influence the beneficiary's amount-to-pay decision for better services in the community-managed water supply system.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 17 no. 3
Type: Research Article
ISSN: 2042-5961

Keywords

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