The relationship between organizational forms and the comprehensive effectiveness for public transport services in China?

Abstract This paper presents a discussion on the effects of organizational forms (including ownership structure and contractual practices) on the comprehensive effectiveness of public transport services in China. Using 26 different Chinese public transport operators in 13 cities across China for the period 2008–2014 as research objects, we integrate public transport industry regulations, and transport operation and passenger requirements to construct an evaluation indicator system based on satisfaction and efficiency. We evaluate comprehensive effectiveness based on a combined evaluation method (CEM) consisting of information entropy theory and data envelopment analysis (DEA), and then take into consideration the truncated regression model to assess the effects between them. Conclusions drawn from the study are summarized as follows: ① The effects of organizational forms on the comprehensive effectiveness of public transport services are confirmed. ② Public transport services franchised to public ownership offer higher comprehensive effectiveness than those franchised to private ownership and mixed ownership. ③ Public transport services regulated by gross cost contracts incite more comprehensive effectiveness than those regulated by net cost contracts and management contracts.

[1]  van de Sl Steef Velde,et al.  Organisational forms and entrepreneurship in public transport: classifying organisational forms , 1999 .

[2]  F. Mizutani,et al.  A Private-Public comparison of bus service operators. , 2003 .

[3]  Mildred E. Warner,et al.  Managing Markets for Public Service: The Role of Mixed Public–Private Delivery of City Services , 2008 .

[4]  Attah K. Boame.  THE TECHNICAL EFFICIENCY OF CANADIAN URBAN TRANSIT SYSTEMS , 2004 .

[5]  Brian Caulfield,et al.  Using Data Envelopment Analysis as a public transport project appraisal tool , 2013 .

[6]  Philip A. Viton,et al.  TECHNICAL EFFICIENCY IN MULTI-MODE BUS TRANSIT: A PRODUCTION FRONTIER ANALYSIS , 1997 .

[7]  Graziella Fornengo,et al.  The impact of ownership on the cost of bus service provision: an example from Italy , 2009 .

[8]  Matthew G. Karlaftis,et al.  The Effect of Privatization on Public Transit Costs , 1999 .

[9]  Dimitrios A Tsamboulas,et al.  Assessing Performance under Regulatory Evolution: A European Transit System Perspective , 2006 .

[10]  Z. Juan,et al.  Do the organizational forms affect passenger satisfaction? Evidence from Chinese public transport service , 2016 .

[11]  Mildred E. Warner,et al.  COMPETITION OR MONOPOLY? COMPARING PRIVATIZATION OF LOCAL PUBLIC SERVICES IN THE US AND SPAIN , 2008 .

[12]  Wei-Yin Loh,et al.  Classification and regression trees , 2011, WIREs Data Mining Knowl. Discov..

[13]  Jonathan Cowie,et al.  Organisation form, scale effects and efficiency in the British bus industry , 1999 .

[14]  William L. Megginson,et al.  Forthcoming, Journal of Economic Literature FROM STATE TO MARKET: A SURVEY OF EMPIRICAL STUDIES ON PRIVATIZATION , 2000 .

[15]  Magnus Söderberg,et al.  A Broad Performance Benchmark Based on Citizens’ Preferences: The Case of Swedish Public Transportation , 2009 .

[16]  Didier van de Velde.  A new regulation for the European public transport , 2007 .

[17]  Pål Andreas Pedersen,et al.  Estimating the inefficiency in the Norwegian bus industry from stochastic cost frontier models , 1997 .

[18]  Z. Juan,et al.  Do contractual practices affect technical efficiency? Evidence from public transport operators in China , 2015 .

[19]  Anne Yvrande-Billon,et al.  Ownership, Contractual Practices and Technical Efficiency: The Case of Urban Public Transport in France , 2007 .

[20]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[21]  Suzanne Leland,et al.  Reassessing Privatization Strategies 25 Years Later: Revisiting Perry and Babitsky's Comparative Performance Study of Urban Bus Transit Services , 2009 .

[22]  K. Kerstens.  Technical efficiency measurement and explanation of French urban transit companies , 1996 .

[23]  Guangnian Xiao,et al.  Performance evaluation of public transit systems using a combined evaluation method , 2016 .

[24]  Dušan Teodorović,et al.  Performance evaluation of bus routes: A provider and passenger perspective , 2007 .

[25]  O. Smirnova,et al.  The Role of Power and Competition in Contracting Out , 2016 .

[26]  M. Farrell.  The Measurement of Productive Efficiency , 1957 .

[27]  W. Cooper,et al.  Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software , 1999 .

[28]  K. Obeng,et al.  Understanding overall output efficiency in public transit systems: The roles of input regulations, perceived budget and input subsidies , 2016 .

[29]  Matthew G. Karlaftis,et al.  Efficiency Measurement in Public Transport: Are Findings Specification Sensitive? , 2012 .

[30]  Arnold Reisman,et al.  Content analysis of data envelopment analysis literature and its comparison with that of other OR/MS fields , 2004, J. Oper. Res. Soc..

[31]  M. Amaral,et al.  Auction Procedures and Competition in Public Services: The Case of Urban Public Transport in France and London , 2009 .

[32]  James Odeck,et al.  The effect of mergers on efficiency and productivity of public transport services , 2008 .

[33]  Marc Ivaldi,et al.  Incentive Regulatory Policies: The Case of Public Transit Systems in France , 2002 .

[34]  M. Filippini,et al.  The influence of ownership on the cost of bus service provision in Switzerland - an empirical illustration , 2003 .

[35]  M. Piacenza.  Productive Structure, Cost Efficiency and Incentives in the Local Public Transport: A Survey of Theoretical and Empirical Issues ♣ , 2001 .

[36]  Carlo Scarpa,et al.  Do competition and ownership matter? Evidence from local public transport in Europe , 2010 .

[37]  J. Koppenjan,et al.  Public–Private Partnerships in Urban Infrastructures: Reconciling Private Sector Participation and Sustainability , 2009 .

[38]  Philippe Gagnepain.  Structures productives de l'industrie du transport urbain et effets des schémas réglementaires , 1998 .

[39]  Vicente Pina,et al.  Analysis of the efficiency of local government services delivery. An application to urban public transport , 2001 .

[40]  A. Gautier,et al.  Contract Renewal as an Incentive Device. An Application to the French Urban Public Transport Sector , 2013 .

[41]  Daniel Albalate,et al.  Governance and regulation of urban bus transportation: Using partial privatization to achieve the better of two worlds , 2012 .

[42]  Nagesh Kumar,et al.  Firm size, opportunities for adaptation and in-house R & D activity in developing countries: the case of Indian manufacturing , 1996 .

[43]  Reza Farzipoor Saen,et al.  Reprint of “Planning in feasible region by two-stage target-setting DEA methods: An application in green supply chain management of public transportation service providers” , 2014 .

[44]  Jonathan Cowie,et al.  Acquisition, efficiency and scale economies: An analysis of the British bus industry , 2002 .

[45]  Ming-Miin Yu,et al.  Measuring the performance of multimode bus transit: A mixed structure network DEA model , 2009 .

[46]  Steven Tadelis,et al.  Incentives Versus Transaction Costs: A Theory of Procurement Contracts , 2001 .

[47]  M. Amaral.  Public vs private management of public utilities - The case of urban public transport in Europe , 2007 .

[48]  B. Simpson.  Deregulation and privatization: the British local bus industry following the transport act 1985 , 1996 .

[49]  Does Government Structure Matter? A Comparative Analysis of Urban Bus Transit Efficiency , 2008 .

[50]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[51]  William Roy.  Réglementation, gouvernance et performance des services publics de transport collectif urbain , 2007 .

[52]  Obed Pasha,et al.  Does Performance Management Lead to Better Outcomes? Evidence from the U.S. Public Transit Industry , 2013 .

[53]  Matthew G. Karlaftis,et al.  Ownership and competition in European transit: assessing efficiency , 2010 .

[54]  Matthew G. Karlaftis,et al.  A DEA approach for evaluating the efficiency and effectiveness of urban transit systems , 2004, Eur. J. Oper. Res..

[55]  Dajian Zhu,et al.  PUBLIC OWNER WITH BUSINESS DELIVERY MODE IN CHINA: CASE STUDY OF THE SHANGHAI PUBLIC BUS SYSTEM , 2014 .

[56]  Luís M. B. Cabral,et al.  On the Evolution of the Firm Size Distribution: Facts and Theory , 2001 .

[57]  Xavier Fageda,et al.  Partial Privatisation in Local Services Delivery: An Empirical Analysis of the Choice of Mixed Firms , 2010 .

[58]  T. Powell.  THE PRINCIPLES OF TRANSPORT ECONOMICS , 2001 .

[59]  Tomoe Entani,et al.  Dual models of interval DEA and its extension to interval data , 2002, Eur. J. Oper. Res..

[60]  P. W. Wilson,et al.  Estimation and inference in two-stage, semi-parametric models of production processes , 2007 .

[61]  Matthew G. Karlaftis,et al.  Subsidy and public transit performance: A factor analytic approach , 1997 .

[62]  C. Barros,et al.  Measuring the economic efficiency of airports: A Simar–Wilson methodology analysis , 2008 .

[63]  Hedley Rees,et al.  Limited-Dependent and Qualitative Variables in Econometrics. , 1985 .

[64]  Emmanuel Thanassoulis,et al.  Introduction to the Theory and Application of Data Envelopment Analysis: A Foundation Text with Integrated Software , 2001 .

[65]  Yaser E. Hawas,et al.  Evaluating and Enhancing the Operational Performance of Public Bus Systems Using GIS-based Data Envelopment Analysis , 2012 .

[66]  Wesley M. Cohen,et al.  Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D , 1996 .

[67]  R. O’Brien,et al.  A Caution Regarding Rules of Thumb for Variance Inflation Factors , 2007 .

[68]  Deregulation and privatization of Britain's local bus industry , 1993 .

[69]  Daniel Albalate,et al.  What shapes local public transportation in Europe? Economics, Mobility, Institutions, and Geography , 2010 .

[70]  C. Fiorio,et al.  User satisfaction and the organization of local public transport: Evidence from European cities , 2013 .

[71]  James Odeck,et al.  Congestion, ownership, region of operation, and scale: Their impact on bus operator performance in Norway , 2006 .