Understanding the adoption of Pay-for-performance in state governments: A diffusion theory approach

Sangyub RYU, John C. RONQUILLO, Seejeen PARK


As various private sector practices have been introduced into the public sector, some were adopted without careful assessment of potential policy and management implications. One such example is the adoption of pay-for-performance (PFP). While previous research has corroborated that this performance incentive mechanism was implemented without thorough assessment, the diffusion process of PFP has not been empirically tested or evaluated. This study applies a regional diffusion model among American (U.S.) states to examine the diffusion process. Findings show that state governments tend to adopt PFP plans when they become aware of their neighbouring states adopting them, but the marginal probability of adoption decreases as the numbers of neighbours adopting such plans


PFP; merit pay; policy diffusion; state governments.

Full Text:


DOI: http://dx.doi.org/10.24193/tras.54E.7 Creative Commons License
Transylvanian Review of Administrative Sciences by TRAS is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at http://rtsa.ro/tras/

Online ISSN: 2247-8310 | Print ISSN: 1842-2845 |  © AMP

The opinions expressed in the texts published are the author’s own and do not necessarily express the views of TRAS editors. The authors assume all responsibility for the ideas expressed in the materials published.