Abstract:
The local government administrative mechanism of Sri Lanka has been set to decentralize the
power to respond for the regional service demands of stakeholders including business entities.
The growth potential of Sri Lanka could be noticed in both macro and micro scaled enterprises
whereas regional business ventures are a critical factor in the national growth phenomenon.
Meanwhile, Sri Lanka has been recognized as a middle-ranged country in doing business in
the global ranking which has referred the existence of set of institutions, policies and factor as
the determinants of productivity (The Global Competitiveness Index 2014–2015). Therefore,
the local government authorities which include divisional secretariat offices, municipal
councils and even other institutions related to provincial councils are strategically important
mechanisms to assist regional investors to enhance their business productivity and growth
potentials. Accordingly, this concept paper reveals how the service quality-related
improvements could enhance the productivity of local authorities as an alternative mechanism
to motivate regional investors to broaden business growth opportunities. Accordingly, this
paper has followed theoretical models and explanations to conceptualize the integrated content
to explain how the level of service quality excellence in the service delivery systems of local
government authorities could influence perceived service quality referred to respective
business clients/investors. It has proposed the research propositions for the future studies by
specially refereeing how the gaps exists amongst business clients or investors towards service
quality mechanisms of local government authorities that could influence their perceived
service satisfaction to penetrate business growth potentials. Further, it has reviewed the
moderating mechanisms that influence the perceived service quality amongst business
clients/investors whom served by local government authorities. Finally, paper postulates the
strategic directions and policy-related inputs to enhance the strategic service delivery systems
for the local government authorities in Sri Lanka aiming to assist regional business
developments and growth potentials.
