Effectiveness of Service Delivery Systems of Local Government Authorities to Enhance the Business Growth Potentials of Regional Businesses

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.