Administrative capacity and local level development in metropolitan, municipal and district assemblies in Ghana: mediating role of resource capacity

• Date: 13 April 2023
• Pages: 253-270
• DOI: https://doi.org/10.1108/IJPSM-07-2022-0168
• Published date: 13 April 2023
• Subject Matter: Public policy & environmental management,Politics,Public adminstration & management
• Author: Elizabeth Cornelia Annan-Prah,Raphael Papa Kweku Andoh

Administrative capacity and local

level development in metropolitan,

municipal and district assemblies

in Ghana: mediating role

of resource capacity

Elizabeth Cornelia Annan-Prah

Department of Human Resource Management, University of Cape Coast,

Cape Coast, Ghana, and

Raphael Papa Kweku Andoh

Department of Human Resource Management and Institute for Oil and Gas Studies,

University of Cape Coast, Cape Coast, Ghana

Abstract

Purpose –This study aims to examine the mediating role of resource capacity on the effect of administrative

capacity on local level development.

Design/methodology/approach –Data is obtained from three Metropolitan, Municipal and District

Assemblies (MMDAs) in the Central Region of Ghana using a survey. A structural equation modelling that

includes a formatively measured construct (administrative capacity) is used in the analyses.

Findings –Leadership, human resource management, financial resource management, technical and adaptive

capacities are supported as formative constructs of administrative capacity. More so, it is established that

administrative capacity has an effect on resource capacity. Also, administrative capacity and resource capacity

each has an effect on local level development. The mediation analysis shows that resource capacity mediates

the effect administrative capacity has on local level development.

Practical implications –Administrative capacity is a necessity for local governments as enhancing it

together with the resource capacity of MMDAs are vital if local level development is to be achieved. In this

regard, administrative and resource capacities of local governments must be pursued by both the central

government and decentralised governments for the latter to achieve its primary mandate.

Originality/value –To the best of our knowledge, this is the first study to empirically ascertain leadership,

human resource management, financial resource management, technical and adaptive capacities as the

dimensions of administrative capacity using a structural equation model. Given that there is a lack of

consensus on the dimensions of administrative capacity, this study contributes significantly to the discourse.

The study also highlights the needto pursue and enhance administrative and resource capacities for local level

development.

Keywords Administrative capacity, Decentralisation, Local government institutions, Public administration,

Local governance, Community development

Paper type Research paper

Introduction

The purpose of local governments is to develop their territory, often a municipality or region,

to improve its economic future and the quality of life of its inhabitants (World Bank, 2005).

Development partners and practitioners advocate that local level development makes an

important contribution to national economic development (Dincecco and Katz, 2016;United

Nations Development Programme, 2009). The objective of local governments is to create a

participatory environment that strengthens the capacities of local institutions to implement

socially inclusive and employment-rich interventions, hence, the implementation of

decentralisation. The pervasive implementation of decentralisation shows that

Capacities and

local level

development

253

The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0951-3558.htm

Received 22 July 2022

Revised 10 January 2023

Accepted 9 March 2023

International Journal of Public

Sector Management

Vol. 36 No. 3, 2023

pp. 253-270

© Emerald Publishing Limited

0951-3558

DOI 10.1108/IJPSM-07-2022-0168

sub-national governments are believed to respond better to local level development

preferences rather than a central government that tends to provide uniform public services

nationwide (Smoke and Olowu, 2006).

Local governments embody the idea of development from below. This can be achieved

with an effective decentralisation system. It is, therefore, not surprising that decentralisation

has become one of the mantras of good governance in developing countries such as Ghana

(Akudugu, 2013). Ghana has since 1988 implemented local government and decentralisation

reforms as an alternative development strategy (MLGRD, 2010). The decentralisation

reforms led to the promulgation of the Local Government Law, 1988 (PNDCL 207) to promote

an effective government system for the country (Aryee, 1999). In 1989, local government

institutions referred to as MMDAs were created (MLGRD, 2010). The MMDAs are initiators

and implementers of local level development which give them a critical role in addressing

national development objectives. They have the highest political authority with deliberative,

legislative and executive powers to plan, control, organise and direct development activities

in their jurisdiction (Local Governance Act 2016; Act 936).

Scholars, including Farazmand (2009),Haque and Puppim de Oliveira (2021) and McCrea

(2020), have pointed out that institutions will be capable of achieving their objectives and

solving developmental problems when administrative capacity is in place to enhance the

running of the machinery of a political or economic system and translate political and

collective will into actions. The practical sig nificance of administrative capacity is

highlighted in terms of its necessity for economic performance, industrial growth, policy

implementation and overall national development (Cingolani, 2013,2018;El-Taliawi and Van

der Wal, 2019;Park and Matkin, 2020;Zhang et al., 2020). There is also the generalised

understanding of both the importance of administrative capacity and its contribution to

organisations in the public management literature (Avellaneda, 2012;Nakrosis et al., 2023)

especially in developing countries (Smith and Benton, 2017).

Administrative capacity is, thus, sine quo non for organisations in the public sector. Yet,

Andrews and Boyne (2010) indicate that few studies have examined the link between

administrative capacity and its effectiveness in local government institutions. Avellaneda

(2012) adds that administrative capacity and its relationship with the performance of public

organisations have been ignored. Also, very few studies measure administrative capacity

with objective indicators and test its influence on organisational performance (Avellaneda,

2012,2015;Haque et al., 2021). More so, Polverari et al. (2022) contend that there are

shortcomings in available research on administrative capacity especially concerning its

measurement with Park and Matkin (2020) asserting that the significance of administrative

capacity comes from anecdotes. The scholars, therefore, have called for exploration of the

centrality of administrative capacity to the success of public sector institutions. This paper,

which is based on MMDAs in Ghana, is an aspect of a doctoral research (Annan-Prah, 2019)

which contributes to the limited body of research on administrative capacity and local level

development by examining the effect of administrative capacity on local level development in

three MMDAs in Central Region, Ghana using resource capacity as a mediator.

Theoretical and conceptual review

Dynamic capabilities theory

The dynamic capabilities theory emphasises that the ability to react adequately and timely to

external changes requires a combination of multiple capabilities. The theory is developed on

the assumption that “competencies can provide competitive advantage and create value only

if they are based on a collection of routines, skills, and complementary assets that are difficult

to imitate”and hence distinctive (Anderson and Markides, 2006). Dynamic capabilities theory

exhibits some common elements across organisations and the individual approaches that

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