Adoption of paradigm shifting change in the public sector: A case study on the implementation of the share-in-savings (SiS) concept

This study examines the factors that affect adoption of a paradigm shifting change in the public sector. The primary research question is: "What accounts for the differential success in federal and state settings in the adoption of paradigm shifting change in the financing of public programs? " This question is examined through a collective case study on the concept of Share in Savings (SiS).; The SiS concept has been characterized as the ultimate performance based management tool because a contractor receives payment based on the amounts of savings it produces (Warren, 2004). However, while the concept has been codified in federal statute and used successfully by many state governments, its adoption at the federal sector has been limited. This research identifies several factors which contribute to differential success within the state and federal sectors.; Building on previous research that has examined successful SiS implementations, data reveal that SiS has been more widely adopted at the state level because generally speaking, states have developed a culture that embraces the positive aspects of partnership, leadership, entrepreneurship and metrics while operating in an environment where fear of reprisal is low because oversight bodies are less intrusive.; Generally, at the federal level, contradictory interpretation of fiscal law creates organizational tensions that significantly influence the adoption of innovation and, in some cases, even creates disincentives for saving money. In addition to assessing data obtained from qualitative interviews, this research also examines the dialogue among public administration theorists regarding the appropriateness of the SiS concept from a Constitutional perspective. This dialogue appears to significantly influence the federal sector's inability to embrace critical behavioral characteristics that research indicates are essential for SiS to be adopted.; Keywords. Public Administration, Organizational Change, Performance Based Contracting, Share in Savings.