Does excellence matter? National quality awards and performance of Czech municipalities

Abstract

The purpose of this study is to discuss the influence of excellence in the use of performance management and quality improvements tools on performance of Czech municipalities, and especially their cost efficiency. Municipalities' performance is analyzed using data envelopment analysis focused on inputs. A quasi-experimental design is utilized and excelling municipalities are compared with two control groups. The first is represented by municipalities that use excellence models and quality improvement tools but have not been awarded a national excellence prize; the second by municipalities which do not use them. The results do not indicate any significant difference between the three groups of municipalities. This means that the excellence in utilization of performance management and quality improvement tools does not produce performance approaching that of cost efficiency.