Are generic strategies ‘fit for purpose’ in a public service context?

Abstract

The environment in which public sector organisations operate is becoming ever more volatile, with such organisations increasingly facing the dual pressures of growing customer expectations coupled with significant budget reductions. This study presents an exploratory research model to uncover significant relationships between generic strategies and the business and social performance of public leisure providers, in an attempt to ascertain if generic strategies are fit for purpose in the public leisure sector. The findings suggest that low cost and price-based strategies are inadequate for service delivery. Rather, a hybrid strategy – which seeks to add value while also having a cost base that permits low prices – is deemed fit for purpose in the public leisure sector, satisfying the dual strategic agenda of public leisure providers. This study provides contributions to the strategic management, public management, and leisure services literatures.