Public Eyes. Do Stakeholders Use the Internet to Hold Public Service Organizations to Account?

Abstract

This paper analyzes the relation between publishing performance results on the Internet, stakeholder accountability and the effectiveness and legitimacy of public service organizations. On the basis of empirical research of websites in the Netherlands, I conclude that education and health care organizations are stimulated to score better on performance indicators. These organizations feel the ‘public eyes’ on them and are stimulated to improve their behavior. However, the risk of a ‘performance paradox’ and adverse effects is great. Additionally, the research provides more support for negative than for positive effects on the legitimacy of public organizations. Transparency of performance results via the Internet needs to be accompanied by a stakeholder dialogue in the public sector.