Agencification Conceptualization and Development Peculiarities

  • Eglė Gaulė Kaunas University of Technology
  • Svetlana Naturjeva Kaunas University of Technology
Keywords: agency, agencification, principal–agent theory, inter-organizational interaction


Public administration system has been restructured by agencification in many countries. The new or reorganized agencies have been established. These agencies rely more on business management methods pursuing to improve public services quality, increase people's confidence in government, public administration, reduce costs, etc. Using principal – agent theory paper gives theoretical justification and by investigation of the reasons, means and results of agencification paper reviews practical experience of agencification in countries: Great Britain, Ireland, Portugal, Germany, the United States of America, and Sweden. Despite the divergence in agencification (agencies types and structures, legal framework), general trends and key success factors – political consensus and strategic reform management – can be determined.


Performance Improvement in Public Sector Organizations