DSS model usage in public and private sectors: Differences and implications

Abstract

Differences in decision support system model usage between public and private sector organizations at the strategic, management control, and operational levels are explored. Model usage was found to be greater in the private sector than the public sector, except at the operational level. This was supported by evidence that DSS models are used mostly at the lower levels of the managerial hierarchy in public sector organizations. In contrast to this, model usage in the private sector was greater at the upper levels. In addition, differences in modeling techniques and applications between the public and private sectors were more pronounced at upper hierarchical levels. These differences lend credence to the notion that senior decision makers in the private sector are autonomous, focus on well-defined objectives, and rely more on rational techniques. Senior decision-makers in the public sector are less autonomous, face complex objectives, and expend more energy in dealing with extraneous stakeholders such as supervisory agencies and the public. The implication for DSS designers is that decision models developed for the 2 sectors need to be different in terms of weights attached to various criteria.