Linking local collaborative governance and public service delivery: mediating role of institutional capacity building

The paper investigates whether and how local collaborative governance (LCG) enhances public service delivery (PSD) in Pakistan, and the role of institutional capacity building (ICB) in this relationship. Drawing on Collaborative Governance Theory (CGT), the study addresses governance failures, capacity deficits, and politicization within local governments of developing countries. The research focuses on basic services (energy, water and sanitation, roads, health, education, infrastructure, transportation) and posits that multisector collaboration among government, private, and civic stakeholders can improve responsiveness, tangibles, and reliability of PSD. The study aims to: (1) test the relationship between LCG and PSD; (2) examine the association between LCG and ICB; and (3) assess whether ICB mediates the LCG–PSD link. These questions are motivated by gaps in empirical evidence connecting LCG, ICB, and PSD in developing-country, multisector contexts like Pakistan.

Theoretical support and hypotheses development centers on Collaborative Governance Theory, which emphasizes cross-sector collaboration, consensus-based decision-making, and institutional architectures that legitimize collaborative processes. Prior literature links collaborative governance to improved service outcomes across domains (healthcare, environmental management, public reforms). The paper conceptualizes PSD via SERVQUAL dimensions (responsiveness, tangibles, reliability) and ICB via three components (service capacity, evaluative capacity, monitoring and operations—M&O). Hypotheses: - H1: LCG → PSD responsiveness (positive) - H2: LCG → PSD tangibles (positive) - H3: LCG → PSD reliability (positive) - H4: LCG → service capacity (positive) - H5: LCG → evaluative capacity (positive) - H6: LCG → M&O capacity (positive) - H7: Service capacity mediates LCG → PSD responsiveness. - H8: Evaluative capacity mediates LCG → PSD tangibles. - H9: M&O capacity mediates LCG → PSD reliability. Supporting literature discusses state/governance capacity typologies, the importance of institutional rules, and evidence that collaboration fosters innovation, learning, coordination, and evaluation capabilities, thereby affecting service quality and outcomes.

Design: Cross-sectional survey analyzed with PLS-SEM (SmartPLS 4.0), suitable for exploratory models with multiple constructs and modest sample sizes. Sample and procedure: Data were collected from employees (officers/managers/staff) of 223 multisector organizations (government, private/business, corporations, NGOs) across districts in southern Pakistan. Of 844 questionnaires distributed (physically and via courier), 683 were returned; 457 were usable (226 incomplete). Demographics captured gender, age, education, sector, and experience; these were used as control variables. Measures: 5-point Likert scale (1=strongly disagree to 5=strongly agree). - Local Collaborative Governance (LCG): 9 items adapted from Thomson et al. (2009) (e.g., formal agreements, joint problem-solving). - Institutional Capacity Building (ICB): 22 items (service capacity, evaluative capacity, M&O capacity) adapted from Grimm, Spring, and Dietz (2007). - Public Service Delivery (PSD): 8-item SERVQUAL scale (responsiveness, tangibles, reliability) from Zeithaml et al. (1990), validated in Pakistan’s public health context (Irfan et al., 2012). Reliability and validity: CFA conducted. Cronbach’s alpha exceeded 0.70 for all constructs (LCG=0.821; ICB=0.876; PSD=0.793). Composite reliability: LCG=0.934; ICB=0.918; PSD=0.912. AVE: LCG=0.614; ICB=0.504; PSD=0.509. VIFs below 10. Discriminant validity supported via cross-loadings, Fornell–Larcker, and HTMT (<0.90). Common method bias assessed via full collinearity approach. Model fit: SRMR=0.076 (<0.10), NFI=0.912, indicating acceptable model fit. Analysis: PLS-SEM assessed direct paths and mediation (bootstrapping). R2 examined explanatory power. Mediation tested with indirect effects and significance following Hayes et al. (2017).

- Explanatory power: R2=0.663 for Institutional Capacity Building (ICB); R2=0.658 for Public Service Delivery (PSD). - Direct effects: - LCG → ICB: β=0.812, p<0.001 (positive, significant). - ICB → PSD: β≈0.424, p<0.001 (positive, significant). - LCG → PSD: β=0.427, p<0.001 (positive, significant). - ICB association with PSD dimensions: - ICB → Responsiveness: β=0.880, p<0.001. - ICB → Tangibles: β=0.863, p<0.001. - ICB → Reliability: β=0.853, p<0.001. - LCG association with ICB dimensions (as theorized and supported in-text): - LCG → Service capacity: β≈0.795, p<0.01. - LCG → Evaluative capacity: β≈0.762, p<0.01. - LCG → M&O capacity: β≈0.781, p<0.01. - Mediation: ICB partially mediates the LCG → PSD relationship; indirect effect b≈0.344, p<0.01, with the direct effect remaining significant (b≈0.427, p<0.01). Hypotheses H7–H9 supported (partial mediation for each PSD dimension via corresponding ICB dimension). - Measurement quality: High reliability (Cronbach’s alpha ≥0.793), composite reliability (≥0.912), convergent validity (AVE≥0.504), discriminant validity (Fornell–Larcker, HTMT), and acceptable model fit (SRMR=0.076; NFI=0.912). Overall: All hypothesized relationships (H1–H9) were supported; LCG enhances PSD directly and indirectly via strengthened institutional capacities (service, evaluative, M&O).

Findings affirm that local collaborative governance meaningfully improves public service delivery in Pakistan, both directly and by strengthening institutional capacities that underpin service responsiveness, tangibles, and reliability. This addresses the study’s research questions: LCG is positively linked with PSD (RQ1) and with ICB (RQ2); ICB partially mediates the LCG–PSD relationship (RQ3). Results align with international evidence that collaborative processes enhance service quality and organizational capabilities via joint problem-solving, trust-building, and shared decision-making. In Pakistan’s context of capacity deficits and governance challenges, building service, evaluative, and M&O capacities through collaborative structures increases the ability of multisector organizations to plan, implement, monitor, and continuously improve service provision. Policy implications emphasize goal consensus, training and skill development for managers, formal inter-organizational linkages with adaptive processes, and appropriate incentives (time and resources) to sustain collaboration, alongside legal and institutional reforms to strengthen accountability, participation, and autonomy across government tiers.

Local collaborative governance that brings together multiple sector stakeholders can strengthen institutional capacities and improve public service delivery in Pakistan. Reforms should replace fragmented local government arrangements with robust collaborative frameworks supported by citizen engagement, rule of law, independent institutions, and cross-level coordination. Even if early outcomes are mixed, sustained collaborative efforts, capacity-building, and public sector reforms can address governance weaknesses linked to political and economic instability. Strengthening institutional capacity and public service systems through training and supportive environments is essential to realize the benefits of collaboration.

- Scope: Not all dimensions of public service delivery and institutional capacity building were included. - Analysis level: Multilevel analyses were not conducted and could yield deeper insights. - Contextual factors: Variations in experience, language, and collaborative culture may influence PSD processes but were not fully unpacked. - Mediation strength: The mediating effect of ICB was weaker than expected; larger or more diverse samples may alter results. - Data sources: Single-source, cross-sectional data; multi-source and longitudinal designs are recommended for future research. Future work should also examine leadership, IT, negotiation, conflict management, elite coalitions, legitimacy, democratic culture, citizen participation, motivation, trust, civic engagement, and additional capacity dimensions.