Administrative Burden and Business Satisfaction with Public Services

Abstract

This study explores the relationship between businesses’ perceived administrative burdens and their satisfaction with public services, addressing a notable gap in existing literature that primarily em­phasizes individual perspectives. A mixed-method approach was utilized. Initial qualitative interviews identified perceived administrative burdens in busi­nesses using a comprehensive framework that includes learning costs, compliance costs, and psy­chological costs. This was followed by a quantitative analysis to evaluate the impact of these burdens on business satisfaction with public services and to validate the interrelationships among the differ­ent types of costs. The results demonstrate that all three types of administrative costs negatively im­pact business satisfaction. Significantly, compliance costs serve as a mediating factor, influencing satis­faction both directly and indirectly through learning and psychological costs. This study provides prac­tical insights for improving public service delivery by mitigating administrative burdens on businesses. These enhancements can foster a more favorable environment for business-state interactions and ele­vate overall satisfaction with public services.