Exploring the Relationship Between Relational Capital and Property Tax Reassessment Performance Via Process Innovation and the Potential Moderating Role of Council Size: A Conditional Mediation Model
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Abstract
This article explores the intricate interplay between relational capital (RC) and property tax reassessment performance (PTRP) via process innovation (INN) and whether this depends on the potential moderating role of council size (CS) in the context of local authority administration. Drawing on resource-based view (RBV) theory and the property tax administration literature, this study proposes a novel conceptual framework to elucidate the mechanisms through which RC influences property tax reassessment outcomes. Using survey data collected from 154 local authorities officials, this study employed conditional mediation (CoMe) analysis techniques in SmartPLS 4 to examine the conditional indirect effects of RC on PTRP, mediated by INN and moderated by CS. The findings highlight the pivotal role of RC in fostering INN, which in turn enhances the effectiveness of property tax reassessment procedures. The results show that INN has a mediating effect on the relationship between RC and PTRP. However, this effect is only significant if the potential moderating role of CS applies to the average total revenue indicator. This is not the case for the total number of employees indicator. These insights contribute to a deeper understanding of the nuanced dynamics shaping the effectiveness of local authorities’ operations and offer practical implications for policymakers and practitioners seeking to optimise property tax administration processes.
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