Administrative capacity and local level development in metropolitan, municipal and district assemblies in Ghana: mediating role of resource capacity

Purpose - This study aims to examine the mediating role of resource capacity on the effect of administrative capacity on local level development. Design/methodology/approach - Data is obtained from three Metropolitan, Municipal and District Assemblies (MMDAs) in the Central Region of Ghana using a survey. A structural equation modelling that includes a formatively measured construct (administrative capacity) is used in the analyses.Findings - Leadership, human resource management, financial resource management, technical and adaptive capacities are supported as formative constructs of administrative capacity. More so, it is established that administrative capacity has an effect on resource capacity. Also, administrative capacity and resource capacity each has an effect on local level development. The mediation analysis shows that resource capacity mediates the effect administrative capacity has on local level development.Practical implications - Administrative capacity is a necessity for local governments as enhancing it together with the resource capacity of MMDAs are vital if local level development is to be achieved. In this regard, administrative and resource capacities of local governments must be pursued by both the central government and decentralised governments for the latter to achieve its primary mandate.Originality/value - To the best of our knowledge, this is the first study to empirically ascertain leadership, human resource management, financial resource management, technical and adaptive capacities as the dimensions of administrative capacity using a structural equation model. Given that there is a lack of consensus on the dimensions of administrative capacity, this study contributes significantly to the discourse. The study also highlights the need to pursue and enhance administrative and resource capacities for local level development.