Contractual Governance and Sustainability of Moroccan SOEs: The Mediating role Of Management Control

Abstract

Public sector reform in Morocco, driven by Framework Law No. 50-21 and the establishment of the ANGSPE, represents a paradigm shift in the governance of State-Owned Enterprises (SOEs). This article employs a narrative literature review to explore the relationship between contractual governance and the imperative of financial sustainability. Moving beyond a purely instrumental view, the analysis demonstrates that management control systems (MCS) act as a critical mediating variable. MCS does not merely measure performance; it operationalizes and legitimizes it. Drawing on agency theory and stakeholder theory, we show how shifting from bureaucratic control to performance-based management (incorporating ESG criteria) is a prerequisite for successful State-SOE contractualization. The study concludes that overcoming the decoupling between management tools and strategic intent is essential to ensure the long-term sustainability of public services.

JEL Classification : H11, G34, L32.

Paper type: Theoretical research