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Group & Organization Management, Vol. 33, No. 1, 107-136 (2008)
DOI: 10.1177/1059601106291069

A Two-Factor Assessment of the Beliefs That Influence Attitudes Toward Privatization

Guillermo Wated

Barry University, gwated{at}mail.barry.edu

Juan I. Sanchez

Florida International University

Carolina Gómez

Florida International University

A two-factor model of positive and negative beliefs underlying attitudes toward privatization was tested among Ecuadorian employees. In Study 1, semistructured interviews uncovered 23 negative and positive beliefs associated with privatization. Using these beliefs, an instrument was developed to test the relationships among beliefs, attitudes, and intention to support a strike in Study 2. A factor analysis of the beliefs supported a two-factor solution that separately gauged positive and negative beliefs toward privatization. Positive beliefs concerning the economic and organizational benefits of privatization explained attitudes above and beyond negative beliefs concerning its social and national costs. The interaction between these beliefs, however, indicated that extremely negative beliefs can override positive beliefs. The attitudes of public sector employees were more strongly associated with negative beliefs and less associated with positive beliefs. Results underscored the importance of assessing beliefs associated with privatization when implementing privatization programs and highlighted the distinct role played by positive and negative beliefs.

Key Words: privatization • attitudes • beliefs • Latin America


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