The paper also explores the link between institution factors and thecontracting decisions by using the Value-Institutions-Market (VIM) framework on the federalbusiness data, with a focus on the period of 1995-2007 (where data is available). The overarchingquestion of the study is how the USPS outsourcing decisions were affected by changing businessenvironment. | VNU Journal of Science: Policy and Management Studies, Vol. 33, No. 2 (2017) 73-84 Cost Control in the United States Postal Service The Institutional Effects and Implications Dang Thi Viet Duc1, Nguyen Phu Hung2,* 1 Accounting and Finance Department, Posts and Telecommunication Institute of Technology, 122 Hoang Quoc Viet, Cau Giay, Hanoi, Vietnam 2 Vietnam National University at Hanoi, 144 Xuan Thuy, Cau Giay, Hanoi, Vietnam Received 06 April 2017 Revised 08 June 2017, Accepted 28 June 2017 Abstract: Nowadays, in times of persisting national budget deficits, issues of corporate finance for state-owned enterprises become a hot topic. This paper explores why the state postal agency/company should rely in outsourcing as a major method to control costs to achieve sustainable financial viability. The paper also explores the link between institution factors and the contracting decisions by using the Value-Institutions-Market (VIM) framework on the federal business data, with a focus on the period of 1995-2007 (where data is available). The overarching question of the study is how the USPS outsourcing decisions were affected by changing business environment. The finding is that at the macro level, contracting is a potential strategy to cut costs for the USPS, as well as for other public agencies and enterprises. However, the degrees the USPS can rely in outsourcing is largely framed by institutions factors, that changes in this category affect the magnitude of contracting. Keywords: Cost control; Postal service; State-Owned Enterprise; Outsourcing/ Contracting-out. 1. Background of the research services nationwide and most enjoy statutory monopoly in varied range of products and services. Like the challenges that other public infrastructure industries are facing [1, p. 2] in the last decades, NPOs in most DCs have been characterized as a low efficient operator suffered from inefficient management and production, low productivity labor, low resource and asset .
