TITLE:
Evaluating the Impact of “Smart Water” on the Management and Technical Efficiency of Water Supply Utilities: Evidence from Investigation on Shandong Province in China
AUTHORS:
Xiangfeng Liu, Zhongyu Ma, Hongyang Li
KEYWORDS:
Technical Efficiency, Management Efficiency, KLH Model, “Smart Water”, Water Supply Utilities
JOURNAL NAME:
Journal of Service Science and Management,
Vol.18 No.6,
December
25,
2025
ABSTRACT: The healthy development of the water supply industry is directly correlated with the quality of urban development. Utilizing survey data from water supply utilities in Shandong Province between 2010 and 2016, this study employs KLH model to assess both management efficiency and technical efficiency. The findings reveal that: 1) Technical and management efficiencies for Shandong’s water supply utilities are 70.6% and 72%, respectively, resulting in a compound efficiency of 52.9%. 2) Implementing “Smart Water” infrastructure in Shandong Province enhances technical and management efficiencies by approximately 11.7% and 11.5%, respectively, leading to a centralized trend in these aspects for water supply utilities within the province. 3) The mediating effect of “Smart Water” infrastructure on technical outcomes primarily manifests through enterprise scale, while its influence on management outcomes mainly stems from optimizing high-tech talent structures. Consequently, this paper proposes policy recommendations and strengthening support in planning, standards, technology and talent.