Internal or External Production and Satisfaction with the Chosen Sourcing in Danish Municipalities: Different Theoretical Explanations

Abstract

There is a large literature on both why local governments and public organisations choose internal or external production of services and what explains the performance of internal and external production. A range of different theories have been used to answer these questions. However, these studies show mixed results. In this study we investigate four theories: transaction cost economics, neoclassical economics, the resource-based view of strategy and institutional theory. Can these theories explain whether local governments choose internal or external production and can they explain the satisfaction with the internal and external production? Do the same variables explain the choice and the satisfaction? Based on a survey of four different service areas in Danish municipalities, it is shown that different theoretical variables explain the choice and satisfaction with the sourcing mode. Internal expertise is strongly related to the choice of internal or external production, whereas most transaction cost variables are unrelated to this choice. However, other variables such as supplier expertise and technological uncertainty are related to satisfaction with service production. The results corroborate the view that different variables are needed for explaining the performance of suppliers and the choice between internal and external suppliers. Furthermore, the results suggest that the study of local governments' sourcing may benefit from integrating theories focusing on internal expertise and markets. Studies may also benefit from integrating economic theories, which assume rationality, with institutional theory emphasising more unreflective and socially determined behaviour.     

Remapping the State: Inter-Municipal Cooperation through Corporatisation and Public-Private Governance Structures

The institutional setting of regional and local government in Italy appears to be characterised by an ongoing process of reform and adjustment ever since Regions were created in 1970. More recently, provinces and Municipalities gained wide autonomy in 1990, and the constitution itself was revised in 2001 to set up what is sometimes referred to as a ‘quasi-federal’ system of intergovernmental relations. In this context, inter-municipal cooperation also has witnessed several phases and dynamics, ranging from (very rare) fusions, through single-purpose cooperation, to integrated service management (Public-public partnership, and consortia for the management and/or regulation of public utilities). More recently, and most notably over the past decade, inter-municipal cooperation has taken on a new form, consisting in the shared ownership in joint-stock companies. The so-called ‘corporatisation’ of public bodies, i.e. the creation of public-owned (or mixed public-private), private-law companies and corporations for the fulfilment of public-interest activities, has come to constitute a network of inter-municipal cooperation that appears to represent a shift from an institutional intergovernmental structure of cooperation, to one that is pre-eminently played out in the arenas of public-private forms of governance. The article analyses the literature and overarching trends in inter-municipal cooperation in Italy, and draws on very rich original data on the companies owned by Municipalities in six Italian regions to show how these companies represent the locus of inter-municipal (and multi-level) relations that go well beyond the formal boundaries of local administrations, and are often brokered by powerful private partners.     

Subnational Collective Action: The Varied Patterns of Mobilisation of Local Government Associations

This article assesses differences in the way local government associations organise to influence EU legislation in different countries. EU policy outcomes have an increasing financial and administrative impact on local government. This has been increasingly recognised by both EU institutions and many national governments, and recent reforms have sought to ensure greater involvement of local authorities in the preparation of EU proposals and domestic pre-negotiations, with an emphasis on the aggregation of local government interests via European and national local government associations. Research suggests that representative organisations need to be well resourced to be able to mobilise at both European and national level to influence EU proposals. This article empirically assesses these claims by examining attempts by local government associations in England, Denmark and Ireland to influence EU environmental directives. The findings suggest that financial, staffing, and informational resources, as well as structural issues, are important factors influencing how local government representative bodies respond to EU legislative proposals.     

Towards Strong Local Governance: Current Reform Scenario in Fiji

This article examines how the historical context of poor central-local relations and inefficient service delivery structure is used by the current military-led government in Fiji as a ploy for its local government reform agenda. Based on an analysis of secondary information on local government structure and a review of the reforms undertaken by the Review/Reform Committee, this article identifies the concentration of economic and political power at the central level as one of the major obstacles towards empowering local governance in Fiji. The article emphasizes the need for effective institutional reforms to devolve governance and resources from the centre to the grassroots.     

Thriving on the Edge of Chaos: An Alternative Explanation to the Management of Crisis in Malawi's Decentralization Program

After Malawi adopted a multiparty system of governance in 1994, the country went about setting institutional frameworks that would promote good governance and democratic principles. Among other things these were to create strong local institutions that would promote local development participation and accountability and enhance delivery of services. . However, the transformation of the local assemblies posed a very serious challenge to manage. It is not surprising therefore that more than 10 years after initiating the changes, several studies have concluded that the decentralization process in Malawi is hugely disappointing. The situation in most local assemblies has almost reached the crisis point and is seemingly unredeemable. Despite this chaotic and complex scenario, the decentralized local assemblies still continue to deliver their services to the public, though with some reservation. This article utilizes the Chaos and Complexity theory in order to explain why the decentralized sector still manages to survive and show resilience despite the great challenges it encounters. Ultimately, through chaos and complexity theories, the article provides the framework for understanding the change management process in the assemblies which has not been explored adequately in previous studies. The article recommends that when introducing interventions in transitional systems such as decentralization programs, special recognition should be given to emerging dynamic and evolving occurrences that are beyond the control of policy makers.     

An Assessment of Collaborative Governance in a Network for Sustainable Tourism: The Case of RedeTuris

This article presents a case study of a cross-sectoral organizational network created to promote sustainable tourism in Rio de Janeiro. We briefly introduce the topics of collaborative governance and sustainable tourism, and then describe the focal network and the methods used for the research. Findings are discussed in terms of three themes: 1) key elements of collaborative governance; 2) aspects of the network formation and development process; and 3) features of the Brazilian context that may influence the network's likelihood of success. We conclude with a comment on the role of public managers in a network such as this.     

Open Source Governance—A More Ambitious Cousin of Collaborative Governance

Open source represents a model generally known for its success in software production. The objective of this article is to establish a new strategic approach of using open source development principles for managing collaborative arrangements between citizens and public administration. The identity of open source governance is developed by highlighting how it is different from its main “competitor”—collaborative governance, and from other two popular concepts—open government and e-democracy. The other sections are designed to answer to public managers regarding why and what to adopt from this governance model for public sector services.     

An Ethical Governance Perspective on Anti-Corruption Policies and Procedures: Agencies and Trust in Cameroon,Ghana, and Nigeria Evaluation

The purpose of this research is to state that ethical governance is important, because it concerns the right thoughts (values) and elements (mechanisms) needed for a successful anti-corruption crusade. Trust is strongly linked to performance; ethical governance can help in actualizing anti-corruption agencies’ expected or desired performance. The subjects of the comparative research are the anti-corruption agencies of Cameroon, Ghana, and Nigeria. A qualitative analysis of documents and interviews and a triangulation approach are used in arriving at research results, because policies and procedures are studied through anti-corruption agencies documents and public trust is investigated through expert interview. Ghana represents the strong case and best practices, because it has anti-corruption policies and procedures that agree more with ethical governance, followed by Nigeria, which is the moderate case, before Cameroon, which is the weak case. “Independence” as an ethical mechanism occupies the strongest position to achieving result in anti-corruption related crusade.     

Can Democratic Governance Be Achieved in Egypt?

This article contributes to our understanding of whether democratic governance can be achieved in post-revolution Egypt. It explores the status of three key pillars of democratic governance in the context of the January 2011 People’s Revolution and subsequent political developments through August 2013: (1) inclusive participation, (2) responsive institutions, and (3) adherence to international practices and principles. Available evidence suggests that none of the democratic governance pillars has been realized so far as a result of political instability in Egypt. The article argues that the current political environment is not favorable to achieving democratic governance in Egypt.     

Psycho-Sociological Barriers to Citizen Participation in Local Governance. The Case of Some Rural Communities in Romania

This article focuses on the identification of three types of citizens' participation in local governance: 1) Primary participation (by paying taxes and other contributions), 2) secondary participation (at the level of being informed about the actions of local government) and 3) tertiary participation (at the level of local interest decision-making). Various inquiries carried out within a number of rural communities in Romania are presented in order to highlight certain psycho-sociological barriers that prevent participation. These barriers can range from citizens' simple indifference all the way to the fear inculcated during the communist regime. However, one might assume that such barriers would disappear in the context of Romania's genuine integration into European development projects.