Local government and management control in inter-organizational settings

Ahlgren, Per Christian; Pettersen, Inger Johanne

doi:10.1080/09540962.2015.1061183

Cited by 8 publications

(5 citation statements)

References 17 publications

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“…The principal – the RHA, ignored these information asymmetries and endeavoured to handle the knowledge gap by relying on informal processes that had served them well in a relational contracting era. Such lack of cognizance of information asymmetry raises questions about purchaser competence at senior levels in this public sector organization (Ahlgren and Pettersen, 2015) and concurs with early experiences of contracting out public services at federal, state and local government level in the USA (Johnston et al , 2004). When the RHA tried to coordinate by informal dialogue, they in reality attempted to transform transactional contracts into relational contracts.…”

Section: Discussion Of Findingsmentioning

confidence: 53%

“…There is a growing concern about the problems of outsourcing public services and how outsourcing leads to the construction of multi-party relationships in the management of these services (McIvor et al , 2011). Concerns relate to dimensions such as horizontal and vertical coordination modes with multiple levels of accountability, the ambiguity of contracts and deficient purchaser competence (Ahlgren and Pettersen, 2015). Procurement has become more technical and specialized in nature and requires certain competencies, which is experienced-based knowledge that is developed through organizational experience (McKevitt et al , 2012).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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Public procurement performance and the challenge of service complexity – the case of pre-hospital healthcare

Pettersen

Nyland

Robbins

2020

JOPP

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Purpose The purpose of this paper is to study the links between contextual changes, contract arrangements and resultant problems when changes in outsourcing regulatory requirements are applied to complex pre-hospital services previously characterized by relational contracting. Design/methodology/approach The study deployed a qualitative design based on interviews with key informants and extensive studies of documents. It is a longitudinal study of a procurement process taking place in a regional health authority covering the period 2006 to 2017. Findings A complex and longitudinal public procurement process where pre-hospital (ambulance) services are transformed from relational and outsourced governance to more formal arrangements based on legal and transactional controls, is described in detail. After several years, the process collapsed due to challenges following public scrutiny, legal actions and administrative staff resignations. The public body lacked procurement competencies and the learning process following the regulations was lengthy. In the end, the services were in-sourced. Research limitations/implications This study is based on one case and it should, therefore, not be generalized without limitations. Practical implications One practical implication of this study is that transactional contracts are not optimal when core and complex services are produced in inter-organizational settings. In public sector health-care contexts, the role of informal and social controls based on relational exchanges are particularly applicable. Social implications Acute health-care services essential to citizens’ security and health imply high asset specificity, frequency and uncertainty. Such transactions should according to theory be produced in-house because of high agency costs in the procurement process. Originality/value The paper contributes to the understanding of how the public procurement process can itself be complex, as managerial challenges and solutions vary along several dimensions and are contingent upon external factors. In particular, the study increases knowledge of why the design and implementation of outsourcing models may create problems that impede and obstruct control in a particular public sector context.

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Section: Discussion Of Findingsmentioning

confidence: 53%

Section: Theoretical Frameworkmentioning

confidence: 99%

Public procurement performance and the challenge of service complexity – the case of pre-hospital healthcare

Pettersen

Nyland

Robbins

2020

JOPP

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“…Adicionalmente, estruturas legais que governam as organizações do setor público também refletem nas obrigações das partes de atuarem além das suas fronteiras organizacionais, e podem influenciar decisões de controle (Ahlgren & Pettersen, 2015). Assim, mesmo com as reformas gerenciais que ocorreram no setor público, em que uma maior ênfase foi colocada na comunicação de resultados ou desempenho, tanto o controle de resultados como o controle social ainda desempenham papel secundário (Ditillo et al, 2015;Konrad, 2018).…”

Section: Discussão Dos Resultadosunclassified

Mecanismos de Controle em Relações de Terceirização de Serviços no Setor Público

Neves

Gasparetto

2022

CGG

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Objetivo: analisar o papel dos mecanismos de controle gerencial em relações de terceirização de serviços no setor público, considerando os desafios de cooperação e de coordenação de atividades. Método: pesquisa qualitativa, a partir de entrevistas, questionário e triangulação desses dados com documentos, apoiada na realização de estudo de caso em uma unidade descentralizada do Ministério Público do Trabalho, com análise de contratos terceirizados de serviços de limpeza e conservação. Resultados: os serviços analisados não utilizam ativos específicos, operam em ambiente de incerteza moderada, possuem tarefas fáceis de mensurar e pouco complexas, além de haver interdependência moderada entre a organização contratante e as organizações contratadas. Observou-se uso de instrumentos de controle formais e informais. Os resultados também sugerem que o ambiente burocrático dessas contratações pode influenciar a configuração dos mecanismos de controle gerencial, com pouca flexibilidade para que as atividades ou o relacionamento se desenvolvam além das previsões contratuais. Originalidade/Relevância: o estudo contribui no avanço do debate científico sobre o tema em organizações públicas e no contexto brasileiro. Contribuições teóricas/metodológicas: o trabalho agrega à literatura, ao abordar a configuração de mecanismos de controle gerencial em relacionamentos fornecedor-comprador em organizações públicas. Contribuições sociais/para a gestão: os resultados podem auxiliar as organizações do setor público a compreender os aspectos que influenciam a configuração do sistema de controle de seus contratos de serviços terceirizados, além de fomentar as discussões sobre os desafios dessas contratações.

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“…While the design and use of individual PM elements (such as personnel or cybernetic controls) have been widely studied, there have been calls to move to a more holistic approach to PM research (Otley, 2016). Within the context of LG, PM controls have been examined simultaneously, with performance integration challenges found in some studies (Ahlgren and Pettersen, 2015; Bleyen et al , 2015; Kloot and Martin, 2000; van Helden and Johnsen, 2002). In Norway and the Netherlands, new planning and cybernetic controls in municipalities led to an increase in strategic PM use in the 1990s (van Helden and Johnsen, 2002).…”

Section: Literature Reviewmentioning

confidence: 99%

Do external benchmarking mechanisms facilitate performance management in Malaysian local authorities?

Khalid

George

2021

JAAR

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PurposeThis paper investigates the extent to which externally led benchmarking may have facilitated performance management design and use in Malaysian local authorities.Design/methodology/approachA longitudinal qualitative study of local authorities in Malaysia was undertaken, comprising interviews with key officers during the introduction of process-based key performance indicators (KPIs), and following the imposition of benchmarking (i.e. relative performance evaluation) on local authorities. Complexity theory was used in the analysing and theorising of data.FindingsExternal benchmarking mechanisms facilitated only operational performance management, with strategic performance management merely ceremonially adopted. As the focus was on mainly operational KPIs, strategic goals were not translated into detailed action plans and outputs at departmental level. In addition, operational and strategic performance management packages were decoupled. Thus, the efforts of external actors resulted in operational controls suppressing rather than facilitating strategic processes.Research limitations/implicationsThere is a need to transition from purely externally led benchmarking to internally driven benchmarking in local government, whereby benchmarking forms part of the interactive performance management mechanisms that lead to institutional learning and improvement.Practical implicationsBenchmarking activities should be based on comprehensive analyses of performance management design and use. A reflective approach to continuously identify gaps or weaknesses in performance management systems will enable local government administrators to improve systems and processes in a timely manner to meet stakeholder needs.Originality/valueThis paper explains the impact of central government policy and benchmarking initiatives on other levels of government. We have built on previous literature by examining the connection between external benchmarking and internal performance management design and use in local government. In relation to this, and following calls for research on holistic performance management, the integration between operational and strategic performance management packages was also examined.

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Local government and management control in inter-organizational settings

Cited by 8 publications

References 17 publications

Public procurement performance and the challenge of service complexity – the case of pre-hospital healthcare

Public procurement performance and the challenge of service complexity – the case of pre-hospital healthcare

Mecanismos de Controle em Relações de Terceirização de Serviços no Setor Público

Do external benchmarking mechanisms facilitate performance management in Malaysian local authorities?

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