‘Pushing the Boundaries’ versus Identifying the Boundaries: An Institutional Perspective on NPM Principles

Abstract

This paper considers the boundaries of new public management (NPM) principles in the context of the mandate for a commercial approach within a New Zealand state-owned enterprise (SOE). Investigating a commercial approach to NPM through an institutional theory lens, the case study highlights complexities and potential conflict between structured NPM principles and the more complex reality. Analysis reveals blurred lines and boundaries have implications for public sector organisations such as SOEs, government and other stakeholders, where managers push the boundaries beyond the point where stakeholders are comfortable. Thus, a key challenge involves developing clearer institutional boundaries to balance freedoms with stakeholder acceptability.

Is merit pay changing ethos in public administration?

“…As many scholars claim, New Public Management (NPM)-which finds its theoretical roots in institutional economics (Drew & Dollery, 2015;Luke, Kearins, & Verreynne, 2017)-has strongly affected reforms in public administrations since the end of the last century (Diefenbach, 2009;Hood, 1991;Pollitt, 2003Pollitt, , 2009. NPM has two main theoretical stances.…”