A1 Refereed original research article in a scientific journal
Bandwagoning municipal enterprises: institutional isomorphism and the search for the Third Way
Authors: Tomi J. Kallio, Päivikki Kuoppakangas
Publisher: Taylor & Francis
Publication year: 2013
Journal: Policy Studies
Journal acronym: Policy Studies
Volume: 34
Issue: 1
First page : 19
Last page: 35
Number of pages: 17
ISSN: 0144-2872
DOI: https://doi.org/10.1080/01442872.2012.731842
Web address : http://dx.doi.org/10.1080/01442872.2012.731842
Abstract
During the last decade, the number of municipal enterprises in Finland has
almost tripled. This paper attempts to understand the phenomenon related to the
recent mushrooming of municipal enterprises. This is done by three empirical case
analyses of university hospital laboratories. In two of the three case organisations,
there is very little indication that any strategy or other rational reasoning would
explain the adoption of municipal enterprise form, and the analysis suggests that
institutional isomorphism plays an essential role in the adoption of the municipal
enterprise form. Moreover, there are signs that the search for the ‘Third Way’ of
some local politicians, especially in the case of some early mover organisations,
like the third case organisation of this study, might have triggered the
development which has led to the bandwagon effect. The popularity of New
Public Management (NPM) and the promises of the NPM mantra, suggesting,
e.g. efficiency, cost-effectiveness and more flexible management, might lead the
public administration decision-makers to believe in the superiority of certain
business-like organisational forms. However, the decision-makers themselves
might be surprised to learn how thin the evidence to back up the expectations
concerning NPM reforms might be. The organisational transformation, such
as the adoption of the municipal enterprise form, might lead to an outcome where
public organisations become increasingly similar without necessarily becoming
more efficient.
During the last decade, the number of municipal enterprises in Finland has
almost tripled. This paper attempts to understand the phenomenon related to the
recent mushrooming of municipal enterprises. This is done by three empirical case
analyses of university hospital laboratories. In two of the three case organisations,
there is very little indication that any strategy or other rational reasoning would
explain the adoption of municipal enterprise form, and the analysis suggests that
institutional isomorphism plays an essential role in the adoption of the municipal
enterprise form. Moreover, there are signs that the search for the ‘Third Way’ of
some local politicians, especially in the case of some early mover organisations,
like the third case organisation of this study, might have triggered the
development which has led to the bandwagon effect. The popularity of New
Public Management (NPM) and the promises of the NPM mantra, suggesting,
e.g. efficiency, cost-effectiveness and more flexible management, might lead the
public administration decision-makers to believe in the superiority of certain
business-like organisational forms. However, the decision-makers themselves
might be surprised to learn how thin the evidence to back up the expectations
concerning NPM reforms might be. The organisational transformation, such
as the adoption of the municipal enterprise form, might lead to an outcome where
public organisations become increasingly similar without necessarily becoming
more efficient.
During the last decade, the number of municipal enterprises in Finland has
almost tripled. This paper attempts to understand the phenomenon related to the
recent mushrooming of municipal enterprises. This is done by three empirical case
analyses of university hospital laboratories. In two of the three case organisations,
there is very little indication that any strategy or other rational reasoning would
explain the adoption of municipal enterprise form, and the analysis suggests that
institutional isomorphism plays an essential role in the adoption of the municipal
enterprise form. Moreover, there are signs that the search for the ‘Third Way’ of
some local politicians, especially in the case of some early mover organisations,
like the third case organisation of this study, might have triggered the
development which has led to the bandwagon effect. The popularity of New
Public Management (NPM) and the promises of the NPM mantra, suggesting,
e.g. efficiency, cost-effectiveness and more flexible management, might lead the
public administration decision-makers to believe in the superiority of certain
business-like organisational forms. However, the decision-makers themselves
might be surprised to learn how thin the evidence to back up the expectations
concerning NPM reforms might be. The organisational transformation, such
as the adoption of the municipal enterprise form, might lead to an outcome where
public organisations become increasingly similar without necessarily becoming
more efficient.
During the last decade, the number of municipal enterprises in Finland has
almost tripled. This paper attempts to understand the phenomenon related to the
recent mushrooming of municipal enterprises. This is done by three empirical case
analyses of university hospital laboratories. In two of the three case organisations,
there is very little indication that any strategy or other rational reasoning would
explain the adoption of municipal enterprise form, and the analysis suggests that
institutional isomorphism plays an essential role in the adoption of the municipal
enterprise form. Moreover, there are signs that the search for the ‘Third Way’ of
some local politicians, especially in the case of some early mover organisations,
like the third case organisation of this study, might have triggered the
development which has led to the bandwagon effect. The popularity of New
Public Management (NPM) and the promises of the NPM mantra, suggesting,
e.g. efficiency, cost-effectiveness and more flexible management, might lead the
public administration decision-makers to believe in the superiority of certain
business-like organisational forms. However, the decision-makers themselves
might be surprised to learn how thin the evidence to back up the expectations
concerning NPM reforms might be. The organisational transformation, such
as the adoption of the municipal enterprise form, might lead to an outcome where
public organisations become increasingly similar without necessarily becoming
more efficient.
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