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Nonprofit, public, and for-profit welfare institutions have different operational logics. The distinctiveness of a nonprofit institution is more prominent in some circumstances than in others. This paper is based on case studies conducted in Norwegian municipalities to understand when and why nonprofits operate with distinctive steering mechanisms. Based on the framework of hybrid organizations, I analyze the interaction among institutions in the public sector that have democratic legitimacy through a hierarchical organization, the forprofit sector that seeks efficiency to compete in the market, and the nonprofit sector that has civil society logic. The study revealed how more detached demand-driven oversight of nonprofit schools gives them more room to pursue goals different from those of the public sector institutions, which can be contrasted with the supply-driven oversight of nursing homes that have far less room for steering independent of the municipalities. Surprisingly, the results also suggested that small close-knit communities influence institutions in ways that diverge from the hierarchical steering, and that this happens across the sector split. Moreover, oversight and alternative sources of income contribute to making the organization more hybrid, in the sense that the hierarchical steering is challenged.

Area-based initiatives are central government strategies for community development in particularly deprived urban areas. A core strategy in ABIs is to involve third-sector organizations through co-production. In these areas, the organized civil society is weak, and the public sector has special interests and a willingness to use resources. We ask: if and how can co-production be developed in areas with such power assymetries? Through documents and qualitative interviews, we examined seven ABIs in Norway. We find that managerial ability and coordination, autonomy of action, and, especially, the possession of resources are important dimensions for understanding the development of a co-productive relationship. In the ABIs, we find considerable interdependence between TSO and municipalities as both actors lack resources needed to fulfill their respective goals. This interdependence facilitated co-production.