Purpose
– The purpose of this paper is to contribute to the conceptualisation of state-owned enterprises (SOEs) as a mode of governance in marketisation via the perspective of historical institutionalism.
Design/methodology/approach
– The paper is based on a qualitative case study of the marketisation of Danish passenger rail from the 1990s to date where marketisation has been set on hold since 2011 due to the activities of the SOE.
Findings
– The paper shows that market governance was layered on the hierarchal governance of the SOE that was later turned into a hybrid governance mode through corporatisation. This layered set-up provided the state with a double governance grip that drove marketisation until 2011. However, the SOE as a hybrid created ripple effects between the market and the hierarchy that hampered the marketisation. The hierarchical governance turned towards centralisation and market governance was put on hold. The hybridity of the SOE was endogenously displaced via closing down of commercial activities, leading to a re-conversion of the SOE towards the hierarchical mode.
Originality/value
– The paper contributes to the discussions about hybridity and re-centralisation in post-NPM era. It presents a case on how hybridity is altered and evolves in SOEs as a hybrid mode of governance between hierarchy and market in marketisation and how this can lead to re-centralisation.
The article introduces the theoretical perspective on gradual institutional change to the corporatization literature. This is achieved via a longitudinal case study on the institutionalization of the Danish state guarantee model (SGM) for transport infrastructure based on archival document studies of seven infrastructure projects and 31 interviews with elite actors and experts. The article explores with a detailed analysis how the gradual change mechanisms of layering, conversion and displacement coexist, are interrelated, and are coevolving over a long period. It contributes to the corporatization literature presenting the SGM as an alternative to public and private partnerships and government agencies. 1 | INTRODUCTION Before last fall [2017] nobody truly understood how it actually works, the model you are about to describe.
Purpose
The purpose of this paper is to make an empirical-based conceptualization of the contemporary domestic state-owned enterprises (SOEs) as domestic institutional market actors (IMAs) in the marketization of public service delivery.
Design/methodology/approach
The paper is based on a qualitative comparative case study of the SOEs in passenger rail in Denmark and Sweden from 1990 to 2015.
Findings
The paper shows how marketization results in a layered institutional set-up of public service delivery based on both competition and monopoly where the SOE becomes what we call an IMA bridging sectorial challenges. In Sweden, this role has a new public governance form as the monopoly over time is fully dismantled. In Denmark, over time marketization is put on hold due to problems with the SOE as a market actor, but the SOE is nevertheless safeguarded in a new Weberian model as a sector coordinator.
Originality/value
The paper contributes to the recent literature on SOEs and marketization with an original and novel conceptualization of contemporary SOEs in public governance.
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