“A little bit of everything?” Conceptualising performance measurement in hybrid public sector organisations through a literature review

Abstract

PurposeNumerous of today's public sector organisations (PSOs) can be characterised as hybrids. Hybridity is caused by different (at times conflicting) demands that stem from the institutional environment, which is likely to affect performance measurement in these organisations. This paper focuses on the relationship between hybridity and organisational performance, which has so far not been studied in detail.Design/methodology/approachBased on a literature review (final sample of 56 articles), the authors systematise performance dimensions alongside the pillars “economy”, “efficiency”, “effectiveness” and “(social) equity”. The article summarises results in a framework for measuring performance in hybrid PSOs. The authors outline strategies as to how public managers can tailor frameworks to the requirements and idiosyncrasies of organisations.FindingsSince hybrid PSOs combine logics from different administrative models (Weberian bureaucracy, market-capitalism and democracy), so need their organisational performance measurement systems. Potential synergies from and frictions between the different performance dimensions related to the four pillars are discussed.Originality/valueThis is the first literature review on performance dimensions and their application in hybrid PSOs. The distilled “hybrid performance measurement framework” can be scrutinised and further refined in future research.

Governance and accountability in hybrid organizations – past, present and future

“…For example, the paper on SOEs emphasizes the critical role the media play in shaping perceptions of legitimacy, which probably explains some of the significant problems SOEs face in managing their reputations. Furthermore, legitimization efforts are often constructed in the form of measurements (De Waele et al, 2021). In SEs, this necessitates the need to deliver the image of mission orientation with appropriate output and outcome measurements (Rajala et al, 2017).…”

“…This issue includes articles from four kinds of hybrid institutions: state-owned enterprises (SOEs) (Giosi and Caiffa, 2020), non-profit organizations (NPOs) (Kim and Mason, 2020), social enterprises (SEs) (Costa and Andreus, 2020) and municipally owned corporations (MOCs) (Krause and Swiatczak, 2020). This special issue also includes a synthesizing literature review that explores models of performance measurement in the context of hybrid public organizations (De Waele et al, 2021). The articles differ in many aspects, including their research settings and methodological designs.…”

Accounting, performance and accountability challenges in hybrid organisations: a value creation perspective

“…Moreover, mixing may refer to blending mission orientations and for-profit logic that come with financial performance pressures in social enterprises (Costa and Andreus, 2021). As representations of value constellations, performance measurement models should trace innovative mixes of multiple values reflecting the complexities of these hybrid contexts (De Waele et al , 2021). Mixing forms of value may be a deliberate process of combining two or more value categories and value-creation processes into a single value construct.…”

“…A compromise implies that the interests of both (or more) parties are taken into account in the resolution, and none of the parties gets to realise all of its interests. In many hybrid settings, this may contribute to only incomplete, satisficing mixes of value that do not manifest the “best of both worlds” but, rather, “a little bit of everything” (De Waele et al , 2021) or “either hollow politics or lousy business” (Vakkuri et al , 2021).…”

“…In their work on Finnish alliances, Rajala and Kokko (2022) show that the different actors should be accountable in horizontal relationships with the hybrid organisation. Furthermore, legitimisation strategies are often created in different forms of performance measurements (De Waele et al , 2021). The study on the English National Health Service (NHS) demonstrates how the medical managers signal the merit of performance measures in improving patient and financial outcomes and remove stigma associated to clinical engagement with costs (Begkos and Antonopoulou, 2022).…”