Debate: Corporatization in local government— the need for a comparative and multi-disciplinary research approach

Torsteinsen, Harald

doi:10.1080/09540962.2019.1537702

Cited by 25 publications

(18 citation statements)

References 9 publications

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“…The expert survey confirms what we know from the literature so far: there is a large variety in forms of ALBs (Ferry et al 2018;Torsteinsen 2019;Voorn, Van Genugten, and Van Thiel 2017). And then one should be aware that the literature is not even covering all countries and policy sectors equally.…”

Section: Arm's Length Bodies At the Local Levelsupporting

confidence: 77%

“…Serious challenges and problems can be discerned in the corporate governance of ALBs (Bruton et al 2015;Grossi, Papenfuß, and Tremblay 2015). An important element of corporate governance is the composition and behaviour of the executive board (Hinna, De Nito, and Mangia 2010;Meyer, Höllerer, and Leixnering 2018;Van der Walt and Ingley 2003). Besides in empirical studies, this is stressed in codes for good corporate governance (Papenfuß et al 2018).…”

Section: Corporate Governancementioning

confidence: 99%

“…In some countries, the creation of ALBs goes back decades (Van Genugten 2008), while in other countries, the recent financial crisis has spurred local governments to externalise (Ferry et al 2018;Kuhlman and Bouckaert 2016). An overview of what arm's length service delivery at the local level nowadays looks like across countries is, however, lacking (Torsteinsen 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Despite its widespread, the creation of ALBs at the local level isin contrast to a similar trend at the national level (see, for example, Verhoest et al 2012)largely understudied (Cambini et al 2011;Kuhlman and Bouckaert 2016;Lidström 2017;Torsteinsen 2019;Voorn, Van Genugten, and Van Thiel 2017). The literature that reports on the local level focuses predominantly on contracting out and privatisation (e.g., Brown and Potoski 2003;Dijkgraaf, Gradus, and Melenberg 2003;Domberger and Jensen 1997;Hefetz and Warner 2004;Hirsch 1995;Van Genugten 2008), and to a lesser extent and more recently on corporatisation (Citroni, Lippi, and Profeti 2013;Ferry et al 2018;Florio and Fecher 2011;Grossi and Reichard 2008;Krause and Van Thiel 2018;Tavares 2017;Voorn, Van Genugten, and Van Thiel 2017).…”

Section: Introductionmentioning

confidence: 99%

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Local governments and their arm’s length bodies

Genugten

Thiel

Voorn

2019

Local Government Studies

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In this paper, we discuss the state of the art on the creation of arm's length bodies (ALBs) by local governments. We make three main contributions. First, there are many different types of ALBs and each country has its own categories; an expert survey was held identifying three common types of body, to enable future comparative research. Second, we point out that the creation of ALBs has led to a number of new challenges for local governments, particularly regarding governing bodies at arm's length to ensure ALBs' good performance. A lack of capacity and information have to be countered, for example, by increased monitoringalso for democratic accountability purposes. Special attention is needed for the multiple principal problem that arises when local governments jointly create ALBs. Third, research into local ALBs is still in its early stages. We present a research agenda to develop knowledge on the topic.

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Section: Arm's Length Bodies At the Local Levelsupporting

confidence: 77%

Section: Corporate Governancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Local governments and their arm’s length bodies

Genugten

Thiel

Voorn

2019

Local Government Studies

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“…This development has come to be described as a burgeoning 'corporatization' of local government services (e.g. Andrews et al 2019;Torsteinsen 2019;Ferry et al 2018;Tavares 2017;Citroni et al 2013;Tavares and Camôes 2010;Grossi and Reichard 2008) and some have even gone so far as to speak of an 'enterprise fever' in the public sector (Aars and Ringkjøb 2011). However, as lamented in several recent literature reviews (e.g.…”

Section: Introductionmentioning

confidence: 99%

What Happens When Municipalities Run Corporations? Empirical Evidence From 290 Swedish Municipalities

Bergh

Erlingsson

Wittberg³

2020

SSRN Journal

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Across the globe, local governments have increasingly begun to rely on municipally owned corporations (MOCs) to provide public services, mounting to what scholars describe as a burgeoning corporatization in local government. Some studies have described this development as a rational response to financial stress and contemporary austerity challenges, and emphasise the cost-efficiency of MOCs (the optimistic view). However, several scholars have identified problems associated MOCs relating to weak steering and supervision, lack of accountability, and heightened corruption risks (the sceptical view). Hitherto, no studies have tested these diametrically opposing expectations on the effects MOCs in the one and same analysis. This paper addresses the competing views by studying Sweden, a country with a dramatic growth in the number of MOCs since the 1970s. We examine the association between the number of MOCs, citizen satisfaction with local government, local tax rates and a survey-based corruption measure for all 290 Swedish municipalities. Ultimately questioning the 'optimistic view', the results indicate that municipalities that rely heavily on MOCs in service delivery have higher taxes, not more satisfied citizens, and are associated with higher corruption levels.

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The effect of ownership on sustainable development and environmental policy in urban waste management: An explicatory empirical analysis of Italian municipal corporations

2020

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This paper investigates the effect of ownership on sustainable development and environmental policy in Italian municipally owned corporations (MOCs) dealing with urban waste management, trying to understand if multiple ownership can generate better performance compared to single ownership and if the presence of private partners could be crucial in this. The research question is answered by analyzing 41 MOCs of the largest Italian cities operating in urban waste management. In this specific sector, public administrations have tried to improve their offer in terms of sustainable development, environmental policy, and efficiency. The paper covers the Italian case study, where urban waste production per capita is higher than the European average figure. The waste cycle management service is operated in Italy at local level through totally publicly owned companies (monoadministration or multiadministration), mixed (public–private) companies, or via a full externalization achieved by means of public tenders. Through a multinomial ordered probit panel, we show that MOCs with multiple owners perform better than those having a single owner and perform much better with the presence of a private partner, confirming those academic findings according to which collaborative arrangements can increase efficiency, do better than public sector bureaucracy, and lower the costs of service provision. The results of this paper can be used by academics, practitioners, and policy makers alike. To the best of our knowledge, this is the only study that applies this perspective to the analysis of the current international waste management scenario with relation to MOCs having multiple ownerships.

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Debate: Corporatization in local government— the need for a comparative and multi-disciplinary research approach

Cited by 25 publications

References 9 publications

Local governments and their arm’s length bodies

Local governments and their arm’s length bodies

What Happens When Municipalities Run Corporations? Empirical Evidence From 290 Swedish Municipalities

The effect of ownership on sustainable development and environmental policy in urban waste management: An explicatory empirical analysis of Italian municipal corporations

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