Skip to main content

Corporatised Local Public Service Provision: Comparative Evidence from 19 Countries and Research Agenda

  • Chapter
  • First Online:
Corporatisation in Local Government

Abstract

Comparison of 19 countries in this book has identified five core characteristics of local government corporatisation. In this chapter, we describe these characteristics. First, there appears to be a trend towards local government corporatisation, albeit not everywhere. Second, local corporatisation can occur under both public and private law, with different implications, although there are some countries where the legal state of municipally owned corporations (MOCs) is hybrid or ambiguous. Third, MOCs are heterogeneous throughout all countries in their organisational characteristics. Fourth, there are large differences between countries in the autonomy granted to MOCs. Fifth and finally, in terms of corporate governance, we find that countries are split between the use of one-tier and two-tier boards, and that corporate governance codes for MOCs are increasingly popular. We conclude with a research agenda.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 109.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 139.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 139.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Andrews, R. (2020). Organizational publicness and mortality: Explaining the dissolution of local authority companies. Public Management Review, 24(3), 350–371.

    Article  Google Scholar 

  • Andrews, R. (2022). Organizational publicness and mortality: Explaining the dissolution of local authority companies. Public Management Review, 24(3), 350–371.

    Article  Google Scholar 

  • Andrews, R., Clifton, J., & Ferry, L. (2022). Corporatization of public services. Public Administration. https://doi.org/10.1111/padm.12848.

  • Andrews, R., Ferry, L., Skelcher, C., & Wegorowski, P. (2020). Corporatization in the public sector: Explaining the growth of local government companies. Public Administration Review, 80(3), 482–493.

    Article  Google Scholar 

  • Bel, G., Esteve, M., Garrido, J. C., & Zafra-Gómez, J. L. (2021). The costs of corporatization: Analysing the effects of forms of governance. Public Administration. https://doi.org/10.1111/padm.12713.

  • Bel, G., & Fageda, X. (2007). Why do local governments privatise public services? A survey of empirical studies. Local Government Studies, 33(4), 517–534.

    Article  Google Scholar 

  • Bel, G., & Warner, M. (2015). Inter-municipal cooperation and costs: Expectations and evidence. Public Administration, 93(1), 52–67.

    Article  Google Scholar 

  • Citroni, G., Lippi, A., & Profeti, S. (2013). Remapping the state: Inter-municipal cooperation through corporatisation and public-private governance structures. Local Government Studies, 39(2), 208–234.

    Article  Google Scholar 

  • Grossi, G., Papenfuß, U., & Tremblay, M. (2015). Corporate governance and accountability of state-owned enterprises: Relevance for science and society and interdisciplinary research perspectives. International Journal of Public Sector Management, 28(4), 274–285.

    Article  Google Scholar 

  • Grossi, G., & Reichard, C. (2008). Municipal corporatization in Germany and Italy. Public Management Review, 10(5), 597–617.

    Article  Google Scholar 

  • Klausen, J. E., & Winsvold, M. (2019). Corporate governance and democratic accountability: Local state-owned enterprises in Norway. Journal of Public Policy, 41(1), 161–184.

    Article  Google Scholar 

  • Krause, T. A., & Swiatczak, M. D. (2021). In control we trust!? Exploring formal control configurations for municipally owned corporations. Journal of Public Budgeting, Accounting & Financial Management, 33(3), 314–342.

    Article  Google Scholar 

  • Kuhlmann, S., & Bouckaert, G. (Eds.). (2016). Local public sector reforms in times of crisis: National trajectories and international comparison. Palgrave Macmillan.

    Google Scholar 

  • Ladner, A., Keuffer, N., & Baldersheim, H. (2016). Measuring local autonomy in 39 countries (1990–2014). Regional & Federal Studies, 26(3), 321–357.

    Article  Google Scholar 

  • OECD. (2015). OECD guidelines on corporate governance of state-owned enterprises. OECD Publishing.

    Book  Google Scholar 

  • Papenfuß, U. (2020). Corporate governance of state-owned enterprises: Conceptualization, challenges and perspectives for the public corporate governance field. In L. Bernier, P. Bance, & E. Florio (Eds.), The Routledge handbook of state-owned enterprises (pp. 433–444). Routledge.

    Chapter  Google Scholar 

  • Papenfuß, U., & Schmidt, C. (2021a). Personnel governance of corporatized public services: Effects of executive resources and corporation forms on turnover. Public Administration. https://doi.org/10.1111/padm.12752.

  • Papenfuß, U., & Schmidt, C. (2021b). Understanding self-regulation for political control and policy-making: Effects of governance mechanisms on accountability. Governance, 34(4), 1115–1141.

    Article  Google Scholar 

  • Papenfuβ, U., & Keppler, F. (2020). Does performance-related pay and public service motivation research treat state-owned enterprises like a neglected Cinderella? A systematic literature review and agenda for future research on performance effects. Public Management Review, 22(7), 1119–1145.

    Article  Google Scholar 

  • Tavares, A. F. (2017). Ten years after: Revisiting the determinants of the adoption of municipal corporations for local service delivery. Local Government Studies, 43(5), 697–706.

    Article  Google Scholar 

  • Torsteinsen, H., & Van Genugten, M. L. (2016). Municipal waste management in Norway and the Netherlands – From in-house provision to inter-municipal cooperation. In S. Kuhlmann & G. Bouckaert (Eds.), Local public sector reforms in times of crisis: National trajectories and international comparison (pp. 205–220). Palgrave.

    Chapter  Google Scholar 

  • Van Genugten, M., Van Thiel, S., & Voorn, B. (2020). Local governments and their arm’s length bodies. Local Government Studies, 46(1), 1–21.

    Article  Google Scholar 

  • Verhoest, K., Peters, B. G., Bouckaert, G., & Verschuere, B. (2004). The study of organisational autonomy: A conceptual review. Public Administration and Development, 24, 101–118.

    Article  Google Scholar 

  • Verhoest, K., Van Thiel, S., Bouckaert, G., & Lægreid, P. (Eds.). (2012). Government agencies: Practices and lessons from 30 countries. Palgrave Macmillan.

    Google Scholar 

  • Voorn, B. (2020). When politics meets professionalism: The characteristics and performance predictors of municipally owned corporations (Doctoral dissertation). Nijmegen: Radboud University.

    Google Scholar 

  • Voorn, B. (2022). Professional managers, public values? The delicate balance between corporatization and stewardship to society. Public Management Review. https://doi.org/10.1080/14719037.2022.2026691.

  • Voorn, B., Borst, R. T., & Blom, R. (2020a). Business techniques as an explanation of the autonomy-performance link in corporatized entities: Evidence from Dutch Municipally owned corporations. International Public Management Journal. https://doi.org/10.1080/10967494.2020.1802632.

  • Voorn, B., Van Genugten, M., & Van Thiel, S. (2020b). Performance of municipally owned corporations: Determinants and mechanisms. Annals of Public and Cooperative Economics, 91(2), 191–212.

    Google Scholar 

  • Voorn, B., & Van Genugten, M. L. (2021). Dealing with multiple principals in at arm’s length organizations: A qualitative study of Dutch municipally owned corporations. Public Administration. https://doi.org/10.1111/padm.12746.

  • Voorn, B., Van Genugten, M. L., & Van Thiel, S. (2017). The efficiency and effectiveness of municipally owned corporations: A systematic review. Local Government Studies, 43(5), 820–841.

    Article  Google Scholar 

  • Voorn, B., Van Genugten, M. L., & Van Thiel, S. (2021). Re-interpreting re-municipalization: Finding equilibrium. Journal of Economic Policy Reform, 24(3), 305–318.

    Article  Google Scholar 

  • Wollmann, H. (2004). Local government reforms in Great Britain, Sweden, Germany and France: Between multi-function and single-purpose organizations. Local Government Studies, 30(4), 639–665.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Bart Voorn .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Voorn, B., Andrews, R., Papenfuß, U., Torsteinsen, H., Van Genugten, M. (2023). Corporatised Local Public Service Provision: Comparative Evidence from 19 Countries and Research Agenda. In: Van Genugten, M., Voorn, B., Andrews, R., Papenfuß, U., Torsteinsen, H. (eds) Corporatisation in Local Government. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-09982-3_21

Download citation

Publish with us

Policies and ethics