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Governing cooperation hazards of outsourced municipal low contractibility transactions: An exploratory configuration approach
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013). Univ Orebro, Swedish Business Sch, S-70182 Orebro, Sweden.ORCID iD: 0000-0002-3922-578X
Karlstad University, Faculty of Economic Sciences, Communication and IT, Department of Business Administration.ORCID iD: 0000-0001-8860-6944
2011 (English)In: Management Accounting Research, ISSN 1044-5005, E-ISSN 1096-1224, Vol. 22, no 4, p. 292-312Article in journal (Refereed) Published
Abstract [en]

Increasingly, public sector organizations (PSOs) outsource the delivering of important welfare services. This gives rise to important questions of how PSOs can control their suppliers. The purpose of this paper is to show how PSOs manage cooperation hazards of low contractibility transactions, i.e., activities expected to be difficult to govern. The paper applies a taxonomic configuration approach which means we apply a holistic view on the governance of suppliers and search for internally congruent governance packages that also are adapted to the context of the transactions. Three theoretically meaningful and qualitative different configurations appear in the empirical material. We find indications of the importance of internal congruence in governance packages in order to effectively deal with cooperation hazards and that the intensity in and types of controls in inter-organizational relationships are affected by the amount of cooperation hazards. A conflict between a relational and a market-based governance package in one of the configurations is argued to be the main driver behind lower expectations about positive behaviour from suppliers

Place, publisher, year, edition, pages
2011. Vol. 22, no 4, p. 292-312
Keywords [en]
Inter-organizational relationships, Management control, Outsourcing, Configurations, Taxonomies, Cluster analysis, Transaction cost economics, Public sector
National Category
Business Administration
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-11419DOI: 10.1016/j.mar.2011.01.001ISI: 000298128500005OAI: oai:DiVA.org:kau-11419DiVA, id: diva2:495012
Available from: 2012-02-08 Created: 2012-02-08 Last updated: 2018-05-17Bibliographically approved

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Publisher's full texthttp://dx.doi.org/10.1016/j.mar.2011.01.001

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Johansson, TobiasSiverbo, Sven

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