Looking for the options: Hybrid governance, Analytical perspective - PowerPoint PPT Presentation

Looking for the options: Hybrid governance, Analytical perspective Source: Jan-Erik Johanson & Jarmo Vakkuri (2017) Governing hybrid organizations. Exploring variety of institutional life . Abingdon & New York, Routledge.

In press, to be published in August 2017 MA course in English, spring 2018, 3rd semester. University of Tampere, Faculty of Management

 Private enterprises in charge of public duties: Public buildings, mines, supplies for the army, grazing lands, and tax collection (’tax farming’).  First descriptions were related to the contracts for feeding of sacred hens in the hill of Capitolium 390 BC.  Societas publicanorum : limited liability public service corporations, shares, flexible organisation, division between administration and politics, in other private business limited liability through the joint slave ownership and ’slave CEO’.  Criticism for malpractice: fraudulent behaviour in transportation, detachment from unprofitable public contracts, cruelty in mines, excessive tax collection.  In the imperial era the centralized civil service replaced the private companies in administering public duties. The autocratic rule of the Emperors replaced the oligarchic rule of the Senate.  The written historical sources originate from the descriptions of the Senators and followers of the Caesars who were in competitive position in relation to the publicani. Caesars followed their whips and whims, and the conduct of civil service was not always exemplary.

Follow Me! I a c b II III a b IV

 Shared ownership.  Goal incongruence and different institutional logics in the same organisation.  Variety in the sources of financing.  Differentiated forms of economic and social control.

Monstruous hybrid (mixing A cute little pet of syndromes) Listen a story about Chimera

 Syndrome as a compatibility problem, not as a disease.  Guardian syndrome is important for the integration.  Commerce syndrome is important for survival.  Consider two tribes: a tribe of fishermen and an agricultural tribe. Separate community effort to fulfill goals and exchange with the other are equally important functions.  Hybrid organisations mix integration and exchange. Therefore, there are risks involved.

Guardian Syndrome Commerce Syndrome Shun trading Shun force • • Exert prowess Compete • • • Be obedient and disciplined • Be efficient • Adhere to tradition • Be open to inventiveness and novelty • Respect hierarchy • Use initiative and enterprise Be loyal Come to voluntary agreements • • Take vengeance Respect contracts • • • Deceive for the sake of the task • Dissent for the sake of the task • Make rich use of leisure • Be industrious • Be ostentatious • Be thrifty Dispense largesse Invest for productive purposes • • Be exclusive Collaborate easily with strangers • • • Show fortitude • Promote comfort and convenience • Be fatalistic • Be optimistic Treasure honor Be honest • •

Hybridihallinta ”Labr a doodle”  Crossbreed between a Labradoodle labrador and a poodle.  Inflicts very little allergies.  May suffer from health problems.  Has not been approved as a pure dog breed.  Some say that it should not have been created in the first place.

Chimera  Greek mythology: a combination of a lion, a goat and a snake (or scorpion or dragon)  It can breath fire  Was considered as a bad omen predicting disasters  Refers to things highly imaginative or implausible

Questions Answers  How should we understand  Micro,-meso ja macro. the space in between public  Singular, Dyadic, and Triadic. and private?  ” C onceptual waste”,  What kind of empirical ”Muddling through ”, categorisations are used to ” Deviation from optimum ”. classify hybridity?  External – internal.  How do hybrid organisations legitimate  Hybrids by design vs. by default. their activities?  Impure goods, Combinations  How are hybrid activities of orders of worth. valued in society?

Johanson & Vakkuri (2017) Governing hybrid organisations. Exploring diversity of institutional life. Abingdon & New York, Routledge..

Global air travel (Case 3.4) Cleantech – industry (3.2) European PPP pension Publicani in the Roman Provision (Case 5.1) Republic (Case 2.1) Coxa- Hospital (Case 4.2) PPP Road construction In China (Case 2.2) Energy company In Vietnam (Case 4.1) National innovation system (Case 3.3) Health policy (Case 3.1) System of National Accounts (Case 3.5) Johanson & Vakkuri (2017) Governing hybrid organisations. Exploring diversity of institutional life. Abingdon & New York, Routledge..

 Innovation system as a catalyst of innovations  Old: basic research, applied research, commercial applications.  New: university, enterprise and government interaction as a source of innovation (triple helix).  Specialisation into particular industries implies that industries differ from one another. Usually there is no unified national innovation system. The significance of an innovation system is difficult to verify.  Forerunners : (Greece, Ireland) efficient production and commercialization.  Laggards: Problems with both innovation production and commercialisation (Netherlands, UK),  Problems with commercialisation : (Canada, Finland, Korea, New-Zealand)  Problems with innovation production : (Italy, Norway, Mexico Portugal).  If universities take a position in developing innovations, students and basic research might suffer.  The wealth of industrialized countries is both antecedent and consequence of innovations.

Looking for the options: Hybrid governance, Reasons for hybrids Source: Jan-Erik Johanson & Jarmo Vakkuri (2017) Governing hybrid organizations. Exploring variety of institutional life . Abingdon & New York, Routledge.

 Strategy : public organisation is capable of achieving change in the environment of an organization. Private enterprises are geared to adaptation to the environment. Hybrids might be better equipped to influence their environment than private enterprises  Performance : Performance measurement is ambiguous also in business and government organisations. The combination of profit-seeking and public policy goals in hybrids requires the simultaneous use of two different yardsticks.

Strategies as goal-oriented Performance as evaluation future actions of past actions  Strategic design. Advancing  Principle of economy. goals through programming Performance as parsimony. Minimum costs and efforts.  Strategic scanning. Advancing goals through  Principle of efficiency. The combining resources best possible output with given resources  Strategic governance. Advancing goals through  Principle of effectiveness. sharing work and The best possible value and connecting with others outcome with given resources

 The combination of public policy goals and for-profit activity. Environmental sustainability as source of business opportunities rather than as a counterforce.  Interest of capital investors in new technologies. The concern of citizens of the degradation of environment.  Changing environmental problems into business opportunities.  ”doing well by doing good”.  Conceptual battle and boundary concepts in the background: ”biotech”, ” infotech ”, “ cleantech ”.  Continuous problem of demarcation: Is low-emission diesel engine part of cleantech?

Adapted from Ostrom 1990

 The categorisation into public and private goods is far from clear  The categorisation is ambiguous, vulnerable to change, and it depends upon the structure of the institutions in a given society  A straightforward interpretation is that hybrids would be related to impure goods such as toll goods and common pool resources  In practice, hybrids are part of the production of public goods as well. e.g. private enterprises in providing supply of weapons and personnel for the army or building a spacecraft

 There were no highways in mainland China in 1988, the length of highways was 104 400 kilometers in 2013.  Highway construction as public- private partnership.  Highway companies: 19 stock listed companies.  Road tolls provide revenue for the companies as well as income for the local governments.  Road tolls as a device for regulating road congestion.

The main features in the orders of worth (Table 2.1) Order of worth Main features Inspired world Creativity, passion, emotion Domestic world Reputation, trustworthiness, authority World of fame Popularity, media, vogue, trends Civic world Collective welfare, equality, rules, and regulations Market world Price, competition, short-term Industrial world Technical efficiency, engineering, long-term Green world Environmental friendliness, sustainability, future generations Project world Connectivity, flexibility, social capital, networks Adapted from Boltanski and Thévenot 2006, Thévenot et al. 2000, Boltanski et al. 2005 .