Expectations and the performance of governance functions between a board,management and other stakeholders: the case of Robotdalen

Previous research has called for an enhanced understanding of the dynamic and interactional aspects of board work in public sector governance. Using a longitudinal case study of Robotdalen, this paper attempts to meet this call through a processual and qualitative study of board work in public organisations. The aim of the paper is to enhance our understanding of the human side of governance and the interactions between a board, the management in the governed organisation and other stakeholders. We do this by addressing the theoretical concept of an expectations gap. The results demonstrated how funding regimes influence governance functions, structures and practices at the organisational level, and how internal actors such as managers also carry out governance functions. Moreover, the results show how an expectations gap shifts and changes over time. In this way we have contributed a more nuanced theoretical understanding of how the governance function is co-produced and the importance of understanding the expectations gap to further understand the dynamics of public sector board work.     

Integration and Autonomy in Organizational Governance: A Comparative Study of Two Government-Owned Railways in Hong Kong

This article identifies the patterns of integration and autonomy in organizational governance in two government-owned railways in Hong Kong in relation to relevant external and internal actors from the government, market and civil society. The Kowloon Canton Railway Corporation, a government department turned into a statutory corporation, and the Mass Transit Railway Corporation Limited, a statutory corporation turned into a listed company, are both profitable enterprises. They have been subjected to similar macro-governance influences (mainly political and policy changes), but their patterns of integration and autonomy with relevant actors in organizational governance are not the same. The historical variations in the integration-autonomy patterns, notably an increased tendency for government intervention, as well as major differences between the two railways in their relationships with market and civil society actors, can often be explained by three interrelated factors, namely, political conditions, community expectations and performance.

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Perceptions of Legitimacy in Nordic Regional Development Networks

This article examines actors’ views on legitimacy in governance networks in four Nordic countries. The analysis is based on a survey of similar regional development networks in Denmark, Norway, Sweden and Finland. The countries form a continuum, in which the connection between legitimacy and representative democracy is strongest in Denmark and weakest in Finland. Norway and Sweden fall in between the two. Not only the strength, but also the form of the connection, and the weight given to it vary among the countries. Article contributes to the debate on democracy in network governance.     

The making of active boards in Swedish public companies

Boards of directors are a vital part of corporate governance systems. In the on-going discussion about the development of national corporate governance systems, however, little interest has been given to the issue of how and why board behavior changes over time. In this article, we use an institutional approach and study the development of board behavior in Sweden between 1994 and 2004 and if it is affected by board composition and board network characteristics. In order to do so, we introduce the constructs of board activities, i.e. what the boards do, and board involvement, i.e. when in the decision process they get involved. Findings show that range of board activities and board involvement have increased drastically during this period, which indicates a change in the logic of appropriateness of Swedish board behavior. There are robust indications that new types of actors affect activities and involvement positively, as do board interlocks, whereas network centrality affects activities and involvement negatively.     

The cross-border hostile bid fight between Scania in Sweden and the two German companies MAN and Volkswagen: institutional change and the mandatory bid rule

International hostile takeovers provide a unique context for studying how corporate governance mechanisms migrate across countries. This paper is prompted by a case study of the cross-border takeover fight between the target companies Scania (Sweden) and MAN (Germany) and the involvement of the owners of Volkswagen, Porsche (both Germany) and Investor (Sweden), 1999–2014. It reveals how incumbent owners in Germany and Sweden—two countries with a history of corporate control through blockholdings, corporatist-governance, state control (Germany) and multiple voting shares (Sweden)—manage to take advantage of the minority shareholders through arbitraging the differences in implementation of a new governance device across borders. The study focuses in particular on the mandatory bid rule (MBR) that forces a shareholder who passes a certain threshold of ownership to bid for the rest of the shares. The study reveals over twenty incidents of breaches of the idea of the MBR, to the detriment of minority shareholders. Building on institutional theory and sociology, the study provides useful insight into how incumbent actors may use bargaining power to capture a new regulation and circumvent it. Furthermore, the case illustrates the importance of legitimacy in the efforts to converge corporate governance systems. Thirdly, it adds to the critique of the mandatory bid rule in countries with a governance system supporting blockholders. Overall, the study raises a number of important issues regarding how national politics shape corporate governance and responds to new actors and coalitions of actors entering the scene. A convergence of takeover regulation not compatible with the legal framework might result in a less efficient than anticipated outcome of the market for corporate control. These results are consistent with the institutional theory perspective that key actors may have a vested interest in resisting change.     

The Choice of Governance Modes of International Franchise Firms — Development of an Integrative Model

This paper examines the evolution of the international franchise research with special focus on the governance modes of the international franchise firm and develops a new model for the franchisor's choice of the international governance modes. International governance modes in franchising refer to wholly-owned subsidiaries, joint venture franchising, area development franchising and master franchising. Although many studies on the governance modes of the international franchise firm have been published in the last two decades, no prior study develops an integrative framework that investigates the determinants of the international governance modes by combining organizational economics and strategic management perspectives. Specifically, this study explains the governance modes of the international franchise firm by applying transaction cost theory, agency theory, resource-based and organizational capabilities theory and property rights theory.     

Governance of sustainable supply chains in the fast fashion industry

This paper examines the impact of corporate social responsibility behavior on the sustainability performance of focal companies and their partners in fast fashion supply chains. The attributes of sustainability and the mechanism of sustainability governance of the fast fashion supply chain are also discussed. From the perspective of strategic corporate social responsibility, we first analyze the motives for adopting sustainability governance in fast fashion supply chains, and identify seven competitive sustainable attributes of the fast fashion product based on sustainable development theory. Then, by establishing a sustainability governance framework, we identify seven factors that affect the sustainability governance decision-making and evaluate the efficiency and legitimacy mechanism of sustainability governance from internal and external perspectives. Finally, we explore the application of the governance mechanisms via a case study based on H&M’s seven sustainability commitments. The findings suggest that the core influence and centrality of a corporation should be strengthened from the perspective of internal governance, and stakeholders should collaborate to achieve sustainability governance throughout the entire fast fashion supply chain from the perspective of external governance.     

Bureaucratic Politics and Administrative Reform: Why Politics Matters

Administrative reform is a political, not managerial, issue. This study argues that administrative reform is highly influenced by realities of bureaucratic politics. Reforms usually mean the struggle over power between involved actors. There are evidences of patterns of power struggle among and between politicians and bureaucrats. Including contestation among bureaucrats that are responsible for public management reform. These power struggles and contestations explain the decision-making processes for designing and implementing administrative reform policies and shifts of power relations. This article proposes a new framework to advance the concept of bureaucratic politics, with reference to administrative reform policy. It highlights the missing link between public policy and public management reform literature by revisiting the power of politicians and bureaucrats in making reform policies.     

Disentangling the Governance Configurations of Strategic Spatial Plan-Making in European Urban Regions

This paper is aimed at assessing and disentangling how territorial governance configurations influence contemporary practices in strategic plan-making in 14 European urban regions. The findings allow us to distinguish three dominant practices: i) plan-making shaped by consensus building and multilevel government cooperation; ii) plan-making shaped by the involvement of profit-oriented actors and negotiations, and iii) plan-making shaped by consolidated planning practice. To truly grasp plan-making practice, it is necessary to scrutinize who rules and who is ruled while negotiations are unfolding, as well as the extent to which private actors’ interests influence how spatial development goals and strategies are defined.     

With or Without You?1 Strategic Spatial Planning and Territorial Re-Scaling in Grenoble Urban Region

Spatial planning across European city regions is undergoing substantial changes. The paper draws on the framework of territorial re-scaling, strategic spatial planning and the emergence of new governance modes in order to analyse strategic planning episodes in Grenoble urban region (France). The paper aims at showing how strategic planning processes by means of new governance arenas call into question local planning cultures, especially by reshaping planning perimeters, territorial identities and actors' roles. In particular, it shows the importance of path dependency for strategic planning, the effects of power imbalances between local actors and the crucial role planners play in spatial policy-making.     

The Essential Elements of a Risk Governance Framework for Current and Future Nanotechnologies

Societies worldwide are investing considerable resources into the safe development and use of nanomaterials. Although each of these protective efforts is crucial for governing the risks of nanomaterials, they are insufficient in isolation. What is missing is a more integrative governance approach that goes beyond legislation. Development of this approach must be evidence based and involve key stakeholders to ensure acceptance by end users. The challenge is to develop a framework that coordinates the variety of actors involved in nanotechnology and civil society to facilitate consideration of the complex issues that occur in this rapidly evolving research and development area. Here, we propose three sets of essential elements required to generate an effective risk governance framework for nanomaterials. (1) Advanced tools to facilitate risk‐based decision making, including an assessment of the needs of users regarding risk assessment, mitigation, and transfer. (2) An integrated model of predicted human behavior and decision making concerning nanomaterial risks. (3) Legal and other (nano‐specific and general) regulatory requirements to ensure compliance and to stimulate proactive approaches to safety. The implementation of such an approach should facilitate and motivate good practice for the various stakeholders to allow the safe and sustainable future development of nanotechnology.     

Wertschöpfungs- und Werteinforderungsnormen im Rahmen der „Plural Form Governance“: Ein empirischer Test in Key-Account- und Nicht-Key-Account-Dyaden

In order to secure against uncertainty in vertical business relationships, actors dispose of different mechanisms. This article focuses on the influence of contracts, specific investments, value-creating norms, value-claiming norms, and trust on customer satisfaction and commitment. An empirical study lead to the result that governance mechanisms have high explanatory power for the outcome variables. Value-creating norms and trust play a key role. In addition, the article differentiates between key account and non key account relationships. It shows that only value-creating norms contribute to the explanation of both outcome variables across both types of relationships.     

Governance dynamics in inter-organizational networks: A meta-ethnographic study

Governance has been a pervasive theme in the discussions of strategy and management in the context of inter-organizational networks. To date, network researchers call for a dynamic theory of governance to deal with increased uncertainty in the network environment. In response to this call, this study aims to generate a better understanding of how and why governance in inter-organizational networks can change over time and what implications these governance dynamics have for the network and its members. A meta-ethnographic analysis of 15 longitudinal case studies reveals that network actors can combine relational and formal governance in different ways over time, thereby constituting three governance patterns: the relational celebration pattern, the competitive protection pattern, and the forced facilitation pattern. The relational celebration and competitive protection patterns can generate favorable outcomes for the network and its members if disagreement about the formal governance terms is eliminated by revising these terms and/or repeating the pattern with a subset of the network members. In the case of the forced facilitation pattern, favorable network outcomes emerge if different types of relational governance are balanced. By detailing how and why governance patterns emerge and can generate favorable outcomes for the network and its members, the present research creates a better understanding of governance dynamics for researchers, business practitioners, and policymakers.     

How do actors shape social networks during the process of new product development?

Recent studies on new-idea generation and development have highlighted the role played by network structure in the genesis of new combinations or the process of selecting ideas. However, less attention has been paid to the factors that entice actors to shape social networks during the process of the development of new ideas.This research was conducted in an R&D facility of a semi-conductor company. We analysed the generation of five creative projects and their development over a four-year period. We used a longitudinal approach and collected data through interviews and observations to identify the creative contributions and the actors who were involved at different time periods for each project. We mapped the relationships between actors who contributed to the development of each idea through creative thinking and/or helped it to become accepted both internally and externally over three-year windows. This method generated data on network evolution.We also carried out a qualitative analysis and identified four main factors explaining why actors turn to others during the idea-development process: (1) to gain access to information; (2) to enhance credibility; (3) to exercise one’s influence; and (4) to gain access to knowledge through people or objects. We demonstrate that different types of ties or network structures are relied upon to reap different kinds of benefits. This may partially explain network evolution as an idea progresses through different development stages.     

Increasing the Governance Standards of Public-Private Partnerships in Healthcare. Evidence from Italy

Healthcare systems have changed rapidly in the past few decades due to increasing healthcare costs and decreasing governmental budgets. The structural complexity, huge numbers of actors and long-term relationships inherent to PPPs bring out several governance issues. Based on the principles of good governance for PPPs published by the United Nations Economic Commission for Europe (UNECE) in 2008, we try to answer the following research question: How can the governance standards of PPPs be increased? This paper aims to explore issues of governance, management and policy design as they apply to PPPs in healthcare services. The evidence from a single case-study (the New Mestre Hospital) is presented and discussed. The main findings are that, despite its great success, the analysed PPP does have some governance problems that need to be addressed. Concluding remarks and insights for future research directions are then presented.     

Hybrid Governance: The Case of Household Solid Waste Management in Sweden

Governance is hybrid to the extent that it involves diverse organizational forms, jurisdictional domains, and stakeholders across the public and private sectors. This article analyses the governance of household solid waste management in Sweden from a hybridity perspective, with the City of Helsingborg in North-Western Scania in Sweden as an example. The governance arrangements comprise municipal and company-based organizations, conflicting legislation, and long planning and investment horizons. The latter has resulted in significant innovations over the last 20 years, while changes in organizational forms, tasks, networks and jurisdictions have caused tensions in governance processes and relationships.     

Globalization, State Formation, and Reinvention in Public Governance: Exploring the Linkages and Patterns in Southeast Asia

While the existing studies on globalization widely cover the realms of economy, politics, society, and culture, the discourse is hardly extended to the domain of public governance. Although there are studies on the globalization or cross-national convergence of contemporary neoliberal models of governance – that is, the New Public Management (NPM) model and its revisionist post-NPM alternatives – there is a relative lack of research on how the globalization phenomenon itself has been a major cause of the emergence of such a neoliberal public sector management. In explaining the main causes of these neoliberal reinventions, most scholars highlight issues like fiscal crisis, state failure, and public sector inefficiency. They rarely consider how the dominant actors of globalization may constitute a major force causing the recent neoliberal transformation of the state and market-led reinvention in state policies and management. This article explicates these linkages – between globalization, state formation, and public sector reform – with specific reference to Southeast Asia.     

Multinationals and Skills Policy Networks: HRM as a Player in Economic and Social Concerns

This paper uses an embeddedness framework to reconceptualize HRM agency over the external labour market, and in so doing bring into focus the societal implications of HRM. Drawing on qualitative data from 53 key informants in two English regions, we identify the ways in which the subsidiaries of foreign multinationals (MNCs) engage with labour market skills actors. Our findings reveal how power structures are mobilized by local economic actors to align labour market skills with MNCs’ demand priorities. We show that multinationals may seek to partially endogenize (i.e. take ownership of) the resources of local labour markets when their competitive value is redefined in social as well as economic terms, and demonstrate that the social structure of sub‐national institutional governance arrangements and firm strategic action on skills creates the conduit through which resource endogenization may occur. Theoretically, this paper identifies the social structure of networks as a casual mechanism to bridge divergent skill interests, which is mobilized when network actors have the capacity to frame fields within the social structure of the network around ideas on economic sustainability and moral interest.     

Governance in the Age of Globalization: Challenges and Opportunities for South and Southeast Asia

This article addresses governance in the age of globalization, the confusion over the meanings of governance, and the flaws of ‘good governance,’ while offering a novel theory of ‘sound governance’ with many elements or dimensions. It also discusses the implications, challenges, and opportunities for governance and administration in South and South East nations in a rapidly changing world of predatory globalization, and suggests strategies for coping with and managing global pressures while practicing sound governance at home.