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Do strategy and management matter in municipal organisations?
Lund University, School of Economics and Management.
Lund University, School of Economics and Management.
Lund University, School of Economics and Management.
Kristianstad University College, Department of Business Administration.
2008 (English)In: Financial Accountability and Management, ISSN 0267-4424, E-ISSN 1468-0408, Vol. 24, no 3, p. 295-319Article in journal (Refereed) Published
Abstract [en]

In Sweden, a large share of public services are organised, produced and delivered by municipalities, large and small, rich and poor. Contextual conditions (size and location) and economic conditions (efficiency and wealth) differ considerably among these service-providing organisations. The question raised in this paper is whether a municipality's economic situation is a direct consequence of the contextual situation or the organisation's strategy and management – that is: Do strategy and management matter? Our analysis rests on a resource-based view of organisation strategy. Both quantitative and qualitative observations have been made. First, cost savings data from 50 municipalities were examined for patterns and relationships between contextual and economic conditions. Second, about 100 representatives – municipal executive board members and leading officials – from 20 municipalities with different characteristics were interviewed. In this paper we outline an analytical framework and propose that sound and sustainable provision of municipal service depends on whether organisational decision-making is in harmony with work methods and objectives. The results indicate that strategy and management do matter. Among the municipalities included in our study, we identify four prevalent basic strategies. Strategy tends to coincide with the economic situation rather than the contextual situation. A low-performing municipality tends to have a predominantly outward orientation in its decision-making, whereas a higher-performing municipality makes decisions with both inward and outward orientation.

Place, publisher, year, edition, pages
2008. Vol. 24, no 3, p. 295-319
Keywords
Economic situation, management, municipalities, resource-based theory, strategy
National Category
Business Administration Social Sciences
Identifiers
URN: urn:nbn:se:hkr:diva-85DOI: 10.1111/j.1468-0408.2008.00454.xOAI: oai:DiVA.org:hkr-85DiVA, id: diva2:134447
Available from: 2009-01-21 Created: 2009-01-21 Last updated: 2017-12-14Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf