From Contracting to Collaborative Governance: Evolution of Government-Nonprofit Relations

Why may collaborative governance (CG) between government agencies and nonprofit organizations emerge in countries like China without a strong civil society? This study argues that service contracting, driven by New Public... [ view full abstract ]

Why may collaborative governance (CG) between government agencies and nonprofit organizations emerge in countries like China without a strong civil society? This study argues that service contracting, driven by New Public Management (NPM) tenets, may unexpectedly evolve toward CG by creating and consolidating necessary conditions of CG. Case information in Shanghai China shows evidence that contracting nonprofits and governments may jointly make decisions, enforce regulatory functions, set rules, and influence community governance. The analysis shows that over time contracting, originally an instrument to handle pragmatic issues, leads to the generation of mutual trust, acquisition of governing resources, and consolidation of collaborative accountability. Consequently, contractors may become governance partners. The evolutionary perspective provides not only a promising way to develop CG but also a theoretical link between NPM and New Public Governance.

The significance of the research
The research is a theoretical attempt to build connections between NPM and NPG, which are deemed as two very different models. It shows us the pros and cons to develop collaborative governance through contracting.

Method
The study will use two cases in Shanghai, one with a nonprofit as the subject and another one with a local government as a subject, to compare their multiple cross-sector relations and their dynamics.

Theoretical/conceptual foundations for the research
This study is rooted in literature on government-nonprofit relation, highlighting a missing linkage between the two nonprofit roles as service deliverers and governance partners. Beyond the conflicts between the two roles, the paper explores their mutuality.

Important references:
DeHoog, R. H. 1990. “Competition, Negotiation, or Cooperation: Three Models for Service Contracting”. Administration and Society. 22(3): 317-340.
Jing, Yijia and Bin Chen. 2012. Is Competitive Contracting Really Competitive? Exploring Government-Nonprofit Collaboration in China. Forthcoming in International Public Management Journal. 15(4): 405-428.
Savas, E.S. 2002. “Competition and choice in New York City social services”. Public Administration Review 62(1): 82-91.
Van Slyke, D. 2006. “Agents or Stewards: Using Theory to Understand the Government-Nonprofit Social Service Contracting Relationship”. Journal of Public Administration Research and Theory 17(2):157–187.