The public value of Hybrid organizations: how it comes to existence

In this qualitative case study, we examine a single hybrid organization consisting from public and private sector actors who are co-creating or co-producing welfare services to citizens in the city of Espoo located in Finland.... [ view full abstract ]

In this qualitative case study, we examine a single hybrid organization consisting from public and private sector actors who are co-creating or co-producing welfare services to citizens in the city of Espoo located in Finland. Our case organization has the typical features of hybrid organizations like shared ownership, goal incongruence, different institutional logics in the same organization, variety in the sources of financing, and differentiated forms of economic and social control (c.f., Johanson and Vakkuri, 2017). By studying this organization, we aim to answer how public value is understood and determined in this organization. Interviews, observations, and documents as empirical evidence is used to fulfill this aim.  

The theoretical frameworks adopted in this study are taken from public value (e.g., Moore 1995), co-creation (Kelley et al. 1990), co-production (Alford 2007), and performance measurement literature (Hatry 2006). By using public value and stakeholder theories, we try to understand how public value is determined in the case study unit. In order to understand how public value is created, we utilize co-creation and co-production research. Theories and concepts from performance measurement literature are used as a starting point when we identify how hybrid organizations actually measure their performance. All these theories are used in the content analysis.

Our findings point out how the public value of hybrid organizations is a complex and messy phenomena that is difficult to describe with current concepts and theoretical frameworks. Therefore, we developed new concepts and theoretical frameworks to further the understanding of the public value produced by hybrid organizations. These concepts and theories aim to provide understanding on how a hybrid organization finds its comfort zone. In this comfort zone, different institutional logics can still be used and contradictive goals can be maintained. We also suggest that there exists vertical hybrid organizations and horizontal hybrid organizations. Moreover, when vertical and horizontal hybrid organizations are joined together, a hybrid matrix organization is born. Our case study organization in Espoo can be defined as Hybrid Matrix organization.

References:

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Hatry, Harry. Performance Measurement: Getting Results. The Urban Institute, 2006.

Johanson, Jan-Erik & Vakkuri, Jarmo (2017). Governing hybrid organizations. Exploring diversity of Institutional life. Routledge

Kelley, Scott W.; Donnelly Jr., James H.; Skinner, Steven J. (1990), "Customer Participation in Service Production and Delivery". Journal of Retailing. 66 (3), 315–35.

Moore, Mark. (1995). Creating Public Value – Strategic Management in Government. Cambridge: Harvard University Press.

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