SUMMARY
Decision-making and choice in the adoption of a municipal enterprise form in
public healthcare organisations
– Reasoning, goals, legitimacy and core dilemmas
This doctoral thesis concerns the transformation of publicly owned organisations
into municipal enterprises during the 1990s and late 2000s, with specific
reference to the bandwagoning effect. The aim is to explore the decision-making
processes behind the phenomenon in three case organisations, all of which are
publicly owned healthcare providers. The focus is on the reasoning and rationale
behind the choices, the core goals of the adoption of the municipal enterprise
form, and the extent to which the transformation met the expectations of the three
organisations. Thus, it is the outcomes of earlier decision-making and change
processes in terms of attainments and failures that are under explicit scrutiny.
The results are further scrutinised and discussed from the three research
perspectives.
In order to give a rich description of the decision-making in the three
organisations, the reasoning and rationale related to the choices made, and how
the transformation met expectations and goals, it was essential to construct a
multi-dimensional interlocked analytical framework comprising interdependent
elements. The research questions require the integration of theory and practice in
recognising the significance of the major theoretical issues and concerns, while
also addressing practical arrangements. This blending of theory and practice, as
manifest in the findings of the study, is essential to the structure and efficacy of
the research and analysis. The theory is presented as an integrated framework
that serves to structure, guide and inform the empirical analysis. The
interdependent theoretical elements of this integrated framework relate to
institutions, institutionalism, legitimacy, reputation, dilemmas, and public- sector
branding. The thesis comprises two parts: the synthesis (Part I) and four original
research articles (Part II).
Article 1 investigates the reasoning behind the decision to transform into a
municipal enterprise. Article 2 establishes the theoretical background on which
Articles 3 and 4 are based, defines the municipal enterprise form and introduces
dilemma reconciliation as an approach. Article 3 builds on the analyses in
Articles 1 and 2, and develops them further by mapping the principle reputation
risks and threats to legitimacy that arose in connection with the identified core
dilemmas. Article 4 further develops the empirical analysis by combining
branding theory with the dilemma approach and discursive institutionalism and
discourse analysis.
The choice of qualitative methods and the data analysis applied in Articles 1,
2, 3 and 4 is in line with the philosophical background assumptions of the study.
In ontological terms, reality is a result of social interaction thorough which
meanings are given to things. The interest is in the issues the informants talk
about. Further, on the epistemological level which relates to grounds of
knowledge, the study is positioned as interpretivist.
The main contributions of this thesis to the academic discourse are the
following. 1) It delineates the tensions within institutional isomorphic forces and
shows how the tensions between the various forces (mimetic, normative and
coercive) of institutional theory operate. The addition of the dilemma approach to
institutional theory illustrates the competing pressures that are at work. 2) The
study contributes to the discussion on institutional organisational theory in
suggesting that institutional forces diminish and strengthen one another, and
thereby create tensions that may end up as dilemmas posing reputation risks. 3)
Although institutional isomorphic forces may have an existing legitimating
status, the ultimate outcome may be the opposite: failure to gain normative and
coercive acceptance. 4) The novel interlocked framework for exploring decisionmaking
and transformation in organisations. In terms of managerial implications,
managers and leaders responsible for organisational change would benefit from
knowing how intended outcomes may differ from actual outcomes, and from
understanding why this happens. A further practical contribution relates to the
organisational learning aspect of change, which could be enhanced by internal
branding in connection with the adoption of new organisational forms.
KEYWORDS: Decision-making, change management, knowledge-intensive
organisation, institutionalism, dilemma approach, reputation, legitimacy, public
branding, public healthcare organisation, municipal enterprise