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Governance strategies in local government: a study of the governance of municipal corporations in a Swedish municipality

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  • Sven-Olof Yrjo Collin
  • Torbjorn Tagesson
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    Abstract

    Municipal corporations can be seen as a method of disintegrating municipal operations, but retaining control through those corporations. We assume that the municipal influence of the corporation can be described through the concept of governance strategy. Through a case study of seven corporations in one Swedish municipality, we found that emphasis was put on corporate strategy as a governance mechanism and that the board only retained a latent capacity. Furthermore, financial control and executive compensation were hardly ever used as governance mechanisms, which led us to formulate the 'chamber concert' hypothesis: the use of governance mechanisms is influenced by traditions, norms, knowledge and governance needs.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Public Policy.

    Volume (Year): 5 (2010)
    Issue (Month): 4 ()
    Pages: 373-389

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    Handle: RePEc:ids:ijpubp:v:5:y:2010:i:4:p:373-389

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    Web page: http://www.inderscience.com/browse/index.php?journalID=97

    Related research

    Keywords: corporate governance; municipal corporations; governance strategies; Sweden; local government; latent capacity; financial control; executive compensation; chamber concert hypothesis; tradition; norms; knowledge; Kristianstad; municipalities; public policy.;

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