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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

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.

Suggested Citation

  • Sven-Olof Yrjo Collin & Torbjorn Tagesson, 2010. "Governance strategies in local government: a study of the governance of municipal corporations in a Swedish municipality," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 5(4), pages 373-389.
    • Handle: RePEc:ids:ijpubp:v:5:y:2010:i:4:p:373-389
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    Citations

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    Cited by:

    1. Linus Axén & Torbjörn Tagesson & Denis Shcherbinin & Azra Custovic & Anna Ojdanic, 2019. "Does municipal ownership affect audit fees?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 693-713, September.
    2. Vinnari, Eija & Näsi, Salme, 2013. "Financial and technical competence of municipal board members: Empirical evidence from the water sector," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(7), pages 488-501.
    3. Elin Smith & Timurs Umans, 2015. "Organizational Ambidexterity at the Local Government Level: The effects of managerial focus," Public Management Review, Taylor & Francis Journals, vol. 17(6), pages 812-833, July.
    4. Torbjörn Tagesson & Sven-Olof Yrjö Collin, 2016. "Corporate governance influencing compliance with the Swedish Code of Corporate Governance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(3), pages 262-277, August.

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