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Network Governance of R&D: Purchaser-Provider as Partnerships in a Public Sector Agency

Steffens, Paul R. and Matthews, Judy H. (2004) Network Governance of R&D: Purchaser-Provider as Partnerships in a Public Sector Agency. In Proceedings British Academy of Management Conference, St. Andrews, U.K.

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Abstract

Network forms of organizing are becoming increasingly common, yet less is known about their governance mechanisms than either markets or hierarchies. In this paper, we examine the restructure of a large government R&D agency from a network governance perspective. This longitudinal study tracks the R&D agency as it implemented "purchaser-provider", a popular public sector management reform with the intention of creating market-based competition as a governance mechanism to increase efficiency and effectiveness. In contrast, we found that this R&D purchaser-provider implementation behaved more like a partnership that was better characterized as network governance. That is, we observed a complex multi-stakeholder environment in which a mix of cooperation and competition work hand-in-hand, and social control mechanisms were prevalent. We analyze both the characteristics and the governance of this public-sector R&D network using several business network frameworks. To examine the characteristics of the network we drew mainly on the Scandinavian IMP group’s actor-activity-resource model of business networks. To analyze network governance, we examine the four social mechanisms proposed by Jones, Hesterly and Borgatti (1997). We find that while some mechanisms, namely reputation and macro-culture were prevalent, other mechanisms such as sanctions and restricted access were not observed. Through these analyses of a business network in a somewhat unusual context, we develop a number of managerial and theoretical insights about network governance.

Item Type:Conference Paper
Status:Published
Keywords:Business Networks; Governance; R&D Management; Government; Paul Steffens; Judy Matthews;
Subjects:350000 Commerce, Management, Tourism and Services > 350200 Business and Management > 350208 Organisational Planning and Management
360000 Policy and Political Science > 360200 Policy and Administration > 360201 Public Policy
350000 Commerce, Management, Tourism and Services > 350200 Business and Management
350000 Commerce, Management, Tourism and Services > 350200 Business and Management > 350209 Small Business Management
360000 Policy and Political Science > 360200 Policy and Administration > 360203 Research, Science and Technology Policy
360000 Policy and Political Science > 360200 Policy and Administration > 360202 Public Administration
ID Code:6508
Deposited By:Senyard, Julienne
Deposited On:15 March 2007
Alternative Locations:http://www.st-andrews.ac.uk/~bam04/proceedings.shtml
Copyright Owner:Copyright 2004 (please consult the author)