A Shift to Network Governance?: Cooperation Between Third Sector Organizations and Local Government Pilots on Employment
Uurtimo, Ruut (2022)
Uurtimo, Ruut
2022
Master's Programme in Global Society
Yhteiskuntatieteiden tiedekunta - Faculty of Social Sciences
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Hyväksymispäivämäärä
2022-12-19
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tuni-202211138350
https://urn.fi/URN:NBN:fi:tuni-202211138350
Tiivistelmä
The aim of this thesis is to investigate the cooperation between third sector organizations and municipalities in providing public employment services. The research question is the following: How do third sector organizations and municipalities cooperate in providing public employment services? The context of this study is local government pilots on employment. In the pilots, the authority of municipalities regarding the organization of public employment services is strengthened. To answer the research question, a total of eight interviews have been conducted with third sector professionals and heads of local government pilots from four different pilot areas.
The topic is approached through theories of a shift to a new governance approach in public policy. Scholars have identified a change in public sector development towards a governance model where the public sector and non-state actors increasingly cooperate in network-based relationships. Instead of hierarchy or market principles, network relationships are based on trust, mutual interdependency, and continuous inter-organizational interaction. The thesis aims to investigate whether the cooperation between third sector organizations and municipalities reflects a shift to network governance.
The findings of this study suggest that a new institutional logic is emerging in the cooperation between third sector organizations and municipalities. The new logic seems to be a hybrid form which includes characteristics of network-based governance, such as recognition of mutual interdependency and increased aim to develop effective exchange between the public sector and non-state actors. However, the findings show that the new logic of cooperation includes also characteristics identified by earlier literature as the New Public Management approach to the organization of public services. In fact, cooperation is developed towards models where municipalities purchase services from third sector organizations through contracts where prices and responsibilities are defined. For third sector organizations, this means that they must develop competencies traditionally perceived as characteristics of private enterprises.
Based on the findings, many third sector organizations are placed in a difficult position in their dual role as civil society actors and service providers, where the requirements and preconditions for operation do not match. It seems that if third sector organizations are expected to participate in the provision of employment services with current capacity also in future, a new funding mechanism directed at third sector organizations promoting employment should be developed.
In the reform that is planned to be introduced in Finland in 2025, municipalities will be incentivized to develop services that effectively reduce unemployment, rather than simply organize services for the unemployed. Third sector organizations often work with groups who face multiple barriers to employment or whose process to open labour markets is long. In a context where fast proceedings to the open labour markets are prioritized, it is difficult to argue for services that support the most disadvantaged groups without established research concerning slower development in the capabilities of unemployed persons or clients. Therefore, more research is required to explore the intermediate phases in rehabilitation towards open labour markets.
The topic is approached through theories of a shift to a new governance approach in public policy. Scholars have identified a change in public sector development towards a governance model where the public sector and non-state actors increasingly cooperate in network-based relationships. Instead of hierarchy or market principles, network relationships are based on trust, mutual interdependency, and continuous inter-organizational interaction. The thesis aims to investigate whether the cooperation between third sector organizations and municipalities reflects a shift to network governance.
The findings of this study suggest that a new institutional logic is emerging in the cooperation between third sector organizations and municipalities. The new logic seems to be a hybrid form which includes characteristics of network-based governance, such as recognition of mutual interdependency and increased aim to develop effective exchange between the public sector and non-state actors. However, the findings show that the new logic of cooperation includes also characteristics identified by earlier literature as the New Public Management approach to the organization of public services. In fact, cooperation is developed towards models where municipalities purchase services from third sector organizations through contracts where prices and responsibilities are defined. For third sector organizations, this means that they must develop competencies traditionally perceived as characteristics of private enterprises.
Based on the findings, many third sector organizations are placed in a difficult position in their dual role as civil society actors and service providers, where the requirements and preconditions for operation do not match. It seems that if third sector organizations are expected to participate in the provision of employment services with current capacity also in future, a new funding mechanism directed at third sector organizations promoting employment should be developed.
In the reform that is planned to be introduced in Finland in 2025, municipalities will be incentivized to develop services that effectively reduce unemployment, rather than simply organize services for the unemployed. Third sector organizations often work with groups who face multiple barriers to employment or whose process to open labour markets is long. In a context where fast proceedings to the open labour markets are prioritized, it is difficult to argue for services that support the most disadvantaged groups without established research concerning slower development in the capabilities of unemployed persons or clients. Therefore, more research is required to explore the intermediate phases in rehabilitation towards open labour markets.