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Our purpose is to critically discuss the quality of governability and scrutiny of, as well as insight in, enterprises owned by local government. Our analysis is empirically grounded in an in-depth case study of one of Sweden’s 10 largest municipalities. The ambition is to highlight troublesome areas and danger zones when it comes to public owning of corporations. We have consulted diverse types of material: conducted document studies, as well as semi-structured in-depth interviews. In addition, we have conducted a survey directed to 156 individuals (which is the total population of councillors and members of municipal corporation boards in the municipality we have studied).

From an in-depth study of Sweden, we show that corporatising parts of local governments’ operations have serious implications for accountability. Our study therefore adds to the knowledge about hybrid organisations and the challenges dual logics of the private and public sector imposes on political governance as well as management. The result of this study is based on one single case study in one specific hybrid context. No empirical generalisation is aspired to. Instead the aim has been to – by way of an explorative approach – make an analytical contribution to our knowledge about hybrid organisations. Further studies are thus necessary in order to deepen our understanding of the hybrid context and the situations under which hybrid organisations operate and develop.

This study increases our knowledge regarding the challenges of governing hybrid organisations in general and enterprises owned by local government in particular. Therefore, the findings of this study are considered to be of support to politicians as well as civil servants involved in and responsible for the governance of hybrid organisations. We argue that it is important to carefully supervise this development in local government. As corporations owned and operated by local governments have increased in numbers, they are responsible for large values and services that are crucial for the modern society (water, waste management, energy, IT). Consequently, they are becoming ever more important players in their respective local economies. At the same time, concerns have been raised regarding how to govern hybrid organisations in order to secure accountability and to protect public sector values.

Despite recent advances, neither organizational studies nor the scholarship on economic resilience has systematically addressed how the ecologies of organizations that populate local economies can serve as infrastructures for responding proactively to economic shocks. Using county-level data, this study analyzes relationships between the prevalence of organizational alternatives to shareholder value-oriented (SVO) corporations within a particular locality and its unemployment levels during and after the Great Recession. The results support the hypothesis that the presence of such alternative organizations can enhance the capacities of local economies to resist and recover from recession shocks. Cooperative, municipal, and community-based enterprises, research universities, and nonprofits more generally were associated with greater resistance to the recession shock and stronger recoveries – specifically, lower surges in unemployment rates from 2007 to 2010 and greater reductions in unemployment rates from 2010 to 2016. By contrast, SVO corporations were associated with greater surges in unemployment and perhaps weaker recoveries. Providing a proof of concept, this study opens up new lines of inquiry for organizational studies by linking organizational ecologies to the promotion of collective efficacy and a more broadly shared prosperity in economic life.

India launched Smart City Mission in 2015 with an objective of development of 100 smart cities with a completion deadline in 2019 that was extended till June 2023. Smart City Mission is an important mission in the backdrop that urban population in India is projected to be 67.55 crore in 2035 from 48.30 crore in 2020. Further, by 2035, the percentage of population in India at mid-year residing in ‘urban area’ will be 43.2% as per the United Nations – Habitat's World Cities Report 2022 and it will be just next to China's urban population in 2035 that is projected at 1.05 billion. A recent World Bank report (2022) estimated that India will need to invest US (United States) $840 billion over the next 15 years, i.e. US $55 billion per annum – into urban infrastructure if it has to effectively meet the needs of its fast-growing urban population.

This chapter focuses on financing of sustainable smart cities in India. This chapter summarises financing options explored by the government in the beginning, challenges faced in financing of Smart City Mission in India over a period due to various developments such as pandemic, delay in execution of projects under the Smart City Mission, among others. Finally, suggestions have been given for making financing means effective and sustainable. These suggestions are based on the gaps between the ‘financing means thought of’ in the beginning and ‘financing means actually applied’ while executing Smart City Mission in India. Financing part is worth exploring in the background that India had the fiscal deficit at 3.9% of Gross Domestic Product (GDP) in 2015–2016 and most recently, the country had the fiscal deficit at 6.71% of GDP in FY22. And the country also dealt with the pandemic like other economies and provided COVID-19 vaccine free of cost to all citizens. Insights are useful for any other economy with a similar sustainable and smart city mission while facing resource constraints.

Swedish local government audit has remained stable for a number of years. Political auditors are appointed to assess each local council’s work by the local council. They are assisted by professional auditors – however there is little standardisation of what audit means. The local council has considerable control over what the professional auditors do, setting out how they should be regulated, how they should be funded and what should happen in the aftermath of their reports. While the system has remained stable for a number of years, there are criticisms of how far the system advances local political accountability.