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Municipalities seek new opportunities for co-producing services in rural areas. One potential partner is community-based social enterprises (CBSEs). However, whilst service co-production through CBSEs obscures the traditional roles of actors, it may lead to a legitimation crisis in local service provision. In this paper, the ways CBSEs are legitimised as service providers in rural areas are addressed from the CBSE and municipality perspectives.

Empirical data combine interviews with CBSE representatives and open-ended national survey responses from municipality decision-makers. The data analysis is based on a qualitative content analysis to examine legitimation arguments.

Results show that unestablished legitimacy and un-institutionalised support structures for co-production models build mistrust between CBSEs and municipalities, which prevents the parties from seeing the benefits of cooperation in service production.

The research focusses on the legitimation of CBSEs in service co-production in rural areas. As legitimation seems to be a context-specific process, future research is needed regarding other contexts.

Municipalities interested in the co-production of services might benefit from establishing a collaborative and responsive (rural) service policy forum that would institutionalise new models of co-production and enable better design and governance of service provision.

Results will give new theoretical and practical insights into the importance of legitimacy in the development of service co-production relationships.

This study explores municipal leaders' perceptions on strategic human resource management in their local government organization. Previous studies on companies demonstrate that the top manager's perceptions of the importance of human resource management (HRM) for the organization are reflected in the quality of human resource management and its strategic role. The authors are interested in how leaders in municipalities perceive HRM.

The authors interviewed 30 leaders of Finnish municipalities for this qualitative study focused on municipal leaders' perceptions of HRM. The authors applied a discourse analytical approach in the analysis.

The authors recognized four discourses that frame perceptions of HRM: HRM as a strategic weapon, HRM as an underperformer, HRM as a matter of formality and HRM as a cost generator. In addition, the authors recognized that the discourses reflected leaders' self-positioning in relation to the power to impact issues related to HRM. Shifting between distinct roles demonstrated that municipal leaders' emphasis on HRM and its strategic alignment reflects the power relations in the municipality and the attitudes to the importance of HRM.

This study contributes to the academic discussions on HRM in municipalities and provides views on the municipal leader's role and impact on valuing and investing in HRM. From a practical point of view, the study will increase municipal leaders' knowledge of HRM's impact on the performance of the organization and also of the possible means of HRM.

Since 2009 Swedish municipalities may apply the Act on System of Choice (LOV) in, among other things, eldercare. About half of the 290 Swedish municipalities have chosen this within home-care services for older citizens, thus creating conditions for a welfare mix where private and public providers compete. Some of these municipalities later made decisions to abolish LOV. This article aims to analyse the arguments put forward by municipal politicians to abolish LOV and discusses if the case of abandoning LOV represents a case of re-municipalization.

Qualitative method was used to analyse decision protocols and media materials from 20 Swedish municipalities that had abolished LOV in home-care services.

The article shows that politics and ideology seem to have only a limited significance in abolishing LOV. The most important arguments found in the empirical materials were instead pragmatic and related to the transaction costs: in smaller municipalities about the weak position of private providers and in larger municipalities about reported cases of welfare crime and extensive needs to control and review. In smaller municipalities, LOV was replaced by public monopoly and in larger municipalities by other types of procurements.

With its focus on eldercare in party-dominated municipalities, the article adds knowledge to the literature on drivers of re-municipalization but also discusses possible delimitations of the concept of re-municipalization.

Corruption is a major social problem, and scholars have devoted considerable attention to this phenomenon. However, less attention has been paid to how corruption spreads among organizations and what factors can make its spread more likely. This study aims to fill the gap by modelling corruption as an interorganizational contagion.

The authors used social contagion theory to model corruption as an interorganizational contagion, influenced by the susceptibility of organizations and the strength of contagion sources. The study analysed 736 medium and large Italian municipalities over a five-year period, with 3,146 observations (excluding missing data). The authors conducted a longitudinal analysis using panel logistic regression techniques and performed robustness and endogeneity checks through a dynamic panel data model.

The authors found that municipalities with a higher percentage of corrupt neighbouring municipalities were more likely to experience corruption. The probability of experiencing corruption was also significantly higher for municipalities with weaker organizational resistance to corruption contagion.

Previous studies have not clearly explained the organizational mechanisms behind the spread of corruption at the interorganizational level. The study suggests that corruption contagion at the municipal level occurs via reduced uncertainty in decision-makers and is influenced by the prevalence of corruption locally. The spread can be driven by conscious or unconscious mechanisms. This study challenges the idea that corruption contagion is immediate and inevitable. Organizational resistance to corruption can affect the risk of contagion, highlighting the importance of anti-corruption controls and ethical systems in preventing it.

This paper aims to determine whether local governments (LGs) use non-consolidated municipally owned companies (MOCs), excluded from public sector entities and, consequently, from sub-national debt to avoid fiscal debt limits. This paper contributes to the literature by analysing the fiscal debt rule’s impact on the off-budget municipal activities in total and separate in different types of local government units.

This paper uses difference-in-differences and the system general method of moments model with the Blundell–Bond estimator for dynamic panel data analysis of MOCs owned by 866 Polish municipalities in 2010–2018.

This paper shows that the MOCs’ revenues support limited local public debt capacity by indebtedness restrictions imposed on municipalities in 2014. As a result, less indebted municipalities have higher off-budget revenues. The tightening of fiscal rules related to sub-sovereign indebtedness increased off-budget activities, but that effect is much stronger in rural and rural–urban municipalities than in urban municipalities and big cities.

This paper contributes to the literature by exploring the fiscal debt rule’s impact on the off-budget municipal activities in total and separate in different types of local government units. In this paper, the authors combine theories relating to private and public finance; this is a novel approach and one that is also necessary – as, in fact, the worlds of public and private actors intersect – as exemplified by the existence of MOC.

The aim of the study is to deepen the knowledge about municipalities' risk communication for preparedness. This objective was pursued by analyzing how risk communication functions were organized in municipalities and by scrutinizing tensions in risk communication management.

The study relies on 19 qualitative, semi-structured interviews with communication practitioners in Swedish municipalities. The sample was purposive and included Swedish municipalities varying in number of inhabitants, geographical location, degree of urbanization, size and risk profile.

Risk communication is seen as a sub-field of crisis communication in municipalities' communication management. The task of initiating risk communication activities and campaigns is frequently assigned to the municipalities' safety units or emergency coordinators and is normally not part of communication practitioners' duties. Municipal communication practitioners often face challenges in trying to demonstrate the significance of the practitioners' role in risk communication and other risk-related activities within the municipality. The practitioners' work is characterized by four categories of tensions that are identified as follows: constitutional/legal, organizational, cultural and technological.

The identified tensions in risk communication are important for reflexive practitioners to consider, and the paper suggests three steps that municipal communication managers can take to handle them.

The study contributes with novel knowledge about municipal communication management in a context of risk communication. The study challenges the existing and dominant risk communication research and offers a more contextual and reflexive understanding of actual risk communication processes in municipalities.

The study covers two different forms of financial support for households, income support for single parents and reimbursements for depression medicines, and explores their relationships with the demand for child protection services.

The data were retrieved from the Sotkanet, the Finnish Indicator Bank, and included 292 Finnish municipalities. It was hypothesised that the effect of income support for single-parent households on the need for child protection is mediated by reimbursements for depression medicines. The hypotheses were tested by using a conditional process analysis program, PROCESS (Model 4).

It was found that income support reduces the proportion of reimbursements for depression medicines in a municipality, which in turn reduces the need for child protection services. At the level of social policy, the study tentatively suggests that the social welfare system may affect the demand for child protection by investing in income support for single-parent households.

The choice of variables does not fully explain the effect of the mechanism. The relationships that are found in this study can have hidden factors which affect them. Further, the data have only 292 cases, which is quite a small sample, and is limited to Finland.

The study suggests that the social welfare system may affect the demand for child protection by investing in income support for single-parent households.

This study aims to empirically evaluate the effectiveness of government auditing of local authorities’ compliance with the procurement rules.

A diff-in-diff approach is used where the measure of compliance is (changes in) the incidence of private litigation under the Public Procurement Act, in audited vs non-audited municipalities. Further, semi-structured interviews were conducted with chief procurement officials.

No statistically significant effect is found. While strong effects of audits can be ruled out, the statistical results and the interviews do not, however, contradict a modest but long-lasting effect.

Few studies have addressed the effect of public procurement auditing on compliance. This study develops an empirical framework and presents empirical results.

Status of fiscal health of local governments helps in determining planned budget and realistic action plan for citizens’ wellbeing. This paper aims to assess the fiscal health of local governments in Bangladesh.

Using data from 18 south-western municipalities of Bangladesh during the fiscal year 2018–19, this research measures fiscal health by applying Wang, Dennis and Tu’s solvency test and Brown’s Ten-Point Test.

The result shows that one-tenth of the entire municipalities are endowed with better position, whereas almost 39 percent of municipalities are in the worst situation and nearly 50 percent of municipalities are in the average category. Because of having limited liabilities, the municipalities are endowed with more than enough cash solvency and reasonable level of long-run solvency. The key problems are that budgetary solvency of all municipalities is not satisfactory, and service expenses are more than their revenue generation. This study suggests improving the financial capabilities of the municipalities through properly using their resources, generating loans, and claiming a need-based budget from the central government.

The paper investigates the status of fiscal solvency of local governments in Bangladesh in a new dimension. The findings might be helpful to policymakers in budgeting for development initiatives of local governments in Bangladesh so that citizens’ better wellbeing is ensured.

The aim of this paper is to explore whether and how external, political, financial and governance factors influence capital expenditure deviations in the Swedish municipal water and sewerage sector and to capture the consequences of municipal organisational fragmentation.

Panel data analysis of 238 municipalities and 1,190 observations of capital expenditure deviations over five years (2013–2017).

Apart from a low overall on average execution rate of 69%, the Swedish municipal water and sewerage sector seems generally sensitive to external stakeholder pressure for budget compliance, but not to the political power situation. Further, political signalling incentives generally do not influence capital expenditure deviations in the contexts of municipal corporations and cooperations, which supports the idea that these governance forms insulate the organisation from general stakeholder pressure and political control.

The practical implication is that large and constant capital expenditure deviations call for change in regulation and governance of the municipal sector. However, in countries such as Sweden, where externalising services to municipal corporations and cooperations is significant, this discussion needs to address the consolidated level of the municipality. Otherwise, a large share of the investment budget will be unscrutinised. More closely related to the Swedish water and sewerage sector, the risks associated with a constantly low execution rate should be analysed and addressed.

First, this paper contributes to the knowledge of aggregated capital expenditure deviations in general and specifically within the municipal water and sewerage sector. Second, analysing the municipal governance landscape adds further insights and suggestions on why budget performance varies. The results especially highlight that the governance forms of corporations and cooperations change the relation to political signalling incentives.