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This article examines the power of management control mechanisms as “inscriptions” for bringing the interests of organisations within a purchaser–provider network into alignment.

The study contributes to accounting and accountability literature in hybrid organisations by applying actor-network theory to a case study organisation. This enables an analysis of how a government agency, operating as a social service provider to the community, developed and used management control mechanisms in its intra-organisational units to ensure its operations were aligned with the expectations of inter-organisational networks in a purchaser–provider context. Data were collected using open-ended interviews and by examining internal accounting and management reports, government archival records and newspaper articles.

Analysis of the results demonstrates that inter-organisational network control was internalised within the provider organisation because of the ability of the controls to function as inscriptions that influenced organisational actions. The authors conclude that the network control travelled across boundaries over time and was assimilated by the provider organisation to become its internal management control mechanisms.

A single case study of a government service provider agency may limit the generalisation of the findings to other hybrid entities or networks. The significant practical essence of this study lies in the diversity within the results that offer a rich representation of the impact of purchaser–provider arrangements on internal organisational systems within a hybrid public sector setting.

The outcomes enhance knowledge of how a hybrid government agency developed, mobilised and institutionalised its management control mechanisms to ensure the activities of one party are consistent with the other parties' expectations within a network.

The purpose of this paper is to examine the bases of positive relations between suppliers and purchasers of healthcare services. In doing so, it examines the nature of cooperation between the providers of healthcare services (hospitals) and those who commission and purchase healthcare on behalf of patients (regional health authorities) and makes specific recommendations as to how cooperation can be better realized.

The paper employs a qualitative interview approach for gathering and analyzing major stakeholder (provider and purchaser) perceptions of their interorganizational relations and how these interactions impact on the quest of the healthcare provider to meet the needs of the community they serve.

The paper identifies and groups relevant variables into four major themes or “core categories” that characterize purchaser‐provider stakeholder cooperation. These themes represent provider and purchaser views on those factors characterising stakeholder relationships within the purchaser‐provider dyad. This is followed by a number of suggestions as to how to improve the nature of cooperation between these stakeholders.

Extending practitioners' understanding of the nature of these inter‐related factors may lead to better insights of how interorganizational relations and partnerships might be managed more proactively throughout the healthcare value chain. Strategies to foster stakeholder cooperation are also suggested.

In the extant literature, there is a paucity of research that has illustrated multi‐stakeholder perspectives in the public sector. This paper explores the perceptions of two main stakeholders in public healthcare to map and assess management issues influencing purchaser‐provider cooperation.

Introduces the relationship marketing paradigm as a means of analysing the purchaser‐provider relationship within the NHS internal market. This focus is justified in the context of the limitations of orthodox economic analysis. The research evidence is based upon a national survey of all NHS trust hospitals in England. The survey consisted of key questions relating to the process of relationship building strategies employed by NHS hospital trusts. In particular, emphasis was given to non‐price competitive behaviour, i.e. the extent to which health care contracts were augmented or customised by providers. An empirical analysis is presented, identifying those factors driving such non‐price competitive behaviour, based upon a LOGIT model. The results suggest the hypotheses tested are consistent with the evidence from our survey. Finally, the model is used to make some tentative predictions regarding the future of the purchaser‐provider relationship within the reformed NHS.

The purpose is to examine the bases of positive relations between suppliers and purchasers of healthcare services. In doing so, the paper examines the nature of cooperation between the providers of healthcare services (hospitals) and those who commission and purchase healthcare on behalf of patients (regional health authorities).

The paper employs a qualitative interview approach for gathering and analysing major stakeholder (provider and purchaser) perceptions of their interorganisational relations and how these interactions impact on the quest of the healthcare provider to meet the needs of the community they serve.

The paper identifies group relevant variables into four major themes or “core categories” that characterise purchaser‐provider stakeholder cooperation. These themes represent provider and purchaser views on those factors characterising stakeholder relationships within the purchaser‐provider dyad.

The paper suggests that extending practitioners' understanding of the nature of these interrelated factors may lead to better insights of how interorganisational relations and partnerships might be managed more proactively throughout the healthcare value chain.

In the extant literature, there is a paucity of research that has illustrated multi‐stakeholder perspectives in the public sector. This paper explores the perceptions of two main stakeholders in public healthcare to map and assess management issues influencing purchaser‐provider cooperation.

Based on research funded by the Joseph Rowntree Foundation, looks at change in services for children and young people in difficulty and the implications for inter‐disciplinary working. The research is based on 80 interviews conducted with key individuals at local and national level. Describes and analyses the changes in health, social work, education and the Children’s Hearing system. Argues that the purchaser/provider split; local government reorganization and the Children (Scotland) Act will all affect collaboration in planning and service delivery for children and young people in difficulty. Identifies the potential problems and opportunities resulting from these changes and highlights the emerging issues relevant to provision of services.

This paper seeks to draw attention to the historical and institutional context of Norwegian home care and to the way in which care agencies have been pressed to reconcile competing demands caused by conflicting policy aims and administrative values. The paper also aims to explore how ideas of contractual management have been interpreted and put into practice in this field of tension.

The study draws on policy documents, historical and social research reports, and personal interviews with managers and home care staff from three different case studies representing different eras of management ideas. From this micro perspective the study examines professional work as the intersection between new public management and the health care state.

The findings demonstrate how contractual management is highly influenced by competing drivers of change. Reforms, stressing cost reduction, do not act as a unidirectional reform programme. Instead, they are infused with administrative arguments linked to previous reform ideas aiming to create legitimacy both from “above” and from “below”. The dynamic of change often has unintended consequences which in turn prompt further reform efforts.

The paper provides insights into the complexity of change following on from New Public Management (NPM). More specifically, change is characterised by tensions originating in competing normative drivers as well as the co‐existence of old and new forms of organising.

This article summarises the preliminary findings of a qualitative exploratory study conducted through a series of eight group interviews with statutory sector social work care managers (SW/CMs). While managers may have moved on to the implementation of partnership, SW/CMs are still struggling with the implications of the purchaser/provider split. The article highlights issues that are problematic for SW/CMs and makes tentative suggestions to their line managers.

There has been a global phenomenon in public sector management which advocates a paradigm shift from administrative to managerial values. Governments have been able to put an ideological gloss on managerial strategies to suit local political agendas. The spread of this policy, where public servants have their roles transformed to managers and the public to customers, serves to strengthen demonstration of the diminishing role of government and the increasing reliance on the market. Through our research on managerialism in local government in Victoria, we show that there has been a repackaging of the senior council manager into an idealised private sector version. However, we identify a paradox between the rhetoric of the empowered, entrepreneurial “new public manager” and the reality of intensified government control and scrutiny over municipal activities and conclude that “new public management” in Victorian local government is illusory or, at best, incomplete.

The purpose of this article is to analyse the diversity of markets for the provision of activation services.

The article is based on the outcomes of a project involving nine European countries. The project investigated changing forms of governance of income protection schemes and activation services for unemployed people. Diversity is investigated by focusing on five dimensions of diversity derived from the quasi‐market concept as developed by Le Grand: the purchasers, the providers, the customers, the purchaser‐provider split and the purchaser‐customer split.

The paper finds considerable diversity in the design of markets for the provision of activation. Diversity is visible in all dimensions involved in the analysis. One interesting finding is that a full split between purchasers and providers hardly exists, although some countries have introduced a stricter split than others. Another finding concerns the voice and choice of service consumers, which seems hardly affected by the introduction of market mechanisms in the provision of activation. Finally, marketisation does not seem to be an irreversible project, as de‐marketisation processes were identified as well.

Most current research into activation markets and their effects pays little attention to the issue of diversity in the design and functioning of markets. This article argues in favour of more systematic research of market diversity and of the variety of effects of various market models. Rather than comparing marketised with public service provision, a stronger focus on various market models may strengthen our insight into how service provision models affect the effectiveness of activation services.

In the wake of public service liberalisation in many OECD countries, economic interventions into the purpose and implementation of social policies have gained a lot of interest in recent years. The prime aim of this paper is to describe the nature of these interventions. The paper examines the reasons for pursuing elusive efficiency objectives in the conduct of public policy, rationales for purchaser‐provider splits, evaluation of cost‐quality relationships, service costing and pricing, and the influence of “external” economic variables.

The paper breaks the analysis of public policy down to three layers of economic interventions: macroeconomics (allocative efficiency, intervention rationales and macroeconomic environment), mesoeconomics (economics of delivery in “social industries”) and microeconomics (agent behaviour, contracting, pricing and evaluation). Each level of economic intervention is illustrated with examples, mainly taken from Australian public policy and mainstream social economic research.

Some of the most critical questions in policy implementation (outsourcing, pricing, contracting and agency problems) can be traced back to economic reforms. Experiments with new modes of service delivery are driven by a changing economic context, yet the efficiency gains from these innovative approaches may come at the expense of service quality.

Changing macro‐, meso‐ and microeconomic variables profoundly alter the parameters of service delivery. Designers and managers of service delivery systems need to be aware of – and skilled in – the practical application of economic principles, concepts and methods.

Except for the health sector, there is a lack of consistent research on the interrelationships between the standard economics toolkit and the delivery of public services. Yet the two are profoundly intertwined. The paper helps distinguish these relationships by putting together elements of conceptual analysis and fieldwork.