Table 1 Four governance modalities and their underlying features
Hierarchical | Market-based | Network-based | Managerial | ||
|---|---|---|---|---|---|
Institutional features | Mechanisms of interaction/logic of decision-making | Top-down, command and control | Commercial exchange; price signals | Participatory, member-led; negotiations and informal exchange of views and interests | Authoritative/autonomous; may involve quasi-deliberations (‘choreographed participation’) |
Rule structures | Rule of law, fixed procedures (incl. political programs) | Formal and informal rules of exchange | Informal (self-defined) rules, cultural values; rules and procedures are flexible (evolving through, and shaping practices) | Formal, yet flexible rules, focused on achieving targets | |
Actor features | Associated actors | State actors such as ministries, regulatory authorities, and municipal administrations, development partners | Public utility companies and private companies, individuals as co-providers | Users (both individual and collective, as associations), housing associations, NGOs, local bureaucrats | Civil servants, public or semi-public entities (e.g., utility companies), public–private partnerships, development partners |
Actor participation and relationships | Key actors able to autonomously decide on others’ involvement | Ideal: open participation; in reality, hindered by entry barriers (monopolies or oligopolies) | Participation only open to associated members; members decide about participation | Bureaucratic and contractual relations determined by key actors | |
Key actor objectives/motivation | Public service delivery; achievement of political goals, electoral support | Profit maximization, increased market share, improvement of revenue base, safeguarding rent extraction | Improved position of participants or members (e.g., better access to services, economic or political standing, etc.) | Efficient delivery of determined outputs, minimizing reliance on external funding (autonomy) | |
Power basis | Mostly from within the politico-legal system; financial capacity, or membership statutes (e.g., international organizations) | Competitiveness (prices, ability to respond to demand, ability to maintain market share/position) | Shared resources, social capital, leadership: can be appropriated by powerful individuals to determine rules and procedures | Legal mandate, technical and economic expertise; managerial knowledge, economic resources | |
Policy tools | Commonly associated instruments | Laws, directives, regulations, permits, norms and standards | Contracts and informal commercial agreements, trading mechanisms | Written and unwritten agreements; entitlements | Price/cost and output-driven techno-managerial tools (performance measurement, targets, and benchmarks) |