Abstract
PurposeFragmentation can inhibit joint goals and performance measures. Therefore, the purpose of this study is to investigate the level of fragmentation between public, private and third sectors in a hybrid organization's performance management systems and the effects of this fragmentation to propose hypotheses and new research methods for future studies.Design/methodology/approachThe inductive research design was based on a mixed method approach. As empirical data, a survey, interviews and documents were used in this case study examining a hybrid organization called Welfare Alliance.FindingsThe results showed low-level fragmentation in the performance management system of the hybrid. Although the level of fragmentation was low-level, it affected the hybrid's ability to implement joint performance goals and measures. Performance management practices suffered as a consequence.Originality/valueAs a theoretical contribution to research addressing performance management in hybrids, the study proposes new concepts and theoretical hypotheses concerning fragmented performance management systems in hybrids. These theoretical hypotheses propose how performance goals and measures can become fragmented because they isolate service production units and activities from each other. The proposed hypotheses for future studies also attempt to provide explanations for how fragmentation can spread from one management function to another (i.e. from goal setting to performance measurement).
Highlights
Hybrid organizations mix managerial features, value systems and institutional logics of markets, state and civil society while delivering public services (Savignon et al, 2018)
Dyadic relationships refer to the interaction between two actors in network theory (Rowley, 1997), and this study examines networks created with performance management (PM) systems
The study contributes to the PM literature concentrating on hybrid organizations (e.g. Alexius and Cisneros O€rnberg, 2015; Grossi et al, 2017) by identifying the following new concepts: fragmented PM, coherent PM and exclusive performance goals and performance measures leading to isolated performance regimes
Summary
Hybrid organizations mix managerial features, value systems and institutional logics of markets, state and civil society while delivering public services (Savignon et al, 2018). Hybrids aim to utilize the best of both private and public worlds, they often meet challenges in creating joint performance management (PM) systems between companies, voluntary and public sector Difficulties in establishing joint PM systems in hybrid organizations are understandable, as hybrids are combining different PM traditions of public, private and/or third sector organizations. International Journal of Public Sector Management Vol 34 No 3, 2021 pp. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
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