Abstract

AbstractAlthough it has become popular for the state in different regions to encourage social organizations (SOs) via innovation, few studies have examined the innovation of intermediary organizations (IOs) as an important mechanism in social governance reform. This article is a study of party‐led innovation of state‐sponsored IOs in three cities in China—Beijing, Shanghai, and Guangdong—particularly, the contexts, goals, and effects of the innovation. It finds that state‐sponsored IOs can gain organizational independence and managerial autonomy even though they receive a high level of financial resources from the state and carry out party activities. The innovation, aiming at supporting, leading, and regulating SOs, has enabled the state‐sponsored IOs to adopt less coercive network‐ and market‐based strategies than the hierarchical strategy to embed constituent SOs in the party's policy and organizational networks.

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