Value Propositions in Public Collaborations: Regaining Organizational Focus Through Value Configurations

Andreas Hellström,Christian Gadolin,Erik Eriksson,Thomas Andersson,Svante Lifvergren

doi:10.1111/1467-8551.12567

Abstract

AbstractThere is consensus that complex problems of contemporary society call for public service collaborations. So‐called public service logic (PSL) focuses on joint value creation among a multiplicity of actors in service ecosystems. Despite recognizing various actors, this logic is essentially user‐centric, with the service user being the one realizing the value. Consequently, single and collaborating organizations cannot deliver value, only potential value, or so‐called value propositions. The elusive public service logic takes a network value configuration for granted and as a starting point. Drawing from two cases in Swedish healthcare, this paper argues that two other value configurations (chain and shop) are also relevant for understanding the development of value propositions – and that these may be related to both intra‐ and inter‐organizational processes. Theoretically, we conclude that just like public service logic, other collaborative public management theories need to recognize the importance of a multiplicity of value configurations and that these are often related to both intra‐ and inter‐organizational processes. We conclude that managers should not adopt the latest network trends without first reflecting on the relevance of existing internal processes.

Highlights

It is commonly argued that both public administration and new public management (NPM) trajectories have helped make inward-oriented
We argue that public service logic (PSL) – by focusing on distancing itself from NPM – neglects previous models of value creation that have their merits
It is highlighted that a strict focus on the network value configuration is too narrow when aiming to develop potential value in public service collaborations

Summary

Introduction

It is commonly argued that both public administration and new public management (NPM) trajectories have helped make inward-oriented Focus on internal production processes) public service organizations (PSOs) fit to address relatively simple challenges (Ansell, Sørensen and Torfing, 2021; Osborne, 2020) This focus is argued to be less appropriate in contemporary society, in which an increasing outward orientation (such as collaborating with other organizations as well as individual citizens) among PSOs is called for The advances of modern society – such as medical and technological progress – have brought risks (Beck, 1992): climate change, forced migration, pandemics and the like – societal and global issues paramount for the responsible PSO to solve alone (Sørensen and Torfing, 2011) These complex challenges are difficult to solve (Christensen, 2012; Geuijen et al, 2017), and to define because of the inherent uncertainty and likely goal conflict among stakeholders (Peters and Pierre, 2017; Pollitt and Bouckaert, 2017).

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Conclusion