Failure in Service Delivery by Public-Private Networks: The Case of Flemish Childcare
| DOI | 10.1177/0952076710384904 |
| Author | Bram Verschuere,Diederik Vancoppenolle |
| Published date | 01 January 2012 |
| Date | 01 January 2012 |
| Subject Matter | Articles |
Public Policy and Administration
27(1) 31–48
!The Author(s) 2011
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DOI: 10.1177/0952076710384904
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Failure in Service
Delivery by Public-Private
Networks: The Case of
Flemish Childcare
Diederik Vancoppenolle
University College Ghent, Belgium
Bram Verschuere
University College Ghent, Belgium
Abstract
The involvement of private actors (non-profit and/or for-profit) in public service pro-
vision has a lot of consequences and implications not only for users and service pro-
viders, but also for government. This article explores the consequences for the
relations within public-private service provision networks, by focusing on the gover-
nance regime of childcare in Flanders. Our case analysis clearly shows that public-
private service provision networks may threaten the transparency of the service pro-
vision field for users, and challenge the role of the oversight authority, often requiring a
two-level steering of the service provision field: a direct steering of individual service
providers and the network and/or market steering of the whole service provision field
(in a community or region). Governance regimes comprising service providers of dif-
ferent sectors may complicate this kind of network steering, as there seem to exist at
least six relationships within such networks. Furthermore, we noticed that ser vice
providers may face conflicting (public) accountabilities.
Keywords
accountability, contracting out, implementation, networks, outsourcing, service delivery
Public service delivery is increasingly organized via networks in which public orga-
nizations work together in close cooperation with non-governmental actors, which
may be non-profit or for-profit. The New Public Management (NPM)-driven belief
that service provision by non-governmental actors may be more efficient, effective,
Corresponding author:
Diederik Vancoppenolle, University College Ghent, Voskenslaan 270, Ghent 9000 Belgium
Email: diederik.vancoppenolle@hogent.be
and customer-oriented compared to public service provision by governmental actors
has intensified this trend. The trend towards ‘marketisation’, in which public service
provision is brought into a competitive market, or the contracting-out of public
services to private organizations has been well documented (for an overview see
Pollitt and Bouckaert, 2000). Less debated, but equally relevant and with a long
tradition in many countries, is the involvement of private non-profit actors in public
service provision (Brandsen and Pestoff, 2006; Pestoff, 2006; Prentice, 2006;
Salamon in Anheier, 2006; Defourny and Pestoff 2008).
The involvement of private actors in public service provision has a lot of con-
sequences and implications for the actors and stakeholders involved: the users or
clients of the service provision, the service providing organizations, and the gov-
ernment as a regulator and director of the public service provision network (Ouchi,
1991; Heinrich and Lynn, 2000). For users, the presence of private actors besides
public service providers enhances their freedom of choice, but may also threaten
the transparancy and the accessibility of the service delivery network. For service
providers, their autonomy with regards to the price, quality and accessibility of the
services is challenged by the fact that public and private service providers have to
operate in the same field, whether independently, in a co-operative or in a com-
petitive relationship. For government, developing relationships with (a network of)
private non-profit and for-profit organizations requires other instruments and
capacities compared to steering public services (Verhoest et al., 2003; Loffler,
2009). Hierarchical steering and control become less relevant, because private orga-
nizations have a certain degree of independence vis-a
`-vis the government.
Moreover, whenever private actors of different types and kinds offer the same
services, the oversight authority is also challenged to guard the transparency of
the network of service providers, and to direct and/or regulate the relations
between the service providers and between the service providers and the users. In
such public-private service provision networks, we often observe that oversight
authorities use more market- and network-type systems to coordinate the service
delivery, instead of more hierarchical systems (Bradach and Eccles, 1991; Ouchi,
1991).
In this article we discuss the number and kind of relations that have to be
installed between the different actors in public-private service provision networks.
We explore to what extent a public-private service provision network, which is
characterized by a variety of actors which develop multiple interrelationships,
may lead to failures in the delivery of public services.
We start by conceptually discussing the many relationships that evolve whenever
public and private actors are involved in a public service delivery network.
Conceptually and theoretically, the fact that a service delivery network is character-
ized by many different actors may yield negative effects on the quality and effective-
ness of the services delivered. We then present our case study, the organization of
childcare in Flanders, Belgium. Firstly, we present the organization of the service
provision network. Secondly, we critically analyze some major failures observed in
the childcare service provision. We then question to what extent these disadvantages
32 Public Policy and Administration 27(1)
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