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Good Neighbours or Distant Friends?

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  • Sandra van Thiel
  • Kutsal Yesilkagit

Abstract

Agencification has extended and intensified the delegation problem. It has created new (administrative) principals, who are confronted with even more uncertainty as agents operate at arm's length. Trust is suggested as a new mode of governance. Based on the literature seven hypotheses are deduced on conditions that politicians can use to build trust: autonomy; contacts; policy involvement; and involvement in the design of monitoring devices. These hypotheses are tested using survey data on 219 Dutch executive agencies. Contrary to the expectations, executive agencies with low degrees of autonomy have a more trusting relationship with their parent ministry than agencies with high autonomy. Proximity and frequent interactions appear more important to trust than autonomy. Monitoring is not always perceived as a sign of distrust. These findings raise new questions on how principals can reduce the delegation problem and control executive agencies.

Suggested Citation

  • Sandra van Thiel & Kutsal Yesilkagit, 2011. "Good Neighbours or Distant Friends?," Public Management Review, Taylor & Francis Journals, vol. 13(6), pages 783-802, September.
    • Handle: RePEc:taf:pubmgr:v:13:y:2011:i:6:p:783-802
    DOI: 10.1080/14719037.2010.539111
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    References listed on IDEAS

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    1. Alex Cukierman, 1992. "Central Bank Strategy, Credibility, and Independence: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262031981, April.
    2. Pollitt, Christopher & Bouckaert, Geert, 2004. "Public Management Reform: A Comparative Analysis," OUP Catalogue, Oxford University Press, edition 2, number 9780199268498.
    3. Cukierman Alex, 1992. "CENTRAL BANK STRATEGY, CREDIBILITY, AND INDEPENDANCE: THEORY AND EVIDENCE: Compte Rendu par Dominique Cariofillo," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 3(4), pages 581-590, December.
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    1. Annick Willem & Steffie Lucidarme, 2014. "Pitfalls and Challenges for Trust and Effectiveness in Collaborative Networks," Public Management Review, Taylor & Francis Journals, vol. 16(5), pages 733-760, June.
    2. Jacob Torfing & Tina Øllgaard Bentzen, 2020. "Does Stewardship Theory Provide a Viable Alternative to Control-Fixated Performance Management?," Administrative Sciences, MDPI, vol. 10(4), pages 1-19, November.
    3. Bart Voorn & Marieke van Genugten & Sandra Van Thiel, 2020. "Performance of municipally owned corporations: Determinants and mechanisms," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 191-212, June.
    4. Stephan Leixnering & Renate E Meyer & Tobias Polzer, 2021. "Hybrid coordination of city organisations: The rule of people and culture in the shadow of structures," Urban Studies, Urban Studies Journal Limited, vol. 58(14), pages 2933-2951, November.
    5. Lise A. van Oortmerssen & Cees M.J. van Woerkum & Noelle Aarts, 2014. "The Visibility of Trust: Exploring the connection between trust and interaction in a Dutch collaborative governance boardroom," Public Management Review, Taylor & Francis Journals, vol. 16(5), pages 666-685, June.
    6. Bente Bjørnholt & Heidi Salomonsen, 2015. "Contracting and Performance in Agencies: A Question of Control, Dialogue or Autonomy?," Public Organization Review, Springer, vol. 15(4), pages 509-530, December.

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