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Applying Strategic Management Theories in Public Sector Organizations: Developing a typology

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  • Jesper Rosenberg Hansen
  • Ewan Ferlie

Abstract

This article discusses the utility of two different strategic management theories in different types of public organizations including contemporary New Public Management-based public organizations, namely Porter's strategic positioning model and the resource-based view of strategy. We argue that possibilities for applying these theories vary depending on the type of public organizations involved, and are less appropriate in traditional settings but more relevant in autonomized and market-like service-delivery organizations. We further propose that their increased applicability depends on three specific conditions: the degree of administrative autonomy, performance-based budgeting and market-like competition. We give empirical examples drawn from public services in the UK and Denmark. We call for more exploration of these (and other) strategic management approaches within contemporary public services organisations but also more exploration of the limitations of these frameworks.

Suggested Citation

  • Jesper Rosenberg Hansen & Ewan Ferlie, 2016. "Applying Strategic Management Theories in Public Sector Organizations: Developing a typology," Public Management Review, Taylor & Francis Journals, vol. 18(1), pages 1-19, January.
    • Handle: RePEc:taf:pubmgr:v:18:y:2016:i:1:p:1-19
    DOI: 10.1080/14719037.2014.957339
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    Cited by:

    1. Bienmali Kombate & Muganga Emmanuel & Kouadio Konan Richard, 2021. "The Implication of the Strategic Implementation Style and Middle Management Effort in Public Organization Strategic Management Implementation and Its Organizational Performance," Journal of Public Administration and Governance, Macrothink Institute, vol. 11(1), pages 125-125, December.
    2. Höglund, Linda & Svärdsten, Fredrik, 2018. "Strategy work in the public sector—A balancing act of competing discourses," Scandinavian Journal of Management, Elsevier, vol. 34(3), pages 225-232.
    3. James Wan & Ling Wang & Raafat Saade & Hong Guan & Hao Liu, 2022. "Empirical Analysis of Strategic Management in Inter-Governmental Organization," Administrative Sciences, MDPI, vol. 12(3), pages 1-26, July.
    4. Andrea Bonomi Savignon & Lorenzo Costumato & Benedetta Marchese, 2019. "Performance Budgeting in Context: An Analysis of Italian Central Administrations," Administrative Sciences, MDPI, vol. 9(4), pages 1-15, October.
    5. Jan-Erik Johanson & Åge Johnsen & Elias Pekkola & Stephen Affleck Reid, 2019. "Strategic Management in Finnish and Norwegian Government Agencies," Administrative Sciences, MDPI, vol. 9(4), pages 1-20, October.
    6. Aline Pietrix Seepma & Dirk Pieter van Donk & Carolien de Blok, 2021. "On publicness theory and its implications for supply chain integration: The case of criminal justice supply chains," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 72-103, July.
    7. Odysseas Pavlatos & Hara Kostakis, 2023. "Moderating Role of Cost Accounting Information Quality on the Relationship Between the COVID‐19 Pandemic and Budgeting in Public Hospitals," Australian Accounting Review, CPA Australia, vol. 33(1), pages 14-30, March.
    8. Felício, Teresa & Samagaio, António & Rodrigues, Ricardo, 2021. "Adoption of management control systems and performance in public sector organizations," Journal of Business Research, Elsevier, vol. 124(C), pages 593-602.
    9. Majed Bin Othayman & Abdulrahim Meshari & John Mulyata & Yaw Debrah, 2021. "Challenges Experienced by Public Higher Education Institutions of Learning in the Implementation of Training and Development: A Case Study of Saudi Arabian Higher Education," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 10(2), pages 1-36, October.
    10. Aidan R. Vining, 2016. "What Is Public Agency Strategic Analysis (PASA) and How Does It Differ from Public Policy Analysis and Firm Strategy Analysis?," Administrative Sciences, MDPI, vol. 6(4), pages 1-31, December.
    11. Charalampos Platis & Odysseas Kopsidas & Maria Vasiliki Kokiousi & Athanasios E.P. Raptis, 2020. "Public Space as a Necessity for a Flexible and Effective Strategic Public Management: The Opportunity of Independent Agencies," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 70(1-2), pages 93-105, January-J.

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