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Drivers of outsourcing and backsourcing in the public sector: From idealism to pragmatism
Gothenburg Research Institute, School of Business, Economics and Law, University of Gothenburg, Gothenburg, Sweden.
University of Gothenburg, Institute of Health and Care Sciences, The Sahlgrenska Academy, Gothenburg, Sweden; University Collage of Southeast, School of Economics, Notodden, Norway (NOR).
University of Gothenburg, School of Public Administration, Gothenburg, Sweden.
University West, Department of Social and Behavioural Studies, Division of Social Work and Social Pedagogy.ORCID iD: 0000-0002-6358-3528
2021 (English)In: Financial Accountability and Management, ISSN 0267-4424, E-ISSN 1468-0408, Vol. 37, no 3, p. 262-278Article in journal (Refereed) Published
Abstract [en]

Local governments are bringing previously outsourced services back in‐house. Research into explanations for sourcing decisions in the public sector is growing, however, few researchers have investigated drivers of both outsourcing and backsourcing in local public‐governance organizations. In this study we utilize transaction cost economic theory (TCE) and political ideology to investigate underlying motives of sourcing in local public governance organizations. Based on a 2018 survey of chief financial officers (CEO) in all of Sweden's 290 municipalities, this study shows that backsourcing is strongly associated with outsourcing and that outsourcing and backsourcing should not be understood as opposite phenomena, rather as interdependent phenomena in a dynamic sourcing strategy. Outsourcing and backsourcing are driven in part by different factors: Outsourcing by political ambitions and economic factors relating to TCE, while managerial and pragmatic concerns are foregrounded for backsourcing.

Place, publisher, year, edition, pages
2021. Vol. 37, no 3, p. 262-278
Keywords [en]
backsourcing, insourcing, local government, outsourcing, public organizations
National Category
Business Administration Public Administration Studies Information Systems, Social aspects
Identifiers
URN: urn:nbn:se:hv:diva-16092DOI: 10.1111/faam.12273ISI: 000591264300001Scopus ID: 2-s2.0-85096782462OAI: oai:DiVA.org:hv-16092DiVA, id: diva2:1505809
Funder
Swedish Research Council, 2016‐01680Available from: 2020-12-01 Created: 2020-12-01 Last updated: 2022-03-30Bibliographically approved

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Berlin, Johan

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