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Title: The management control of public multi partner alliances
Other Titles: A case study of managent control in the pre-formation of the omgevingsdienst NZKG
Authors: Sterke de, M
Keywords: Multi partner alliance
Management control
Government alliances
Climate approach
Issue Date: 1-Mar-2014
Publisher: Open Universiteit Nederland
Abstract: Abstract The Omgevingsdienst Noordzeekanaal-gebied, a new governmental organization, ensures the proper implementation of laws and regulations to provide a safe and healthy environmental protection for the whole North Sea and Schiphol region. This new organization, a public multi partner alliance, combines the knowledge of professionals of the Province of North Holland and the municipalities Aalsmeer, Amstelveen, Amsterdam, Diemen, Haarlemmermeer, Ouder-Amstel, Uithoorn and Zaanstad. Combining knowledge, experience and capacity, the new organization (omgevingsdienst) aims to make the quality of the monitoring, supervising and permit authorization higher. The purpose is to put the government in a position to respond more adequately to complex environmental legislations. Also the government can act more efficiently in the process of permit authorization. But management control of multi partner alliances is complicated and there is not a lot of research done in the area of governance of these kind of alliances (Rochemont, 2010). This research investigates how the interaction between formal and social governance evolves during the pre-formation phase (start up phase). Syntens a dutch governmental organization for innovation and research detected two trends in Dutch multi partner alliances: 1. Between 2005 and 2007 the number of registered multi partner alliances1 increased by 700%. 2. 50 - 75% of all multi partner alliances stopped before their targets were reached. This is the same failure rate as for dyadic alliances (Harrigan, 1998) The Syntens study showed that a lot of alliances stopped before targets were reached. So the phase in which the alliance is starting up is very important. This start up phase, as mentioned before, is called the pre-formation phase. In the pre-formation phase (before formal commitment of partners has been established) alliance partners don’t know each other. Therefore for example trust in the new alliance itself may still not be strong, cultural distances also may exist and the members might be engaged in the process of trust building, which can take considerable time (Gulati et al., 2000). When the alliance performs well and formal arrangements are made, trust between partners will likely become stronger. But theory also suggests that making clear formal agreements in the preformation phase will be enhancing trust in the alliance (Rochemont, 2010). Though other scholars (Das et al., 2002) claim that to emphasize the aspect of formal agreements can undermine the trust in the alliance. So it is a delicate situation to judge which kind of governance mode needs to be used. In this thesis a climate approach is used (Rochemont, 2010), which is used to operationalize the two forms of governance, meaning formal and social governance. Formal governance is formed by the financial climate and the management and organizational climate, social governance is formed by the relational climate. The climate approach is an interesting approach because it approaches complex interactional patterns, like formal and social governance, not isolated, for example only a transaction cost perspective, but integrated. The climate approach in combination with a qualitative research approach was very suitable to obtainan in-depth understanding of how processes of management control in a multi partner alliance , like the omgevingsdienst NZKG works, in the pre-formation phase.
Appears in Collections:MSc Management Science

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