Governing ambiguities in social services: coordination and control issues

A common approach to innovation in social services consist in the attitude of local governments to enact, endorse, promote or coordinate nonprofits networks in a variety of specific fields. According to many analyses in economics, organization and management, the promotion of these networks is seen in the light of legislation-drove efficiency-seeking strategies within local governments. The two case studies that I will illustrate in this chapter, though, suggest the opportunity to develop this explanation, and thus to extend the debate about governance in the field of social services beyond the idea of efficiency-oriented decision making as a driver of governance transformation, drawing attention to additional explanatory variables such as the exercise of control within inter-organizational processes and the cooperative stance of both public and nonprofit bodies. My thesis can be articulated as follows: as a result of an intentional engagement of both public bodies and nonprofit organizations, the local government, enacting, promoting or valuing new or existing nonprofits networks has been able to maximize its control over some of its most crucial processes such as services quality, suppliers management, knowledge development, etc. nonprofits, at the same time, have had the chance to increase their control over their own key organizational processes such as institutional relations (legitimacy in the relationship with local governments) and market image. Also, the promotion of these networks enhanced entrepreneurship attitude within the nonprofits, which lead to multiple benefits for both public and third-sector actors. Within the local government, at the same time, it is observable a strategic stance aimed at decreasing its dependence from resource-absorbing organizational processes while for the nonprofits is recognizable a strategic-oriented action aimed at maximizing control over their market processes. As for the concentration of power within the local government, though, it does not seem to diminish within the new governance scheme: both formal and informal rules appear to still assign a leading role to the local government even if nonprofits are allowed a considerable level of discretion.