The Institutions of Governance. A Framework for Analysis

Abstract

Production governance is not detached from the effects it produces. This paper suggests a framework to assess coordination structures and mechanisms in terms of their ability to include the publics and their interests, and to generate socio-economic value consistently with those interests. To this end, the framework considers a combination of resource integration mechanisms (contract, authority, cooperation) and structures (markets, exclusive organisational structures, and inclusive organisational structures). These combinations are analysed along key features: information, knowledge sharing ad co-creation, involvement and empowerment, as well as alongside some specific functions of governance (legitimacy, cognition, interdependence). The value added is in identifying criteria for appreciating diverse ways of integrating and coordinating resources, and the associated effects, thus providing both scholars and practitioners with a tool to discriminate amongst alternatives.

Keywords: Governance, Contracts, Authority, Cooperation, Knowledge, Involvement, Empowerment, Legitimacy, Interdependence, Value Creation

JEL Classification: D02, D21, D23, D86