Marketization revisited

Abstract

Purpose – The purpose of this paper is to introduce the IJPSM special issue on marketization to clarify the conceptual foundations of marketization as a phenomenon within the public sector and gauge current marketization trends based on the special issue’s seven papers. Design/methodology/approach – Conceptual clarification and cross-cutting review of seven papers analysing marketization in six countries in three policy areas at the level of local government. Findings – Four ideal-types models are deduced: quasi-markets involving both provider competition and free choice for users; classical contracting out; benchmarking and yardstick competition; and public-private collaboration. Based on the review of the seven papers, it is found that all elements in all marketization models are firmly embedded but also under dynamic change within public service delivery systems. The review also identifies limitations and modifications of the four ideal-type models. A key trend is a move towards public-private collaboration and cross-sectorial and inter-organizational governance arrangements. Research limitations/implications – Continued research on marketization would benefit from development of more fine-tuned theoretical models which are sensitive to the realm of the dynamics within particular policy and institutional contexts. Practical implications – Policy-makers should balance normative objectives against the experiences gained at the level of implementation. Originality/value – The special issue shows that marketization still is a concurrent phenomenon which is driving substantial change in public service delivery systems as well as is under dynamic change itself.