Managing competing institutional logics in governance of public-sector entities in Tanzania

Abstract

PurposeThe paper aims to investigate how the governance practices of public-sector entities (PSEs) in Tanzania are shaped by competing institutional logics and strategies used to manage the logics.Design/methodology/approachIn the paper, empirical evidence was gathered through documentary sources, non-participant observations and in-depth interviews with members of boards of directors (BoDs), chief executive officers (CEOs), internal and external auditors, senior executives and ministry officials. The data were analyzed using thematic and pattern-matching approaches.FindingsThe paper shows that bureaucratic and market logics co-exist and variations in governance practices within and across categories of PSEs. These are reflected in CEO appointments, multiple roles of CEOs, board member appointments, board composition, multiple board membership, board roles and evaluation of board performance. External audits also foster market logic in governance practices. The two competing logics are managed by actors through selective coupling, compromise, decoupling and compartmentalization. Despite competing logics, the bureaucratic logic remains dominant and is largely responsible for variations between the underlying logics and governance practices.Practical implicationsThe findings suggest that public-sector reforms in emerging economies (EEs) must account for the fact that governance practices in PSEs are shaped by different institutional logics embedded in socioeconomic, political and organizational contexts and their corresponding management strategies.Originality/valueFew previous studies explicitly report relationships between institutional logics and the governance practices of PSEs in EEs. The current study is one of few empirical studies to connect competing institutional logics and the associated management strategies, as well as governance practices in EEs in the context of public-sector reforms.