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Heads and Tails: Both Sides of the Coin Heads and Tails: Both sides of Tails: the coin The Dutch debate on hybrid organizations (which mix elements of state and market) is dominated by normative ideas brought forward by those advocates and adversaries of hybridity that tend to focus on only one side of the coin. In this thesis, Philip Marcel Karré argues that hybridity can only be fully understood and managed when one considers both sides of the coin, and sees benefits and risks as each other’s flipsides. By analyzing hybrid organizations in the Dutch waste management sector, he develops a perspective on hybridity that can be used by policy makers, professionals and academics to pinpoint those dimensions that could produce benefits or risks. Karré argues that hybridity is neither a catastrophe nor a panacea, but that it needs to be managed properly. The biggest challenge will be to prove in every single case that the expected opportunities created through hybridity far outweigh the costs of controlling the risks it poses. Philip Marcel Karré Philip Marcel Karré studied political sciences and communication sciences at the University of Vienna. He now works as a senior researcher and lecturer at the Netherlands School for Public Administration. He conducts research on governance and other new steering mechanisms for addressing wicked social problems and contributes to educational programmes for senior civil Heads and Tails: servants. Both sides of the coin An analysis of hybrid organizations in the Dutch waste management sector ISBN 978-90-5931-635-5 9 7 8 9 0 5 9 3 1 6 3 5 5 Philip Marcel Karré Heads and Tails: Both sides of the coin Heads and Tails: Both sides of the coin An analysis of hybrid organizations in the Dutch waste management sector ACADEMISCH PROEFSCHRIFT ter verkrijging van de graad van doctor aan de Universiteit van Amsterdam op gezag van de Rector Magnificus prof. dr. D.C. van den Boom ten overstaan van een door het college voor promoties ingestelde commissie, in het openbaar te verdedigen in de Agnietenkapel op dinsdag 1 februari 2011, te 14:00 uur door Philip Marcel Karré geboren te Villach, Oostenrijk Promotiecommissie Promotor: prof. dr. R.J. in ’t Veld Promotor: prof. dr. J.J. Boonstra Overige leden: prof. drs. J.W. Ganzevoort prof. dr. J. Grin prof. dr. ir. R.E. Maes prof. dr. C.J. van Montfort prof. dr. M.J.W. van Twist Faculteit der Gedrags- en Maatschappijwetenschappen Published, sold and distributed by Eleven International Publishing P.O. Box 85576 2508 CG The Hague The Netherlands Tel.: +31 70 33 070 33 Fax: +31 70 33 070 30 Website: www.elevenpub.com Eleven International Publishing is an imprint of Boom uitgevers Den Haag. © 2011 Philip Marcel Karré | Eleven International Publishing, The Hague This publication is protected by international copyright law. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher. ISBN 978-90-5931-635-5 Acknowledgements This book has been underway for some time. I would like to thank a small number of people for their inspiration and help while the book was being written. Special thanks has to go to the managing directors of my three case study organizations, as well as to those that attended my expert meeting. I also thank all my interview partners in the waste management sector. Professor Roel in ’t Veld and Professor Jaap Boonstra, my promotors, have both provided much inspiration. This book could not have been written without their critical feedback and their constant urges to dig deeper. I have also learned much from the academic peers, professionals and colleagues with whom I discussed my research at various stages – thank you to you all. Also a big thank you to my employer for the financial support which made this book possible. I also thank my family and friends for their interest in what I was doing all these years and for their support in getting the job done. Finally, a big thank you to my partner Iris, who has suffered more than could reasonably be expected of anyone while the book was being written. I sincerely appreciate all your love and your hands-on support in proofreading and taking care of all the annoying and to me utterly incomprehensible computer-related tasks, like dealing with the book’s layout. Dragging me away from the computer for walks, bike rides and holidays, has kept me sane. Our conversations about my research have kept me sharp. Philip Marcel Karré Rotterdam 2010 V Contents 1. Introduction: The Netherlands as a hybrid society 1 1.1 The hybrid realm 1 1.1.1 Private organizations with sovereignty 4 1.1.2 Quasi-autonomous non-governmental organizations 5 1.1.3 Hybrid quangos in waste management as subject of this dissertation 7 1.2 A short history of public service delivery in The Netherlands 8 1.2.1 Private initiative 8 1.2.2 Growing state intervention 9 1.2.3 Privatization 10 1.2.4 Managerialism 11 1.2.5 Governance, the collaborative challenge and joined-up government 12 1.3 Hybrid organizations as contested but unknown phenomena 14 1.3.1 Discussion and criticism… 14 1.3.2 …but also great expectations 15 1.3.3 A normative debate 15 1.3.4 Only a Dutch debate? 17 1.4 Societal and scientific relevance 19 1.5 Research questions 20 1.6 Outline 21 2. Defining hybrid organizations – Dimensions of hybridity 23 2.1 Introduction 23 2.2 A normative dichotomy 23 2.3 Patterns of government-market interrelations 25 2.4 Ideal-typical public and private organizations 26 2.5 Differences between public and private organizations 28 2.5.1 Distinctive environmental factors 30 2.5.2 Organization-environment transactions 30 2.5.3 Organizational roles, structures and processes 30 VII 2.6 Dimensions of hybridity 33 2.6.1 Introduction 33 2.7 Multidimensional model used in this study 38 2.7.1 Structure and activities 39 2.7.2 Strategy and culture 39 2.7.3 Governance and politics 40 2.7.4 The application of this model 40 2.8 Summary 43 3. The effects of hybridity – An anatomy of the Dutch debate 45 3.1 Introduction 45 3.2 The synergy argument 46 3.2.1 Roel in ’t Veld 46 3.2.2 Scientific Council for Government Policy 49 3.2.3 Social and Economic Council of The Netherlands 50 3.2.4 Other advocates 52 3.2.5 Summary: the benefits of hybridity 53 3.3 The corruption argument 55 3.3.1 Martin Simon 55 3.3.2 The task group Cohen 58 3.3.3 Cohen’s aftermath: on the road to banning hybridity 61 3.3.4 Other critics 64 3.3.5 Summary: the risks of hybridity 66 3.4 An evaluation of both approaches 68 3.5 Summary 70 4. Research strategy 71 4.1 Introduction 71 4.2 Literature overview and pilot study 71 4.3 Case study research 73 4.3.1 Reasons for choosing this method 73 4.3.2 Case selection 73 4.3.3 Data collection 75 4.3.4 Data analysis 78 VIII 4.4 Validity issues 78 4.5 Timeline 79 5. Hybrid organizations in Dutch waste management 81 5.1 Introduction 81 5.2 Public interests in waste management 81 5.3 Waste management as big business 83 5.4 Dutch waste policy 84 5.5 Waste collection and disposal 86 5.5.1 Market for waste collection 86 5.5.2 Market for waste disposal 89 5.6 Debate about hybridity 89 5.7 Summary 92 6. Case Study 1: TOM 93 6.1 Introduction 93 6.2 History and background 93 6.2.1 Structure and activities 93 6.2.2 Strategy and culture 95 6.2.3 Governance and politics 96 6.3 Hybridity and its effects 97 6.3.1 Structure and activities 97 6.3.2 Strategy and culture 99 6.3.3 Governance and politics 102 6.4 Key findings 104 7. Case study 2: DICK 109 7.1 Introduction 109 7.2 History and background 109 7.2.1 Structure and activities 109 7.2.2 Strategy and culture 111 7.2.3 Governance and politics 113 IX 7.3 Hybridity and its effects 113 7.3.1 Structure and activities 113 7.3.2 Strategy and culture 116 7.3.3 Governance and politics 118 7.4 Key findings 122 8. Case study 3: HARRY 127 8.1 Introduction 127 8.2 History and background 128 8.2.1 Structure and activities 128 8.2.2 Strategy and culture 129 8.2.3 Governance and politics 129 8.3 Hybridity and its effects 129 8.3.1 Structure and activities 129 8.3.2 Strategy and culture 133 8.3.3 Governance and politics 135 8.4 Key findings 137 9. Comparison of findings 143 9.1 Introduction 143 9.2 Comparison of case studies’ hybridness 143 9.2.1 Review: Agencies, enterprises and hybrid organizations 143 9.2.2 History and background 144 9.2.3 Hybridity and its effects 145 9.2.4 Summary 148 9.3 Comparison of effects of hybridity and of strategies 150 9.3.1 Review: Positive and negative effects of hybridity 150 9.3.2 Economic effects of case organizations’ hybridness 151 9.3.3 Performance related effects 153 9.3.4 Cultural effects 154 9.3.5 Governance related effects 156 9.4 Discussion of findings 157 9.4.1 Economic effects 159 9.4.2 Performance related effects 159 9.4.3 Cultural effects 160 9.4.4 Governance related effects 160 X 9.5 Summary 161 10.
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