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Networks, Network Governance, and Networked Networks © International Review of Public Administration 19 2006, Vol. 11, No. 1 NETWORKS, NETWORK GOVERNANCE, AND NETWORKED NETWORKS KIM, JUNKI Graduate School of Public Administration, Seoul National University, South Korea Theories of democratic governance have undergone significant changes over the last two decades with the spread of ideas and popular practices associated with New Public Manage- ment (NPM) and New Governance. In particular, inter-ministerial and inter-societal network- ing is becoming important because of the capacity to regulate complex transactional interde- pendency in modern administrative states. This paper examined various forms of networks and identified factors that influence the form of governance including asset-specificity, task complexity, transaction continuity, uncertainty, the degree of differentiation, and the Intensity of inter-organizational interdependence. In addition, the role of public institutions in different network governance varies considerably as they tend to play more active roles in vertical net- works while a more symmetric relationship arise in horizontal networks among private and public actors. Managing and coordinating complex networks requires a skillful manager of the networked networks. New ICT and public institutions will play an important role as a vertical and horizontal integrator for managing interdependence within and between networks. It is hoped that the framework developed here can be used as a basis for developing and analyzing testable comparative models of inter-organizational coordination or governance mechanisms in the public policy and administration scenes. Key Words: networks, governance, coordination INTRODUCTION and by increasing complexity of public problems. The growing distinction between government and gover- Theories of democratic governance have undergone nance comes at a time when the public sector is being significant changes over the last two decades with the burdened with a vast heterogeneity of functions, organi- spread of ideas and popular practices associated with zational forms and modes of governance over the years, New Public Management (NPM) and New Governance.1 mostly in responses to growing social and economic The debate on new governance was triggered largely by problems (Kooiman, 1993). the growing recognition that policy making process Whatever forces were behind changes, both central needs to go beyond the public sector to incorporate pri- governments and local municipalities witnessed roles vate sector and nongovernmental actors to achieve a set change dramatically which had impact on ways in of objectives (Brinkerhoff, 1996; Forrest, 2003). This, in which policies are derived and implemented. Peters and turn, was necessitated by the poor track records of public Pierre (1998) say that “the idea that national govern- institutions and traditional “governance” which empha- ments are the major actors in public policy...appears to sized public policy process as centrally steered and man- be in doubt.” The European literature has also character- aged through direct control, which Osborne and Gaebler ized the diminishing capacity of the state as “gover- (1992) describe as “bloated, wasteful, and ineffective” nance without government (Rhodes, 1997)” while other 20 Networks, Network Governance, and Networked Networks Vol. 11, No. 1 characterization of “hollow state (Peters, 1993)” and governing system. In addition there remain questions “negotiated state (Nielsen & Pedersen, 1990)” have fol- about the conceptual framework of network governance lowed. Another recurring theme in the literature is the which has hampered research progress in this field. For inability to create sustainable, effective, and inclusive instance, terms such as partnership, network, collabora- governing structure unless clearer about ways to incor- tion, and cooperation involving public and private par- porate private sector and civil society organizations ticipants have been used synonymously without precise (CSOs) in public decision making process (Peters & definitions and further fuelling confusion is the emer- Pierre, 1998). In addition, others have raised the increas- gence of diverse sets of non-governmental actors in var- ing importance of nonprofit actors in the delivery of ious stages of government decision making process. As public services (Salamon, 1994; Smith & Lipsky, 1993). Lan and Rosenbloom (1992) state, new governance The emergence of this pattern of ‘governing’ or gov- models appear to be “more a clusters of ideas and sym- ernance is a direct challenge to the (developmental) state bols than a rigorous and tested body of thought.” This model of relying on a strong and centralized govern- paper seeks to dispel some of these concerns by examin- ment. The governance theories based on unitary central- ing theoretical aspects of network formations and the ized governments, state elitism and top-down decision sustainability of these governance forms. making are giving way to new concepts such as public- In particular close attention is paid to theoretical private partnership, co-production, network, collabora- issues surrounding the network governance and the tive programs, volunteerism, and bottom-up approaches impact on traditional bureaucracy. In addition various (Kim, 2003). The traditional bureaucratic state relying types of (policy) networks operating in the public sector on hierarchy, rules, procedures and universal values is and the main characteristics are examined. The integrate being replaced by a governing structure that recognizes transaction cost economics and social network theories and incorporates other societal actors, and states are are sought to derive at conditions under which certain increasingly relying on participatory models with an networks work better than others in terms of governance emphasis on cooperation and partnership with other pol- effectiveness. Other sustainability issues and network icy actors (Lowndes & Skelcher, 1998). When other management issues are raised in the conclusion and pol- nongovernmental actors including CBOs and other icy recommendations. However, the political economy advocacy groups are thrown into the ‘governance’ mix, of networks such as why network notions were quickly the resulting outcome is one of increasing complexity adopted by public managers and politicians and the and network-driven. influence the prevailing ideology of neo-liberal thinkers Discussions on ‘new governance’ are now emphasiz- has had on modern administrative states are assumed to ing the importance of partnership, co-production, net- be beyond the scope of this paper.2 work, collaborative programs, and joint projects. The terms such as policy networks, inter-organizational net- works, network forms of organizations, social networks, BUREAUCRATIC GOVERNANCE AND and horizontal government have been used frequently to NETWORK GOVERNANCE refer to new ways of doing business in the public sector (Powell, 1990). In addition, inter-ministry, inter-agency, Although the term ‘governance’ in public adminis- and public-private partnerships are now indispensable tration implies different things to different people, it is parts of the new governance. There is a clear sign of pub- often referred as ‘the institutionalized politico-economic lic programs and services moving away from “the large- process’ that organizes and coordinates activities among scale, bureaucratic and paternalistic public organizations a wide variety of economic, political, and social actors. (Lowndes & Skelcher, 1998)” that has also characterized Von Moltke (2001) argues that government is a special the modern administrative state to more flexible, partic- instance of governance. More broadly, Kooiman (1993) ipatory, and network-based governance models. describes governance as “the purposive means of guid- What has been lacking in most of this workcis an ing and steering” a society or a community. Lynn et al. examination of the transformation of governance (2001) define it as “regimes of laws, rules, judicial deci- regimes. Evaluating network transformation is critical sions, and administrative practices that constrain, pre- for understanding whether networks are effective in scribe, and enable the provision of publicly supported delivering services or what causes the changes in the goods and services.” Kim and Kim (2004) find origins July 2006 Junki Kim 21 in theories of community building. There exists different governance to a network governance and attempt to dis- types of governance within and across different societies tinguish important differences between the two.3 and they are often the outcomes of socio-economic- political process under which various societal actors Bureaucratic Governance interact to achieve desirable societal goals. Rhodes (1997) stipulates that the choice over a particular mode According to Considine and Lewis (2003), the essen- of governance is a “matter of practicality; that is, under tial attributes of the bureaucratic governance are “the what conditions does each governing structure work followings of rules and procedures, high reliance on effectively?” This implies that the evolution or the trans- supervision, and an expectation that tasks and decisions formation of governance depends on various political will be well scripted.” This, they reason, captures Moe’s and economic factors that affect the way in which non- (1994) definition of the traditional administrative model state actors interact with the state. as “a government of
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