Governance of dependency relationships in mandated networks

Abstract

ABSTRACTMandated service delivery networks have become common in both developing and developed worlds; however, our understanding of what makes these arrangements work is still limited. In this study, we draw upon existing business literature, specifically focusing on dependency relationships and resulting opportunism within mandated networks, a critical but often overlooked aspect. Further, within mandated networks characterised by limited autonomy and trust, ways in which network members navigate dependency relationships remain unexplored. We conduct a comparative case analysis, examining network arrangements within India’s National Health Insurance Programme. Based on our findings, we propose that the nature of interdependence among network members and the resultant dependency relationships impact the conduct of network members and, thereby, network performance. If the dependency relationships are not governed effectively, conflict bargaining and opportunistic behaviours get manifested. Contrary to expectation, network performance tends to be higher in jurisdictions where dependency relationships are effectively governed through hierarchical authority. These findings hold significant relevance; as mandated networks are created under the shadow of hierarchy but governed through clan or trust-based mechanisms.KEYWORDS: Mandated networkdependency relationshipsnetwork governancenetwork effectivenesspolicy implementation Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1. Opportunism is defined as “the pursuit of self-interest in an exchange that violates either explicit or implicit norms of contract and that has an adverse effect on the other party” (Williamson Citation1985; MacNeil Citation1978).Additional informationNotes on contributorsDayashankar MauryaDayashankar Maurya is associate professor, Institute of Rural Management Anand India. Earlier he worked as associate professor, Graduate School of International Relations International University of Japan. He received Masters and PhD in Public Policy from National University of Singapore. His research is concerned with governance, policy implementation, public-private partnership and health and social policy. He has published in Public Management Review, Social Policy and Administration, and Policy Design and Practice.M RameshM. Ramesh is UNESCO Chair of Social Policy Design in Asia. Previously, he was the Founding Head of the Department of Asian and Policy at the Hong Kong Institute of Education; Professor of Social Policy at the University of Hong Kong; and Chair of the Department of Government and International Relations at the University of Sydney. He has also held teaching positions at the University of New England and Victoria University of Wellington. Specialising in public policy and governance in Asia with a particular focus on social policy, Ramesh has authored and edited many books. His co-authored textbook Studying Public Policy has been translated into over a dozen languages and is used throughout the world. His books and journal articles on social policy in Asia are the standard starting points for research on the subject. He has also published extensively in reputed international journals. He is the Editor of Policy and Society and Associate Editor of Journal of Economic Policy Reform and serves on the editorial board of several reputed journals. Moreover, he has served as consultant to prominent international organizations.Michael HowlettMichael Howlett (Professor) BSocSci.(Hon)(Ott), MA(Br Col), PhD (Queen’s) is Canada Research Chair in Policy and Innovation for Climate Change and Burnaby Mountain Chair in the Department of Political Science at Simon Fraser University. He specializes in public policy analysis, political economy, and resource and environmental policy. He has published extensively in reputed international journals and has number of books to his credit. He is the Editor in Chief of Policy Sciences and serves on the editorial board of several reputed journals.