Effects of Formalized Procedures for Selection of CEOs in Municipally Owned Enterprises
Effects of Formalized Procedures for Selection of CEOs in Municipally Owned Enterprises

Summary/Abstract: Various new organizational approaches have been applied to provide public services on the local level. It includes municipally owned enterprises, which can be regarded as a form of hybrid organizations – standing at the crossroads of the state, market and civil society. In that context several scholars indicate the risk of party patronage in inter-organizational public appointments of hybrid organizations’ CEOs. The article investigates whether conducting a prior formalized selection procedure for positions of CEOs of local hybrid companies constrains political power and whether formalized selection procedures are tools of good governance rather than a tool of party patronage. This topic is under researched not only within Central European countries but in wider European context. Our article thus focuses on 139 CEOs of 139 municipally owned enterprises in 88 municipalities. We found that the outcomes of selections indicate an emerging pattern in relation to who manages local enterprises. Although CEOs’ political affiliations to certain extent are still present when selection procedures are formalized, the outcomes of selection indicate an emerging professionalization and meritocratic approach rather than strong party patronage when selecting CEOs in those enterprises. This outcome is not greatly determined by the chosen selection procedure. The article thus provides implications for research and policy in the given area.

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