Italian New Public Management (NPM) has been mainly characterized by a political orientation toward power decentralization to local governments and privatization of public companies. Nowadays, local utilities in Italy are often run by joint stock companies controlled by public agencies such as Regional and Municipal Administrations. Due to this transformation, these companies must comply with a set of diverse expectations coming from a wide range of stakeholders, related to their financial, competitive and social performance. Such fragmented governance increases the presence of “wicked” problems in the decision-making sphere of these entities. Given this multi-level governance structure, how do these agents influence public services performance? In recent years, coordination and inter-institutional joint action have been identified as possible approaches for dealing with governance fragmentation and wicked problems deriving from it. How can we adapt a performance management perspective in order to help us reform the system and so have a better collaboration between the stakeholders involved? In order to address and discuss these research questions, a case study will be developed. The case concerns AMAT, the local utility providing the public transportation service in the Municipality of Palermo (Italy). The result of this study is a dynamic model including a set of performance indicators that help us in understanding the impact of the governing structure on the system’s performance.
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