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JOURNAL OF APPLIED BUSINESS AND ECONOMICS
New Approach to Network in Public Administration
Author(s): Krzysztof Opolski, Piotr Modzelewski, Agata Kocia
Citation: Krzysztof Opolski, Piotr Modzelewski, Agata Kocia, (2013) "New Approach to Network in Public Administration," Journal of Applied Business and Economics, Vol. 14, Iss. 5, pp. 99-109
Article Type: Research paper
Publisher: North American Business Press
Abstract:
More often a contemporary literature considers the importance of networks in the public sector. The
concept of a network evolved from social anthropology and socio-metrics where structure of a society
was presented as a complex relation between individual and collective actors. Since then networks have
been used to study sociological but also, more recently, economic phenomena. Public sector bodies are
organized and managed as network structures therefore there is a necessity to measure them using
analytical tools available for network structure measurement (Kickert, Klijn and Koppenjan, 1997, p.
XVII). This is especially difficult in the context of diversity of the public services delivered as part of
different governance structures. The article aims at proposing a model of performance measurement of
the public administration institutions. The authors of this article will concentrate on a study of existing
public administration networks in its current form that is in the real sphere of its functioning. Network
governance is responsible for establishing policies, while the public administration network is
superimposed a duty to implement them. Design of public administration network consists of no
centralized authority which contradicts a typical organization of enterprises in a hierarchical manner.
Therefore, command and control model of the public administration becomes typically outdated, although
at times, is still useful as part of the network. This is substituted by other models of management related
to responsibility and coordination. A researcher faced with a complex system of public administration
should have the tools for assessing the effectiveness of public administration network and should be able
to measure the costs and external effects of its operation. From the practical perspective, network
performance measurement can be completed ex post based on satisfaction criteria. Actors, that is
individuals taking part in network, note their goals and assumption prior to taking place interaction in
the network and after interacting they analyze the relations including: time, input of resources including
personal energy and money (Teisman, 1993). In the subject literature an increasing number of
publications, the public administration is seen as a network. However, such public perception is relevant
mainly in the theory of science, including political sciences and focuses on legal, institutional and
managerial issues. There is a pressing and essential need to develop economic literature in this area that
would present the method of measuring performance of the public administration network both from the
perception of cost and economic evaluation of externalities. An evaluation of public administration
network and its management poses a difficult task for economists. Although there are many studies in the
area of qualitative research including F.W. Scharpf (1978, p. 345-370), W.J.M. Kickert, E.-H. Klijn,
J.F.M. Koppenjan (1997), A. Vazakidis, I. Karagiannis and A. Tsialta, (2010, p. 376-382), there are few
quantitative studies. Those that are present use managerial accounting aspects to analyze public
administration network phenomena such as Activity Based Costing and Balanced Scorecard. The authors
will propose a theoretical model which is based on contemporary theories of management as well as
elements of Balanced Scorecard suitable for public administration.
