Research Project (Draft Proposal)“Quantitative model building and comparative research toevaluate the impact of different business and governanceschemes on value creation by municipality enterprises inJapan and Germany”
2018~2020
Prof. Dr. Jörg Raupach-Sumiya

Key Research Question: “How to evaluate and compare in a quantifiable and integrated
manner the impact of differing business and governance schemes for municipalitycentered enterprises in respect to the generation of comprehensive value for citizens andcommunities?” ➞ Basic Notion▪ Mandate of public enterprise differs from private enterprise➞ aiming for citizen satisfaction and desired social outcomes▪ Customers of public enterprises differ from private enterprises➞ individual citizen and collective society▪ Nature of performance by public enterprise differs from private enterprise➞ contribution to individual citizen and collective society

Public Value: Theoretical Foundations & Practical Application ?

Key Research Question: “How to evaluate and compare in a quantifiable and integrated
manner the impact of differing business and governance schemes for municipalitycentered enterprises in respect to the generation of comprehensive value for citizens andcommunities?”

How to Measure“Public Value ofMunicipality
Enterprises” ?

Model Testing – Comparative Analysis

Impact of Differing Business Models➩ Strategy Patterns
Japan• Economic Value(e.g., financial performance,regional economic value-added)• Social Value(e.g., resilience, local welfare,participation, responsiveness)• Environmental Value

Germany“Stadtwerke”

Municipality-CenteredEnterprises（企業局、地方公営企業、第三セクター事業、PPP、PFI、コンセッション事業等）(e.g., sustainability)• Others (e.g., regional policy)➩ Performance Metrics

Impact of Differing Governance Structures➩ Organizational & Institutional Patterns

External Influences➩ Contextual Factors

Theory-BasedModelling

Theoretical Foundations for Modelling “Public Value”
Economics

Political Science• “Public Good”• “Common Social Capital”(社会的共通資本）(宇沢弘文）• “Theory of the Commons” / (E.

• “The Common Good” (A. Etzioni)• „Daseinsfürsorge“ (生活権）• “Public Space”（公共圏・公共空間）（船橋晴夫）• “Sustainable Development Goals”(SDG’s)Ostrom, D. Bollier, C. Felber, S. Helfrich, 細野助博)

Public Management Theory• “Performance Management”(C. Talbot)• “New Public Management”• “Public Value”(M. Moore, B. Bozeman, M. Cole, J. Bryson)“Citizen Value” (Wuppertal Institut)•• “Public Private Partnership
公民連携論 (東洋大学、龍谷大学）

Modelling &Measuring“PublicValue”

Strategic Management• “Creating Shared Value”(M. Porter, M-K. Ahrend)• “Collaborative Value-Added”(T. Redlich)

Theoretical Foundations: “Defining Public Value of Social Infrastructure?”➀ Classification ofGoods & Services

Social Infrastructure /Use of Public Assets➂ Public Value(M. Moore / J. Bryson)

excludable

nonexcludable(社会的共通資本）
nonrivalrous

rivalrous

PublicGoodsCommon
Goods(P. Samuelson)(E. Olstrom)

ClubGoodsPrivateGoods(J. Buchanan)(P. Samuelson)➞ How to be characterized ?
➞ Who should provide ?
➞ How to specify its public value ?

Solidarity
Communal Sharing•
•
•
••
•

Common GoodPublic Interest
Social cohesion
Altruism
Local governance
Citizen involvement

Authority
Authority Ranking

Result of social choice process

•
•
•
•
•

Equality
Equality Matching•
•
•
•
•
•
•

Human dignity
SustainabilityFuture
Majority rule
Democracy
Individual rights
User democracy

Private Value

Public Value

individual customer assole arbiter of value

public (=taxpayer) as
arbiter of value

individual consumption

collective consumption /public mission

market accountability

democraticaccountability

material satisfaction

plus “common wellbeing” (social outcomes)monetary (=efficiency &effectiveness)plus justice, fairness, useof authority

utilitarian(“value for money”)

utilitarian & ethical(“deontological”)

Autonomy
Market Pricing

Regime dignity
Regime stability
Political loyalty
Accountability
Responsibility

Diverse & Contested➁ Society’s Public Values(B. Bozeman / T. Meynhardt / C. Talbot)

Reflection of collective consensus

Theoretical Foundations: “Typology of Goods & Services ?”excludable

nonexcludable➀ Classification ofGoods & Services

D. Bollier/S. Helfrich, The Wealth of the Commons”▪ “Common goods are elementary to our life and meetbasic necessities of life.” ➞ “Theory of Basic Needs”

nonrivalrous

rivalrous

PublicGoods

CommonGoods(P. Samuelson)(E. Olstrom)

ClubGoods

PrivateGoods(J. Buchanan)(P. Samuelson)▪ Excludability of a good is determined by social process:“A common good is not non-excludable per se, but given thischaracteristic; common goods are created through choice ofsociety.”▪ “Common goods exist only if we produce them – and will remain
only if we take care of them.”▪ Degree of rivalry determines usage rules:➀ non-rival goods ➞ open access➁ rival goods ➞ restrictions to access➞ problem of efficiency➞ problem of market failure (e.g., externalities, natural monopolies,
imperfect information)➞ problem of overuse (“tragic of the commons”)➞ problem of underuse (“tragic of the anti-commons”)

Theoretical Foundations: “Typology & Inventory of Public Values ?”➁ Public Values➁ Public Values(B. Bozeman )(T. Meynhardt)

B. Bozeman: “Public Failure Theory”▪ “Public values constitute the normative consensus
about the rights, benefits and prerogatives towhich citizens should (or should not) be entitled,
about obligations of citizens to society, the state,
and to one another and about the principles on
which government and policies should be based.“T. Meynhardt, “Psychological Roots of Public Value Creation”▪

“Public value creation is situated in relationships between the individual and‘society’, founded in individuals, constituted by subjective evaluations against
basic needs, activated by and realized in emotional-motivational states, andproduced and reproduced in experience-intense practices.”▪

Value exists in relationships: “Value is a result of a relationship between a subject thatis valuing an object and the valued object…A value can become objective if different
subjects share a valuation…Public value can be seen as a shared or collectively held value
about the quality of a relationship involving the public.”▪ “If society expresses consensus on a certain value
and this value is not achieved, then a public failure
has occurred.”▪

The public is inside: “There is no objective public dimension, independent of subjective
meaning...’The public’ takes on different shapes…There can be different ‘publics’.”▪

Public Value is grounded in basic needs: “Public value is bound to subjects’ needs (individuals,groups)…Needs concern deficits between an actual and desired psychological state that results in amotivation to act.”➞ moral-ethical: need for positive self-evaluation (e.g. functioning of community, human dignity)➞ hedonistic-aesthetic: need to maximize pleasure and avoid pain (e.g. sports or cultural events)➞ utilitarian-instrumental: need to pertain control and coherence in means-to-end relationships (e.g. ‘valuefor-money of public service)➞ political-social: need for positive relationships (e.g., solidarity, cooperation, inclusion)▪ Public Value Mapping➞ set of 10 public values criteria➞ 7 categories for inventory of public values➞ Public Value Mapping▪
➄ Contingencies(J. Alford )Public Value Creation: Perceived – not delivered- and relative / dynamically
produced and reproduced: “There is no public value without human appraisal…Public value is thecombined view of the public about what they regard a valuable…Public value is a linkage mechanism thathelps people relate to their wider community and society, and helps organizations identify the potential for
gaining and sustaining legitimate action…A value (e.g., sustainability) is only enacted when people integrated
associated attitudes in their mindsets and behavior.”

Theoretical Foundations: “Typology & Inventory of Public Values ?”B. Bozeman / T. Jørgensen

Theoretical Foundations: “Typology & Inventory of Public Values ?”B. Bozeman, “Public Failure”

Theoretical Foundations: “Typology & Inventory of Public Values ?”➁ Public Values

Solidarity
Communal Sharing(C. Talbot )C. Talbot, “Theories of Performance”▪ Diverse, contested nature of public values (5 Value-basedTheories)➞ “Performance measurement in the public sector raises
questions about value and political choice.”➞ “Public values are not uniform, but contested and conflicting”➞ “How we assess the value of an activity depends crucially on
how we hold and apply our values”➀ Four Culture Theory (Harrison/Handy)➁ Cultural Theory (Thompson)➂ Competing Value Framework (Quinn/Cameron)➃ Relational Model (Fiske)➄ Reversal Theory (Apter)▪ Integrating Framework (based on 5 Value Theories)➀ Communal Sharing➁ Authority Ranking➂ Equality Matching➃ Market Pricing➄ Contingencies(J. Alford )

••
•
•
•
•

Common Good
Public Interest
Social cohesion
Altruism
Local governance
Citizen involvement

Authority
Authority Ranking•••••

Regime dignity
Regime stability
Political loyalty
Accountability
Responsibility

Equality
Equality Matching
•
•••
•
•
•

Human dignity
Sustainability
FutureMajority rule
DemocracyIndividual rights
User democracy

Autonomy
Market Pricing

Theoretical Foundations: “Typology & Inventory of Public Values ?”Competing Value Framework (Quinn/Cameron)

Theoretical Foundations: “Dimensions of Public Values ?”➂ Dimensions of Public Value(M. Moore)

M. Moore, “Strategic Triangle”

J. Alford
Benefits & costs in respect to

1. “service performance”(cost, quality, effectiveness, responsiveness)

2. “relationship”

3. “institutional orstrategic relevance”

Theoretical Foundations: “Dimensions of Public Values ?”➂ Dimensions of Public Value(A. Cresswell et. Al))A. Cresswell et. Al, “Public Value Framework”

Theoretical Foundations: “Performance Management & Governance ?”➃ Performance Measurement➃ Performance Measurement(M. Moore / J. Alford)(T. Meynhart)

M. Moore▪ Public Value Accounting: 3 features➀ assets of government to produce public value incl. authority and money➁ incorporating utilitarian standards(e.g., individual satisfaction, socialoutcomes) and ethical, deontological standards (e.g. justice, fairness)➂ including achievements/ benefits as well as financial costs, unintended
consequences and social costs of using state authority➞ delivery of actual public services➞ achievement of desired social outcomes➞ maintenance of trust and legitimacy of public agency➞ willingness of public to sacrifice something for public value▪ Public Value Scorecard➞ adopted from Kaplan/Norton, Balanced Scorecard➞ 3 perspectives reflecting Moore’s Strategic Triangle:
public value account, legitimacy & support, operational
capacity
J. Alford▪ Cost, service quality, effectiveness, responsiveness▪ 3 dimensions for benefit & costs of Public Value➞ service benefits & costs➞ relationship benefits & costs➞ institutional (or strategic) benefits & costs▪ Decision-Making / Option Evaluation: Notion of contingency

T. Meynhardt, “Public Vale Scorecard”▪ 5 inquiry techniques for developing performance measures➀ Prioritizing (e.g. forced ranking)➁ Screening➂ Surveying➃ Exploring➄ Sensing (e.g., applying linguistic analytics to big data from social media)▪ Measuring Public Value along 5 categories (reflecting basic needs)➀ utilitarian-instrumental values (1): “Is it useful ?”➁ utilitarian-instrumental values (2): “Is it profitable ?”➂ moral-ethical values: “Is it decent ?”➃ political-social values: “Is it politically acceptable ?”➄hedonistic-aesthetic values: “Is it a positive experience ?”▪ Assessing associated opportunities and risks

Theoretical Foundations: “Performance Management & Governance ?”➃ Performance Measurement(C. Talbot))

Performance Regimes (“Network Governance”)

Performance Measurement ofPublic Agency

Theoretical Foundations: “Integrated Frameworks of Public Value
Analysis?”

Research Design – Work Packages & Modules
Model Building & Preparation

Model Testing(2018~2019/1H)(2019/2H~2020)

0. Building Database on Financial Data (JP / GER)
➩ List of Target Enterprises / Financial Data
➩ Comparative Analysis of AccountingStandards and Practices

5. Comparative Financial Analysis (JP/GER)➩ Statistical Analysis of Business Performance➩ Influence of Business Model / Governance➩ Assessment of Contextual Impact

1. Development of a Set of Key Performance
Metrics to Measure “Public Value”➩ Review of Theories / Literature Review➩ Identifying Set of Suitable Indicators

6. Testing Concept of “Public Value” (JP/GER)➩ Citizen Surveys➩ Assessing Relevance & Feasibility of Indicators➩ Comparative Analysis of Citizens’ Attitudes

2. Identifying Differing Business Models ofMunicipality-Centered Enterprises (JP / GER)
➩ Analysis of Corporate-Level Strategy➩ Business-Level Value Chain Analysis➩ Analysis of External & Regulatory Context

7. Comparative Case Studies (JP/GER)➩ Evaluation of Case-Specific “Public Value”➩ Comparative Analysis of Case Studies➩ Assessing Impact of Business Model,
Governance Patterns & External Context

3. Identifying Differing Governance Patterns(JP / GER)
➩ Review of Theories / Literature Review➩ Analysis of Regulatory & Policy Differences

8. Deriving Hypothesis for Further Empirical
Testing and Theory Building➩ Defining of Future Research Agenda➩ Dissemination Strategy (e.g., Publishing, Conferences)