One Size Fits All? Facility Management in Norwegian Local Governments*

Abstract

Up to the mid-1990s almost all Norwegian local governments had\na decentralized structure on their facility management. Over the following\n15 years a swift centralization followed, and in 2010 roughly 85% of the local\ngovernments used a centralized structure. Centralization is in accordance\nwith the recommendation from a government commission studying the topic,\nbut the arguments are not unambiguous. This paper formulates a stylized\nmodel for the relationship between facility management and production of\nwelfare services. The model suggests that it is not obvious that a centralized\nstructure is superior for all local governments, but that this may depend\non local factors. Consistent with the predictions from the stylized model,\nthe empirical findings suggest that large local governments with a weak\npolitical leadership centralize their facility management, while small local\ngovernments with a strong political leadership prefer a decentralized\nstructure.

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