Corporatization as Organizational Innovation

Abstract

There is good reason to interpret corporatization as an organizational innovation in public services. Corporatized units have become very extensively applied organizational changes in public services during the past 20–25 years (McDonald and Ruiters 2012, 4; Bilodeau et al. 2007; Valkama 2002, 90). This is indeed a radical change as it introduces the principles of private sector organizational characteristics into the sphere of public service responsibilities. Corporatization has proven to be an essential part of governments’ means to not only reorganize conventional public enterprises but also manage new types of public responsibilities. Airports, car parking services, postal services, railways, telecom, gas and water supply are classic governmental enterprises that have been corporatized. Examples of new objects of service corporatization are museums, motorways, pilotage services, hospitals, universities, information and communication technology services and governmental real properties (Herzog 2011; Yamamoto 2004; Harding and Preker 2000).

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