NPG and Stewardship theory: remedies for NPM privatization prescriptions

Abstract

Responding to the perceived dysfunctions of New Public Management (NPM) and Agency theory, New Public Governance (NPG) and Stewardship theory offer conceptualizations of the behaviour of the for-profit service provider as well as a governance system that better meet community expectations as to the performance of privatized public infrastructure. Empirical research involving privatized water services was carried out to test if these conceptualizations adequately explain the reality of modern governance systems and organizational behaviour. NPG presented as a framework appropriate for understanding the reality of governance systems establishing a context for the foundational level stewardship behaviour of the for-profits.

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