Applying Strategic Management Theories in Public Sector Organizations: Developing a typology

Abstract This article discusses the utility of two different strategic management theories in different types of public organizations including contemporary New Public Management-based public organizations, namely Porter’s strategic positioning model and the resource-based view of strategy. We argue that possibilities for applying these theories vary depending on the type of public organizations involved, and are less appropriate in traditional settings but more relevant in autonomized and market-like service-delivery organizations. We further propose that their increased applicability depends on three specific conditions: the degree of administrative autonomy, performance-based budgeting and market-like competition. We give empirical examples drawn from public services in the UK and Denmark. We call for more exploration of these (and other) strategic management approaches within contemporary public services organisations but also more exploration of the limitations of these frameworks.

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