The State as a Marketizer vs. the Marketization of the State: Two Organizational Models of Public Sector Corporatization

Abstract

Governments engage in corporatization by creating corporate entities or reorganizing existing ones. These corporatization activities reflect an interplay between political agency and environmental pressures, including (changing) notions of state-market relations. This paper discusses two ideal-typed organizational models of corporatization: the state as a marketizer and the marketization of the state. Whereas the first emphasizes the role of political design and agency in corporatization, the second emphasizes the role of (actors in) the environment for corporatization. Both models are assessed across five corporatization episodes in Norway and Sweden, where we also demonstrate the interplay between political agency and environmental pressure.