How interagency coordination is affected by agency policy autonomy

Abstract

This article analyses how variances in inter-agency coordination are affected by agencies’ policy autonomy. Performance management has increased the focus on agency autonomy, but knowledge of how different levels of agency autonomy affect coordination amongst government agencies is limited. Theoretically, this article uses agency and stewardship theory to discuss why agencies might regard coordination as either desirable or undesirable. Empirically, this article analyses performance contracts between and annual reports of ministries and government agencies. Findings support the expectation derived from agency theory. Agencies with high autonomy coordinate less with other agencies than agencies with low autonomy do.