A Public Value Ecosystem Framework for Local Governance Reform

Thesis Abstract

The study addresses the persistent disjunction between policy intentions and local service outcomes in mid-sized metropolitan municipalities facing fragmented stakeholder engagement, limited interdepartmental coordination, and constraining fiscal pressures that undermine public value creation. It argues that local governance reform requires a coherent public value ecosystem (PVE) that aligns citizen expectations with government capability, civil society participation, and private sector collaboration within a shared value framework. The aim is to develop a theoretical PVE framework that explicates the interdependencies among value creation, governance arrangements, and stakeholder ecosystems to sustain reform outcomes. Specific objectives are (1) to identify the core actors, resources, and processes that constitute a local public value ecosystem; (2) to model the relationships among governance legitimacy, citizen trust, service co-production, and outcome efficiency; (3) to examine how digital platforms and data-enabled decision-making influence cross-sector collaboration and accountability; (4) to test the applicability of the framework across three distinct districts with varying demographic profiles; and (5) to generate policy and administrative recommendations for scalable reform. Methodologically, the study adopts a mixed-methods design anchored in abductive reasoning and theory-building. The population comprises all municipal departments, local NGOs, business associations, and citizen advisory bodies within the study region. A stratified random sample of 180 respondents across 12 municipal units is selected, with proportional representation from administrative, financial, and community development sectors. Data collection employs a triangulated instrument suite a structured survey (n=180) to quantify perceptions of value creation, coordination quality, and accountability; semi-structured interviews (n=42) with senior managers, councilors, non-profit leaders, and business representatives to elucidate mechanism-level dynamics; and document analysis (policy briefs, annual plans, performance reports) to corroborate enacted practices. Instrument validity is established through expert review and a pilot test (n=20), while reliability is assessed using Cronbach's alpha for multi-item scales (target ? ? 0.70). Data analysis proceeds in three convergent phases (i) descriptive statistics and exploratory factor analysis to identify latent dimensions of the PVE, (ii) structural equation modeling (SEM) to test hypothesized relationships among governance legitimacy, stakeholder trust, co-production intensity, and service outcomes, and (iii) thematic analysis of interview transcripts using a constant comparative method to extract mechanisms of value co-creation and interagency collaboration. The model specification draws on the theories of Public Value Management (PVM), Stakeholder Theory, and the Collaborative Governance framework, with additional incorporation of the Information Systems Success Model to account for digital platforms. Expected findings indicate that a robust PVE emerges when legitimacy is reinforced by transparent accountability, which in turn fosters citizen trust and participatory capacity. Co-production intensity is anticipated to mediate the relationship between governance structures and service outcomes, with digital platforms enhancing information sharing, legitimacy signaling, and rapid feedback loops. Variations across districts are expected, with higher degrees of cross-sector collaboration yielding greater improvements in efficiency, equity, and user satisfaction. The study will identify critical leverage points for reform—clarifying roles, reducing redundancy, investing in interoperable data systems, and formalizing citizen engagement channels—and demonstrate how misalignment between actors impedes value realization. The contribution to knowledge lies in operationalizing a PVE that integrates governance legitimacy, stakeholder engagement, and platform-enabled coordination into a cohesive analytical framework suitable for empirical testing in local administration. The study advances theory by articulating a dynamic, ecosystem-based model of public value creation at the municipal level and by delineating the mechanisms through which digitalization and co-production influence outcomes. Policy implications include concrete guidance on institutional design, performance measurement, and capability development to sustain reform. Based on the findings, the study recommends establishing a municipal value coordination unit, adopting a standardized multi-stakeholder dashboard, and investing in interoperable data architectures to support continuous learning and adaptive governance. The main conclusion is that local governance reform is likely to succeed when a deliberate public value ecosystem is constructed, maintained, and continuously evaluated through participatory governance, transparent accountability, and data-enabled collaboration.