Decentralization and
centralization in the context of a global crisis
Bachelor’s Thesis 15 hp
Specialization: Management & Control Department of Business Studies
Uppsala University
Spring Semester of 2021
Date of Submission: 2021-06-03
Wilma Falk
Karine Raundalen
Supervisor: Gunilla Myreteg
Abstract
Decentralization versus centralization is a discussed subject within the field of management, and it is about where control is allocated in the organization. This thesis aimed to contribute with understanding of these two contrasting structures by a multiple-case study consisting of Swedens’ decentralized, and Norway’s centralized national health care service in the context of the coronavirus pandemic. Opportunities and challenges are studied within each organizational model by studying the handling of the shortage of personal protective equipment (PPE). The empirical findings showed that the allocation of control at regional level in the organization of Sweden’s national health care resulted in opportunities to create new forms of regional collaborations, and challenges of having to change the current organizational model due to the complexity of the problem. In Norway, where control is allocated at the national level, an opportunity was the establishing of a national purchase and distribution system and to handle the problem proactively. For some parts of the local level, implementation of directives given by central authorities turned out to be a challenge.
Key words: Centralization, decentralization, health-care services, public management,
crisis, Covid-19
Preface
In a time that historically will be marked by the covid-19 pandemic we got to know each other in different courses in business administration, and now we soon finish our bachelor thesis, without having seen each other physically. The fact that we are sitting in two respective countries that apply different models of control in national health care services gave us inspiration to learn more. What perspectives to public management and control could be obtained from the circumstances of the coronavirus crisis? In this way, the idea for the thesis developed.
First we want to thank our supervisor Gunilla Myreteg for supporting us in the process of this thesis. Thanks for your constructive questions and challenges. We also want to thank all other students that have taken time to read our texts and come with valuable comments in the seminars this spring.
Wilma Falk Karine Raundalen
Uppsala, May 2021 Tønsberg, May 2021
Table of Contents
1. Introduction 1
1.1 Problematization 2
1.2 Purpose and research question 3
1.3 Academic and practical relevance 3
2. Empirical background 5
2.1 National health care service 5
2.1.1 Personal protective equipment (PPE) 5
2.2 Sweden’s decentralized national health care service 5
2.2.1 National level 6
2.2.2 Regional and local level 6
2.2.3 Coordination by a political organization 7
2.3 Norway’s centralized national health care service 7
2.3.1 National level 8
2.3.2 Regional level 9
2.3.3 Local level 9
2.4 Allocation of control in Swedish and Norweigan health care 9
2.5 Principles of responsibilities in a crisis 10
3. Theory 12
3.1 Conceptual frameworks of decentralization and centralization 12 3.2 Theoretical opportunities and challenges related to decentralization 13 3.3 Theoretical opportunities and challenges related to centralization 13
3.4 Empirical evidences 14
4. Method 16
4.1 Qualitative research strategy 16
4.2 Multiple-case study design 16
4.2.1 Selection of cases 16
4.2.2 Situational context 17
4.2.3 Dimension of time 17
4.2.4 Abductive approach 17
4.2.5 Secondary sources 18
4.2.6 Collection of empirical data 18
4.2.7 Overview of chosen research design 19
4.3 Reflections on methodological choices 20
4.3.1 Secondary sources and related limitations 20
5. Empirical findings 22
5.1 Case study of Sweden’s national health care service 22
5.1.1 Critical access of PPE and regions request help from national level 22
5.1.2 Ad-hoc collaborations 23
5.1.3 Confusions regarding share of responsibilities 24
5.1.4 Variations among regions 24
5.2 Case study of Norway’s national health care service 25
5.2.1 Proactive phase 25
5.2.2 Reactive phase 26
5.2.3 Reported stability 27
6. Analysis 28
6.1 The Swedish national health care case 28
6.2 The Norwegian national health care case 30
6.3 The cases in relation to each other 33
7. Conclusions 35
7.1 Sweden 35
7.2 Norway 35
7.3 Further research 36
References 37
Table of Figures
Figure 1: The organization of Sweden’s national health care service 6 Figure 2: The organization of Norway’s national health care service 8 Figure 3: Allocation of control in Sweden’s vs. Norway’s national health care service 10
Figure 4: Research design 20
1. Introduction
One of public managers´ most important tasks is to create appropriate organizational structures that can provide institutional support and system stability, and a key aspect of this issue is the chosen degree of centralization and decentralization (Andrews et al., 2007).
Centralization and decentralisation represent two contrasting organizational structures with respect to where decisions are made in the governmental hierarchy (Tommasi &
Weinschelbaum, 2007). The concepts are relative, meaning that one can use terms such as
´weaker or stronger central planning´ (Cheema & Rondinelli, 2007) as a relative scale of how much decentralized or centralized a system is.
Looking at the half past century from a global perspective, the trend was that most countries increased centralization of government up until the 1960s and 1970s, while the trend after this shifted towards decentralization and the giving of more responsibility to local administrative units (Cheema & Rondinelli, 2007). Today, most countries are characterized by having applied some degree of decentralisation (ibid.) but the subject is still debated within the field of organization design (Kates & Galbraith, 2007). The national health care service in Sweden and Norway was before 2002 decentralized in a similar manner. However, since 2002, Norway reorganized its health care service towards a higher level of centralization by allocating control that usually belonged to the regions up to the central government (SML, 2019b). It is not the aim of this thesis to place the national health care service in Sweden and Norway, respectively, on the exact scale of decentralization or centralization, but there are notifiable differences in these two organizational designs which will be presented.
The concepts of centralization and decentralization are often discussed with respect to
different opportunities and challenges, and performance outcomes such as equity, efficiency
and quality, in relation to public services (Robinson, 2007). The ongoing Covid-19 pandemic
has placed new demands on the national health care service (Begun & Jiang, 2020). Already
in the outbreak of the coronavirus, the World Health Organization (WHO) noticed sharp
price increases on necessary equipment, such as surgical masks, used by healthcare
professionals to protect themselves and their patients from the spread of infection. A later
identified global shortage of this necessary equipment, referred to as personal protective
equipment, abbreviated PPE, was appointed by WHO to be one of the most urgent threats to the ability to save lives in the pandemic. It is widely known that the shortage of PPE is related to challenges of coordination and equal access around the world (Burki, 2020). By looking further into the processes of how this has been handled in the cases of Sweden and Norway, representing two different organizational and managerial designs, the aim is to develop understanding of the decentralized and centralized organization.
1.1 Problematization
Whether the authority to provide and the cost of provision should be made and financed by central or local governments is a prominent question in relation to public services (Besley &
Coate, 2003). This is a matter of centralization or decentralization, which optimal proportion Henri Fayol stated for more than seven decades ago would vary between different organizations and depend on circumstances (Fells, 2000). For instance, centralized structures are normally associated with relatively predictable circumstances while decentralized structures are associated with complexity in the organizational surrounding (Treiblmaier, 2018). With health care services being a complex system to govern and control (Tien &
Goldschmidt-Clermont, 2009) one could expect that the same organizational structure would be optimal for both the Swedish and the Norwegian national health care service. The evidence in research, however, based on single countries transitioning from centralization to decentralization of public services, or the other way around, show that it is hard to draw any general conclusions whether a system for public services is better under centralization or decentralization (Krajewski-Siuda & Romaniuk, 2008; Robinson, 2007; Ghuman & Singh, 2017).
Since the end of 2019, the national health care service has faced a new and surprising event that has never been experienced before in modern times (svt Nyheter, 2020a; Celina et al., 2020). The coronavirus pandemic is a global and long-term health crisis that is characterized by “the complexity of its source, the speed of its spread and the unpredictability of its scale and impact” (Begun & Jiang, 2020, p.2). Governmental decision-making during Covid-19 has been exceptionally difficult, strategic consequences are unknown (Atkins, 2020) and the knowledge and facts about the virus are insufficient. The government needs to work out from
“what we know, what we think we know and what we hope we know” (UIB, 2020).
Centralization and decentralization in relation to this new context has been studied by (Hegele & Schnabel, 2021) who have compared federal decision-making during Covid-19 between several European countries with different levels of centralization and decentralization. However, this with regards to aspects such as lockdown and quarantining, not outcomes for specific public services such as the national health care service. As far as these authors are concerned, there are no studies comparing centralization and decentralization of public services in relation to a common crisis in general, for instance a financial crisis, nor for the crisis of Covid-19. Among all aspects of demands national health care services has been facing, the pandemic involves a massive lack of personal protective equipment (PPE) which has been an unprecedented global problem (Burki, 2020; Celina et al., 2020) needed to be solved in both Sweden and Norway. Based on the lack of research of decentralization and centralization in relation to a crisis, the Covid-19 pandemic serves as a unique opportunity to develop a deeper understanding of challenges and opportunities with having a decentralized or a centralized organizational design. Accordingly, the cases of the national health care service in Sweden and Norway will be further investigated.
1.2 Purpose and research question
This study aims to contribute with understanding of the decentralized and the centralized organization. This is done by studying two cases with different structures and managerial design; the Swedish decentralized national health care service, and the Norwegian centralized national health care service, in the context of a new global crisis.
To fulfill the purpose of the study, the following research question has been formulated:
- What challenges and opportunities did the Swedish decentralized health care service and the Norwegian centralized health care service experience when managing the shortage of personal protective equipment (PPE) in the Covid-19 pandemic?
1.3 Academic and practical relevance
The academic relevance of this research is that a widened understanding of the theoretical
associated challenges and opportunities with the concepts of centralization and
decentralization is provided, as this is now studied in a new context of a long stretching crisis.
The practical relevance applies to national health care services and other big complex
organizations, on what can be expected challenges and opportunities with having the
respective organizational structure and managerial design in a similar crisis situation. A
contribution is therefore insights regarding how to be better prepared in the future in order to
manage, or even prevent, challenges that may occur.
2. Empirical background
This section presents the organization of the Swedish and Norweign health care service, and forms the basis for the upcoming empirical case studies.
2.1 National health care service
A nation's health care service is a system built upon institutions, laws and services that aim to strengthen people's health, give diagnoses, and treatment (SML, 2019b; Vårdgivarguiden, 2019). National health service consists of both private and public institutions available for inhabitants. Regarding employment and utility of resources this is one of the largest sectors of society (SML, 2019a; Europeiska kommissionen, 2017).
2.1.1 Personal protective equipment (PPE)
For work in health care, personal protective equipment, commonly referred to as PEE, is important. During the coronavirus crisis, PPE is equipment worn by health care and their patients to keep protection against covid-19. Personal protective equipment includes items such as safety helmets, eye protection, clothing and face masks (United States Department of Labor, 2021). In the time of the covid-19 pandemic, a global shortage of PPE has occurred (WHO, 2020).
2.2 Sweden’s decentralized national health care service
Sweden’s national health care is organized at three political and administrative levels;
nationally, regionally and locally and additionally at a european level which constitutes the
structure of the Swedish model for public administration (Regeringskansliet, 2014). In
Sweden, the national health care service is decentralized meaning that the responsibilities lie
with regions and municipalities (Socialstyrelsen, 2020a). Figure 1, an own illustration, shows
the organization and administration of Sweden’s national health care system.
Figure 1. The organization of Sweden’s national health care system which is governed at a national, regional and local level. It includes the care chain primary care, county care, and regional care that include national specialized care. Own figure with illustrative inspiration from (NORDHELS, n.d) and (Merkur et al., 2012, fig.2, p.19).
2.2.1 National level
At the national level, the parliament and the government have the role to set and establish regulations, guidelines and a political agenda for health and medical care. The Ministry of Health and Social Affairs
1is responsible to politically fulfil the goals set by the parliament and government politically and also to administrate the budgetary part addressed for public health and medical care. The Ministry of Health and Social Affairs is responsible for a number of government agencies (Vetenskapsrådet, 2017) that serves as expert bodies for the nation, for example the National Board of Health and Welfare
2which is the government's central supervisory authority (HealthManagement.org, 2010).
2.2.2 Regional and local level
Sweden has in total 21 regions with a County Administrative Board in each region, which is the government's representative. The inhabitants in the particular region determine through elections the politicians that will govern the region (Vetenskapsrådet, 2017). The regions are responsible for their internal control, allocation of resources, planning, and organizing their health care activities (Sveriges läkarförbund, 2021; Vetenskapsrådet, 2017). At the local
2
Swe. Socialstyrelsen.
1
Swe. Socialdepartementet.
level, there are in total 290 municipalities with similar responsibilities as the regional level, for example by having their own politically elected local authorities (Vetenskapsrådet, 2017).
Distinctive for both the regional and local level is the so-called local- and regional self-government
3. It means that the regions and the municipalities are managing their own activity with a considerable degree of anatomy but have to comply with the framework of the national level. According to the principle of self-government, regions have the right to levy their own taxes among their citizens. The regions decide the level of taxes whereas the state decides on what the regions may levy taxes on. All regions are therefore self-financed to the largest part but also receive state subsidies (SKR, 2021c). When it comes to national specialised medical, it is fully financed by the state (Vetenskapsrådet, 2017).
Of the 21 regions, five of them collaborate in procurement and purchasing of medical equipment by being members in a self-governing political organization called the Goods Supply Board
4. There are similar constellations between regions, such as the Purchasing Committee
5between Sörmland Region and Västmanland Region (SR, 2020a;
Varuförsörjningen, 2020; Upphandlingsmyndigheten, 2020).
2.2.3 Coordination by a political organization
In Sweden’s decentralized health care system, an important actor is the politically run organization named the Swedish Association of Local Authorities and Regions
6(SALAR).
The organization is a network and link for coordination between the national level and the regional and local levels. All regions and municipalities are members of SALAR, making it Sweden's largest employer's organisation (Statskontoret 2020; SKR, 2021d).
2.3 Norway’s centralized national health care service
The national health care service in Norway is also organized at three levels; national level, regional level and local level. Figure 2 illustrates the centralized organization and administration of the Norwegian system which is mainly financed by the state budget (SML, 2019a) and where the state has the overall operational responsibility of special health care services (Regjeringen, 2020b).
6
Swe. Sveriges Kommuner och Regioner, SKR.
5
Swe. Inköpsnämnden.
4
Swe. Varuförsörjningsnämnden.
3
Swe. Kommunalt självstyre.
Figure 2. The organization of Norway’s national health and medical care service at a national, regional and local level. Own figure with illustrative inspiration from (NORDHELS, n.d) and (Merkur et al., 2012, fig.2, p.19).
2.3.1 National level
At a national level, the Ministry of Health and Care Service
7controls the budgets, suggest laws to the Parliament and control several agencies, among others the Directorate of Health
8and the Institute of Public Health
9(SML, 2019a). The Directorate of Health is strategic advisers and a unit of competence (Helsedirektoratet, 2021) and the Institute of Public Health is responsible for competence and knowledge (FHI, 2019). The Ministry of Health and Care Service has the national responsibility for the content and development of health care services through four regional health authorities that are owned by the state; South Eastern Norway Regional Authority, Health Mid-Norway Regional Authority, West Norway Regional Authority and North Norway Health Authority. Through these, the state governs and controls the special health care, including university hospitals, regular hospitals, as well as other health centres (SML, 2019a). In figure 2, the connection between national and regional level is therefore illustrated by a thick line, and the regional health authorities will from now on, to make the connection easier to understand, be referred to as subnational health
9
Nor. Folkehelseinstituttet.
8
Nor. Helsedirektoratet.
7
Nor. Helse- og Omsorgsdepartementet.
authorities. The subnational health authorities also own an health organization, Health Purchase
10, that purchases equipment for the entire special healthcare at the regional level (Sykehusinnkjop, 2020).
2.3.2 Regional level
At a regional level, Norway has 11 regions. They have, however, no operational responsibility for special health care services in their geographical area since the health institutions are under the control of the four subnational health authorities. But, all regions have a County Governour
11that are the Parliament´s representatives whose tasks are to monitor and inspect, coordinate and advise the municipalities in their region regarding health service resolutions given by the state (SNL, 2021; Statsforvalteren, 2021).
2.3.3 Local level
At a local level the municipalities are responsible for planning, organizing and the providing of primary health care services (including nursing, general practitioners and emergency rooms) due to the Law of Municipalities (SML, 2019c). The municipalities are also responsible for their own purchases of equipment (Sykehusinnkjøp, 2020). The primary health care service is financed through taxes, personal fees and by the state budget (SML, 2019c) and the state oversees that municipalities are given similar financial conditions for their operations (Regjeringen, 2021). The municipalities can cooperate with other municipalities or with the state owned health centres regarding the solving of tasks, and the state (through the County Governor) will make sure such cooperation finds place if necessary (SML, 2019c).
2.4 Allocation of control in Swedish and Norweigan health care
The main difference between the decentralized national healthcare service of Sweden and the centralized national healthcare service of Norway is the allocation of control. In Sweden there is a strong regional and local self-government where the overall responsibility for the health care services lies at the regional level (SKR, 2021b; Vetenskapsrådet, 2017). In Norway, it is the central government, in other words the national level, that has the overall responsibility for the national health care service. The state owns the four subnational health authorities and
11
Nor. Statsforvalter
10
Nor. Sykehusinnkjøp
thus controls special health care at regional level, and the state also partly controls the local level through the state governors (SML, 2019a; SML, 2019c). Another way to put it is that the national healthcare service in Sweden is governed and administered locally, whereas healthcare in Norway is nationally governed and administered, with some autonomy given to the municipalities. Figure 3 illustrates the differences.
Figure 3. The allocation of control in national health and medical care of Sweden compared to Norway.
2.5 Principles of responsibilities in a crisis
The crisis management in Sweden and Norway respectively builds upon a set of principles that explain responsibilities and overall goals under a situation of crisis. Sweden and Norway have three principles in common. These are the principles of responsibility
12, parity
13and proximity
14(krisinformation.se, 2021; Regjeringen, 2019). In addition to these, Norway has a fourth principle called the principle of collaboration (Regjeringen, 2019). The meaning of the collaboration principle is however found in Sweden’s extended version of the responsibility principle, namely that authorities and operations are responsible to collaborate with other agents which can be across the sectoral boundaries (Bynander & Becker, 2017; Regjeringen, 2019).
14
Swe. Närhetsprincipen. / Nor. Nærhetsprinsippet.
13
Swe. Likhetsprincipen. / Nor. Likhetsprinsippet.
12
Swe. Ansvarsprincipen. / Nor. Ansvarsprinsippet.
The message of the principle of responsibility is that the actor who is responsible for an activity under normal conditions is also responsible for it under a crisis. The guidance in the principle of parity is to minimize the difference in how activities are organized and located during times of crisis, compared to normal times. By the proximity principle it is said that the crisis should be handled where it occurs, by the actors who are closest to it (krisinformation.se, 2021; Regjeringen, 2019).
Both Sweden and Norway have a national contingency plan for health related crises that
builds upon these principles. In Sweden, the National Board of Health and Social Affairs, as
well as the Public Health Agency, are responsible at the national level for contingency
planning. It lies with the regions to maintain emergency medical preparedness (Statskontoret,
2020), and the doctor responsible for disease control in each region will be responsible for
ensuring that the certain region has a pandemic emergency plan (Regeringskansliet, 2020). In
Norway, the state is responsible that a contingency plan exists within the special health care
service, and the municipalities are responsible for having a contingency plan related to the
primary health care service at local level. The Norwegian contingency plan gives the Ministry
of Health and Care Service even more authority to make decisions in crisis (Regjeringen,
2018).
3. Theory
Following sections present the concepts of decentralization and centralization based on literature in the field of research.
3.1 Conceptual frameworks of decentralization and centralization
Centralization versus decentralisation is a matter of where decisions are made within the organizational structure and thus how an organization determines objectives and policies and allocates resources (Andrews et al., 2007). Centralization refers to having power and resources concentrated in the central government (Cheema & Rondinelli, 2007) as opposed to decentralization, which imply the transferring of decision-making powers and resources to local governments (Robinson, 2007). Put a bit differently; in a decentralized system, the responsibility, power, authority and resources are transferred to local and intermediate units of administration instead of being allocated at the top of the hierarchy (Ghuman & Singh, 2017; Cheema & Rondinelli, 2007; Green, 2009).
Decentralization and centralization are relative concepts and one can accordingly use terms such as ´more or less centralized´ (Andrews et al., 2007). The level of centralization is determined by two dimensions: “the hierarchy of authority and the degree participation in decisionmaking” (ibid, p. 58). Hierarchy of authority is a way to describe to what extent the organization has allocated the decision-making power at the higher levels of the hierarchy whereas the participation in decisionmaking refers to the degree of how much involved employees are when organizational policy is determined (ibid.). The level of decentralization versus centralization is studied in both public and private sectors (ibid.) e.g., in relation to public delivery of services such as health care (Robinson, 2007). Decentralization relates to the government overseeing service provision without being directly involved in the delivery, whereas in centralization government is directly involved (Cheema & Rondinelli, 2007). The discussion regarding decentralization and centralization and its implication on quality and functioning of the social sphere has been a topic since the 1980´s (Krajewski-Siuda &
Romaniuk, 2008).
3.2 Theoretical opportunities and challenges related to decentralization
Decentralization is associated with two main advantages, namely, flexibility and possibilities to adapt to local needs (Vargas Bustamante, 2010; Alonso et al., 2008). The argument is that local governments know the local preferences better and that productivity regarding education, health, etc., accordingly will be maximised if local governments are in control and can allocate the scarce resources (Robinson, 2007). A leading rationale is also that decision-making power at local levels will generate gains in terms of efficiency and quality, as well as financial benefits (Ibid.) and that decisions are made and implemented more quickly under decentralization (Cheema & Rondinelli, 2007). The improvement in quality relates to the enhanced transparency and accountability resulting from more people participating in decision-making and in the service provision processes (Ghuman & Singh, 2017; Robinson, 2007). Many discussions will highlight accountability as the prominent advantage for decentralization (Tommasi, 2007). Other arguments are that decentralization hinders bureaucratic bottlenecks, meaning delays arising from the central government management and planning (Cheema & Rondinelli, 2007). Also, an assumed possibility is that public service delivery will be more efficient, as well as service coverage being extended, when more responsibility is given to the local administrational units (ibid). Associated disadvantages, however, is the challenge to ensure coordination of decisions (Alonso et al., 2008) and that it in general can be negative to allocate responsibility for the creation of health policies to multiple institutions on different levels (Krajewski-Sjuda & Romaniuk, 2008).
Also, negative effects related to decentralization are competitiveness, duplication of work and having many municipalities reinventing the wheel, as well as being unequipped as local units to handle complex problems (De Vries, 2000).
3.3 Theoretical opportunities and challenges related to centralization
Centralization, on the other hand, implies uniformity of public spending to the districts
(Besley & Coate, 2003; De Vries, 2000) and may be favourably and effective under
circumstances when, for instance, rapid actions are needed or when it is desirable to have
homogenization of services across regions (Vargas Bustamante, 2010). Authors argue that
centralized systems are associated with important and far-reaching decisions, situations
which demand efficient and fast decision making (Treiblmaier, 2018) and that one main
advantage under centralization is that externalities are internalized (Tommasi, 2007). Also,
centralization is associated with enhanced decisiveness, integration and cost-efficiency of public services (De Vries, 2000). It is less costly to develop a plan or policy once, rather than having multiple units all going through the same process (ibid.). Disadvantages are considered to be high costs related to coordination, and information transmission, of decisions that are made at the top government, and have to be integrated in the whole organization. Another associated challenge is that the organization will have lower-level managers that are incapable of making bigger decisions (Treiblmaier, 2018; De Vries, 2000).
Also, democratic deficit (Tommasi, 2007) and the ´one size fits all´- dictum for service provision which does not adapt to the specific local needs (Ghuman & Singh, 2017; Vargas Bustamante, 2010) are challenges related to centralization.
3.4 Empirical evidences
The evidence with respect to the effects of decentralization on public service delivery is mixed (Cheema & Rondinelli, 2007; De Vries, 2000; Vargas Bustamante, 2010) and the question whether health services in general really are better under decentralized or centralized systems is more of an open question (Alves et al., 2013; Vargas Bustamante, 2010). In one case study of Polish health service, a comparison between the two reforms suggested that decentralization increased financial and organizational efficiency in the health system.
However, the authors said generalizations were not possible due to numerous additional
factors such as political conditions (Krajewski-Sjuda & Romaniuk, 2008). The same study
also showed that results regarding innovation in the activity of local decision-making would
vary between regions (ibid.). A meta-analysis of 32 studies done by Ghuman & Singh (2017),
by which all included studies (except for one) dated between the years of 2000-2011 and in
total covered nine Asian countries, found mixed evidence of how decentralizing impacted
public service deliveries. 13 studies showed a positive impact, 11 studies reported a negative
impact and eight studies revealed results that were mixed regarding measures such as
efficiency, administrational innovation and access. These studies are not, however, studied in
the same contexts, as they represent different populations, and are studied individually and
within different time frames. There are also factors such as domestic corruption and poverty
that affect the results in developing countries (ibid.). This is in line with Vargas Bustamante
(2010) saying that empirical conclusions on decentralization and centralization in health
services are ambivalent and not comparable.
Robinson (2007) also aiming to explain the consequences of decentralization on service delivery based on reviews from less-developed countries such as Latin American, Asian and African countries, concluded that equity and quality of the access of education and health services did not improve with decentralization. With equity, the study means a fair access of services to all groups of the population and across regions and local units. And, along with the studies above, he also pointed to political factors such as leadership and mobilisation as important for results (Robinson, 2007). Cheema & Rondinelli (2007) say that although there are arguments for decentralization being efficient, empirical relationships between various development variables and decentralization have also often shown to be negative (Cheema &
Rondinelli, 2007). De Vries (2000) says that there are multiple theoretical arguments
regarding decentralization and decentralization but that they are ambiguous and that opinions
regarding what is det preferable system are subjective. And, since the pros and cons of
centralization and decentralization depend on multiple factors, the author suggests that
comparative studies are what is needed to reveal answers (De Vries, 2000).
4. Method
The following chapter describes the research design of this study and ends with reflections on methodological criticism.
4.1 Qualitative research strategy
The topic of this research is to find how Sweden’s and Norway’s different allocation of control respond to managing the global shortage of PPE. As problem solving in a crisis is complex, and because we want to gain a deeper understanding of decentralization and centralization, we chose to use a qualitative strategy. Organizations such as health care services are complex systems (Tien & Goldschmidt-Clermont, 2009), meaning that they must handle dynamic circumstances (Ludwig & Houmanfar, 2010). Such complexity is often the subject in qualitative research (Gummesson, 2004).
4.2 Multiple-case study design
Within the qualitative strategy, a common research design is the case study because this is considered as suitable when the researcher is concerned with the features of a specific case, such as a certain organization or event (Bell et al., 2019). This is the key strength of a case study and corresponds to the possibilities for the researchers to identify the unique features of a case and thus being able to understand how those can combine and be connected, and result in a specific outcome (Lee & Saunders, 2017). This is relevant for the current study as it takes an interest in investigating the unique nature and impacts of having one of the two contrasting organizational structures of centralization and decentralization. As the chosen cases in this study are the Swedish decentralized, and the Norweigan centralized, national health care service, this will count as a multiple-case study (Bell et al., 2019).
4.2.1 Selection of cases
A main reason why we chose exactly those two cases; the national health care system in Sweden and Norway, is that we are one Swedish and one Norwegian author, which was considered as a unique possibility to understand data in connection to these specific cases.
The chosen cases are perceived as solid representatives of the two structures we want to
investigate, as the Swedish health care service implies far-reaching decentralization by a
strong self-governance (SKR, 2021b) and the Norweigan system has been centralized for
almost twenty years (SML, 2019b). However, more than two cases could have been chosen in order to eventually gain even more understanding, but the approach has been to select the cases we assume one could learn most from. This way of selecting cases is conventional with Bell et al. (2019). As stated by Gagnon (2010) the number of cases should be limited in order to be able to investigate each case in sufficient depth. This has been taken into account. A risk with being one author from each country is that the argumentation may not be fully impartial, but it has been the aim of the authors to approach the cases neutrally.
4.2.2 Situational context
What characterizes case studies in general are that cases are bound to a specific system or context, and multiple-case studies specifically focus on a certain situation or phenomenon (Bell et al., 2019). The two cases of Sweden and Norway are both bound to national health care systems and share the situation of the shortage of PPE during the Covid-19 pandemic.
To choose a context of a crisis, and the experience of shortage of PPE, is a way to capture interesting aspects of what is the main focus of this study, namely, the different allocation of control in the organizations. The design is therefore to explore two different cases, while they deal with the same situational problem.
4.2.3 Dimension of time
The problem area of interest corresponds to a process of decisions and actions that enfolds over time, which is the reason why a part of the research design is to focus on a certain time period. Investigation of the topic led to a suitable time period from the 1st of January to 30th of September, 2020. By this we could study the early phase in the pandemic with the proactive handling of the issue of PPE, as well as the critical phase, the way until the problem of PPE was assumed to be in a more stable stage. To capture what we call a proactive and reactive phase, we chose the 11th of March as a point of reference. This is when WHO declared the spread of the coronavirus as a pandemic (WHO, 2020).
4.2.4 Abductive approach
A study in the field of qualitative research is usually associated with mixing an inductive and
a deductive way of linking research and theory, meaning there is a back and forth process
between theory and research, called a abductive approach. In the abductive approach the
component of induction means that the researcher has a primarily determined theoretical
framework which is, due to the aspect of deduction, iteratively adjusted in the course of
empirical research (Bell et al., 2019). The aim of an abductive approach is to develop understanding of existing theories rather than generate new ones (Dubois & Gadde, 2002).
Therefore, since the thesis strived for gaining deeper understanding for the cases in question, the relation between theory and empirical findings was chosen to be abductive. The choosing of the abductive approach also relates to an important aspect in the research design which is to be open minded, as it was uncertain what information that was available at this moment in time of the pandemic. Moreover, the chosen abductive link between theory and research was useful since the pandemic in nearly all aspects has challenged prior knowledge, and few experiences could be used to navigate what was required of national health care services including managing safety equipment.
4.2.5 Secondary sources
Examples of qualitative sources of data are observations, interviews, and secondary analysis (Bell et al., 2019) among which the latter is used in this study. Secondary analysis means the analysis of data that is collected by other researchers and organizations who probably aren't involved in the project. Secondary sources in this study consist of public available documents and reports written by for example the government, other authorities, and organizations in the respective country. The other type of secondary sources being used is media outputs, i.e.
newspapers. The motivation for choosing secondary sources relates to some of the known advantages with this source of data. Secondary sources minimize the risk of non-response (Bell et al., 2019) which otherwise was assumed to be relatively high because of the hectic time for the health sector due to the pandemic. Also, secondary sources are known to be a time efficient way of collecting data (ibid.) and the feature of time efficiency made it possible to grasp the bigger picture in both cases. Finally, as the intention of this study was to focus on main public events, secondary sources were considered as the best option.
4.2.6 Collection of empirical data
To gather information and empirical material, the basis has been a structure of questions which worked as a guideline. Such a structure, or framework, for conducting a case study is supported by Lee and Saunders (2017) and with inspiration from Flinders University (2020) the following questions were produced for identifying key issues in each case:
- How is the problem solved? Who is solving the problem?
- What type of actions are taken? What actors are being involved?
- Are actions, or procedures, in line with existing policies and routines or are there ad-hoc changes?
- Are there consequences of the actions taken?
In order to capture challenges and possibilities of the handling of PPE in both cases, we typed in general keywords such as “PPE decisions” (in the respective language) when searching for data. We would then, for instance, find a public report giving some descriptions of challenges or decisions being made, which lead us further on new specific searches to find more information related to the previous article or report. By this, we could check if the information was evident and verified in other sources also, as well as it brought us to new information and thus further in the investigation.
4.2.7 Overview of chosen research design
The research design, shown in figure 4 includes a first step of pre-research of the topic and
the two involved cases. This pre-research was used to give the overall features of each case,
compiled in an empirical background in chapter 2, also to identify a suitable time period of
consideration (1 January - 30 September, 2020). A pre-understanding in this way led to a
possible, but primarily, theoretical framework that was allowed to be justified until all
empirical data was collected. Data collection took place in two steps where the second step
had the function to complement the data collected in the first step. Bell et al. (2019) explain
that such a way of collecting data is needed in qualitative research since interpretation of data
at an early step in the process often leads to a need for further data. With the conducted data,
empirical case descriptions were written, which are presented in chapter 5. Those were
analysed separately in relation to the theoretical framework, but also understood in relation to
each other, because of the interest of decentralization and centralization. Lee and Saunders
(2017) refer to such choices of individual analysis by saying that cases have values in
themselves. However, case studies can be designed using a comparative approach (Bell et al.,
2019). As we consider that another important dimension of understanding comes from a
comparison of the cases, some similar decisions are compared in relation to timing in the
final part of the analysis.
Figure 4. Research design, own illustration with inspiration from Reddy and Agrawal (2021).
4.3 Reflections on methodological choices
When choosing a case study design it is important to state that the aim is not to generalize the findings but to contribute with deeper understanding in the research topic from particular cases (Bell et al., 2019; Lee & Saunders, 2017). The abductive approach clarifies that it is neither the goal to test certain theories. This is essential as the critique regarding case studies highlights that in some research, theories have been tested deductively without having data that fully supports theories (Dubois & Gadde, 2002). Transparency and authenticity are criterion in qualitative research (Bell et al., 2019) which is intended to be fulfilled through a systematic research design, concerning data collection and processing.
4.3.1 Secondary sources and related limitations
Secondary sources are criticised because such data are written by another person, based on that person's interests, which leads to a risk of missing objectivity in aspects (Bell et al., 2019). The risk of false information can be reduced by searching for, and using, original sources to the furthest extent (Thurén, 2005) and that is applied. This is done by primarily basing the case descriptions on information published by federal authorities themselves.
When it comes to media sources, it is more difficult to assess authenticity (Bell et al., 2019).
Therefore, in this study, several media papers are reviewed in relation to each other. Another
risk by using secondary data to investigate these specific cases of centralized and
decentralized government, is that the centralized system by its design might avoid reporting
about certain disagreements, and that lower level units do not use their voice against
authorities. The image of the situation might therefore be flawed and one sided in its public
presentation. Sweden, on the other hand, with more independant actors due to self
governance of regions and municipalities, may report more of what has not been functioning
with the national handling of the problem. This may have affected our conclusions. Also,
there is a risk that we have missed several reports in our research. We cannot ensure that all
the important sources are found and that we did not miss anything.
5. Empirical findings
The following two sections give empirical case descriptions of Sweden’s and Norway’s handling of the shortage of PPE, respectively, presented chronologically during the time frame of 1st January – 30th September 2020. The 11th of March is used in both cases as a point of reference to divide between a proactive and a reactive phase.
5.1 Case study of Sweden’s national health care service
5.1.1 Critical access of PPE and regions request help from national level
The re gions buys protective equipment and other medical materials mainly on the Chinese market. In the middle of February, one can see that Swedish Medtech, an interest organization cooperating with Chinese suppliers, forecasted the shortage of PPE. At that time, the Chinese authorities had decided to reduce the country’s export due to an increased spread of Covid-19 in China (SR, 2020d). Later on, at the end of February, the government decided to sign the EU Joint Procurement Agreement (JPA) on PPE, launched by the European Commission that organises tenders with contracting parties in the industry of PPE (Regeringen, 2020c;
Medtech Europe, 2020). On the 3th of March, WHO declared a world wide shortage of PPE (WHO, 2020) and soon thereafter the National Board of Health and Social Affairs established that it had affected 71 hospitals in Sweden (DN, 2020b).
On the 11th of March, WHO declared Covid-19 as a pandemic (krisinformation.se, 2020) and two days after, the Prime Minister, Stefan Löfven, and the Minister of Social Affairs, Lena Hallengren, received a formal request
15from the three largest and most Corona- affected regions. The regions stated that they could not wait for a EU-wide procurement of PPE (Region Stockholm, Region Västra Götaland, Region Skåne, 2020). With all regions trading on the Chinese market, and fighting among others over the scarce supply, had all led to fierce competition between regions (svt Nyheter, 2020b). This situation is confirmed by Swedish MedTech saying that they have identified regions purchasing huge volumes similar to attempts of bunkering PPE (SvD, 2020). Now the regions requested that the government should take a national responsibility and management over the supply and prioritization of protective equipment among regions since the availability of PPE was seen as the most critical factor for managing the coronavirus. A collaboration between regions and the
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Swe. hemställan.
National Board of Health and Social Affairs and the Swedish Civil Contingencies Agency was also requested (Region Stockholm, Region Västra Götaland, Region Skåne, 2020). Based on the formal request, the Government decided on the 16th of March that the National Board of Health and Welfare (NBHW) take a national responsibility for the shortage of protective equipment as long as required, including a possibility for the NBHW to distribute, and if needed redistribute, PPE between regions and municipalities (Regeringen, 2020c). NBHW made purchases and supported coordination and distribution with other actors and authorities.
The regions and municipalities had still, however, to provide themselves with routines for purchases and coordination of PPE. There have been complimentary deliveries from NBHW to the regions and municipalities from March 2020 and forward based upon situational reports from regions and municipalities (Socialstyrelsen, 2020).
Another formal request was received by the government on the 30 of March. This request was sent from the county administrative boards
16about giving them a mandate to collect documentation from the regions and municipalities to fulfil a coordination process that aimed to help the NBHW in getting a comprehensive perception of the need of PPE in regions and municipalities. The county administrative boards had decided on a collaboration with the National Board of Health and Welfare, the Swedish Civil Contingencies Agency and the Swedish Association of Local Authorities and Regions. Upon this the Government commissioned the county administrative boards on the 3 of April to assist the NBHW (Regeringen, 2020a).
In the beginning of April, it is reported that there must be better coordination in order to ensure that all health care units can have access to the products where it is needed (DN, 2020a). To manage the shortage of PPE, the government gave the Swedish Work Environment Authority
17on the 7 of April a task to ensure that there are procedures for providing non-CE marked
18PPE (Regeringen, 2020b).
5.1.2 Ad-hoc collaborations
Stockholm, Göteborg, Malmö, and Uppsala decided on the 8 of April to collaborate in purchases and financing of PPE (Uppsala Kommun, 2020a). Municipalities have agreed on a
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label for fulfillment of safety requirements (Arbetsmiljöverket, 2012).
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Swe. Arbetsmiljöverket.
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