Institutional complexity of public sector reform: conflicts and dynamics in local–regional cooperation

Addressing public service reform through an integrated theoretical framework of institutional complexity, this article derives from the PAM literature related to conflicts in multi-level governance. Institutional complexity is employed to explore the dynamics of cooperation and the unintended and adverse consequences these dynamics have on the Finnish welfare service reform. A diverse set of data on local – regional cooperation between Finnish municipalities and well-being services counties (WSCs) was analysed using conflicts as an analytical tool. The results highlight context-sensitive dynamics that shape local – regional cooperation within multi-level governance systems and show how these dynamics influence the cooperating actors’ ability to foster value creation for local communities and their citizens.