An institutional logics-based exploration of power sector reforms in Pakistan
Tracks
Jade 3
| Tuesday, July 2, 2024 |
| 1:00 PM - 1:25 PM |
Presenter
Dr Muhammad Kaleem Zahir-ul-Hassan
Associate Professor
Zayed University
An institutional logics-based exploration of power sector reforms in Pakistan
Abstract
Purpose – This study examines the outcomes of power sector reforms in Pakistan. The reforms were focused to reduce blackouts and increase access to electricity by indulging private partners in power generation.
Design/methodology/approach – This study utilizes data from semi-structured interviews, several policy documents, and field reports. Interviews were conducted with multiple stakeholders including private partners, government auditors, consultants, public sector generation and distribution companies, regulators, the World Bank, and leading journalists in the energy sector.
Findings – We identify the presence of two institutional logics that guided the cognition and decision-making of actors in the power sector, namely, business logic and community logic. Business logic entered the power sector after the 1994 power policy when private partners engaged in power generation following the advice of international development partners. The field analysis shows that the movement towards a business-oriented power sector led to outcomes following multiple trajectories over time with both intended and unintended consequences. Both logics co-existed but in conflict and actual practices contained a mix of both business and community logics. The logics were compromised due to different institutional constraints and conditions which allowed actors to enact divergent practices. Initially the reform appeared rational and positive but over time devastating consequences appeared in the form of expensive electricity, blackouts, and circular debt. Four different trajectories of outcomes, which were successful and/or unsuccessful, flowed with ebbs and flows over time.
Originality/value – This study contributes to the literature on public sector reforms in general and the literature on public private partnerships (PPP) in particular. We investigate a PPP-based reform and its outcomes over a long period in the context of an emerging economy. This paper highlights the complexity of the reform process and demonstrates that public sector reforms can follow multiple trajectories influenced by different institutional conditions/circumstances.
Design/methodology/approach – This study utilizes data from semi-structured interviews, several policy documents, and field reports. Interviews were conducted with multiple stakeholders including private partners, government auditors, consultants, public sector generation and distribution companies, regulators, the World Bank, and leading journalists in the energy sector.
Findings – We identify the presence of two institutional logics that guided the cognition and decision-making of actors in the power sector, namely, business logic and community logic. Business logic entered the power sector after the 1994 power policy when private partners engaged in power generation following the advice of international development partners. The field analysis shows that the movement towards a business-oriented power sector led to outcomes following multiple trajectories over time with both intended and unintended consequences. Both logics co-existed but in conflict and actual practices contained a mix of both business and community logics. The logics were compromised due to different institutional constraints and conditions which allowed actors to enact divergent practices. Initially the reform appeared rational and positive but over time devastating consequences appeared in the form of expensive electricity, blackouts, and circular debt. Four different trajectories of outcomes, which were successful and/or unsuccessful, flowed with ebbs and flows over time.
Originality/value – This study contributes to the literature on public sector reforms in general and the literature on public private partnerships (PPP) in particular. We investigate a PPP-based reform and its outcomes over a long period in the context of an emerging economy. This paper highlights the complexity of the reform process and demonstrates that public sector reforms can follow multiple trajectories influenced by different institutional conditions/circumstances.
Biography
Dr. Muhammad Kaleem Zahir-ul-Hassan is an Associate Professor and Chair of the Accounting Department at Zayed University. He holds PhD in Management Sciences (Accounting) from Radboud University’s Nijmegen School of Management in the Netherlands. He also has professional certifications as a Fellow Cost and management Accountant (FCMA) and Certified Practising Accountant (CPA). Before joining Zayed University, he worked at Massey University New Zealand and Radboud University Netherlands. His research interests include examining the role of accounting in the governance/management control of inter-firm relationships (e.g., public-private partnerships and outsourcing), accountability, performance management, sustainability (carbon/environmental accounting), and corporate governance. His research is interdisciplinary, and he is keen on doing qualitative field studies to understand how accounting and control play in organizations and society. His research has been published in prominent journals such as Management Accounting Research, Accounting and Business Research, Journal of Business Research, Journal of Management Control, and others. He has also contributed chapters to different books.
Discussant
Simona Scarparo
Senior Lecturer In Accounting
Deakin University
