Summary:

Inspired by New Public Management, many countries have changed their central public apparatus from an integrated to a more segregated structural model. A central element in this process is structural devolution and the establishment of new or reorganized state-owned companies with increased business autonomy and new formal control systems. This paper focuses on how this development, as exemplified by state-owned companies in Norway, is affecting the role of central political and administrative leaders. The study, based on elite interviews, shows that corporatization has made the role of central leaders more complex and ambiguous and undermined political control. We interpret this development from a transformative perspective, underlining how structural devolution is filtered through the dynamic context of environmental pressure and internal structural and cultural factors.