Business in Metropolis: Local Governance of for-Profit Organisations in Finland

European local governments face strong pressures to privatisation and market-based reforms in the near future to combat economic austerity and demands for efficiency. This article shows how Finnish metropolitan city has been able to organise its for-profit activities in the new competitive landscape which requires balancing between political demands, legal restrictions and economic efficiency. The governance of for-profit activities in metropolitan city shows that there is both demand and room for administrative innovation to accommodate past administrative idiosyncrasies to market environment. In conclusion, local governments need to pay attention to their own role in shaping local competitive landscape. Copyright Springer Science + Business Media, LLC 2006Public sector, Governance, Local government, Ownership, Networks, Organisation structure,