New development: Is the pandemic reinforcing the organizational legitimacy of the municipally-owned companies?

ABSTRACT

IMPACT The Covid-19 pandemic required rapid intervention from governments. Local governments in Italy made use of municipally-owned companies (MOCs) to provide goods and services. This had advantages in terms of speed of intervention and reduction of transaction costs and has increased the organizational legitimacy of MOCs. Based on early evidence and from the author's past experience as a mayor, this article describes how MOCs are changing and the future role they could play in emergencies.