Social Welfare Contracts as Networks

Abstract

This analysis of state social service contracts identifies sources of system instability and explores the impacts of instability on service delivery networks. The authors examine social welfare service contracts explicitly as networks and assess the effects of network instability on the management of contracts, contract effectiveness, the performance of network organizations, and clients. They offer observable patterns and detailed examples that indicate that instability imposes significant costs on service delivery networks—costs that impair organizational and network performance and that divert resources from services for vulnerable clients. The high costs associated with instability undermine arguments for more market-based service delivery.