A STUDY ON THE DYNAMIC RELATIONSHIPS OF DECISION MAKING STRUCTURE AND ORGANIZATIONAL LEARNING IN GOVERNMENTAL PLANNING

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Our analysis of the first data sets on local governments shows that the agenda setting process is influenced by the organizational structure. As the power is shared equally among the participants in the organization, the agenda of administrative reform, environmental policy, and urban planning has high priorities. In contrast, the issues of welfare and education policy are on the agenda, as the organization has the concentrated power structure.We have four types of policy process in the local governments according to the informational source of issues. These policy making processes have different polity tools and coordination costs.Our analysis of the second data sets on public finance in local governments shows that they have different perceptions of the causes and effects of financial crisis. They are influenced by the economic position in the markets and by the power structure of organizations. First, as the economic position of the local government is weak, it attributes its cause to the mal-functioned mechanism of financial coordination, and it sets high priority on the reform of redistributive mechanism. Contrarily, it emphasizes the reform of local tax system, as it has strong position in the economic market. Second, as the power is shared equally in the organization, it seeks the reform of financial coordination system. In contrast, it sets high priority on the reform of local tax system, as the power is concentrated on the mayor of local governments.