Legal and Executive Challenges of Utilizing Knowledge-Based Companies in Public Services

Abstract

Following World War II, the concept of public service provision by governments underwent a transformation. This shift meant that governments were no longer the sole providers of public services; rather, private individuals and entities could, in certain cases, replace governments in delivering such services. Knowledge-based companies, as private legal entities whose commercial activities are grounded in science and technology, are capable of responding to societal needs much more rapidly than other legal actors. Accordingly, governments can both downsize their structure and increase public acceptance by engaging knowledge-based companies in the provision of public services. However, the use of knowledge-based companies in public services is accompanied by legal and executive challenges. This article employs a descriptive-analytical method and relies on library sources. The objective is to answer the question: What legal and executive challenges exist in utilizing knowledge-based companies for public service delivery in Iran? The findings indicate that the legal challenges primarily stem from two issues: first, the lack of explicit legal provisions regarding the role of knowledge-based companies in public service provision; and second, the existence of multiple and parallel institutions whose decisions on supporting these companies are sometimes nullified. In the executive domain, several challenges were also identified.