Data solutionism at work: When public institutions meet data-driven firms

Abstract

In recent years, public institutions have turned to data-driven firms for solutions to the many complex operational challenges they face. This study explores the growing ties between public institutions and data-driven firms by focusing on the case of the Tel Aviv Municipality and a (data-driven) startup accelerator it established in the city. Based on semi-structured interviews with the Municipality staff and with representatives of the data-driven firms in the accelerator, I present a grounded framework that outlines the characteristics of the resulting collaboration and describes the mechanisms that facilitate and contain the dynamic thereof. The framework contributes to existing research on tech companies’ involvement in public organizations by suggesting two analytical dimensions, which I term orientation and action. On both, I note various tensions, which are bound to be endemic to collaborations between a public institution and a data firm, and which account for two main motivations behind the Municipality’s actions vis-a-vis its partner data-driven firms, driven by both market imperatives and its overarching aim to benefit the public.