How do Municipalities Organize their Capacity when Implementing ESF-projects? : What Similarities and Differences can be Observed in how Municipalities Build and Utilize Organizational Capacity?

This thesis investigates how municipalities organize their capacity when implementing projects funded by the European Social Fund ( ESF). The study is based on a qualitative case study involving five municipalities of varying sizes and organizational conditions. Using the theory of organizational capacity, the municipalities’ work is analyzed through the lenses of leadership, competence, collaboration/communication and organization/structure. The empirical material is based on semi-structured interviews with project managers and other relevant actors within the municpalities. The results show that all municipalities demonstrate challenges related to administrative work and access to staff with the desired expertise. The thesis shows that factors such as previous experience influences how capacity-building is carried out. The study also shows that many of the challenges experienced by the municipalities are related to the fact that the ESF’s project logic is not adapted to the municipalities internal structures. The thesis contributes to a deeper understanding of how organizational capacity is organized and managed in the public sector in the context of EU-funded projects, as well as which structural factors may promote or hinder effective implemnation.