Abstract
Organizations are socially constructed phenomena. A crucial task for organizational research is to analyze how and why people construct organizations rather than other social forms. In this paper, it is argued that recent public-sector reforms can be interpreted as attempts at constructing organizations. Public-sector entities that could formerly be described as agents or arenas have been transformed into `more complete' organizations by installing or reinforcing local identity, hierarchy and rationality. This interpretation helps to explain important aspects of the reform process.