What Works for Whom? Exploring the Determinants and Hierarchical Tensions of Public Network Effectiveness: A Configurational Analysis

ABSTRACT Existing research on public network effectiveness has largely overlooked the issue of performance stratification in hierarchical systems, failing to adequately answer the critical question, “effective for whom?” Focusing on China's business environment governance (BEG) networks (2016–2022), this study employs panel fuzzy‐set qualitative comparative analysis (Panel fsQCA) to identify which governance configurations—composed of formalized management strategies, network structure, and resource carrying capacity—differentially drive client‐level and network‐level effectiveness. The findings reveal a stark divergence between two logics: client‐level effectiveness is highly dependent on a supportive network structure (especially a large‐scale network), whereas network‐level effectiveness relies more on active management strategies and resource support (especially performance‐based incentives and resource carrying capacity). This disparity provides clear configurational evidence for the performance tensions inherent in hybrid governance systems and demonstrates that the effect of formalization is highly contingent on the effectiveness goal being pursued. We therefore emphasize that understanding network effectiveness requires a multi‐level, dynamic analytical framework. It also calls for vigilance against the risk of goal displacement, whereby networks satisfy their superiors while failing to serve their external clients.