From consultation to collective choice: decision-oriented participation and territorial policy capacity in place-based governance

Purpose This paper addresses a recurring paradox in participatory place-based governance: despite the widespread institutionalisation of participatory mechanisms in contemporary public policy, many participatory processes generate extensive inputs but limited strategic coherence and implementation capacity. Rather than focusing on the presence of participation, the study investigates its governance effects. The purpose of this paper is to clarify how different forms of participation shape decision-making processes and territorial outcomes, and to examine how participation can contribute – or fail to contribute – to the development of territorial policy capacity. Design/methodology/approach The paper develops a conceptual framework distinguishing consultative participation from decision-oriented participation. This framework is applied through an analytical examination of the RESCO (Adding Value to Resources for Competitive Sustainability) approach, treated as a critical case. The case is used to illustrate how participatory governance can embed decision-making mechanisms, rather than to provide an empirical evaluation of policy outcomes. The analysis is theoretical and interpretive, using RESCO to illuminate the governance mechanisms often absent in participatory place-based policies, rather than assessing it as a best practice or policy instrument. Findings The analysis shows that consultative participation, while inclusive, tends to accumulate territorial knowledge without converting it into binding strategic choices. In contrast, decision-oriented participation embeds mechanisms of prioritisation, aggregation and strategic simplification, enabling collective strategic action. The findings highlight territorial policy capacity as a governance outcome that depends less on participation per se and more on institutionalised decision-making arrangements that structure how participation operates. Research limitations/implications The study is based on a conceptual analysis supported by an illustrative critical case, which limits empirical generalisation. Future research could test the proposed framework across different territorial and institutional contexts and explore the political conditions under which decision-oriented participation is feasible. The paper opens a research agenda on participation as a decision-making technology and on territorial policy capacity as an evaluative criterion for participatory governance. Practical implications For policymakers and practitioners, the paper suggests that designing participatory processes around inclusiveness alone is insufficient. Effective place-based policies require institutional mechanisms that force prioritisation, coordination and strategic simplification. The findings imply a shift in policy design from consultation-oriented formats towards participation structures explicitly linked to decision-making and long-term strategic commitment. These mechanisms include structured prioritisation procedures, transparent aggregation rules and institutional arrangements that link participatory deliberation to binding strategic choices. Social implications The paper highlights potential social trade-offs associated with decision-oriented participation, including reduced inclusiveness and increased political conflict. While such arrangements may enhance strategic capacity, they can also marginalise certain voices. Recognising these implications is crucial for balancing democratic legitimacy and effective governance within multilevel and territorially diverse policy systems. Originality/value The paper contributes to governance and public policy debates by reframing participation not simply as a normative democratic principle but as a governance design problem with distinct decision-making effects. It reconceptualises territorial knowledge as a governance challenge rather than a data deficit and introduces territorial policy capacity as a novel criterion for evaluating participatory place-based policies. This perspective moves beyond normative accounts of participation and provides a decision-centred lens for analysing participatory governance.