Business Value in Public-Private Partnerships: The Positive Impact of Trust and Task-Relevant Competencies on Business Outcomes in PPPs

Abstract

Governments and businesses enter public-private partnerships (PPPs) to achieve better outcomes, but successful partnerships are not easily accomplished. Because businesses' expectations about PPP outcomes affect how and whether they participate as partners, managing PPPs effectively requires knowing not just what governments loose or gain, but also the value businesses receive. The article demonstrates how structural, collaborative and participant factors associated with both public and private partners affect business value in PPPs. Based on a mixed methods approach, this study tests four hypotheses on how PPPs influence value creation for businesses. The findings show that PPP experience, trust and PPP size have significant effects on business value. However, they only increase certain types of value, depending on the presence and performance of other factors. Moreover, the results show that businesses gain more intangible values such as network development and knowledge than revenue.

Can public‐private innovation partnerships improve public services? Evidence from a synthetic control approach

“…In particular, our analysis suggests that cost control may be a critical task for governments using such partnerships. Although prior studies indicate that involving private firms in public service delivery can generate product, process and service innovations (Brogaard, 2017(Brogaard, , 2019, by adopting a SCM approach and then drawing upon a range of archival data we offer some initial evidence illustrating challenges in managing PPIs relating to incomplete contracts. From this perspective, we corroborate evidence from other recent studies that points toward the importance of the capacity for facilitating PPP contract fulfillment (Maurya & Srivastava, 2019;Xiong et al, 2019).…”

Opportunistic Behavior Governance in PPP Projects: An Analysis Based on Trust Networks

“…In the practice of engineering project management, any form of opportunistic behavior will have a negative impact on project performance [4]. In the research for PPP project management, the inhibitory effect of trust on opportunistic behavior has been widely proved [23,24]. Researches have also shown that trust can reduce opportunistic behavior and improve the performance of PPP projects through different intermediary factors such as flexible contract, performance behavior, and perception of fairness [25,26].…”

“…Researches have also shown that trust can reduce opportunistic behavior and improve the performance of PPP projects through different intermediary factors such as flexible contract, performance behavior, and perception of fairness [25,26]. However, previous researches only took the trust issue in the binary relationship between government and private investors as the object of discussion, and relevant questionnaires or scales also collected data based on the binary trust relationship [8,23]. is simplification of the trust relationship ignores the complex network-level trust structure in PPP projects.…”

Exchange Relationship between Companies and Competitors in Building Materials Retail Sector in Palu

“…In addition, based on the concrete example of competition described above, it shows that the needs of resources are based on dependency on competitors which generate repetition of transactions and consistent successful transactions so the relation with competitors will be built from time to time. As mentioned by Brogaard (2019) dan Wolff (1994), trust and resources dependence are keys to build collaboration and long term relation. Besides, the higher the success frequency from exchange of resources conducted, the more potentials for repetition of transactions between the same doers, which are supported by studies stating that mutual trust are reflected from the big interest of a company to do exchange of resources with competitors (Palmatier et al, 2007;Zaheer & Venkatraman, 1995;Chen, Lin, & Yen, 2014).…”