Public Private Partnerships: Shared value creation, trust and control

• In Event: Quality of Accounting Information

Abstract

Public private partnerships are rationalised on shared value creation by combining public sector management and oversight with private sector resources for a direct provision of a public good or service. Yet little is known on what are the sources of value and on the effects of governance mechanisms for value appropriation in these hybrid partnerships. This paper explores this issue from the perspectives of both public sector agencies and private sector firms. Using stated choice experiment data in the context of a tollroad concession setting, we find that our composite measures of resource values have little influence on partner decisions to form a partnership, while partner’s (un)trustworthiness and informal resources mobilised by external stakeholders have a discernible influence on their decisions. Mitigating controls moderate these influences. An internal coordination framework within the public organization and the enactment of institutional policy can help to reap the most of the combined resources for shared value creation, particularly when trust is yet to be established during the contracting phase.

Authors

• Demi Chung, Business School UNSW

• Demi Chung, Business School UNSW