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Creating and Capturing Value in Public-Private Ties: A Private Actor's Perspective
TL;DR: The authors identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes.
Abstract: Intersecting the boundaries of public and private economic activity, public-private ties carry important organizational strategy, management, and policy implications. We identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes. Two important restraints on private value capture--public partner opportunism and external stakeholder activism--arise asymmetrically under each form, carrying a critical effect on partnership outcomes.
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15 Sep 2016
2 citations
TL;DR: Policymakers and health-care managers need to ensure that PPP contracting clearly delineates auditing and performance measurement, compensation and risk management, as well as expanding the scope of countries adopting PPP in health care.
Abstract: PurposeHealth-care systems around the globe share several pressing challenges – including increasing costs and patient outcomes. Innovative arrangements, such as public–private partnerships (PPP) can be adopted to help address these challenges. Although the promise of PPPs is great, so are its peril if the arrangements are not managed and regulated adequately through the contracting process. Yet, PPP arrangements can introduce their own unique set of problems. This paper aims to analyze how PPPs contracting accounts for three major problems identified reviewing the: performance measurement and audit;determination of compensation and risk management–related issues.Design/methodology/approachThe authors used a case study approach to analyze contracting among health-care PPPs in two countries: Italy and the USA. With a structured review performed on Scopus database using a keywords Boolean research, the authors identified three recurring major issues to investigate in two selected cases, one per country. For each major issue, the authors defined several sub-issues retrieved from a widely used institutional framework. In each sub-issue, a documental analysis on all published information related to the signed contract has been performed identifying the approaches used by the two organizations.FindingsThe authors find that PPP contracting in the USA case seems to be oriented more toward managing institutional change as well as more flexibility in the deductibility and compensation determination for organizations and providers, suggesting this organization is more oriented to change in general. The authors find that PPP contracting in Italy more clearly delineate the allocation of risk between organizations that engage in PPPs, suggesting a more practical approach.Practical implicationsPPP is complex. Contracting helps manage the complexity of these arrangements. This case study approach to PPP contracting highlights the variation in contracting approaches across two different countries. Policymakers and health-care managers need to ensure that PPP contracting clearly delineates auditing and performance measurement, compensation and risk management.Originality/valueThe authors’ analysis sheds light on the different approaches to arranging health-care PPPs in two different country settings. More research should be done to connect these different approaches to important outcomes, such as patient and organizational finances, as well as expanding the scope of countries adopting PPP in health care.
2 citations
TL;DR: In this article, the performance of public-private partnership (PPP) recognizing that it is associated with causal complexity, equi-finality, and vagueness of both the outcome and predictor conditions is studied.
Abstract: We study the performance of public-private partnership (PPP) recognizing that it is associated with causal complexity, equi-finality, and vagueness of both the outcome and predictor conditions. fs/QCA, a set-theoretic configurational approach, is deployed to carry out within-case analysis and a formalized cross-case comparison of 29 large highway PPP projects. Surveys, interviews and archival data collected over seven years were employed to develop a deep contextual understanding, enabling a qualitative comparison. The projects that we study cost over $ 4 billion. They are located in India which is one of the largest PPP markets in the world, with the maximum number of highway PPPs. In contrast to prior studies that look at performance as unidirectional, we identify asymmetrical conditions and recipes for PPP success and failure. Further, guided by detailed contextual knowledge, the study conditions founded in different disciplines, and make an effort to integrate the diverse literature. A projects timely completion / failing in timely completion is found to be asymmetrically caused by project preparation, resource availability, and contractual maturity (key attributes identified in policy and economics literature); construction experience of private sector (key aspects identified in construction and project management literature); and emphasis on social relationships (located in management and trust literature).
2 citations
TL;DR: The process management literature is skeptical about creating legitimacy and a sense of partnership when implementing concessional Public-Private Partnerships as discussed by the authors, and they are skeptical about the need for a formal process management process.
Abstract: Process management literature is skeptical about creating legitimacy and a sense of partnership when implementing concessional Public-Private Partnerships. Within such organizational arrangements, ...
2 citations
01 Jan 2016
TL;DR: In this paper, the authors provide empirical evidence that relational governance can play a mediating role between contractual governance and project performance of public private partnerships, which is aligned with the idea of tripartite governance conceptualization.
Abstract: This research provides empirical evidence that relational governance can play a mediating role between contractual governance and project performance of Public Private Partnerships. Based on the analysis of a survey of PPP practitioners in the Netherlands, using Partial Least Squares Modeling we found that organizational rules for organizing the day-to-day interaction between partners and partners’ trust mediate the relationship between contractual arrangements and project performance. These findings are aligned with the idea of tripartite governance conceptualization, which states that both economic incentives and hierarchical relationships formalized in contract agreements require to be in interplay with socially based mechanisms to actually guarantee the integrity of value creation in PPPs. Theoretical discussion elaborates on enabling and compensating underlying mechanisms of the relational governance mediation role. Managers can find in relational governance, and particularly in relational norms, a leverage point for bridging the long-term contractual obligations with the day-to-day partners’ contribution
2 citations
References
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Book•
01 Jan 1990TL;DR: Douglass C. North as discussed by the authors developed an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time.
Abstract: Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time. Institutions exist, he argues, due to the uncertainties involved in human interaction; they are the constraints devised to structure that interaction. Yet, institutions vary widely in their consequences for economic performance; some economies develop institutions that produce growth and development, while others develop institutions that produce stagnation. North first explores the nature of institutions and explains the role of transaction and production costs in their development. The second part of the book deals with institutional change. Institutions create the incentive structure in an economy, and organisations will be created to take advantage of the opportunities provided within a given institutional framework. North argues that the kinds of skills and knowledge fostered by the structure of an economy will shape the direction of change and gradually alter the institutional framework. He then explains how institutional development may lead to a path-dependent pattern of development. In the final part of the book, North explains the implications of this analysis for economic theory and economic history. He indicates how institutional analysis must be incorporated into neo-classical theory and explores the potential for the construction of a dynamic theory of long-term economic change. Douglass C. North is Director of the Center of Political Economy and Professor of Economics and History at Washington University in St. Louis. He is a past president of the Economic History Association and Western Economics Association and a Fellow, American Academy of Arts and Sciences. He has written over sixty articles for a variety of journals and is the author of The Rise of the Western World: A New Economic History (CUP, 1973, with R.P. Thomas) and Structure and Change in Economic History (Norton, 1981). Professor North is included in Great Economists Since Keynes edited by M. Blaug (CUP, 1988 paperback ed.)
27,080 citations
TL;DR: The population problem has no technical solution; it requires a fundamental extension in morality.
Abstract: The population problem has no technical solution; it requires a fundamental extension in morality.
22,421 citations
01 Mar 2010
18,472 citations
Book•
01 Jan 1984TL;DR: The Stakeholder Approach: 1. Managing in turbulent times 2. The stakeholder concept and strategic management 3. Strategic Management Processes: 4. Setting strategic direction 5. Formulating strategies for stakeholders 6. Implementing and monitoring stakeholder strategies 7. Conflict at the board level 8. The functional disciplines of management 9. The role of the executive as mentioned in this paper.
Abstract: Part I. The Stakeholder Approach: 1. Managing in turbulent times 2. The stakeholder concept and strategic management 3. Stakeholder management: framework and philosophy Part II. Strategic Management Processes: 4. Setting strategic direction 5. Formulating strategies for stakeholders 6. Implementing and monitoring stakeholder strategies Part III. Implications for Theory and Practice: 7. Conflict at the board level 8. The functional disciplines of management 9. The role of the executive.
17,404 citations
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations