Rethinking the PPP strategy concept : Towards consistency in discourse and management.

This research explores the phenomenon of inter-organisational collaboration between public and private organisations in public-private partnerships (PPPs). The state's need for cost savings, capital, and greater efficiency has been accentuated by the recent global economic instability and, forecasts suggest that governments, particularly in Europe, will increasingly enter into partnerships with the private sector in the future.In contracting out public services investment through the collaboration with private sector the British experience is considered an international reference, the National Health Service (NHS) being a relevant example and also one of the most controversial contexts for the intervention of the private sector. However, few previous studies have analysed collaborative provision of ancillary services in this context. To conduct such a study, the concept of "partnership" required further clarification in both theoretical and management terms. To this end, the research focused on the leading drivers and governing influences and players, and on the working climate generated, including the socio relational dimension and involved dynamics. The study was conducted by means of a multi case study methodology based on semi-structured interviews, focus groups and additional documentary information. Participants' values and expectations in terms of working in partnership were examined as well as implementation and governance practices of the concept of PPP, in order to identify the connection between theory and practice. Finally, a model was developed for enhancing partnership between public and private organisations, grounded in the principles of relational management theories and in accordance with the particularities of this research context.The main issue identified is that the drivers behind the formation of partnering agreements are not in tune with the concept of partnership. The explored PPPs cases manifested a highly transactional nature, representing contractual exchange relationships characterised by formalised methods of task control and assessment rather than by trust based collaboration. There was a lack of a supportive governance structure in terms of the principles of partnership that the state had avowedly adopted. This research maintains that managing the relational dimension serves as a catalyst for the success of PPPs and that these partnerships are not embedded within organisations; rather, their development depends on having the right people in place. The PPP site manager's aptitude and attitude are key factors.This study highlights the need for consistency in the practice of partnership in terms of providing a balance between the level of formalisation and attention to the socio-relational dimension. PPPs are not benefiting in full from collaboration due to the neglect of the public/private relationship as a source of added value. This research urges the government to turn the concept of partnership into a reality instead of fostering anti-collaborative relationships. A model is suggested providing guidance on the strategic management of PPPs beyond limiting partnership to mere fulfilment of outcomes.