Relational Governance as Mediator Of Contractual Governance In Public Private Partnership

Camilo Benitez-Avila, Andreas Hartmann, Geert Dewulf

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    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
    Original languageEnglish
    Title of host publicationProceedings of the Engineering Project Organization Conference, EPOC 2016
    Subtitle of host publicationJune 28-30, 2016, Cle Elum, Washington, USA
    EditorsJessica Kaminsky, Vedran Zerjav
    Place of PublicationCle Elum, WA, USA
    PublisherEPOS
    Number of pages23
    Publication statusPublished - 2016
    EventEngineering Project Organization Conference 2016 - Cle Elum, United States
    Duration: 28 Jun 201630 Jun 2016
    https://epossociety.org/epoc-2016

    Publication series

    NameWorking Paper Proceedings
    PublisherEPOS
    Volume2016

    Conference

    ConferenceEngineering Project Organization Conference 2016
    Abbreviated titleEPOC 2016
    CountryUnited States
    CityCle Elum
    Period28/06/1630/06/16
    Internet address

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