Public–private joint ventures: mixing oil and water?

Abstract

The use of public–private partnerships (PPPs) is one of the most distinctive features of strategic management in the public sector. One of the most significant, yet understudied, forms of PPP to emerge in recent years is the public–private joint venture (PPJV). Unlike contractual PPPs, in which public organizations specify the service to be provided under contract by private sector organizations, PPJVs involve the creation of a new institutional entity that is governed by all of the parties in the alliance. This paper examines the distinctive character of PPJVs and draws on documentary and case study evidence to evaluate the ways in which the mixing of public and private within this important collaborative form can be managed best.

Keywords:

• Collaboration management
• joint ventures
• management dilemmas
• public– private partnerships
• public–private sector differences

Notes

*The name of these types of alliances varies across countries. For instance, in Germany they are known as ‘Kooperationsmodell’, whereas in Spain they are called ‘Colaboraciones publico-privadas associativas’. The Commission of European Communities describes them as ‘Institutional Public–Private Partnerships’ (CEC, 2004).