A contingency framework on partnership risk

Abstract

Purpose – The purpose of this paper is to analyze and compare the specific contingencies of partnership risk in shared equity public-private partnerships (PPPs) with the contingencies of privately held, loose related PPPs. Design/methodology/approach – Drawing on instrumental and relational accountability perspectives, the author formulates theoretical propositions on partnership risk. Findings – The author conclude that loose related PPPs are characterized by high expertise and a higher risk of contract incompleteness by reason of opportunism. Shared ownership PPPs are characterized by lower opportunism but stronger goal ambiguities and role conflicts. These relationships are threatened by political micromanagement, agency capture and bailout problems. Research limitations/implications – The study offers an analytical frame of propositions and provides avenues for further research on partnership risk. Practical implications – The author suggest risk mitigation strategies for tight and loose related PPPs. Originality/value – Identifying crucial contingencies from both an instrumental and a relational perspective, the study makes a contribution to cooperation research in PPPs.