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Abstract:

The rising popularity of public-private partnerships (PPPs) and the reported failure rates underline the challenge to effectively govern such relationships. The purpose of this paper is to empirically investigate the role of management control for the governance of PPPs by adopting a comparative case study involving two cases of partnerships between municipalities and their private partners, a long-term infrastructure project and an urban regeneration project. The results suggest that existing frameworks for private inter-organizational relationships (IORs) are relevant for explaining governance structures in PPPs. However, given the specific nature of PPP arrangements, we also identify a number of socio-political risks and management control tools not typically discussed in frameworks for private IORs. More specifically we conclude that conveners and project champions play an important role as political controls in the success of PPPs.