Public-private partnerships caught in a trust-trap and the potential role of information: the burden of divergent rationales
Main Article Content
Abstract
Trust is known to be beneficial for cooperation, though remains underdeveloped in public-private partnerships (PPPs), which are caught in a trust trap due to the cooperative regime’s internal heterogeneity. Accordingly, PPP’s inherent trust relationship is disentangled, and the burden of divergent actor rationales is introduced. We hypothesize that potential PPPs find themselves ex ante in a situation that requires certain repair mechanisms before the ‘usual’ venues of trust development can become effective. As such, exogenous information is theorized as quasi-substitute for relational experience that may support the development of a ‘leap of faith’. Theoretical considerations are tested by a vignette experiment with representatives of both the public and the private sector. Within and between-group analyses find strong support for the burden of divergent rationales and stable levels of (role-based) trust. However, the effect of the information treatment on trust levels is limited.
Keywords:
Downloads
Article Details
References
Anderson, D. M., & Edwards, B. C. (2015). Unfulfilled Promise: Laboratory experiments in public management research. Public Management Review 17(10), pp. 1518-1542.
Anderson, E., & Jap, S. D. (2005). MITSLOAN Management Review. Retrieved from The Dark Side of Close
Arnold, C., Sapir, E.V., & Zapryanova, G. (2012). Trust in the Institutions of the European Union: A Cross-Country. European Integration Online Papers, 16.
Australian Government. (2016). www.infrastructure.gov.au. Retrieved from: https://www.infrastructure.gov.au/sites/default/files/migrated/infrastructure/ngpd/files/National-PPP-Policy-Framework-Oct-2015.pdf
Bachmann, R., Gillespie, N., & Priem, R. (2015). Repairing trust in organizations and institutions: Toward a conceptual framework. Organization Studies, 1123-1142. https://doi.org/10.1177/0170840615599334
Barber, B. (1983). The logic and limits of trust. New Brunswick: Rutgers University Press.
Bidault, F., & Castello, A. (2009). Trust and creativity: understandingthe role of trust in creativity-oriented joint developments. R&D Management39, 3, pp. 259-270. https://doi.org/10.1111/j.1467-9310.2009.00557.x
Bouckaert, G. (2011). "Reforming for Performance and Trust: Some Reflections." Core speech at the NISPAcee conference, Varna, Bulgaria, May 19-22.
Bouwman, R., & Grimmelikhuijsen, S. (2016). Experimental public administration from 1992 to 2014: A systematic literature review and ways forward. International Journal of Public Sector Management 29(2), pp. 110-131.
Bovaird, T. (2004). Public-private partnerships: from contested concepts to prevalent practice. International review of administrative sciences 70(2), pp. 199-215. https://doi.org/10.1177/0020852304044250
Brogaard, L. (2019). Business Value in Public-Private Partnerships:The Positive Impact of Trust and Task-RelevantCompetencies on Business Outcomes in PPPs. International Public Management Journal, 22:4, pp. 617-642. https://doi.org/10.1080/10967494.2018.1457107
De Schepper, S., Dooms, M., & Haezendonck, E. (2014). Stakeholder dynamics and responsibilities in Public-Private Partnerships: A mixed experience. International Journal of Project Management, pp. 1210-1222. https://doi.org/10.1016/j.ijproman.2014.01.006
Denize, S., & Young, L. (2007). Concerning trust and information. Industrial Marketing Management (36), pp. 968-982. https://doi.org/10.1016/j.indmarman.2007.06.004
Dietz, G. (2011). Going back to the source: Why do people trust each other? Journal of Trust Research, 1, 215-222. https://doi.org/10.1080/21515581.2011.603514
Dietz, G., & Den Hartog, D. N. (2006). Measuring trust inside organisations. Personnel Review 35(5), S. 557-588.
Dirks, K. T., Kim, P. H., Ferrin, D. L., & Cooper, C. D. (2011). Understanding the effects of substantive responses on trust following a transgression. Organizational Behavior and Human Decision Processes, 114(2), pp. 87-103. https://doi.org/10.1016/j.obhdp.2010.10.003
Druckman, J. N. (2011). What's It All About?: Framing in Political Science. In G. Keren, Perspectives on Framing. New York: Psychology Press.
Edelenbos, J., & Klijn, E. H. (2007). Trust in Complex Decision-Making Networks: A Theoretical and Empirical Exploration. Administration and Society, pp. 25-50. https://doi.org/10.1177/0095399706294460
Edwards, J. R., & Cable, D. M. (2009). The Value of Value Congruence. Journal of Applied Psychology, 654-677. https://doi.org/10.1037/a0014891
El-Gohary, N., Osman, H., & El-Diraby, T. E. (2006). Stakeholder management for public private partnerships. International Journal of Project Management 24, pp. 595-604. https://doi.org/10.1016/j.ijproman.2006.07.009
Eurodad. (2018). History RePPPeated: How Public Private Partnerships are failing. Retrieved from https://d3n8a8pro7vhmx.cloudfront.net/eurodad/pages/508/attachments/original/1590679608/How_Public_Private_Partnerships_are_failing.pdf?1590679608
European Court of Auditors. (2018). Public Private Partnerships in the EU: Widespread shortcomings and limited benefits. Retrieved from https://www.eca.europa.eu/Lists/ECADocuments/SR18_09/SR_PPP_EN.pdf
Farazmand, A. (1999). Globalization, privatization, and the future of modern governance: A critical assessment. Public Finance & Management, 2(1), pp. 151-186.
Fukuyama, F. (1995). Trust: the social virtues and the creation of prosperity. New York: Free Press.
Gillespie, N., & Dietz, G. (2009). Trust Repair after an Organization-Level Failure. The Academy of Management Review, pp. 127-145. https://doi.org/10.5465/amr.2009.35713319
Goodin, R., March, J., & Olsen, J. (2011). The Logic of Appropriateness. In The Oxford Handbook of Political Science. https://doi.org/10.1093/oxfordhb/9780199604456.001.0001
Grimsey, D., & Lewis, M. K. (2005). Are Public Private Partnerships value for money?: Evaluating alternative approaches and comparing academic and practitioner views. Accounting Forum 29(4), pp. 345-378. https://doi.org/10.1016/j.accfor.2005.01.001
Grover, S. L., Hasel, M. C., Manville, C., & Serrano-Archimi, C. (2014). Follower reactions to leader trust violations: A grounded theory of violation types, likelihood of recovery, and recovery process. European Management Journal 32(5), pp. 689-702.
Hall, D. (2012). Re-municipalising municipal services in Europe. A report commissioned by EPSU to Public Services International Research Unit (PSIRU).
Hardin, R. (2002). Trust and Trustworthiness. Russell Sage Foundation.
Head, B. W., & Alford, J. (2015). Wicked Problems: Implications for Public Policy and Management. Administration & Society Vol. 47(6), pp. 711-739. https://doi.org/10.1177/0095399713481601
Hollis, M. (1998). Trust within reason. Cambridge: Cambridge Universtity Press. https://doi.org/10.1017/CBO9780511612244
James, O., Jilke, S., Petersen, C., & Van de Walle , S. (2016). Citizens' blame of politicians for public service failure: Experimental evidence about blame reduction through delegation and contracting. Public Administration Review, pp. 83-93. https://doi.org/10.1111/puar.12471
Kaplan, A. M., & Haenlein, M. (2009). The increasing importance of public marketing:Explanations, applications and limits of marketingwithin public administration. European Management Journal, 197-212. https://doi.org/10.1016/j.emj.2008.10.003
Kappler, M. (2022). Western Multinational Corporations in Latin America: Conflating Capitalisms and Institutional Dynamics of Inter-systemic Actor Exchange. Cham: Springer Nature. https://doi.org/10.1007/978-3-030-93805-5
Kappler, M., & Schomaker, R. M. (2023). Vertrauen in Governance und Regulierung. Verwaltung & Management 29(6), pp. 243-253.
Kim, P. H., Ferrin , D. L., Cooper, C. D., & Dirks, K. T. (2013). Repairing trust with individuals vs. groups. Organizational Behavior and Human Decision Processes, 120(1), pp. 1-14. https://doi.org/10.1016/j.obhdp.2012.08.004
Klijn, E. H., Edelenbos, J., & Steijn, B. (2010). Trust in governance networks; its impact and outcomes. Administration and Society, pp. 193-221. https://doi.org/10.1177/0095399710362716
Korsgaard, M. A. (2018). Reciprocal trust: A self-reinforcing dynamic process. In R. H. Searle, A. M. Nienaber, & S. B. Sitkin, The Routledge Companion to Trust (pp. 14-18). London: Routledge. https://doi.org/10.4324/9781315745572-3
Kramer, R. M. (1999). Trust and Distrust in Organizations: Emerging Perspectives, Enduring Questions. Annual Reviews in Psychology, 50, 569-598. https://doi.org/10.1146/annurev.psych.50.1.569
Kramer, R. M. (2010). Collective Trust within Organizations: Conceptual Foundations and Empirical Insights. Corporate Reputation Review 13, pp. 82-97. https://doi.org/10.1057/crr.2010.9
Kroeger, F. (2012). Trusting organizations: the institutionalization of trust in interorganizational relationships. Organization, pp. 743-763. https://doi.org/10.1177/1350508411420900
Kumlin, S., & Haugsgjerd, A. (2017). The welfare state and political trust: bringing performance back in. In S. Zmerli, & T. W. van der Meer, Handbook on Political Trust (pp. 285-301). Cheltenham: Edward Elgar. https://doi.org/10.4337/9781782545118.00029
Lascaux, A. (2005). Trust and transaction costs. In J. Finch, & M. Orillard, Complexity and the Economy: Implications for Economic Policy (pp. 151-171). Cheltenham: Edward Elgar. https://doi.org/10.4337/9781845428044.00018
Lee, M., Han, X., Quising, P. F., & Villaruel, M. L. (2018). Hazard Analysis on Public-Private Partnership Projects in Developing Asia. Manila: ADB Economics Working Paper Series. https://doi.org/10.22617/WPS189453-2
Lewicki, R. J., & Bunker, B. B. (1996). Developing and maintaining trust in work relationships. In R. M. Kramer, & T. R. Tyler, The new face of government: how public managers are forging a new approach to governance (pp. 114-139). Boca Raton: Auerbach Publications. https://doi.org/10.4135/9781452243610.n7
Lewis, D. J., & Weigert, A. (1985). Trust as a social reality. Social Forces, 63 (4), 967-985. https://doi.org/10.2307/2578601
Luhmann, N. (1979). Trust and power. Chicester: John Wiley and Sons.
Luhmann, N. (1988). Familiarity, Confidence, Trust. Problems and Alternatives. In D. Gambetta, Trust. Making and Breaking Cooperative Relations (pp. 94-107). Oxford: Blackwell.
Margetts, H. (2011). Experiments for Public Management Research. Public Management Review 13(2), pp. 189-208.
Möllering, G. (2006). Trust: reason, routine, reflexivity. Amsterdam: Elsevier.
Möllering, G., & Sydow, J. (2019). Trust Trap? Self-Reinforcing Processes in the Constitution of Interorganizational Trust. In M. Sasaki, Trust in Contemporary Society. Leiden: Brill. https://doi.org/10.1163/9789004390430_009
Morton, R. B., & Williams, K. C. (2010). Experimental Political Science and the Study of Causality: From Nature to the Lab. New York: Cmbridge University Press.
Nooteboom, B. (2002). Trust: forms, foundations, functions, failures and figures. Cheltenham, UK: Edward Elgar. https://doi.org/10.4337/9781781950883
OECD (2011). The Call for Innovative and Open Government: An Overview of National Initiatives. Paris: OECD Publishing. https://doi.org/10.1787/9789264107052-en
Parmentier, S., & Vervaeke, G. (2011). In criminal justice we trust? A decade of public opinion research in Belgium. European journal of criminology, 8(4), pp. 286-302. https://doi.org/10.1177/1477370811411460
PPIAF (2012). PPP Basics and Principles of a PPP Framework. Retrieved from: https://www.ppiaf.org/documents/3118
PPP Knowledge Lab. (2021). https://pppknowledgelab.org. Retrieved from https://pppknowledgelab.org/guide/sections/22-ppp-program-objectives
Putnam, R. D. (1993). Making democracy work: civic traditions in modern Italy. Princeton: Princeton University Press. https://doi.org/10.1515/9781400820740
Putnam, R. D. (2000). Bowling Alone: The Collapse and Revival of American Community. New York: Touchstone. https://doi.org/10.1145/358916.361990
Rabin, M. (1998). Psychology and Economics. Journal of Economic Literature 36(1), 11-46.
Radin, B. (2006). Challenging the performance movement: Accountability, complexity, and democratic values. Washington, DC: Georgetown Univ. Press.
Rittel, H. W., & Webber, M. M. (1973). Dilemmas in a General Theory of Planning. Policy Sciences 4, pp. 155-169. https://doi.org/10.1007/BF01405730
Ross, W., & LaCroix, J. (1996). Multiple meanings of trust in negotiation theory and research: a literature review and integrative model. International Journal of Conflict Management, 7, 4, pp. 314-360. https://doi.org/10.1108/eb022786
Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Academy of Management Review 23(3), pp. 393-404. https://doi.org/10.5465/amr.1998.926617
Schomaker, R. M., & Bauer, C. (2020). Trust and transaction costs in public-private partnerships-theoretical reflections and empirical findings. Public Money & Management, 1-7. https://doi.org/10.1080/09540962.2020.1801882
Schoormann, F. D., Mayer, R. C., & Davis, J. H. (2007). An integrative model of organizational trust: Past, present, and future. Academy of Management Review, pp. 344-354. https://doi.org/10.5465/amr.2007.24348410
Scott, R. W. (2010). Reflections: The Past and Future of Research on Institutions and Institutional Change. Journal of Change Management 10:1, 5-21. https://doi.org/10.1080/14697010903549408
Simpson, T. W. (2012). What is trust? Pacific Philosophical Quarterly, 93(4), 550-569. https://doi.org/10.1111/j.1468-0114.2012.01438.x
Six, F. (2005). The trouble with trust - the dynamics of interpersonal trust building. Cheltenham: Edward Elgar. https://doi.org/10.4337/9781845426873
Six, F., & Skinner, D. (2010). Managing trust and trouble in interpersonal work relationships: Evidence from two Dutch. The International Journal of Human Resource Management, 21(1), S. 109-124. https://doi.org/10.1080/09585190903466913
Six, F., & Verhoest, F. (2016). Trust in regulatory regimes: scoping the field. In F. Six, & K. Verhoest, Trust in regulatory regimes (pp. 1-36). Cheltenham: Edward Elgar. https://doi.org/10.4337/9781785365577.00005
Stern, R. (2016). Løgstrup on the Priority of Trust. In P. Faulkner, & T. W. Simpson, The philosophy of trust (pp. 272-294). Oxford: Oxford University Press. https://doi.org/10.1093/acprof:oso/9780198732549.003.0016
Suresh, K. P., & Chandrashekara, S. (2012). Sample size estimation and power analysis for clinical research studies. Journal of Human Reproductive Sciences 5(1), pp. 7-13.
Sztompka, P. (1999). Trust as a sociological theory. Cambridge : Cambridge University Press.
Teicher, J., Alam, Q., & Van Gramberg, B. (2006). Managing trust and relationships in PPPs: some Australianexperiences. International Review of Administrative Sciences, pp. 85-100. https://doi.org/10.1177/0020852306061624
Tomlinson, E. C., & Mryer, R. C. (2009). The Role Of Causal Attribution Dimensions In Trust Repair. Academy of Management ReviewVol. 34, No. 1.
Van de Walle, S. (2017). Trust in public administration and public services. In European Commission, Trust at Risk: Implications for EU Policies and Institutions (pp. 118-128). Luxembourg: Publications Office of the European Union.
van der Meer, T. W. (2017). Democratic input, macroeconomic output. In S. Zmerli, & T. W. van der Meer, Handbook on Political Trust (pp. 270-284). Cheltenham: Edward Elgar. https://doi.org/10.4337/9781782545118.00028
Van Gestel, R., & de Poorter, J. (2019). In the Court We Trust: Cooperation, Coordination and Collaboration. 2019: Cambridge University Press. https://doi.org/10.1017/9781108686556
Van Ryzin, G. G. (2011). Outcomes, Process, and Trust of Civil Servants. Journal of Public Administration Research and Theory, pp. 745-760. https://doi.org/10.1093/jopart/muq092
Walker, R. M., James, O., & Brewer, G. A. (2017). Replication, experiments and knowledge in public management research. Public Management Review, pp. 1221-1234.
Warsen, R., Nederhand, J., Klijn, E. H., Grotenberg, S., & Koppenjan, J. (2018). What makes public-private partnerships work? Survey research into the outcomes and the quality of cooperation in PPPs. Public Management Review, 20:8, 1165-1185. https://doi.org/10.1080/14719037.2018.1428415
Zhang, X. (2005). Critical Success Factors for Public-Private Partnerships in Infrastructure Development. Journal of Construction Engineering and Management. https://doi.org/10.1061/(ASCE)0733-9364(2005)131:1(3)
Zucker, L. G. (1986). Production of trust: institutional sources of economic structure, 1840 - 1920. Research in Organizational Behavior, 8, pp. 53-111.