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Network market orientation as a relational governance mechanism to public-private partnerships

Author

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  • Irún, Beatriz
  • Monferrer, Diego
  • Moliner, Miguel Ángel

Abstract

Despite the increasing relevance at the professional level and although the complexity of its configuration and implementation keeps growing, the existing research about public-private partnerships (PPP) remains embryonic. This paper focuses on three complementary fields of study for its understanding: risk management, governance management and private participants’ behaviour. A causal model is proposed, in which network market orientation acts as a previous relational governance mechanism enabling, as a result, a better perception of risk by the private agents involved. The model was tested using structural equation modelling on a sample of 180 agents involved in PPP projects in China. Results confirm this assumption: by placing inter-organisational trust as a central variable, the effect had by network market orientation upon companies’ perceived risk occurs through the reinforcement of their particular entrepreneurial orientation. Findings provide researchers and managers with practical insights into the development of PPP projects from a relational perspective.

Suggested Citation

  • Irún, Beatriz & Monferrer, Diego & Moliner, Miguel Ángel, 2020. "Network market orientation as a relational governance mechanism to public-private partnerships," Journal of Business Research, Elsevier, vol. 121(C), pages 268-282.
    • Handle: RePEc:eee:jbrese:v:121:y:2020:i:c:p:268-282
    DOI: 10.1016/j.jbusres.2020.08.044
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    2. Musarra, Giuseppe & Kadile, Vita & Zaefarian, Ghasem & Oghazi, Pejvak & Najafi-Tavani, Zhaleh, 2022. "Emotions, culture intelligence, and mutual trust in technology business relationships," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    3. Darko, Deborah & Zhu, Demi & Quayson, Matthew & Hossin, Md Altab & Omoruyi, Osayuwamen & Bediako, Albert Kweku, 2023. "A multicriteria decision framework for governance of PPP projects towards sustainable development," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    4. Bo Liu & Yun-Fei Shao & Guowei Liu & Debing Ni, 2022. "An Evolutionary Analysis of Relational Governance in an Innovation Ecosystem," SAGE Open, , vol. 12(2), pages 21582440221, April.

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