Public-private partnerships (PPPs) are potentially solutions to some governmental challenges but the objectives of profitability for the private sector and public interest for the public sector pose issues regarding competing values. A theoretical and conceptual analysis of public stewardship is presented to demonstrate how competing values in PPP’s not only can be reconciled but also can ensure that value-for-money (VFM) produces public and social value. Seven key-point skills of public stewardship are offered to address the differing needs of the public and private sectors. Each of these approaches serves to improve accountability as a means of achieving tangible and non-tangible VFM in PPPs. The research identifies the sometimes-unnoticed shortcomings of VFM in PPPs and provides a seven-point skill framework to fill the gaps. The research contributes to knowledge by bringing in stewardship as a skill framework that can be used to address VFM in the public and private sectors.
This paper is relevant to the 2018 International Research Society for Public Management conference because it directly addresses the conference theme of ‘value’ that is created by public services. The paper provides a theoretical foundation for the research by first explaining what VFM comprises, specifically with respect to the differing value-orientations of the public and private sector, since many public services are being jointly provided through PPPs. While both sectors strive to achieve VFM (for shareholders in private sector and taxpayers in public sector), a conflict arises by which the methods used by each sector to pursue VFM vary according to the differing needs of their stakeholders. Thus, the research question that emerges is the following: How can the competing values for the public and private sector in PPPs be reconciled to achieve VFM that produces public and social value?
The method utilized to address the research question involves application of Denhardt and Denhardt’s (2015) seven key lessons for advancing public interest in the New Public Service (NPS). A seven-point skill framework is developed and applied to Denhardt and Denhardt’s seven key lessons in order to demonstrate how PPP’s can address vital aspects of public interest. While Denhardt and Denhardt’s model refers specifically to public interest through public management, the model proposed herein explains how vital aspects of public interest can be achieved through PPPs and considerations of VFM. The results make a significant contribution to the field of public management because there is presently no framework that indicates how PPP’s can produce public and social value while simultaneously achieving VFM for the public and private sector.
REFERENCE
Denhardt, Robert B., & Denhardt, Janet V. (2000). The New Public Service: Serving Rather than Steering. Public Administration Review, 60(6), 549-559.
