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Management Controls in Public–Private Partnerships:
An Analytical Framework
Ranjith Appuhami, Sujatha Perera Hector Perera
Introduction Drawing on transaction cost economics and
organisational theory, this paper proposes a framework to
ver the last two decades, the number of analyse management controls in Public–Private
O Public–Private Partnerships (PPPs) in both Partnerships (PPPs). The paper contributes to the related
industrialised and emerging economies has literature at a conceptual level by showing how three
increased significantly (World Bank 2008). While the control archetypes, namely market, bureaucratic and
PPP concept goes back many decades, it came into clan, in conjunction with two control strategies, namely
currency in many parts of the world in the 1990s (de performance evaluation and trust-based strategies, could
Bettignies and Ross 2004). In general, PPPs are used be used by public partners to minimise relational and
to provide infrastructure in services such as health, performance risk, thereby achieving value for money.
education, prisons, roads, electricity and water, which Practitioners could also use the linkages identified in this
are traditionally seen as the responsibility of the public paper to develop management control systems for PPPs.
sector.
A PPP is a type of inter-organisational relationship
(IOR) built on the foundation of new public manage-
ment with the objective of increasing the efficiency,
quality and competitiveness of public sector services
while solving macroeconomic problems (
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