Creating and Capturing Value in Public-Private Ties: A Private Actor's Perspective

Abstract

Intersecting the boundaries of public and private economic activity, public-private ties carry important organizational strategy, management, and policy implications. We identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes. Two important restraints on private value capture—public partner opportunism and external stakeholder activism—arise asymmetrically under each form, carrying a critical effect on partnership outcomes.

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