Designing Organizational Structures of Public-Private Partnerships

Abstract

The work is devoted to the substantiation of methodological approaches to the structuring of basic forms of public-private partnership: (1) quasi-market, (2) hierarchical and (3) hybrid ones. O. Williamson (1996a) was the first to present the concept of institutional matrices. The authors use matrix designing of organizational forms of public-private partnerships, varying transaction costs and options for property rights exchange. Operations with institutional matrices of public-private partnership basic forms allow to identify cells with coinciding interests of partners regarding the organization of transactions with public items. The square matrices, presented in tabular form, turn out to be convenient for highlighting all potentially possible variants of collaboration between the private and public sectors. Their implementation in the future depends on the elimination of the factors that for some reason block the cooperation of partners. The solution of this problem will allow the government to use public-private partnership to reduce the budget deficit, the society will receive public goods planned for the fiscal year, and the private business will reduce transaction costs and receive the profitable sphere for investments under the state patronage and its formal organizations.