Procedural fairness and cooperation in public‐private partnerships in China
In: Journal of managerial psychology, Volume 25, Issue 5, p. 513-538
ISSN: 1758-7778
PurposeThe paper aims to extend research on public‐private partnerships (PPP) by exploring the path toward procedural justice and cooperation performance through contracts.Design/methodology/approachThe paper uses equity theory to address inter‐partner cooperation in PPPs. The paper emphasizes how procedural fairness, as perceived by partners in a PPP, influences cooperation effects. Using both social exchange theory and transaction cost theory, it hypothesizes that procedural fairness improves cooperation effects by enhancing two kinds of contracts: the control‐formal contract and the informal contract.FindingsThe regression analysis suggests that procedural fairness indirectly affects three kinds of cooperation effects – direct effects, knowledge‐created effects, and social effects – by increasing formal and informal contracts.Research limitations/implicationsFurther research might address the antecedents of procedural justice.Practical implicationsThe paper suggests that procedural justice is important to PPPs and that contracts mediate this relationship.Originality/valueThe paper enriches PPP research, especially with regard to procedural formalization, contracts, and cooperation performance.