Public-private partnerships as a strategy for successful expansion in emerging markets? : A case study of the motives, means and outcomes of Swedish MNEs engagement in public-private partnerships in emerging markets

Abstract:

While both the concept of Private-Public Partnerships and the research on the topic is not new, PPPs from a market expansion perspective has not been covered to any notable extent, something this thesis aims to rectify. With the importance of relationships in business in emerging markets, the Institutional Network Approach serves as the backdrop for the study, highlighting the interplay between MNE and surrounding institutions. Through three case studies of Swedish MNEs active in PPP-projects in emerging markets, the aim is to develop a model suitable for analyzing MNE engagements in PPP-projects, but also to see if the gains from PPP engagements can constitute a feasible emerging market expansion tool.

The outcome of the study revealed that the studied MNEs primarily sought legitimacy and credibility in their projects, goals which according to MNEs also were acquired, and that the new model to a large extent captured aspects that were identified as important in the firms’ reports from the projects. It was concluded that in order for the PPP to serve as reliable market expansion tool, the firm has to be of MNE-size in terms of resources and ambitions, because smaller firms would struggle to be awarded, or handle, PPP-projects of this size. Previously stated credibility and legitimacy (from the CSR-aspects of the PPP), as well as the long-term collaboration resulting in solid relationships between MNE and institutions, are other benefits.