THE ROLE OF RELATIONAL GOVERNANCE IN PUBLIC-PRIVATE PARTNERSHIPS SUSTAINABILITY PERFORMANCE: MEDIATING EFFECT OF COOPERATIVE BEHAVIOR AND MODERATING EFFECT OF ENVIRONMENTAL UNCERTAINTY

Abstract

This study investigates the role of relational governance in enhancing Public-Private Partnership (PPP) sustainability performance, focusing on the mediating effect of cooperative behavior and moderating role of environmental uncertainty. This study employed a quantitative research approach, utilizing survey data collected from 284 participants involved in PPP projects in Khyber Pakhtunkhwa, Pakistan.  The finding shows that relational governance significantly influences PPP sustainability performance. Additionally, the results show that cooperative behavior significantly mediates the relationship between relational governance and PPP sustainability performance, while environmental uncertainty negatively moderates the strength of this relationship. The findings suggest that in environments with high uncertainty, the positive influence of relational governance on cooperative behavior and sustainability performance is decreased. The research study adds to existing knowledge about PPP governance through its examination of relational governance and its association to cooperative behavior and environmental uncertainty. The findings demonstrate that organizations need adaptive governance frameworks which should include mechanisms to handle external uncertain situations.

Keywords: Relational governance, public-private partnership sustainability performance, cooperative behavior, environmental uncertainty