Value Co-creation in Public-Private Partnerships with Value-Based Strategy: Empirical Evidence of Culture Creative Industry from Pier 2 Art Center
There has been a surge in research of public-private partnerships (PPPs). However, the understanding of how to develop, manage and assess PPPs in order to co-create value for governmental and business organizations and the society remains constrained. We contend that the characteristics of publicness, heterogeneity and collective actions in PPPs will inevitably result in situations that self-interests of individual organizations are placed above the public welfare; such phenomena are seen as “social dilemmas.” From a perspective of value-based strategy, we further argue that, social dilemmas between public and private organizations can be reduced using a platform that provides information accessibility and transparency, with which mutual dialogue and negotiation is facilitated; we term it as a “value co-creation platform”. Drawing on a case study of Pier 2 Art Center’s cultural innovation, we identified and analyzed three types of social dilemmas occurring in the cross-sector partnerships between Bureau of Cultural Affairs Kaohsiung City Government and operators of Pier 2 Art Center: cooperating dilemma, sharing dilemma and evaluating dilemma. We found these dilemmas were mitigated in the value co-creation platform, successfully generating economic and social value. The findings permit us to develop theoretical and managerial implications.