Exploring the functions and role of social impact measurement in enhancing the social value of public-private partnerships: A systematic literature review

Abstract

Public-private partnerships (PPPs) have emerged as promising and dynamic means to provide public goods, infrastructures, and services, thus representing a potential solution to grand societal challenges and social value generation. Despite this, such potential of PPPs is challenged by contractual issues, that can arise from conflicting objectives and trust between public and private actors. Social impact measurement (SIM) can play a crucial role in promoting PPP’s ability to overcome contract-related problems by providing transparency, accountability, and credibility. However, little is known about the characteristics that SIM should possess to enhance such potential. We adopt a systematic literature review method to explore approaches to and functions of SIM in PPPs. We found that when SIM is embedded in collaborative contracts between public and private actors, conducted ex-ante, and entrusted by independent bodies/organizations, it can increase the credibility and objectivity of PPPs. This can in turn enhance trust in the partnerships and support actors to manage the expectations of collaborators and citizens. We advance some recommendations for future research to explore the virtuous, relational mechanisms that may explain how SIM affects public and private actors collaborating for the common good.