THE EFFECT OF HYBRIDIZATION ON THE GOVERNANCE OF A PUBLIC-PRIVATE PARTNERSHIP (PPP) IN THE CONSPECTUS OF MANDATORY AND VOLUNTARY FINANCIAL REPORTING

Abstract

In the conceptualization and theoretical framework of hybrid organizations and in the construction of a role of key performance indicators, Alter (2004), and Ponte et al. (2017) refer to hybrid organizations as the result of hybridization, between the entities with and without profit. These hybrid organizations operate on the border between the non-profit (or public) and for-profit (or private) sectors and are both market-oriented and mission-oriented.
The research project presented in this work shows how a hybrid organization faces the problem/challenge of managing, measuring, and reporting financial information, as well as the tools it uses to prevent possible deviations from mission or revenue. Through a systematic review of the literature, the author intended to contribute to the identification and characterization of performance measurement tools, which allow the control of both objectives, social and financial performance, in the hybrid organizational context, to reduce the risk of unwanted deviations.
The performance of a PPP is measured from at least three perspectives: (1) the private aspects, such as a return of investment, (2) the public aspects, such as improvements in quality of life, and (3) the partnership itself, as an organization and management capacity.
As a hybrid organization, the company cannot simply look for financial performance, social responsibility issues are also at stake, as well as a set of non-market aspects, such as: ethical behavior, contribution to social development, as well as improving the quality of life of the workforce and their families (Ponte et al 2017).
Bearing in mind that performance management is only as effective as its measurements (Grossman, 2012), the measurement tool proposed matches the strategic challenges and control needs of hybrid organizations.
The identified model, SBSC, provides a better understanding of the company’s sustainability strategy, inside and outside, associated with a holistic view of the aspects of social responsibility, as well, tracking its impact on the other key performance factors.