Implications of data-sharing for contractual and relational governance in public-private partnerships

Advances in digital technologies, such as smart sensors, force public and private organisations to develop their information processing capabilities. Outsourcing increases organisations’ dependence on partners for information required for decision-making, making inter-organisational governance (i.e. contractual and relational mechanisms) an important lever for organisational information processing. We theoretically ground and empirically validate how inter-organisational governance helps to address information asymmetry that arises when capturing information using digital technologies. Using Organisational Information Processing Theory as our theoretical lens, we conduct four in-depth cases in the Dutch infrastructure sector. We provide evidence on the importance of fit between information processing requirements and governance mechanisms employed.