African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4156

Full Length Research Paper

The impact of information asymmetry on public-private partnership contracts: Theoretical approaches

Rene Albertus
  • Rene Albertus
  • Department of Economics and Management (SBF), University of the Western Cape, South Africa.
  • Google Scholar

  •  Received: 19 May 2019
  •  Accepted: 03 October 2019
  •  Published: 30 November 2019


Institutional arrangements for making the benefits of expert information systems technology available to state enterprises in South Africa have been impacted by information asymmetry. The proliferation of infrastructure improvements has become palpable, hence the necessity to address information asymmetry in the public sector. The reliance on the private sector for expertise and knowledge has exacerbated the information asymmetry gap. A systematic literature review was done on 102 articles using words such as public value, return on government investments, public-private partnerships governance and public accountability, risk management, risk-sharing, and information asymmetry. Content analysis with the use of ATLAS/TI an automated tool was used to analyse the 102 articles that were published in management journals, conference proceedings, and books. The struggle faced by the public sector to overcome information asymmetry was discussed and described. The findings indicated that there is a specific gap in the literature relating to information asymmetry, regarding information and communication technology service delivery using PPP contracts. The contribution of this paper provides literature on information asymmetry and the management of PPP contracts. The employment of skilled information technology professionals in the public sector could eliminate the dependency on private sector resources, thereby minimising the risk of information asymmetry. 


Key words: Governance, risk sharing, public value, accountability.