Consequences of Interdependence in Public-Private Joint Ventures: The Moderating Role of Shari’ah in Islamic Economies

Abstract

Purpose: This study explores the managerial practices that
influence governing PublicPrivate Joint Ventures (PPJVs) between appointed managers of
State-Owned enterprises (SOE) and International Firms (IF) under the moderating role of Sharīʿah.
Methodology: The study utilises qualitative empirical data gathered through interviews.
Findings: The study elucidates the differing managerial
philosophy and associated concepts between appointed managers
of SOE and International Firms in PPJVs hosted in Islamic
economies and based on Sharīʿah. Findings report on the tensions
of power asymmetries resulting from interdependence. The
identified tensions of power asymmetries can be eased through
sound ethical behaviour and management by employing
managerial practices of Trust-building and Experience
Compatibility. Trust-building reported mutual occurrence among
all research participants. Experience Compatibility reported a
contrast between some of the research participants.
Significance: The contribution lies in expounding the
consequences of interdependence between appointed managers
from Sharīʿah-compliant firms (The SOE) and International
Firms, and the resulting tensions of power asymmetries that they
face in governing PPJVs.
Appointed managers of Sharīʿah-compliant firms should embrace
sound ethical grounds rooted in the values of Islam. Similarly,
appointed managers of international firms should realise the ethical
concepts of their counter-appointed managers of Sharīʿahcompliant firms.
Limitations: The study draws on data from the Egyptian PPJVs in
the extractive industry. Future studies are encouraged in other
countries to validate the findings.
Implications: This study provides theoretical foundations that
bridge the differing managerial philosophy and its associated
concepts between appointed managers from Sharīʿah-compliant
firms and international firms on the ethical grounds of Islam