Mechanisms that create shared value for development

Abstract

This research investigates how shared values can be created when both public and private organizations collaborate at various fronts. Particular attention was paid on how public-private collaboration would develop through discussions and open communication between government and business so as to contribute to building interest in the strategic development agenda of a state and lead to the adoption of mechanisms that create shared values for government, business, and society. This research used an explanatory research design drawing data primarily relying on a qualitative methodology. Thus, data was collected from in-depth interviews with select leaders in the public and private sectors and aimed at measuring the level of maturity and capacity for collaboration and readiness for making such a paradigm shift. The results of the in-depth interviews revealed that in order to be able to achieve mutually beneficial solutions there is a need to establish focused and strategy-driven working relations between the government and private businesses. The findings from data analysis showed that in order to establish focused and productive working relations between the government and business enterprises, both should come together in constructive dialogue centered on the purpose of resolving specific and strategic public needs. Regular discussions aimed at reaching common ground by better understanding the priorities of both while finding common ground to resolving social problems are key factors for adopting a shared agenda and working toward creating value for all. The study also found that considering the current state of development of the Republic of Armenia, the lead responsibility rests on the government to take the initiative in creating opportunities for dialogue between business and society. At the same time, government should establish policies that are conducive to business development and provide incentives for public-private partnered solutions to public problems. On the other hand, business also has to shift its classic way of profit-maximization strategy and not view the government as merely a regulator or as a source of financing and subsidies, but as a partner with whom mutually beneficial actions can be undertaken.