Literature Review on Private Sector Engagement: A Generalizable Framework

The review aimed to develop an actionable understanding of inter-organizational engagement in cross-sector partnerships, synthesizing evidence into Partnership Capacity Theory (PCT). PCT offers an evidence-based understanding of partnerships that guided the research team's strategy to address three questions posed by USAID: the effectiveness of different forms of engagement, external factors driving effective engagement in the private sector, and PSE relationship qualities influencing outcomes. PCT presents a new interdisciplinary, theoretical framework and partnership approach that considers the concurrent influences of three essential partnership domains: Partnership Purpose, Partnership Context, and Relationship Quality. Prior to PCT, there was no unifying framework of partnerships for development that systematically considers these domains. PCT enhances PSE opportunities by identifying essential motivational, contextual, and relational partnership components and intersections, facilitating an understanding of best management practices and strategies, and translating evidence-based insights to inform effective private sector engagement. The PCT framework consists of three domains: Purpose, Context, and Relationship Quality. The Purpose Domain identifies 14 purposes that represent the unique needs of the private sector, falling into two groups: Pragmatic Business Logic and Principled Business Logic. The Context Domain identifies seven contextual associations that connect different levels of the partnership environment to partnership dynamics, activities, and outcomes. The Relationship Domain identifies 13 relationship enablers in three groups: structural mechanisms, behavioral attributes, and cognitive states. PCT provides a framework for partners to identify and discuss their purposes, find potential alignments among divergent purposes, and identify how the partnership context and relationship enablers can help navigate purpose incongruity. The theory also teaches partners how to conceptualize and consider complex contextual elements, work to optimize the given state and potential sustainability of partnerships within the constraints and levers of different contextual scenarios, and implement ameliorative strategies for less favorable context states. The LASER PULSE Program's literature review and development of PCT aim to provide a comprehensive understanding of private sector engagement and its impact on development outcomes. The theory offers a framework for partners to navigate the complexities of partnerships, identify actionable targets, and enhance partnership sustainability and effectiveness using relationship enablers. By providing a guide for partnership reporting and strategies as they pertain to specific contextual elements, PCT enables best practice implementation within and across similar partnership contexts. The LASER PULSE Program's research and development of PCT have significant implications for USAID's PSE Evidence and Learning Strategy. The theory provides a framework for understanding the effectiveness of different forms of engagement, external factors driving effective engagement in the private sector, and PSE relationship qualities influencing outcomes. By applying PCT, partners can work to optimize the given state and potential sustainability of partnerships within the constraints and levers of different contextual scenarios, improving outcomes for all partnership stakeholders.