Consequences of Interdependence in Public-Private Joint Ventures: The Moderating Role of Sharīʿah in Islamic Economies.

Purpose: This study explores the managerial practices that influence governing Public-Private Joint Ventures (PPJVs) between appointed managers of State-Owned enterprises (SOE) and International Firms under the moderating role of Sharīʿah. Methodology: The study utilises qualitative empirical data gathered through interviews with long-practised public and private managers in the Egyptian extractive industry. Findings: The study elucidates the differing managerial philosophy and its associated concepts between appointed managers of SOE and International Firms in PPJVs hosted in Islamic economies and based on Sharīʿah Law. Findings report on the tensions of power asymmetries resulting from interdependence between appointed managers of both parties. The identified tensions of power asymmetries can be eased through sound ethical behaviour and management of the differing concepts by employing the managerial practices of Trust-building and Experience Compatibility. Trust-building reported mutual occurrence between all participants signifying its importance in governing PPJVs. Experience Compatibility reported a contrast between participants on its importance in governing PPJVs. Significance: The contribution of this study 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 ethical values derived from the ethos of Islam. Similarly, appointed managers of international firms should realise the ethical concepts of their counterappointed managers of Sharīʿah-compliant firms. This eventually helps in building mutual trust and ease in increasing levels of experience compatibility between them. Limitations: The study is based on data from the Egyptian PPJVs in the extractive industry. Future comparative studies can be held on countries with similar social and political settings to validate and test the findings. Implications: This paper 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. Furthermore, it purports practical ways to build mutual trust between appointed managers from both parties. [ABSTRACT FROM AUTHOR]