Purpose: Using the new institutionalist approach (incentive analysis), this study examines the factors that encourage or impede private sector engagement (PSE) in development cooperation projects from the business perspective. Originality: Despite the...
Purpose: Using the new institutionalist approach (incentive analysis), this study examines the factors that encourage or impede private sector engagement (PSE) in development cooperation projects from the business perspective. Originality: Despite the quantitative and qualitative growth in official development assistance (ODA) in Korea over the past decade, PSE in development cooperation projects remains low compared to other advanced donor countries, and PSE are relatively small in scale. Therefore, a comprehensive and analytical understanding of the specific factors that either promote or hinder such participation is necessary to enhance PSE in Korea's development cooperation ecosystem. Methodology: This study surveys a sample of 42 employees at domestic companies, who either intend to participate in or have previously participated in international development cooperation projects, with the aim of examining their ‘motivations’, ‘demand’, and ‘evaluation’. The responses of these companies were collected and analyzed to provide insights into the factors that influence PSE in development cooperation. Result: Discrepancies were identified between the commonly held perceptions and the actual responses of companies towards the underlying reasons for the low PPP levels, in the areas of motivation, demand, and evaluation. Although Korean firms have shown increased awareness of ODA and corporate social responsibility, the gap between the awareness and actual participation was found. Among others, the lack of relevant information and institutional accessibility are considered negative factors for PSE. Conclusion and Implication: Based on the findings of this study, it is highlighted that mechanisms for matching and coordinating projects and companies are crucial to promote extensive and meaningful private sector participation in development cooperation