Based on social exchange theory, we propose and test the mediating role of formal and informal contracts in linking cooperation characteristics of prior ties and shared values among partners to cooperation success in the public—private partnership context. Results from a survey of 244 partners in public—private partnerships in the medical and healthcare fields in China revealed that both formal and informal contracts mediate the relationship between cooperation characteristics and cooperation success. We discuss the theoretical and managerial implications for public-private partnership research and practice with a specific focus on the Chinese context.
