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The purpose of this study is to propose and test a model on the impact of diversity over performance using a Portuguese national wide comprehensively matched employee–employer dataset of small businesses.

The study uses structural equation modeling to analyze the relationships between variables. The study addresses the impact of top managers and employees' diversity on firm performance considering two dimensions of diversity: knowledge diversity and social diversity.

The study provides a clear understanding of how workforce diversity affects performance differently at the two hierarchical levels. Both employees' diversities have stronger relations to performance than the diversity of top managers. Results point out to idiosyncratic aspects of services firms' dynamics that should be further explored.

The study presents some limitations, since it uses data from a single country and the dataset provides limited variables.

The study offers evidence on the effects of diversity in small businesses alerting managers to acknowledge such influence when recruiting, selecting and training. With regard to services firms, managers should pay close attention to negative impacts of diversity over performance.

Never before to the authors' knowledge the managers' level diversity and employees' level diversity (considering two dimensions each) effect on performance have been addressed in a single national wide study.

As public-private partnerships (PPPs) have become more widespread, doubts and criticisms about this type of infrastructural projects have emerged. The authors describe the PPP framework, discuss the financial structure and risk-sharing processes, and dissect the structure and organisation. The authors address the following questions: what are the main organisational characteristics of PPPs? How does the private sector structure and finance PPPs? And why and how are PPP contracts renegotiated? The paper aims to discuss these issues.

This paper draws on extensive theoretical and empirical research, which is presented in a literature overview on PPPs and their renegotiations. A comprehensive review is carried out and two case studies are developed to investigate the reasons behind success and failure of PPPs and the renegotiation of contracts.

Incomplete contracts and the long duration of concessions can bring uncertainty and change to PPPs. Joint decision making can be difficult due to different parties involved. Renegotiation outcomes tend to rely on the position of the government. In Fertagus, the private sector asked for financial help led to a very balanced agreement. Conversely, Lusoponte renegotiations were initiated by the government, which significantly changed the project. Instead of relying solely on commercial revenues, Lusoponte was substantial financed by public funds.

Incomplete contracts and the long duration of concessions bring about much uncertainty to PPPs. Ex post decision making in PPPs in the wake of changing risks is difficult as it necessarily involves negotiations between the public sector and the private firm. The paper shows that marked differences in renegotiation outcomes emerge. In one case study, the private sector asked for financial help and the negotiation outcome was a very balanced agreement. Conversely, renegotiations in a second case were initiated by the government mainly for political reasons, resulted in a significant change in the PPP’s structure, risk, financing, and returns, and yielded a large public losses.

Contrasting successful and unsuccessful PPPs enables the reader to examine the opportunities and pitfalls in case of PPP renegotiations, which frequently occur. He can gain insight in the determinants of negotiation outcomes and the importance of a governmental PPP entity as well as of an independent monitor such as a court of audits.

This paper should be useful for both academics and practitioners and should help increase the understanding of the several stages, structures, and renegotiation processes associated with PPPs.