Analyzing Revenue Models in Smart City Services: A Public-Private Partnership (PPP) Approach

Abstract

The main objective of this research is to conduct an in-depth analysis of revenue models in smart city services, focusing on the Public-Private Partnership (PPP) mechanism. Given the complex and multifaceted nature of the subject, a qualitative approach and thematic analysis strategy were used. Data were collected and analyzed through semi-structured interviews with 22 key experts, including senior public sector managers, private sector investors and managers, and academics. The findings indicate a paradigm shift from direct and traditional revenue models to indirect and complex models based on creating value from data, saving costs, and creating secondary markets. This research reveals that the success of partnerships depends on the transition from a “contracting” perspective to a “true partnership” and requires structures based on “symmetrical risk sharing”. Data governance and maintaining its public ownership, along with contract flexibility, were identified as critical requirements. Finally, the research presents a conceptual model in which achieving multidimensional sustainability (economic, social, and institutional) as the ultimate goal is contingent on the existence of an “enabling environment” including legal, political, and technological infrastructure stability. This study provides a framework for policymakers and practitioners in this field to design fair, sustainable, and adaptable revenue models that align public interests with private sector profitability.