Despite reforms seeking greater governance over provision of public goods, difficulties in ensuring accountability in hybrid schemes persist. This study investigates the relationship between the regulatory framework and the effectiveness of road concessions in four Latin American countries – Colombia, Chile, Mexico, and Peru – to find a governance mechanism that explains variability of performance results. The study was based on evidence from a nested design containing a quantitative analysis of 77 highway concessions from the 4 countries using a comparative-institutional approach and in-depth tracing 2 case studies using original qualitative data. Findings have important implications for institutional innovations in public administration.