Value conflicts between local government and private sector in stock public-private partnership projects

2019 ◽  
Vol 26 (6) ◽  
pp. 907-926 ◽  
Author(s):  
Fangwei Zhu ◽  
Mouxuan Sun ◽  
Linzhuo Wang ◽  
Xiuxia Sun ◽  
Miao Yu
Keyword(s):  
Local Government ◽  
Private Sector ◽  
Single Case ◽  
Deep Understanding ◽  
Public Private Partnership ◽  
Value Conflict ◽  
Structured Interviews ◽  
Value Conflicts ◽  
Private Partnership ◽  
Content Type

Purpose The complexity caused by conflicting values of stakeholders is a critical issue influencing the performance and sustainability of stock public–private partnership (SPPP) projects, which is a special type of public–private partnership (PPP) project in China. The purpose of this paper is to focus on value conflicts between local government and private sector, which are two major stakeholders in SPPP projects, and investigate exchange rules to resolve value conflicts. Design/methodology/approach Using a mixed method approach, 55 semi-structured interviews were conducted for 15 stakeholders involved in a representative SPPP project. Social network analysis was then adopted to outline the value conflict network based on data drawn from focus group discussions. Finally, 24 value conflicts between local government and private sector were analyzed through another 13 semi-structured interviews in an abductive approach. Findings Results show that value conflicts between local government and private sector are dynamic and intertwined within and across three project phases, based on which six exchange rules, rationality, Altruism, power consistency, competition, group gain and reciprocity, are identified. Two sets of situational factors which potentially influence exchange rules adopted by the two parties are revealed, namely, urgency and professionality for local government and short-term interests and long-term interests for private sector. A summary of paired exchange rules is provided to predict if value conflicts between the two major stakeholders will be resolved or not. Research limitations/implications Theoretical implications are twofold. First, the results provide a contribution to PPP project management by investigating value conflicts between local government and private sector, which deepen the understanding on the unique characteristics of SPPP projects. Second, the findings contribute to a comprehensive understanding of social exchange theory by suggesting a summary of condition-based and pair-based exchange rules. Originality/value One strength of the study is in the concentrated analysis of a single case which allows for a deep understanding of value complexity between local government and private sector in SPPP projects from a dynamic and networked perspective. A guideline is provided for both parties when a value conflict is found hard to resolve. Besides, this study is also among the first that addresses value issues in SPPP projects.

How public-private partnership projects impact infrastructure industry for economic growth

2014 ◽  
Vol 41 (10) ◽  
pp. 994-1010 ◽  
Author(s):  
Abouzar Zangoueinezhad ◽  
Adel Azar
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Public Private Partnership ◽  
Key Factors ◽  
Dynamic Interactions ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
The Relationship

Purpose – Public-private partnership (PPP) is mutually beneficial relationships that are formed between the public and private sectors. The private-sector partner typically makes a substantial equity investment, and in return the public sector gains access to new or improved services. When properly vetted and structured, PPP allocate risk to the party best suited to handle it. The purpose of this paper is to examine the relationship between the scale and nature of the PPP's contribution as a driver of the economic growth and gross domestic product (GDP). Design/methodology/approach – Using statistics causality modeling and relevant statistical techniques, the dynamic interactions and interdependencies over PPP and economic growth were addressed and quantified. Findings – Although PPP can free up government resources for other public priorities, three key factors enable PPP to stimulate a country's economic growth: the number of PPP projects under way, the value of PPP projects, and the ideal type of PPP contracts in use. Originality/value – The number, value, and type of PPP, combined with supportive policies, power economic growth. Governments with well-established and enforced policies against corruption, combined with low business transaction costs, a transparent legislative system, and exchange rate and monetary stability are far more attractive to the private sector.

A rationale for alliancing within a public-private partnership

2014 ◽  
Vol 21 (6) ◽  
pp. 648-673 ◽  
Author(s):  
Derek Walker ◽  
Mattias Jacobsson
Keyword(s):  
Competitive Advantage ◽  
Single Case ◽  
Public Private Partnership ◽  
Project Delivery ◽  
Infrastructure Projects ◽  
Private Partnership ◽  
Content Type ◽  
Procurement Strategy ◽  
Project Procurement

Purpose – This case study was chosen for its rare, if not unique, project procurement strategy. It is, to the authors’ knowledge, the only example of a project alliance (PA) being undertaken within a public-private partnership (PPP) project delivery approach. The purpose of this paper is to explore the case study from a strategic perspective to better understand if it is possible to combine a PA within a less collaborative procurement form, such as PPP or design and construct (D&C), and to determine if there were any specific prerequisite conditions needed for such an arrangement to be successfully adopted. Design/methodology/approach – A single exploratory case study was undertaken through interviewing seven of the most senior project participant executives for approximately an hour that each had a separate and unique perspective to offer relating to the organisational role they represented in the PA. These interviewees were identified as the most knowledgeable key executives participating in the PA from whom both strategic and operational insights could be gained. Findings – It is possible to design a PA approach within a PPP for large and complex infrastructure projects and this can provide a competitive advantage to do so, however, the reasons for doing so should be clear and compelling. Parties to such an arrangement should be prepared to fully engage through adopting full PA principles. In such a case as this, the PPP special purpose vehicle takes on the role of “project owner” that normally the public body part of the PPP would normally adopt. Research limitations/implications – This research reports upon a single case study within a specific project delivery culture that has extensive experience of PAs. Demonstrated positive project outcomes would not be likely to be more generally repeatable across the engineering infrastructure sector unless parties engaged within such a PA had not already experienced and understood outcomes resulting from such a close collaboration. Practical implications – This research has implications for project participants bidding for PPP projects as well as others using a D&C tending approach. It offers a potential competitive advantage because it demonstrates and explains how choices may be expanded beyond a simple single project procurement strategy approach. Social implications – Many PPP and PA infrastructure projects are delivered to provide community benefit. This paper provides a way to improve the project delivery process and thus improving value to the community. Originality/value – The paper makes three contributions. Primarily, it pioneers analysis of a PA within a PPP. Second, it provides important insights into the reasons and emergence of this phenomenon. Finally, it provides an understanding of this how this novel form of early contractor involvement with a PPP special purpose ownership vehicle that combines competition and collaboration may function operationally.

scholarly journals Real-Life Incentives Driving Public-Private Partnership in Diagnostic Services

2020 ◽  
Vol 30 (3) ◽  
Author(s):  
Akram Baniasadi ◽  
Ali Akbari Sari ◽  
Abbas Rahimi Foroushani ◽  
Mehdi Jafari Sirizi ◽  
Ebrahim Jaafaripooyan
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Health Sector ◽  
Real Life ◽  
Economic Incentives ◽  
Public Private Partnership ◽  
Structured Interviews ◽  
Private Partnership ◽  
The Individual ◽  
Public And Private Sector

BACKGROUND: Diagnostic services are highly critical in the success of treatment processes, overly costly nonetheless. Accordingly, hospitals generally seek the private partnership in the provision of such services. This study intends to explore the incentives owned by both public and private sector in their joint provision of diagnostic services under the public-private partnership agreement.METHOD: A qualitative, exploratory study was employed in Tehran hospitals from October 2017 to March 2018. Around 25 face-to-face, semi structured interviews were conducted with the purposively recruited hospital managers, heads of diagnostic services and managers of private companies. Interviews were transcribed and analyzed using conventional content analysis, assisted by "MAXQDA-12".RESULTS: Three main categories and nine sub-categories represented the incentives of public sector, and four main categories and seven sub-categories signified those of private sector. The incentives of public sector included the status-quo remediation, upstream requirements, and personal reasons. As such, the individual, social and economic incentives and legal constraints were driving the behavior of the private sector.CONCLUSIONS: Financial problem and gain were the most noted incentives by the partners. Attention to the either side’s incentives and aims is likely to ensure the durability and effectiveness of such partnerships in the health sector.

Achieving value for money in waste management projects: determining the effectiveness of public–private partnership in Ghana

2020 ◽  
Vol 13 (6) ◽  
pp. 1283-1309
Author(s):  
Mumuni Ishawu ◽  
Chen Guangyu ◽  
Emelia Darko Adzimah ◽  
Aliu Mohammed Aminu
Keyword(s):  
Waste Management ◽  
Private Sector ◽  
Structural Equation ◽  
Public Private Partnership ◽  
Equation Modeling ◽  
Value For Money ◽  
Private Partnership ◽  
Content Type ◽  
Private Sector Participation ◽  
The Relationship

PurposeGovernments all over the world are increasingly entering into partnership agreement with the private sector through public–private partnership (PPP) models for the development and management of public projects and services. Thus, the purpose of this study is to first examine the factors that enter into government's attitude, value for money (VFM) and PPP-based waste management projects (WMPs) in Ghana. Further, this study examines the relationship between PPP-based waste management and VFM, along with the mediating role of government's attitude.Design/methodology/approachData were collected through a survey questionnaire from four metropolitan municipal assemblies of Ghana. This study’s sample consisted of 230 respondents, and structural equation modeling was employed to conduct an empirical analysis. The structured model had evaluated the critical success factors (CSFs). Subsequently, the measurement model helped in the path analysis of the proposed model.FindingsThe authors found a nonpositive relationship between PPP-based WMPs and VFM; however, government's attitude will influence the achievement of VFM. Reliance on quality targets is ranked as the highest CSF in PPP-based WMPs in Ghana. Also, incentives for private sector participation and effective private sector participation are ranked as the least CSFs.LimitationsMost of the questionnaire's items were self -rated by employees of municipal assemblies who were not policymakers. This must have increased the possibility of common method bias. In addition, the study was limited to Ghana (a developing economy); therefore, the generalization of the results should be done with much caution.Practical implicationsThis study suggests to develop a network of private sector consortiums considering international and national participants who are engaged in PPPs in order to ensure successful delivery and hence valuing for money.Originality/valueThis study offers a novel perspective to investigate the relationship of PPP-based WMPs and VFM and shows how the government's attitude mediates this relationship.

scholarly journals ‘Clean energy for all’: the implementation of Scaling Solar in Zambia

2018 ◽  
Vol 15 (3) ◽  
pp. 214-225 ◽  
Author(s):  
Susann Stritzke
Keyword(s):  
Success Factors ◽  
Single Case ◽  
Clean Energy ◽  
Public Private Partnership ◽  
Management Approach ◽  
Private Partnership ◽  
Content Type ◽  
Implementation Phase ◽  
Stakeholder Alignment

Purpose The purpose of this paper is to review critical success factors (CSFs) for the implementation of the Scaling Solar Programme in Zambia, the first solar public-private partnership (PPP) in the country. Design/methodology/approach The single case study is based on stakeholder interviews and the evaluation of primary and secondary sources of data. As a first step, the study illustrates the implementation of Scaling Solar in Zambia and links it to the formal PPP framework of the country. The second step compares central CSFs for PPPs identified by previous research with the current framework of the programme. Furthermore, it analyses whether these CSFs have affected the PPP project implementation in Zambia. Based on these findings the question discussed will be which CSFs can be identified that impacted the implementation of the programme in a third step. Findings The case study found that the design of the Scaling Solar Programme largely mitigated the main financial and political risks identified in previous studies with regard to the uptake of energy infrastructure processes in developing countries. It reveals that government stakeholder alignment and institutional capacity are the central CSFs which impact the roll-out of the programme in Zambia. Originality/value The study suggests that a pre-implementation phase of a complex PPP project should comprise government stakeholder alignment which can be based on approaches to Relationship Management Theory. By suggesting a stakeholder management approach, the study indicates how a PPP framework, with a redefined role of a horizontally integrated, independent Public-Private Partnership Unit, can support this approach.

scholarly journals Malaysian experience with public-private partnership (PPP)

2016 ◽  
Vol 6 (5) ◽  
pp. 508-520 ◽  
Author(s):  
Muhammad Imran Zin Zawawi ◽  
Udayangani Kulatunga ◽  
Menaha Thayaparan
Keyword(s):  
Design Methodology ◽  
Public Private Partnership ◽  
Structured Interviews ◽  
Policy Makers ◽  
Private Partnership ◽  
Content Type ◽  
Sustainable Procurement ◽  
The Government ◽  
Quality Infrastructure

Purpose Lack of competition in procurement processes may affect the sustainable procurement due to overpriced and low-quality infrastructure. The purpose of this paper is to investigate the current practices in Malaysian public-private partnership (PPP) in handling unsolicited proposals within PPP and to suggest ways in which the practices can be improved to achieve sustainability. Design/methodology/approach Case study was conducted within which 13 semi-structured interviews were carried out with different groups: the policy makers, the practitioners and the experts. The study also scrutinised published guidelines and relevant regulations used by in management of unsolicited proposals in Malaysian PPP. Findings The Government of Malaysia welcomes unsolicited proposals from the private sector, even though it does not publish any established mechanisms to handle such proposals. Lack of competition in unsolicited proposals is a major concern in achieving sustainable goals of procurement. This could be addressed by introducing a competitive element to unsolicited proposals. Originality/value There are limited study and reports on the implementation of unsolicited proposals by the Malaysian Government. Besides adding to the literature, this paper reveals the management of unsolicited proposals. Most importantly, it is useful in assisting potential Malaysian PPP stakeholders and investors in what to expect, based on findings from the actual practice.

Constraints in implementing Public Private Partnership (PPP) in Malaysia

2014 ◽  
Vol 4 (3) ◽  
pp. 238-250 ◽  
Author(s):  
Suhaiza Ismail ◽  
Fatimah Azzahra Haris
Keyword(s):  
Private Sector ◽  
Evaluation Criteria ◽  
Public Private Partnership ◽  
Political Debate ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type ◽  
The Public ◽  
The Government ◽  
Public And Private Sector

Purpose – The purpose of this paper is to study two objectives. First, it intends to scrutinize the challenges in implementing Public Private Partnership (PPP) by examining the factors that hinder the successful adoption of PPP in Malaysia. Second, it aims to investigate the differences in the perceptions of the government and the private sector pertaining to the hindrance factors. Design/methodology/approach – A questionnaire survey was used to elicit the perceptions of the public and private sectors concerning the constraints of PPP implementation in Malaysia. A total of 122 usable responses were obtained, which were analysed using Statistical Package for Social Sciences software. The mean score and mean score ranking were used to examine the importance of the hindrance factors based on the overall responses as well as on the respective responses of the public and the private sectors. An independent sample t-test was used to examine the differences in the perceptions between the two sectors. Findings – The overall results show that “lengthy delays in negotiation”, “lack of government guidelines and procedures on PPP”, “higher charge to direct users”, “lengthy delays because of political debate” and “confusion over government objectives and evaluation criteria” are the top five constraints for adopting PPP in Malaysia. In terms of the differences in the perceptions between the public and private sector groups, the statistical test results indicate that there are only significant differences in the perceptions for two hindrance factors. Originality/value – The paper contributes to the existing literature on PPP, which is currently limited, by focusing on the challenges of implementing PPP in a developing country (i.e. Malaysia). More importantly, this paper provides evidence concerning the differences in the opinion of two key players (i.e. the government and the private sector) on the PPP hindrance factors.

scholarly journals Kemitraan Pemerintah-Swasta dalam Program Corporate Social Responsibility di Kabupaten Pasuruan

2017 ◽  
Vol 4 (2) ◽  
pp. 117
Author(s):  
Magya Ramadhania Putri ◽  
Isnaini Rodiyah
Keyword(s):  
Local Government ◽  
Private Sector ◽  
Local Governments ◽  
Government Regulation ◽  
Public Private Partnership ◽  
Community Empowerment ◽  
Private Partnership ◽  
Dominant Actor ◽  
And Function ◽  
Corporate Social

This research aims to describe community empowerment program synergistic held by local government of Pasuruan regency and the implementation of CSR program by PT HM Sampoerna Tbk in Sukorejo Sub-district, Pasuruan Regency, in addition to describe public-private partnership pattern between local government of Pasuruan regency and private sector. Descriptive type of research and qualitative method through in-depth interview, observation, and documentation were used in this thesis.Result of this research reveals the implementation of PPP with CSR basis between local governments of Pasuruan regency with PT HM Sampoerna Tbk is mutualism partnership. Yet, private sector is a dominant actor in this partnership, whilst local government of Pasuruan regency only play their role and function as regulator, namely to make local government regulation Number 31 Year 2012 about CSR. The lack of government's portion in running this partnership caused by the absence of CSR forum. Public-private partnership here belongs to pseudo partnership due to there are no any written agreements between local government and private sector.

Forming a driving index for implementing public-private partnership projects in emerging economy: Ethiopian perception

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miliete Negash Gebremeskel ◽  
Soo Yong Kim ◽  
Le Dinh Thuc ◽  
Minh V. Nguyen
Keyword(s):  
Factor Analysis ◽  
Private Sector ◽  
Emerging Economies ◽  
Driving Forces ◽  
Public Private Partnership ◽  
Driving Factors ◽  
Fuzzy Synthetic Evaluation ◽  
Public And Private ◽  
Private Partnership ◽  
Content Type

PurposeThe purpose of this study is to identify driving factors and a quantitative model for implementing public-private partnership (PPP) projects in Ethiopia as a case study in emerging economies.Design/methodology/approachA review of the literature and semi-structured interviews were carried out to identify driving factors affecting the implementation of PPP projects in the Ethiopian context. Data were collected through a questionnaire survey within three months, with 59 validated responses; mean score technique and factor analysis were conducted. The fuzzy synthetic evaluation (FSE) method was applied to develop a driving index (DI) for implementing infrastructure PPP projects. Finally, a comparative analysis of top-five drivers was conducted between four emerging economies.FindingsMean values show that all driving variables are important. Through factor analysis, 22 identified driving variables were grouped into six factors, namely, benefit for public and private sectors, attention of private sector, social development, cost reduction, management ability of public sector and ability of private sector. The FSE method constructs a DI and shows that benefit for public and private sectors is the most crucial factor for PPP implementation in the context of Ethiopia. Apart from this, most driving forces for adopting PPP projects in these countries related to financial problems.Originality/valueThis study is one of the first integrate driving factors for PPP implementation. The index provides the decision-makers with a comprehensive tool to assess the needs of PPP implementation.

Disclosure of public-private partnership (PPP) voluntary information

2017 ◽  
Vol 9 (2) ◽  
pp. 146-163 ◽  
Author(s):  
Mubarak Shehu Musawa ◽  
Suhaiza Ismail ◽  
Hawa Ahmad
Keyword(s):  
Content Analysis ◽  
Private Sector ◽  
Questionnaire Survey ◽  
Voluntary Disclosure ◽  
Public Private Partnership ◽  
Annual Reports ◽  
Private Partnership ◽  
Content Type ◽  
Construction Companies

Purpose The purpose of this paper is twofold: first, it seeks the perception of public-private partnership (PPP) experts on the importance of desirable PPP information that can be voluntarily reported by the private sector; and second, it determines the extent and quality of voluntary disclosure of PPP information by private entities. Design/methodology/approach In achieving the first objective, the study uses a questionnaire survey. The questionnaire was distributed to PPP experts and 25 usable responses were received. In addressing the second objective, a content analysis procedure was utilized to analyse the 2015 annual reports of 11 construction companies. Descriptive statistics including the mean score, frequency and percentage were employed to analyse the responses of the questionnaire instrument and the annual reports disclosure. Findings The results of the questionnaire survey reveal that the majority of the items were rated as very important to be disclosed by the private sector in Malaysia. However, from the content analysis, it was also revealed that the extent and quality of voluntary information disclosed by the private construction companies were low. Originality/value This study is important as it contributes to the scant literature on PPP disclosure in Malaysia. The study is unique as it not only investigated the extent and quality of voluntary disclosure by private entities, but also solicited the perception of PPP experts on what voluntary items should be disclosed.

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