Identifying macro-environmental critical success factors and key areas for improvement to promote public-private partnerships in infrastructure: Indonesia's perspective
Engineering, Construction and Architectural Management
ISSN: 0969-9988
Article publication date: 15 July 2014
Abstract
Purpose
The purpose of this paper is to identify macro-environmental critical success factors (CSFs) and key areas for improvement for public-private partnerships (PPP) in infrastructure development, using Indonesia as a case study.
Design/methodology/approach
The methodology includes the definition of CSFs based on the United Nations for Economic and Social Commission for Asia and the Pacific's self-assessment diagnostic tool and a survey on importance and performance attributes, the application of gap analysis (GA) and importance-performance analysis to prioritize areas needing urgent improvements, and the use of inter-rater agreement analysis to examine to what extent the ratings tend to converge on the same conclusions regarding importance and performance.
Findings
Out of 40 possible success factors, a total of 16 are identified as CSFs in the context of Indonesia. GA suggests that no performance ratings exceed importance ratings for the identified CSFs, indicating the need for remedial actions. The factors requiring immediate improvements are all associated with commitments: to policy continuity, financial transparency, and corruption eradication.
Practical implications
Although the paper discussing a specific country, the proposed approach is replicable and adaptable in different country contexts. Indonesia's experience can also be of value to governments facing similar problems in encouraging private investment in infrastructure.
Originality/value
The paper contributes to the body of knowledge on PPP in infrastructure development by focussing exclusively on macro-environmental CSFs and Indonesia's PPPs, which are both rarely discussed in the existing literature.
Keywords
Acknowledgements
The first author wishes to thank the Alexander von Humboldt Foundation for his fellowship under the Georg-Forster for Experienced Researchers Program. This paper was completed during the author's second research stay at the Chair of Construction Economics, Bauhaus University in Weimar. The authors’ sincere thanks also go to the reviewer who provided useful comments to improve the quality of original manuscript.
Citation
Wibowo, A. and Wilhelm Alfen, H. (2014), "Identifying macro-environmental critical success factors and key areas for improvement to promote public-private partnerships in infrastructure: Indonesia's perspective", Engineering, Construction and Architectural Management, Vol. 21 No. 4, pp. 383-402. https://doi.org/10.1108/ECAM-08-2013-0078
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited