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Performance indicators for public private partnership (PPP) projects in Malaysia

Rosnani Mohamad (International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Suhaiza Ismail (Department of Accounting, International Islamic University Malaysia, Kuala Lumpur, Malaysia)
Julia Mohd Said (Accounting, International Islamic University Malaysia, Kuala Lumpur, Malaysia)

Journal of Economic and Administrative Sciences

ISSN: 2054-6238

Article publication date: 30 May 2018

Issue publication date: 19 June 2018

1650

Abstract

Purpose

The purpose of this paper is twofold: first, to identify the important performance indicators used in assessing public private partnership (PPP) performance in terms of the two aspects of PPP which are “financing and markets” and “innovation and learnings”; and second, to investigate the differences in the perception between public and private sectors on the importance of performance indicators in terms of the two aspects of PPP.

Design/methodology/approach

Using a questionnaire survey, 237 completed questionnaires were received representing 51.52 per cent response rate. In examining the importance of performance indicators, the descriptive statistical tests of mean, standard deviation and mean score ranking were used. The independent t-tests were conducted to investigate the differences in the perceptions between the two respondents’ groups on the importance of performance indicators.

Findings

In relation to the two areas of indicators used in assessing PPP performance, the findings show that the top three important performance indicators for financing and markets are: “Operational cost”, “Construction cost” and “Construction period”. While the top three important performance indicators for innovation and learning are: “Technology innovation”, “Employee training” and “Financial innovation”. In terms of the differences in the perceptions between the public and private sector groups, the test results indicate that there is only one significant statistical difference for each aspect of performance indicators.

Originality/value

This study offers empirical evidence on key financial performance indicators for PPP projects as perceived by two key parties in a PPP contract that are public and private sectors.

Keywords

Citation

Mohamad, R., Ismail, S. and Mohd Said, J. (2018), "Performance indicators for public private partnership (PPP) projects in Malaysia", Journal of Economic and Administrative Sciences, Vol. 34 No. 2, pp. 137-152. https://doi.org/10.1108/JEAS-04-2017-0018

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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