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Article
Publication date: 3 September 2018

Nunzia Carbonara and Roberta Pellegrino

The prevailing view in the studies on Public Private Partnerships (PPPs) is that PPPs can improve the quality and efficiency of infrastructure services and facilitates…

Abstract

Purpose

The prevailing view in the studies on Public Private Partnerships (PPPs) is that PPPs can improve the quality and efficiency of infrastructure services and facilitates innovation in infrastructure developments. Although researchers highlight the potentiality of PPP models for stimulating innovation, they do not prove whether and in which conditions the PPP model is capable of developing innovative solutions. This paper aims to provide answers to the following key research questions: Which are the PPP features that favor innovation? How properly structure a PPP to foster innovation?

Design/methodology/approach

With this aim, drawing upon the main streams of studies on innovation, the authors develop a conceptual framework that identifies the PPP features that can influence the innovativeness. Second, they define how these PPP features have to be structured to foster innovation.

Finding

The authors find that a wider involvement of the private sector will increase the level of innovation. The industry structure exerts opposite forces on innovation: the dominance of large-sized firms is positively related to innovative output, whereas the market concentration negatively affects innovation. Performance-based contracts should be used in the context of PPP instead of traditional contracts. Finally, the authors find that, to fully exploit the networking effects on innovation, cooperation and trusting among partners involved in PPPs should be enhanced.

Originality/value

The developed framework identifies the relations existing between each PPP feature and the level of innovation and allows to define how these PPP features have to be structured to foster innovation. The authors contribute to fill the gap in the academic literature on PPP and innovation by proving whether and in which conditions the PPP model is capable of developing innovative solutions. Furthermore, they provide meaningful guidelines to those called to structure the PPP arrangements.

Details

Journal of Public Procurement, vol. 18 no. 3
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 19 September 2018

Roberta Pellegrino, Nunzia Carbonara and Nicola Costantino

The purpose of this paper is to deal with the maximum interest rate guarantees (MIRGs), and develop a methodology for setting the optimal value of the interest rate cap…

1241

Abstract

Purpose

The purpose of this paper is to deal with the maximum interest rate guarantees (MIRGs), and develop a methodology for setting the optimal value of the interest rate cap, namely the maximum interest rate above which the private investor will obtain reimbursement from the government, which balances the interests of the parties involved in the project.

Design/methodology/approach

The mechanism underlying the MIRG is modeled through real options. Monte Carlo simulation is employed as the option-pricing method. The resulting real option-based model is applied to the case of the “Camionale di Bari” toll road (Southern Italy).

Findings

The application provides some insights for the policy maker called to define the proper forms of guarantees. Furthermore, the results support the negotiation process, allowing the different actors to structure the guarantee in a way that satisfies all the parties and fairly allocates risks between them according to different operational and financial conditions.

Originality/value

The novelty of the contribution is triple. First, the authors advance the state of the art on government supports by focusing on the interest rate guarantee. Second, the authors enrich the existing studies on MIRG by proposing a quantitative model to set the guarantee in compliance with the public–private win-win principle. The developed real option-based model supports the decision maker in finding the optimal value of the interest rate cap, which is able to satisfy the interests of the parties involved in the project. Third, the authors consider not only the private sponsor and the government, as traditionally made by the models developed for other guarantees, but also the lender.

Details

Built Environment Project and Asset Management, vol. 9 no. 2
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 7 November 2014

Nunzia Carbonara and Roberta Pellegrino

The purpose of this paper is to provide a comprehensive understanding of the Public Private Partnerships (PPP) in Italy in order to highlight challenges and opportunities…

1531

Abstract

Purpose

The purpose of this paper is to provide a comprehensive understanding of the Public Private Partnerships (PPP) in Italy in order to highlight challenges and opportunities for a more effective adoption of PPP in Italy. In particular we analyze three key aspects that affect the PPP adoption and implementation, namely the institutional, organizational, and financial ones, and their changes over time.

Design/methodology/approach

To reach the aim, we have conducted an empirical research, gathering qualitative and quantitative relevant information, to characterize three key dimensions affecting the PPP adoption and its effective implementation, namely the institutional, organizational, and financial dimension.

Findings

The analysis of PPP in Italy reveals that, although it is a relatively recent practice, its use is widely spread in delivering public infrastructures. Nevertheless, there are still some shortcomings, related to administrative, financial, and legal issues, that make the application and use of PPP, although considerable in size, less effective and efficient in Italy than in some other countries. In order to overcome these limitations, different interventions are required in order to strength the practices and advance the body of knowledge.

Practical implications

The study formulates useful recommendations for an effective implementation of PPP based on the analysis of the main constraints for the PPP's development in Italy.

Originality/value

The study overcomes the gap of the existing literature on the Italian PPP that have analyzed the phenomenon under two different approaches. Some researchers have investigated the key aspects characterizing PPPs, by adopting a mono-dimensional perspective. Other studies have analyzed the extent of adoption and diffusion of PPP in Italy, by presenting data on PPP projects by sector and/or by types. This paper contributes to fill this gap by providing both a comprehensive analysis of PPP, based on three key dimensions characterizing the PPP adoption and implementation, as well as by presenting an updated picture of the PPP in Italy.

Details

Managerial Finance, vol. 40 no. 11
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 18 July 2016

Nunzia Carbonara, Nicola Costantino and Roberta Pellegrino

– The purpose of this paper is to develop a decision model for choosing the tendering procedure in PPP that minimizes the transaction costs borne by the public sector.

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Abstract

Purpose

The purpose of this paper is to develop a decision model for choosing the tendering procedure in PPP that minimizes the transaction costs borne by the public sector.

Design/methodology/approach

A conceptual model that relates the procurement procedures described in the EU legal framework to launch PPPs and the transaction costs, considering the level of information managed by each procurement procedure has been developed. The authors use this conceptual model to develop propositions about the impact that specific project- and country-related factors have on the choice of the procurement procedure that minimizes the transaction costs.

Findings

The application of the proposed model to the case of the Italian highway “Cispadana” shows its usefulness in orienting the public authority’s choice between the different tendering procedures, taking into account project- and country-related factors.

Research limitations/implications

The present study fills the gap existing in the literature on transaction costs of PPP projects and the procurement procedure used to launch those projects by developing a model that relates the level of transaction costs with a set of key factors, namely the level of information managed during the tendering process, the number of bidders, the project size, the project complexity, and the institutional environment.

Practical implications

As for practitioners, the main contribution of this study lies in offering a tool for supporting the public authority in the decision-making process about the tendering procedures in PPPs without imposing the selection of a specific procedure.

Originality/value

The approach developed provides a new tool to support the contracting authority in the design and choice of the tendering procedures in PPP.

Details

Engineering, Construction and Architectural Management, vol. 23 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 14 September 2010

Antonio Messeni Petruzzelli, Vito Albino, Nunzia Carbonara and Daniele Rotolo

The purpose of this paper is to investigate how universities' learning behavior (explorative or exploitative) and network structure (weak or strong inter‐organizational

1956

Abstract

Purpose

The purpose of this paper is to investigate how universities' learning behavior (explorative or exploitative) and network structure (weak or strong inter‐organizational ties) can affect their capability to collect and diffuse knowledge, and thus to act as knowledge gatekeepers.

Design/methodology/approach

The research methodology is based on the longitudinal study (from 2000 to 2007) of three UK universities (University of Cambridge, London's Global University, and Imperial College London), located in the area of London and selected on the basis of their knowledge mobility. In particular, to evaluate the knowledge mobility for each university, the paper considers the collaborative R&D relationships established by each university, in terms of joint‐patents registered at the European Patent Office (EPO).

Findings

The analysis has revealed that the universities' knowledge mobility is positively affected by both the explorative learning behavior and the establishment of strong inter‐organizational ties. Moreover, results have shown that an increase of the explorative speed can entail a less positive effect of the exploration on the universities' knowledge mobility, since they can become less able to consolidate and implement the acquired new knowledge.

Research limitations/implications

On the basis of these results, the present research provides interesting implications. In fact, recognizing the importance of explorative learning mechanisms, universities should enlarge and diversify their competencies and technological bases in order to be more effective knowledge sources and gatekeepers. Nevertheless, this shift towards new technologies and scientific fields should occur gradually, for instance towards more similar and contiguous technologies, so guaranteeing the necessary strengthening of skills and capabilities. Referring to the universities' network structure, the research suggests the importance of strong inter‐organizational ties as mechanisms that enable the transfer of knowledge. Hence, universities should promote the formation of stable and long‐lasting alliances and collaborations for favouring the creation of a trustworthy environment where knowledge can be exchanged and innovations rise.

Originality/value

The study contributes to the existing literature on knowledge gatekeepers, identifying its main performance, measuring it, and analyzing the impact exerted by two factors, as learning behavior and network structure.

Details

Journal of Knowledge Management, vol. 14 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 18 November 2013

Roberta Pellegrino, Nevena Vajdic and Nunzia Carbonara

Public-private partnerships (PPPs) require the analysis and allocation of a broad spectrum of risks which are considered more complex than in traditional construction…

1633

Abstract

Purpose

Public-private partnerships (PPPs) require the analysis and allocation of a broad spectrum of risks which are considered more complex than in traditional construction contracts. Traditional risk management techniques tend to ignore the manager's ability to recognize and exploit opportunities, which arise as uncertainties are resolved over time and which could potentially increase the project's value. Therefore it is necessary that the risk management process takes account of the managerial flexibility (e.g. real options). The objective of this paper is to explore the possibilities and rationale for implementing real options strategies in the risk management process.

Design/methodology/approach

The approach is based on a literature analysis aimed at identifying key risks and related mitigation strategies and on real option theory in order to model these strategies as managerial flexibilities that naturally exist or are built “artificially” in contractual conditions and clauses, guarantees, etc.

Findings

The paper develops an option-based risk management framework that associates to each risk the related mitigation strategies, which are expressed in terms of real options. The latter is expressed over the project phases conditioned to the natural evolution of risks over time.

Originality/value

This paper proposes a new “dynamic” risk management approach for PPP projects based on real options that improves the traditional risk management techniques by supporting the decision makers in finding a cost-effective combination of real options (or forms of flexibility) to embed in a PPP investment in order to optimally control risk and maximize investment value.

Details

Built Environment Project and Asset Management, vol. 3 no. 2
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 18 September 2007

Antonio Messeni Petruzzelli, Vito Albino and Nunzia Carbonara

The purpose of this paper is to analyse if and how technology districts use proximity dimensions (such as geographical, organizational, and cognitive) as a communication

1564

Abstract

Purpose

The purpose of this paper is to analyse if and how technology districts use proximity dimensions (such as geographical, organizational, and cognitive) as a communication resource for accessing external knowledge sources.

Design/methodology/approach

To achieve this purpose, the organizational and cognitive links between technology districts' actors and external ones are identified and then the new geographical boundaries of the districts are drawn. A case study related to an Italian technology district (Torino Wireless) is provided in order to identify how different research organizations located in the district use proximity dimensions for reaching knowledge sources external to the district, then re‐shaping its geographical boundaries.

Findings

The empirical study enables identification of the actors connected to the technology districts by means of geographical, organizational, and cognitive proximity, and their locations. Moreover, results show that organizational proximity is mainly adopted to link actors located near the district area. While, cognitive proximity is mainly adopted to connect actors geographically distant from the district.

Research limitations/implications

As regards technology district strategic behaviour, it seems particularly crucial to exploit all the three dimensions of proximity. In particular, the technology district of Torino Wireless should increase its use of organizational proximity to be connected with external knowledge sources.

Originality/value

The paper proposes a methodology for identifying the external actors connected with the technology districts by means of proximity. Furthermore, the relationships between organizational and geographical proximity, and cognitive and geographical proximity are also investigated.

Details

Journal of Knowledge Management, vol. 11 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 11 September 2009

Antonio Messeni Petruzzelli, Vito Albino and Nunzia Carbonara

Following the line traced by two previous works of Albino et al. and Messeni Petruzzelli, the paper aims to analyze how technology districts reach and acquire external

1814

Abstract

Purpose

Following the line traced by two previous works of Albino et al. and Messeni Petruzzelli, the paper aims to analyze how technology districts reach and acquire external competencies and capabilities by means of organizational and cognitive proximity. This allows districts to modify their geographical boundaries and evolve into technology clusters.

Design/methodology/approach

The research design is based on a case study methodology. In particular, two actual technology districts are analyzed, namely Castel Romano and Toulouse, in order to show how they use organizational, and cognitive proximity to acquire external knowledge sources and re‐shape their geographical boundaries.

Findings

Based on the findings of the empirical study, two main propositions are formulated. The first proposition refers to the negative relationship between the geographical distance to the district's actors and the use of organizational proximity as a means for reaching external knowledge sources. By contrast, the second proposition indicates the positive relationship between the geographical distance to the district's actors and the use of cognitive proximity as a means for reaching external knowledge sources.

Research limitations/implications

As regards the firm strategic behaviors, it seems particularly crucial to exploit all the three dimensions of proximity, in order to guarantee openness and sustain innovativeness and competitiveness. Concerning policy implications, the local governments should address their actions to help and promote the openness of technology districts and the formation of technology clusters. With this aim, actions should be devoted also to sustaining single local firms that are part of a technology cluster but not of a technology district. These, in fact, by increasing their competitive position, may generate positive externalities in the local area, fostering the diffusion and sharing of knowledge in the area and, then, acting as knowledge gatekeepers for the whole area.

Originality/value

The paper extends the findings of previous works linking three proximity dimensions in a holistic framework that explains the different use of organizational and cognitive proximity to acquire knowledge, according to the geographical distance between organizations.

Details

Journal of Knowledge Management, vol. 13 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 2 July 2008

Olukunle Iyanda and Sunday O. Ojo

The purpose of this paper is to examine the motivation, influences, and perceived effect of information and communication technology (ICT) adoption in Botswana…

3152

Abstract

Purpose

The purpose of this paper is to examine the motivation, influences, and perceived effect of information and communication technology (ICT) adoption in Botswana organizations. While a conceptual model of the adoption process in developed countries has been studied, not much empirical studies have been undertaken. This paper is an attempt to bridge this gap. Specifically, the paper addresses five questions: What motivated organizations in Botswana in their decision to adopt ICT in their operations? What factors, internal and external, influenced the adoption decision? Which sources did the organizations contact for information on the adoption of ICT? What is the relative importance of those influencing/motivating factors and information sources? What are the perceived effects of adoption?

Design/methodology/approach

The study was carried out using a survey method. The main instrument is a personally administered questionnaire that was based on items obtained and adapted from literature. Data were collected from a judgment sample of 29 business and public sector establishments, drawn from nine towns and cities of Botswana. The respondent in each organization was either the IT manager or the chief executive. The initial stage of the adoption process is examined by identifying, in the sample Botswana organizations, the internal and external proponents of the ICT adoption process, the sources from which organizations seek technical information, their perceived relative importance in the process, and the effect of adoption on organizations' activities.

Findings

The study found that ICT application in Botswana was still at an elementary stage, mainly communications and recordkeeping. In terms of motivation and influence, the competitive motive and internal sources of information and influence were dominant and that the overall effect of ICT adoption on several organizational activities was moderately positive.

Originality/value

The identification of the key sources of influence and information for the adoption of ICT helps ICT marketing companies to target their marketing efforts more specifically, and services offered limited to basic needs that are relevant to the use to which ICT is currently applied in Botswana. Widespread adoption of ICT has turned it into a kind of “hygiene” factor rather than a “motivator”. In spite of the positive effect adoption has on various activities of adopting organizations, adoption benefits are matched by similar benefits of competing organizations, thus conferring no competitive advantages. It is only in the absence of adoption that those organizations adopting enjoy such competitive advantage.

Details

International Journal of Emerging Markets, vol. 3 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

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