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Article
Publication date: 3 October 2022

Chunhao Li, Yuping Zhao and Wei Feng Chen

This study aims to investigate the dual effects of commitment-based governance on the relationship between formal control and public–private partnership (PPP) project performance

Abstract

Purpose

This study aims to investigate the dual effects of commitment-based governance on the relationship between formal control and public–private partnership (PPP) project performance. Formal control and relationship governance are two primary forms of inter-organizational governance that affect project performance. However, little is known about the interplay between formal control and commitment and its effect on PPP projects. More specifically, previous studies have failed to distinguish the function routes of relationship governance resulting from different types of formal control (process and outcome control).

Design/methodology/approach

This study adopts a questionnaire survey to empirically investigate the mechanism that commitment-based governance influences the relationship between formal control and PPP performance. After collecting data from public and private sector professionals involved in 101 Chinese PPP projects, the theoretical framework proposed in this paper is verified by the empirical results of the hierarchical multiple regression analysis.

Findings

The results show that process control has an inverted U-shaped effect and outcome control has a significant positive influence on PPP project performance. Furthermore, commitment moderates the effect of formal control on PPP project performance by increasing the relevance of outcome control and mediates the inverted U-shaped relationship between process control and PPP project performance.

Practical implications

Managers should recognize that process control is a double-edged sword and prevent the overuse of process control. Managers should direct their attention toward efforts to improve the commitment, which allows for the effectiveness of outcome control strategies. Additionally, this study new measurement method for relationship governance suggests that managers should be aware of the difference in parties' perceptions of the relationship.

Originality/value

This study allows for a comprehensive understanding of the relationship governance-control nexus from a commitment perspective. The authors bring into light the dual role of commitment-based governance in the relationship between the two types of formal control and PPP project performance. Moreover, the new approach to measure relationship governance offers valuable insight into the measurement of variables about individual's perception.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 31 August 2022

Bo Tian, Jiaxin Fu, Yongshun Xu and Longshan Sun

The risks and uncertainties of public–private partnership (PPP) projects threaten their sustainability. Contract flexibility, which is based on the theory of incomplete contract…

Abstract

Purpose

The risks and uncertainties of public–private partnership (PPP) projects threaten their sustainability. Contract flexibility, which is based on the theory of incomplete contract and transaction cost, may be a viable solution to this issue. The purpose of this study is to investigate the relationship between contract flexibility and the sustainability performance of PPP projects. The multiple mediating roles of justice perception and cooperation efficiency are assessed, thereby allowing the pathways and conditions to be understood more comprehensively for improving the sustainability performance of PPP projects.

Design/methodology/approach

Nine hypotheses in the proposed research model are tested via structural equation modeling using data acquired from 218 Chinese PPP professionals.

Findings

Results show that contract flexibility positively affects PPP project sustainability performance. Justice perception and cooperation efficiency play direct and sequential mediating roles in this effect.

Originality/value

This study validates that contract flexibility positively impacts the sustainability performance of PPP projects, where justice perception and cooperation efficiency serve direct and sequential mediating roles. The findings of this study contribute to an improved understanding of the effect of contract flexibility on the sustainability performance of PPP projects. Furthermore, they provide important theoretical and practical insights into contract management as well as beneficial information and valuable initiatives for improving the sustainability of PPP projects.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 27 August 2021

Jinchan Liu, Yubo Guo, Igor Martek, Chuan Chen and Jiawei Tian

This study develops a phase-oriented evaluation mechanism based on the public–private partnership (PPP) project process and provides a preliminary framework for the promotion of…

Abstract

Purpose

This study develops a phase-oriented evaluation mechanism based on the public–private partnership (PPP) project process and provides a preliminary framework for the promotion of the phase-oriented evaluation of PPPs in China.

Design/methodology/approach

Through a literature review and survey interviews the success criteria for the implementation process of PPPs are documented. Process success criteria findings are used to populate the content of the phase-oriented evaluation. The result is then tested, revised and improved through follow-up expert interviews.

Findings

This paper identifies PPP project process success criteria. Using these criteria, a phase-oriented evaluation framework is developed. Moreover, in consultation with industry experts in the PPP field, eight evaluation aspects were determined: confirmation of project compliance and performance, confirmation of value for money, confirmation of financial affordability, trend analysis of annual performance appraisal, risk review and early warning, rebankability analysis, project externality analysis, benchmarking analysis of similar projects. These eight application aspects are analyzed in the light of the outcomes of the resulting phase-oriented evaluation framework.

Research limitations/implications

The results of the research can only provide researchers and practitioners with generic insights regarding inputs into a phase-oriented evaluation of PPP projects. For any specific PPP project, the focus and priority of the evaluative content will vary.

Practical implications

A phase-oriented evaluation of PPP projects is put forward. This will allow project stakeholders to better track the progress of projects throughout what can be a lengthy implementation stage.

Originality/value

This study can provide governments and stakeholders with a new, theoretical understanding as to factors required of an effective phased evaluation of China's PPP projects. In that regard it will be significant value in PPP project policy and decision-making.

Details

Engineering, Construction and Architectural Management, vol. 29 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 21 April 2020

Zhao Xu, Xiang Wang, Ya Xiao and Jingfeng Yuan

There is often a lack of accurate performance evaluation in Public–Private Partnership (PPP) projects. It is a challenging issue to effectively use Building Information Modeling…

1046

Abstract

Purpose

There is often a lack of accurate performance evaluation in Public–Private Partnership (PPP) projects. It is a challenging issue to effectively use Building Information Modeling (BIM) for PPP project performance evaluation. The objective of this study is to develop a PPP project performance evaluation model based on Industry Foundation Classes (IFC) and an enhanced matter-element method to more precisely evaluate PPP project performance.

Design/methodology/approach

The performance evaluation of PPP projects in the construction and operation period was explored. The PPP project performance evaluation indicator system was first established based on a literature review and PPP project practice. Then, the evaluation indicator information was expressed through IFC mapping and extension. After that, an IFC-based PPP project performance evaluation model was developed, and a case study was provided to validate the use of the proposed performance evaluation model.

Findings

The results of the case study show that the proposed approach can accurately and efficiently evaluate PPP projects, and it could favorably contribute to performance evaluation in PPP projects.

Research limitations/implications

This study only concerns the performance evaluation of one type of PPP project. Further research is required to study different types of PPP projects; the model needs to be more efficient and intelligent.

Originality/value

The performance evaluation of PPP projects utilizing IFC extension and the enhanced matter-element method provides guidance for the government and private parties to accurately and efficiently evaluate PPP project performance.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 8
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 26 October 2020

Mengyuan Cheng, Guoliang Liu and Yongshun Xu

The role of conventional contracts in achieving sustainability goals in public–private partnership (PPP) projects has been questioned. From the multifunctional perspective of…

Abstract

Purpose

The role of conventional contracts in achieving sustainability goals in public–private partnership (PPP) projects has been questioned. From the multifunctional perspective of contract theory, joint-contract functions that combine contractual control, coordination and adaptation may be a potential approach for improving PPP project sustainability performance. This research intends to investigate the link between the joint-contract functions and PPP project sustainability performance, and their underlying mechanism, by analyzing the mediating role of relationship quality and moderating roles of environmental uncertainty and behavioral uncertainty.

Design/methodology/approach

Based on 170 valid survey data collected from the Chinese PPP professionals, partial least squares structural equation modeling (PLS-SEM) was adopted to test the hypothesis.

Findings

The results reveal that joint-contract functions are positively associated with the PPP project sustainability performance. This relationship is strengthened by environmental and behavioral uncertainty. Moreover, the relationship between the joint-contract functions and PPP project sustainability performance is mediated by relationship quality.

Research limitations/implications

This research extends contract governance theory and sustainability research in PPP projects. The research implications are as follows: (1) joint-contract functions are a second-order construct consisting of three first-order dimensions: control, coordination and adaptation and are positively associated with PPP project sustainability performance; (2) joint-contract functions enhance the sustainable benefits of PPP projects during environmental uncertainty and behavioral uncertainty; (3) informal relationships are a critical bridge connecting formal institutions with the sustainability performance of PPP projects.

Practical implications

In general, these findings guide project participants who aim to achieve sustainable outcomes in PPP projects. (1) Project participants should consider the process of contract design and sign contracts that focus on joint-contract functions. (2) Project participants should investigate the degree of uncertainty of a PPP project before designing contracts, and design the contracts with corresponding complexity. (3) Project participants should work to enhance PPP sustainable benefits by improving the relationship between partners, such as encouraging mutual trust and joint problem-solving.

Originality/value

This research verifies the relationship between joint-contract functions and PPP project sustainability performance, and the boundary and intermediary conditions between them.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 29 October 2021

Suhaiza Ismail, Rosnani Mohamad and Julia Mohd Said

This paper has two objectives. The first objective is to examine the important performance indicators of the lifecycle process of public private partnership (PPP) projects. The…

Abstract

Purpose

This paper has two objectives. The first objective is to examine the important performance indicators of the lifecycle process of public private partnership (PPP) projects. The second objective is to investigate the difference in the perception of the importance of the performance indicators between the public and private sectors.

Design/methodology/approach

To achieve the research objectives, the study used a questionnaire survey. The questionnaire was distributed via postal mail to officers of government departments and private sector companies who may have been involved in PPP projects. A total of 237 completed questionnaires were received, representing a 51.52% response rate. To examine the importance of performance indicators, the descriptive statistical tests of mean, standard deviation and mean score ranking were used. Independent t-tests were conducted to investigate the differences in the perceptions of the importance of performance indicators between the two respondent groups.

Findings

The findings show that all the 16 performance indicators are perceived as important and very important. The top five important performance indicators for a PPP project lifecycle process are “Time management”, “Contractual management”, “Cost management”, “Safety management” and “Effective risk management system”, while “stress or conflicts management” is the least important. In terms of the differences in the perception of the public and private sector groups, the results indicate that four indicators (“environment protection”, “cost management”, “effective risk management system” and “good work environment”), show a significant statistical difference between the perception of the public and the private sector respondents.

Originality/value

This study offers empirical evidence on key performance indicators for a PPP project that are crucial throughout its lifecycle as perceived by two key parties in a PPP contract, i.e. the public and the private sectors.

Details

Built Environment Project and Asset Management, vol. 12 no. 5
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 20 February 2020

Jingfeng Yuan, Xuewei Li, Yongjian Ke, Wei Xu, Zhao Xu and M. Skibnewski

Effective performance management (PM) in public–private partnership (PPP) projects is critical to realizing value for money (VFM). This study aims to provide an in-depth…

1016

Abstract

Purpose

Effective performance management (PM) in public–private partnership (PPP) projects is critical to realizing value for money (VFM). This study aims to provide an in-depth understanding of problems existing in PPP PM and possible avenues for improvement, presenting an experimental system to verify that building information modeling (BIM) and other information communication technologies can improve PPP PM.

Design/methodology/approach

The mixed research method adopted in this study combined empirical research with experimental research. Semistructured interviews were used to ascertain the current situation of PPP PM with the help of Nvivo software. A BIM-based performance management system (BPMS), which combines BIM with Web and Cloud technology, was then constructed to achieve performance monitoring, performance measurement, and performance-based payment. Finally, a case study was introduced to explain the function application of the proposed system.

Findings

The case demonstration verified is found to verify that the developed BIM-based execution framework for PPP PM can effectively guide stakeholders toward achieving mixed PM, promote effective PM, and improve work efficiency with the support of BIM and other information and communication technologies.

Originality/value

Through the development of a BPMS for PPP projects, the effectiveness and efficiency of PM are improved. Practical PM applications are also provided to different stakeholders, through which the key performance indicators and the behaviors of the government and private-sector partners can be monitored to form a more comprehensive and reasonable PM mechanism and promote the realization of VFM in PPP projects.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 8
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 12 November 2020

Zhen Hu, Qianmeng Li, Tingting Liu, Lu Wang and Zhe Cheng

Public private partnership (PPP) has gained increasing popularity around the globe. Whether the government needs to participate in the PPP special purpose vehicle (SPV) as an…

Abstract

Purpose

Public private partnership (PPP) has gained increasing popularity around the globe. Whether the government needs to participate in the PPP special purpose vehicle (SPV) as an equity coinvestor is a critical issue in PPP development. This research aims to examine the influence of government equity investment on PPP performance by taking public-private communication as an intermediate variable.

Design/methodology/approach

A questionnaire survey was adopted as the main research method. PPP practitioners with extensive experiences from both the public and private sectors were targeted respondents. The survey results were subsequently analyzed using statistical data analysis method.

Findings

Based on the results from the questionnaire survey, this research indicates an inverted U-shaped relationship between the ratio of government equity and performance in PPP projects. In addition, communication plays a mediating role between government equity investment and PPP project performance.

Originality/value

This research explicates the relationship between the equity structure in a PPP SPV and the project performance. It provides important guidance and reference for PPP practitioners to structure the SPV and associated financial and commercial arrangements. It also offers valuable insights into the development of PPP policy, especially regarding the structuring of PPP models in China and elsewhere.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 26 August 2021

Isaac Wanzige Magoola, Rogers Mwesigwa and Ruth Nabwami

The purpose of this paper is to provide the initial evidence of the relationship between the community and public-private partnership (PPP) projects by focusing on community…

Abstract

Purpose

The purpose of this paper is to provide the initial evidence of the relationship between the community and public-private partnership (PPP) projects by focusing on community engagement, trust and performance.

Design/methodology/approach

This study is cross sectional and correlational and it uses project level data that were collected by means of a questionnaire from a sample of 47 PPP projects in Uganda.

Findings

Results indicate that trust and community engagement are significantly associated with the performance of PPP projects.

Research limitations/implications

This study was cross-sectional, and thus monitoring changes in behaviour over time was not possible. The study used a quantitative research approach and this limits respondents from expressing their feelings fully. The study was conducted in Uganda and it is possible that the results of this study can be generalized to developing countries with environments similar to that of Uganda.

Practical implications

The results are important for PPP projects to understand the role that trust and community engagement play in as far as the performance of PPP projects is concerned.

Originality/value

Whilst there have been a number of studies on the performance of PPP projects, this study provides initial empirical evidence on the influence of trust and community engagement on the performance of PPP projects using evidence from PPP projects of an African developing economy – Uganda.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 17 no. 2
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 27 July 2018

Akintayo Opawole, Godwin Onajite Jagboro, Kahilu Kajimo-Shakantu and Betty Oluwafunso Olojede

The purpose of this paper is to evaluate critical factors that impact public sector organizations’ (PSOs) performance in PPP contracts with a view to improving their capabilities…

Abstract

Purpose

The purpose of this paper is to evaluate critical factors that impact public sector organizations’ (PSOs) performance in PPP contracts with a view to improving their capabilities toward efficient project delivery and attracting more private sector investments.

Design/methodology/approach

The research methodology is a quantitative approach which commenced with an in-depth literature review that provided the basis for identification of the variables that were evaluated through a structured questionnaire. Respondents were professionals from stakeholders’ organizations that had been involved in PPP contracts in the Southwestern region of Nigeria selected using respondent driven sampling technique. These include industrial practitioners from governmental-based organizations (ministries, agencies, corporations/parastatals, etc.), private developers/concessionaires, law firms, and banks, among others. Data collected were analyzed using mean, relative significance index) and factor analysis.

Findings

The critical performance factors of PSOs in concession contracts clustered under nine components. These were technical, legal, political, finance, market maturity, economic, procurement process, performance guarantee and degree of regulation. PSOs’ capability development measure in countries newly experimenting with concession model is expected to focus on these factors for improved project delivery.

Research limitations/implications

The study provided implications for capabilities improvement, legislation and policy making with respect to PPP transactions in countries newly experimenting with PPP contracts. This is highly significant to improving the capabilities of PSOs and attraction of more private sector partnership in infrastructure delivery through the concession model.

Practical implications

The study provided implication for capabilities improvement, legislation and policing with respect to PPP transactions in countries newly experimenting with PPP contracts. This is highly significant to improving the capabilities of PSOs and attraction of more private sector partnership in infrastructure delivery through concession model.

Originality/value

Previous studies on PPP performance had either focused on the projects or generalized the performance assessment to PSOs and private investors. This study extended the researches on PPP performance by revealing factors specific to the public sector stakeholders.

Details

Property Management, vol. 37 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

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