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Article
Publication date: 5 October 2010

John Storm Pedersen and Jacob Dahl Rendtorff

The paper discusses the balance between values and economic efficiency in the public sector in comparison with the private sector. The argument is that the public sector

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Abstract

Purpose

The paper discusses the balance between values and economic efficiency in the public sector in comparison with the private sector. The argument is that the public sector, hence the public welfare service institutions, can learn much from the private service sector, hence the private service firms with regard to the relation to values, ethics, corporate social responsibility (CSR) and efficiency in order to improve the balance between values and efficiency in the public sector.

Design/methodology/approach

The paper discusses the concept of balance in relation to the development of the management of private service companies as a useful alternative to new public management (NPM). It discusses this with regard to three issues: the evolution of the management of private companies; what can the public sector, hence the public welfare institutions, learn from the evolution of management of private companies? How would it be possible for governments to work for an alternative to NPM, on the basis of the experiences of management of private companies, improving the balance between values and economic efficiency in the public sector?

Findings

It is argued that a deadlock in the development of efficiency management in the public sector, hence in the public welfare service institutions, is created. It is argued, furthermore, that this deadlock to a great extent, paradoxically, is created because of the focusing on NPM for almost two decades as the most important tool to develop efficiency management in the public sector. Finally, it is argued that the experiences in private companies regarding how to find a proper balance between values, ethics, CSR and economic efficiency can be very helpful in developing a strategy within the public sector to unlock the deadlock regarding the development of efficiency management. That is why the experiences of management of the private services companies can become a constructive alternative to the experiences of NPM in the public sector at the level of welfare institutions.

Research limitations/implications

There would be potential for more research on CSR, business ethics and values‐driven management in relation to the public sector.

Originality/value

The paper offers new insight into the relation between values, CSR and management models in the private and in the public sector.

Article
Publication date: 1 March 1997

HELEN PAYNE

Over the last few years several projects have been procured under the Private Finance Initiative, which brought with them some challenging, often novel, legal issues. A…

Abstract

Over the last few years several projects have been procured under the Private Finance Initiative, which brought with them some challenging, often novel, legal issues. A new statutory framework has been established creating new legal entities and regulating the powers and obligations of those new entities. The public procurement regime of the European Union has had to be carefully considered by both the public and private sector parties as failure by either to adhere to the strict rules and procedures can result in the imposition of sanctions. Attitudes to the way in which contracts are structured have had to change. The public sector had to step back from the more traditional involvement and control it has exercised in the past, and permit the private sector to come up with innovative solutions to the public sector's output requirements. The issues of force majeure and change of law have had to be looked at very closely and mechanisms for the sharing of the risk negotiated between the public and private sectors. A uniform approach to these legal issues would be welcomed along with some standarization of fundamental terms.

Details

Engineering, Construction and Architectural Management, vol. 4 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 8 March 2022

Augustine Senanu Komla Kukah, De-Graft Owusu-Manu, Edward Badu and David John Edwards

In comparison to other countries, power generation in Sub-Saharan Africa is poor. The demand for power has surged in recent times and continues to increase at a fast rate…

Abstract

Purpose

In comparison to other countries, power generation in Sub-Saharan Africa is poor. The demand for power has surged in recent times and continues to increase at a fast rate. The public–private partnership (PPP) model has been identified as an option to address the challenges in the power sector. The purpose of this research paper is to critically explore the reasons for entering into PPP power projects in Ghana by the public and private parties.

Design/methodology/approach

Questionnaires were used to elicit responses from respondents using a two-round Delphi survey. From 60 respondents contacted in round one, 48 responses were obtained, and these 48 respondents further took part in round two. Mean score ranking was used to rank the reasons for entering into PPP power projects, while analysis of variance (ANOVA) was run to test significant difference in perceptions among the respondents.

Findings

From round 2 of the Delphi survey, the significant reasons for public sector entering into PPP power projects were as follows: achieving improved value for money, access to additional capital, increased certainty of projects and greater efficiency of project delivery services. For private sector, most significant reasons were as follows: obtaining of investment support, improvement in private sector’s international image and synergy with public sector. From ANOVA analysis, there were significant different perceptions among some of factors on the respondent profile variables and the reasons for entering into PPP power projects, while other factors did not have significant different perception.

Originality/value

Significant reasons for both public and private sectors identified would be incorporated by the government when PPP policy guidelines and laws are reviewed. This will aid in the effective implementation of PPP for power projects.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Book part
Publication date: 6 December 2017

Boštjan Ferk and Petra Ferk

The purpose of this chapter is to analyse Public–Private Partnerships (PPPs) in the developing and emerging economies as a multifaceted challenge from viewpoint of the 10…

Abstract

The purpose of this chapter is to analyse Public–Private Partnerships (PPPs) in the developing and emerging economies as a multifaceted challenge from viewpoint of the 10 keys ‘for’ and ‘against’ PPPs: feasibility; planning; optimization; modernization and development; financing; project delivery; project operation; supervision; user satisfaction and accounting issues. The conceptual model and the reasons were formulated by the authors some 10 years ago, based on the literature and case-study reviews. Relevance of those reasons was verified in practice. The knowledge and critical perspective on the above-stated reasons are relevant for the implementation of PPP projects in any national economy – developed, emerging or developing, but it is quintessential for the implementation of PPPs in the economies that are at the early stage of implementation of PPPs. Although for the identification of the above-stated reasons, wide comparative literature and case-studies review was conducted, the reasons were verified in practice in Slovenia only. Slovenia is considered as one of the most advanced transition countries of Central Europe and a developed economy. This chapter can improve public policy, teaching, learning and practice of PPP implementation in developing and emerging economies. The value of this chapter is in the approach which goes beyond the usual defending or renouncing of PPPs. This chapter also clearly identifies the importance of a sincere motive for the implementation of PPPs by the government as a prerequisite for the successful implementation of PPPs.

Details

The Emerald Handbook of Public–Private Partnerships in Developing and Emerging Economies
Type: Book
ISBN: 978-1-78714-494-1

Keywords

Book part
Publication date: 28 June 2016

Jan van Helden and Christoph Reichard

An examination of the commonalities and differences between performance management practices in the public and private sector.

Abstract

Purpose

An examination of the commonalities and differences between performance management practices in the public and private sector.

Methodology/approach

A literature review of 100 publications in international academic journals over the last 20 years.

Findings

The chapter develops a framework which links the dimensions of the public/private-distinction (ownership, funding, control and type of goals) to the design and use of performance management systems (PMS). This framework subsequently informs a literature review, which can be summarised as follows: Multi-dimensionality of the PMS is core in both public and private sector organisations, but quite many private sector papers point to a financial focus at the top of the PMS, while public sector organisations show a broad variety of performance indicators, including those on societally relevant goals. In addition, a link between the PMS and strategies can be found in the public and the private sector, but the match between different strategies and PMS design is more elaborated in the private sector. These findings are largely in accordance with our expectations. The review also finds support for the assumption that performance information in public sector organisations is primarily used for external accountability reasons, while internal managerial control is the main purpose in private firms. The use of performance information is quite intensive and mostly functional in both sectors, which does not meet our expectations. Overall, the differences between performance management practices in the public and private sector are less stringent than expected.

Research limitations

Due to limited evidence about the importance of performance-related pay systems and no evidence about targeting in both sectors, a more focused literature review on these issues would be desirable.

Practical implications

Mutual learning between both sectors, for example the public sector can learn from the private sector on how to link strategy to the PMS and the private sector can learn from the public sector about serving a multitude of stakeholders in the PMS.

Originality/value

A comprehensive review of performance management practices in the public and private sector.

Details

Performance Measurement and Management Control: Contemporary Issues
Type: Book
ISBN: 978-1-78560-915-2

Keywords

Article
Publication date: 7 September 2021

Nurfarizan Mazhani Mahmud, Intan Salwani Mohamed and Roshayani Arshad

This paper aims to provide a proper understanding of corruption in the private sector, also known as the supply-side of corruption. It also presents the causes of corrupt…

Abstract

Purpose

This paper aims to provide a proper understanding of corruption in the private sector, also known as the supply-side of corruption. It also presents the causes of corrupt practices and points out the corporations’ actions to mitigate corrupt behaviour in the business environment.

Design/methodology/approach

This study reviews the prior literature on the phenomenon of corruption in the private sector, its causes and the preventive measures that should be implemented.

Findings

Corruption in the private sector was associated with a firm’s interaction with the public sector, and the most common corruption in the private sector is grand corruption, which is improper contribution made to high-level public officials and politicians. The causes of corruption in the private sector can be explained from several dimensions: economy, psychosocial and legal and regulation. Preventative measures encompass both internal strategies, which are endogenous to business and external strategies like exogenous legislation and restrictions enforced by the government or outside organizations.

Originality/value

The efficient strategies in combating corruption need active cooperation and participation from the supply-side of corruption. Thus, this study contributes to the literature on the theoretical understanding of the corruption problem from the supply-side and responsibility play by the private sector in global anti-corruption initiatives.

Details

Journal of Financial Crime, vol. 29 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 9 August 2021

Getachew Yilma Debela

The extensive public financing for infrastructure guided by the state-led development policy has crowded out private sector participation for infrastructure development in…

Abstract

Purpose

The extensive public financing for infrastructure guided by the state-led development policy has crowded out private sector participation for infrastructure development in Ethiopia. Although public-private partnership (PPP) has been used by many countries, the Government of Ethiopia has started to adopt it for major infrastructure development recently. Thus, it is important to investigate the reasons that motivated the government to adopt the PPP model to provide insights to the sector players. This paper aims to explore the driving factors for adopting PPP for infrastructure development focusing on the energy sector of Ethiopia and compared it with other countries.

Design/methodology/approach

The study used a comprehensive literature review of previous research outcomes and a purposively sampled questionnaire survey of professionals in Ethiopia.

Findings

The results of the study revealed that the five top driving factors perceived by the experts for adopting PPP in the energy sector of Ethiopia include the private sector has the ability to raise funds for project, facilitate creative and innovative approaches, save time in delivering the project, accelerate project development and private sector possess better mobility. The comparison of the driving factors with other countries also suggests that each county has its own reason and preference for adopting the PPP model.

Originality/value

The research result contributes to the development of PPP in Ethiopia and other developing countries at the early stage of PPP implementation. It also provides information to policymakers, sponsors, financiers and developers of PPP projects to understand the government's motivations to implement PPP in Ethiopia.

Details

International Journal of Energy Sector Management, vol. 16 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 28 October 2020

Danrong Song, Jinbo Song, Hehui Yuan and Yu Fan

With the growing demand for infrastructure and public services in recent years, PPP-UP have attracted a great deal of attention. However, while the user focuses on the…

Abstract

Purpose

With the growing demand for infrastructure and public services in recent years, PPP-UP have attracted a great deal of attention. However, while the user focuses on the payment for use and the private sector is concerned with its return on investment, the public sector pays more attention to the efficient utilization of public funds. In order to analyze the willingness of each stakeholder to join PPP-UP, an evolutionary game model involving the three parties is constructed.

Design/methodology/approach

An evolutionary game model is established that considers the users and the public and private sectors in user-pay public-private-partnership projects (PPP-UP). Eight scenarios of equilibriums and the game's evolutionary stable strategies are analyzed, and the corresponding stability conditions are then obtained. A situation where all three players are willing to cooperate in theory is also examined. The key influencing parameters that affect cooperation behaviors are further discussed.

Findings

First, the results illustrate that by properly adjusting the influencing factors, the cooperation status among the three parties can be changed along with certain evolutionary trends. Second, it is hard to modify unsatisfactory evolutionary stability by small changes in both the price compensation of and the construction and operation compensation. Third, it is necessary to involve the users in the decision-making process in PPP-UP and take their demands regarding benefits and payments into account.

Originality/value

In this paper, we focus on PPP-UP to research interactions among the public and private sectors and the users. Based on the analysis of the evolutionary game, to facilitate the successful implementation and development of a project, several conditions are needed to ensure tripartite cooperation. Several recommendations are then proposed for decision-makers in PPP-UP.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 11 December 2020

Moses Onyoin and Christopher Bovis

This paper explains the evident disproportionality in the levels of adoption of the modality of public–private partnerships (PPPs) in Uganda by tracing the peculiar…

Abstract

Purpose

This paper explains the evident disproportionality in the levels of adoption of the modality of public–private partnerships (PPPs) in Uganda by tracing the peculiar preconditions and enablers of the model's relative high adoption in the electricity sector.

Design/methodology/approach

Key conceptual suggestions from historical institutionalism (HI), critical juncture and path dependence are used to orient the data collection and analysis. The direct experiences and perceptions of key informants involved in policy, regulation and operations in the electricity sector are thematically analyzed.

Findings

The primacy of specific policy, institutional decisions and actions sequentially undertaken at the international, national and sectorial levels in shaping the conceivability and possibility of PPP modality is foregrounded. In particular, international advisory for the changed role of the state and the government's subsequent decision to enact and reenact specific institutional frameworks at the national and sectorial levels created important disruptions to the status quo and paved a new and relatively stable institutional path conducive for private sector participation.

Research limitations/implications

Theoretically, the paper demonstrates the ability and power of HI to support the exploration and framing of multilevel and path-dependent explanations of institutional development and policy adoption. Practically, suggestions in terms of policy, legal and regulatory enablers for the adoption of PPP are made to shape practitioners' decision-making

Practical implications

Practically, suggestions in terms of policy, legal and regulatory enablers for the adoption of PPP are made to shape practitioners' decision-making.

Originality/value

The importance of considering factor combinations and sequences in explaining the emergence, adoption and proliferation of public policy instruments and phenomena is underscored. In addition, the discourse on PPPs is moved beyond rationalization on how to even out their adoption (and subsequently the associated benefits) across sectors.

Details

International Journal of Public Sector Management, vol. 34 no. 1
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 23 November 2020

Krichelle Medel, Rehana Kousar and Tariq Masood

The increasing risk of natural disasters is challenging humanitarian actors to create resilient disaster management systems. However, the role of the private sector in…

Abstract

Purpose

The increasing risk of natural disasters is challenging humanitarian actors to create resilient disaster management systems. However, the role of the private sector in disaster management operations (DMOs) is not as prominent as the role played by (inter)governmental agencies. This article aims to investigate the relationship of collaboration and resilience in disaster management supply networks (DMSNs).

Design/methodology/approach

Supply network resilience criteria were defined as robustness, flexibility, velocity and visibility based on the literature review. DMSN capabilities were identified characterising each resilience criterion through the development of the Collaboration–Resilience (COLRES) Analysis Framework for DMSNs. This theoretical model was then applied to an empirical case study in the Philippines using semi-structured interviews for data gathering.

Findings

A total of 46 cross-sector collaboration activities were identified across four disaster management phases and linked to the resilience criteria. A causal analysis of each collaboration activity and its outcome was conducted to identify relationships between collaboration types and resilience constructs. Based on these results, patterns were identified, and dependencies between collaboration and resilience were defined. Collective DMSN resilience (DMSNRES) enabled by existing cross-sector collaboration activities was evaluated against a future disaster scenario to identify resilience gaps. These gaps were used to recognise new cross-sector collaboration opportunities, thereby illustrating the continuous process of resilience building.

Research limitations/implications

This research provides new insights on how private sector is involved within a DMOs through collaboration with the government and other NGOs. It augments existing literature on private sector involvement in DMOs where common perception is that the sector is only involved in short-term response and recovery activities. This study finds that the private sector can be operationally involved not just in post-disaster activities, but also in mitigation and preparation phases as well. This then sets a new baseline for further research on private sector involvement within DMOs. As this study provided a novel framework to analyse collaboration activities and its impact to DMSN resilience, future work could be done by applying the model to further cases such as other countries'. DMSNs, or to more specific contexts such as inter-organisational collaborations rather than big sectors. A more detailed assessment method against a future disaster will prove relevance for the model in providing practical insights on how resilience can be built in DMSNs.

Practical implications

This research proposed a novel DMSN collaboration-resilience (COLRES) model (Figure 11) to analyse existing processes in preparation for specific disasters. Practitioners may be able to use this model with the goal of identifying resilience gaps to fill and continuously improve their processes. The model also provides practitioners the lens to improve processes with the perspective on collaboration to complement government and NGO efforts and expertise with those of the private sector. For the private sector perspective, this research provides new insights on how they can be more involved with the community to provide more sustainable and long-term contributions to the society.

Social implications

With disasters becoming more complex and frequent by the day and as humanitarian actors focus on improving their expertise, the need for every piece of the society to contribute to disaster risk reduction is continuously intensified. This research shows that each sector of the society can take part in disaster management operations to reduce unpredictability, lives impacted and increase speed of response and recovery. Each sector of the society can be of great contribution not only during post-disaster response and recovery but also during pre-disaster mitigation and preparedness phase. As such, this research echoes the call for everyone to be involved in disaster risk reduction and mitigation as a way of life.

Originality/value

This research ultimately finds that cross-sector collaboration builds resilience in DMSNs through capacity building, redundancy sourcing, information reliability and logistics responsiveness. This study shows that the private sector is able to go beyond existing short-term partnerships by participating in the 46 collaboration activities identified across four disaster management phases in order to build resilience in DMSNs.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 10 no. 4
Type: Research Article
ISSN: 2042-6747

Keywords

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