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Book part
Publication date: 6 December 2017

Maria Basílio

Public–Private Partnerships (PPPs) are used worldwide to reduce the infrastructure gap. Public entities encourage private sector involvement through PPPs, but the degree of such…

Abstract

Public–Private Partnerships (PPPs) are used worldwide to reduce the infrastructure gap. Public entities encourage private sector involvement through PPPs, but the degree of such commitment is affected by several factors, related to the specific PPP project and to the institutional and economic environment in the host country. The purpose of this chapter is to perform an empirical analysis of the determinants of the degree of private sector participation in PPPs in developing and emerging countries. This chapter explores fractional response models to explain the degree of private participation in PPPs using data from 2000 to 2014, obtained from the World Bank’s PPI database. The results suggest that the type of project is a key determinant of the degree of private sector involvement. Favourable fiscal conditions and the existence of explicit support from the government (direct or indirect) increase the degree of private involvement. Multilateral support reduces private participation, emphasizing a substitution effect. In the same way, private sector involvement appears as a substitute to overcome failures in countries with poor financial systems. The results are particularly important for public authorities. This chapter identifies key factors that can foster private sector involvement in PPPs. Although the expansion of PPPs is a well-accepted reality, empirical studies that explore factors that affect the degree of private sector involvement are still lacking. This chapter particularly addresses this topic.

Details

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

Keywords

Article
Publication date: 7 October 2013

Albert P.C. Chan and Ernest Effah Ameyaw

The past few years have seen some private sector involvement in urban and small-town water provision in Ghana, as the government strives to improve access to water supply services…

Abstract

Purpose

The past few years have seen some private sector involvement in urban and small-town water provision in Ghana, as the government strives to improve access to water supply services for its citizens in line with millennium development goals. Since 1995, both central and local governments have entered into various forms of public-private partnerships (PPPs) contracts. The paper aims to examine challenges and investment needs of Ghanaian water supply sector that necessitated private sector involvement; trends, and factors that constrain the development and implementation of projects with private sector involvement in the sector.

Design/methodology/approach

A research approach integrating multi-stage critical review of relevant related literature and case studies is adopted in this paper. The study is further informed by the authors' experience in the sector and knowledge of PPPs. Analysis of data from different sources, using both approaches, provides both historical and contemporary approach to water management practice in Ghana.

Findings

The paper reveals that the Ghanaian water supply sector mirrors the classic challenges of public sector utilities in developing countries. Under-investment by government is the major cause of the ill-performance of the sector, necessitating private sector involvement. Management contract has emerged as a popular form of water supply PPP in Ghana. Further, optimal risk allocation has not been widely adopted in these contracts, and not yet been given much attention by practitioners and researchers in the literature of water management in Ghana.

Originality/value

The paper provides useful insights into the constraints of the water supply sector, development and implementation challenges of PPPs in the sector, and prompts a need for more research on risk allocation in water supply PPP contracts.

Details

Journal of Engineering, Design and Technology, vol. 11 no. 3
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 9 March 2015

Emmanuel Yeboah-Assiamah

The purpose of this paper is to use relevant models and theories to conceptualize the prospects and challenges associated with private sector involvement in the provision of…

Abstract

Purpose

The purpose of this paper is to use relevant models and theories to conceptualize the prospects and challenges associated with private sector involvement in the provision of sanitation and environmental services in urban settlements of developing African economies.

Design/methodology/approach

The study adopts the public choice theory and principal-agent model in its conceptualization and analysis. Retrospective literature analysis within the qualitative research approach has been employed for the study. It draws extensively on existing classical theoretical and current empirical literature on privatization of urban sanitation services in developing countries.

Findings

The study observes that privatization is a necessary tool for enhancing quality and responsive sanitation service delivery but there must be some mechanisms to prevent any latent challenges. The study also observes that the same problems associated with the public sector could transcend into the private sector if key measures are not taken into consideration.

Practical implications

The process of privatizing or contracting out must ensure competition, enough communication to all stakeholders as well as involving expertise in the bidding process. The process also requires strict monitoring and supervision; these call for an appropriate legal framework to regulate privatization. The paper reminds urban administrators and policy makers to be circumspect in the privatization process. If the process of privatization is carried out effectively, urban sanitation services will be provided effectively and efficiently.

Originality/value

The paper adapts the public choice and principal-agent model to assess privatization processes in developing African countries. This study will be of importance to urban administrators, public officials and policy makers in general.

Details

Management of Environmental Quality: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 11 July 2016

Andrej Christian Lindholst, Morten Balle Hansen and Ole Helby Petersen

– The purpose of this paper is to improve the understanding of the evolution of marketization in the public sector as a process of institutional change.

Abstract

Purpose

The purpose of this paper is to improve the understanding of the evolution of marketization in the public sector as a process of institutional change.

Design/methodology/approach

The paper is based on a study of marketization and gradual changes in the involvement of private contractors (as providers of maintenance services) in the municipal road and park sectors in Denmark over the past 30 years. The study draws theoretically on historical institutionalism as an interpretive framework and empirically on findings from earlier research, register data from municipal accounts as well as new survey data.

Findings

Marketization within the road and park sectors has historically taken place through gradual changes, in particular by processes of layering and displacement, which has added up to substantial transformations in both sectors. Transformations relate to the levels of private sector involvement, the purpose of using private contractors, the extent of competition and the design of contractual arrangements. The road sector has been a frontrunner in this marketization process, while the park sector increasingly has been “catching up.”

Originality/value

The paper contributes to the understanding of the historical development and differential pathways of marketization within the public sector. In particular, the study highlights how pathways of gradual change, spurred by the influx of long-term policy pressures, over time can lead to substantial institutional transformations.

Details

International Journal of Public Sector Management, vol. 29 no. 5
Type: Research Article
ISSN: 0951-3558

Keywords

Book part
Publication date: 9 August 2014

Francine Menashy

This chapter attempts to untangle the complex arena of private sector engagement in education by discussing the definitional challenges associated with understanding the non-state…

Abstract

This chapter attempts to untangle the complex arena of private sector engagement in education by discussing the definitional challenges associated with understanding the non-state sector and by introducing some conceptual frameworks employed in research on private education. A thematic review of research from the field of Comparative International Education is provided to give the reader an understanding of the diversity that characterizes private involvement as well as the interconnectedness of private actors, specifically drawing attention to findings that grapple with equity implications. The chapter concludes with some suggestions for developing a framework for research via posing questions that ought to be asked when designing, conducting and analyzing findings from studies into private sector engagement in education.

Details

Annual Review of Comparative and International Education 2013
Type: Book
ISBN: 978-1-78190-694-1

Keywords

Article
Publication date: 15 February 2008

Jane Broadbent and James Guthrie

The purpose of this paper is to review and critique the field of public sector accounting research. Many nation states deliver essential public services. In recent times, many of…

11232

Abstract

Purpose

The purpose of this paper is to review and critique the field of public sector accounting research. Many nation states deliver essential public services. In recent times, many of these nations have been involved in programmes of “modernisation”, which, in part, means that these public services now are significantly managed, delivered and governed by private and third sector organisations.

Design/methodology/approach

The paper employs a literature‐based analysis and critique of public sector accounting articles published in the selected journals from 1992 to 2006. From this, a descriptive meta‐analysis of the characteristics of the research will be discussed. Finally, a conceptual analysis of the selected literature will be used to evaluate the field and address a possible future research agenda.

Findings

The descriptive analysis highlights that among the research papers reviewed several interesting patterns emerged concerning public service research. Also, the dominance of Australasia and UK research was noted. The extent of research in different levels of government/jurisdiction indicated that the majority of research was organisationally based. Finally, when the various functional types of accounting are considered, management accounting remained the most researched area of interest.

Research limitations/implications

The paper only considered research within eight selected journals and over the period 1992 to 2006. Therefore, for instance, US mainstream public sector accounting research has not been reviewed.

Originality/value

The main implications of the paper are that “contextual” public service accounting research has a strong tradition and, through the process of reflection and critique of the body of work, several important insights are provided in order to highlight areas for further research and policy development.

Details

Accounting, Auditing & Accountability Journal, vol. 21 no. 2
Type: Research Article
ISSN: 0951-3574

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Article
Publication date: 1 December 2006

A D Ibrahim, A D F Price and A R J Dainty

Governments throughout the world are being forced to review how to fund the increasing demand and rising expectations of their citizens. This is especially relevant for developing…

1875

Abstract

Governments throughout the world are being forced to review how to fund the increasing demand and rising expectations of their citizens. This is especially relevant for developing countries, which often have limited capital resources to meet the soaring needs for essential infrastructure. This has consequently led to increased involvement of the private sector in the provision of public services, using various forms of Public‐Private Partnerships (PPPs). It is, however, important for both the public and private sectors to understand the various risks associated with PPPs throughout the whole life cycle of the projects in order to guarantee long‐term success. This is especially true in Nigeria and other countries where the use of PPPs are still in the early stages of development. Sixty‐one PPP risk factors were identified from literature and classified into exogenous and endogenous risks. This paper presents the results of the questionnaire survey that investigated the perception of Nigerian construction professionals on the relative importance of the identified risks and their preferences of allocation between the public and private sectors. The results show that the three most important PPP risk factors in Nigeria are “unstable government”, “inadequate experience in PPP” and “availability of finnance”. The respondents’ risk allocation preferences show that while most of the endogenous risk factors could be assigned to the private sector partner, the public sector should retain political and site acquisition risks, while relation‐ship‐based risks should be shared between the private and public sector partners

Details

Journal of Financial Management of Property and Construction, vol. 11 no. 3
Type: Research Article
ISSN: 1366-4387

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 preconditions…

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: 6 February 2017

Ernest Effah Ameyaw, Albert P.C. Chan and De-Graft Owusu-Manu

Public-private partnerships (PPPs) offer governments an opportunity to access private capital and skills to build or upgrade, operate and manage public water infrastructure…

1592

Abstract

Purpose

Public-private partnerships (PPPs) offer governments an opportunity to access private capital and skills to build or upgrade, operate and manage public water infrastructure services hitherto provided and run by the public sector. Access to private finance speeds up the provision of public water services in developing countries, where many governments face budgetary constraints. However, the water sector attracts the least investment flows in developing countries, well below other infrastructure sectors. This paper aims to present the results of an investigation of critical success factors (CSFs) required for attracting the private sector in water supply projects.

Design/methodology/approach

A structured questionnaire survey of international PPP expert opinions was conducted.

Findings

Analysis results show that the CSFs for attracting the private sector to water PPPs include political commitment from elected leaders toward PPPs for water supply; existence of a dedicated PPP unit; strong and competent public water authority; adequate fiscal capacity of a national/subnational authority; public acceptance and support of involvement of the private sector in water services; a well-designed PPP contract; existence of enabling policy and legal frameworks to support water PPPs; and profitability of water supply project(s) to attract investors and lenders. Agreement analysis also indicates a strong to very strong agreement on the significance and rankings of the CSFs.

Originality/value

The research findings provide an insight into a number of important issues to enable greater private participation in water supply projects, most of which aim at reminding governments of some key areas that need reform and enabling greater commitment among them to undertake such reforms. Given the limited empirical research on CSFs for attracting private participation, this research makes a contribution to the body of knowledge about private involvement in the water sector of developing countries.

Details

Journal of Facilities Management, vol. 15 no. 1
Type: Research Article
ISSN: 1472-5967

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 disaster…

1273

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

1 – 10 of over 37000