Search results

This paper aims to describe a planning and implementation model for privatizing state‐owned enterprises (SOEs) in developing countries.

The privatization model, developed within the context of selection, transition, and sustainability phases, identifies certain SOEs and how they transition into privatized firms that are socially responsible and contribute to economic development. Illustrative examples and cases drawn from the Pakistani privatization experience demonstrate how the model applies various frameworks.

The active support of key stakeholders is essential for privatization in developing countries to succeed. Targeted marketing strategies, together with financial considerations and public sector initiatives and oversight, can bolster successful implementation of privatization objectives and initiatives.

Privatization of failed or poorly performing SOEs into viable private sector firms can improve market efficiencies, reduce government deficits, offer better service alternatives, meet public service expectations, and promote economic development. Privatization also improves resource use and fosters collaboration between the public and private sectors.

The paper fills a literature gap by presenting an inclusive model that incorporates both public and private sector influences and considerations in the planning and implementation phases of privatization. It highlights the critical role of marketing in achieving success with private and public partnership initiatives.

After the precipitated decline of the Soviet Empire and its satellite states, a system change seemed to be called for, and many countries embarked on social and political reforms focussing on property structures in the economy. This raised the issue of governance in the institutions that would constitute the structures in which production would have to take place. In particular, some Central European countries opted for mass privatisations of the means of production, on the face of it so as to have the people participate in the wealth of the nation. In fact, the wealth of the nation depends on the structures in which it is constituted. Dissipation of property rights will reduce the value of the nation's productive capital, whereas an intelligent structure that creates good governance structures at the same time, increases the value of the producing capital. This relatively simple insight lies at the heart of our understanding of how to analyse different processes of mass privatisation. This essay develops a theoretical framework by which different governance structures can be analysed. The framework consists of a blend of the economic theory of property rights, new institutional economics and Austrian economic theory.

The purpose of this paper is to introduce a project development framework (PDF) aiming to find socially beneficial public infrastructure provision (PIP) projects in the transport sector. From this perspective, the current paper focuses on the framework of finding an optimized PIP organizational model based on which the projects will be both economically and financially viable and will meet the interests of all the stakeholders. From this perspective, the objective of the current paper is to find in the design phase of the projects, a PIP organizational model for the transport sector, that generates the socially required economic internal rate of return (hereinafter EIRR), thus providing the society with the added social values from the relevant infrastructure projects and, at the same time, ensuring relevant level of the financial internal rate of return (hereinafter FIRR) for the private companies interested in investing in relevant assets. This allows finding socially beneficial PIP organizational model according to the adopted PDF.

The methodology aiming to develop the PDF focuses on analyzing both the economic and financial effectiveness of the PIP projects by exploring different combinations of available options for business, contractual, and financial models of relevant projects. Based on the example of the Republic of Armenia it is shown how the EIRR can be calculated for the PIP projects using the adopted PDF by taking into consideration the transport sector specifics of the country.

The main advantage of the designed framework is that it focuses on the calculation of the EIRR not only based on the different design options, but also explores the influence of the chosen procurement models on the economic output of the projects. The identification and the calculation of the positive and negative externalities (benefits and losses of the projects) in the economic values within the current PDF serve as the main instrument for the development of the PIP optimized socially beneficial/viable organizational models. The main privilege of the paper is that it considers the social aspect of the project together with the financing aspect without extruding any interests of the parties.

The uniqueness and the novelty of the adopted PDF is that it considers the efficiency of the PIP projects based on the analysis of not only the design options that influence the economic and financial output of the projects, but also compares the impact of the different combinations of the existing privatization, partnership, contractual, financial, and business models on the level of the EIRR and the FIRR. The socially beneficial infrastructure (economically viable) model generates economically and financially viable projects. Thus, the public partner is provided with the highest social value while the private partner is guaranteed a desired financial return.

The purpose of this paper is to evaluate the usefulness and relevance of a four stage model of privatisation, based in institutional theory, to quasi‐privatised organisations.

The paper studies a UK organisation with changing ownership, governance, and boundaries. Historic Royal Palaces is intrinsically interesting, and resembles many quasi‐privatised organisations placed within charitable frameworks. Application of the process model reveals the governance challenges HRP faces.

The study suggests that the model is holistic and dynamic, and useful as an analytic template. It is inclusive of competitor, behavioural, and resource‐based views of the firm, and recognises that firms and their governance change over time.

The report adds validity to the model developed by case studies from a different national context. The small number of cases is a limitation. Future research could include other types of quasi‐privatised organisation, and organisations in different national settings.

The model provides a helpful template for interpreting and explaining the changes enacted by organisations and their members through privatisation. Further, although largely descriptive, the model also has some predictive power. It can help policy makers and managers predict some of the key limitations of the privatisation process of a particular organisation based on the specific nature of its context and settings.

The detailed discussion of a quasi‐privatised organisation – an increasingly common, but little researched organisational type is significant. The development of a holistic approach for understanding organisational changes is also significant.

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.

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.

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.

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.

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.

Privatization has been a widely researched topic in the literature, both at the cross-country level as well as at the level of individual countries. However, the issue of partial privatization – where an entity is publicly listed although the government remains the controlling owner – has not been adequately discussed in the literature. The purpose of this paper is to employ data on Indian state-owned banks during 1992-2010 to explore the timing and intensity of privatization. Contextually, the authors also explore several associated hypotheses, such as the behavior of lending relationships by these banks and executive compensation.

Given the hypotheses being discussed, the authors use suitable methodology relevant to the hypothesis. Accordingly, the authors employ proportional hazard models to address the timing issue and the Tobit model to determine the factors impacting the intensity of privatization. As regards lending relationships, the authors employ ordered logit and Poisson regression models. Finally, the issue of executive compensation is addressed using OLS regression.

The evidence appears to suggest that smaller, riskier banks with higher levels of over-staffing are likely to be privatized at an early date. Among the political factors, the findings suggest that both the timing of elections as well as the fragmentation of the coalition impacts the timing of privatization. Regarding lending relationships, the analysis indicates that it is typically the large banks that act as the main bank for both foreign and state-owned firms. Finally, the evidence lends credence to the fact that bigger well-capitalized banks with smaller boards pay higher compensation.

How far do economic and political factors play a role in impacting the timing of partial privatization of state-owned banks remains an open empirical question. There is also admittedly limited evidence as to how bank-specific and political factors influence the intensity of privatization. Judged thus, to the best of the knowledge, this is one of the few studies to examine these issues within a coherent empirical framework for a leading emerging economy.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The Government of India announced its liberalization policy in the year 1991. Since then, the major ports in India introduced privatization in various forms into their operations. However, the share of total traffic (cargo) handled by major ports fell from 90 per cent in 1991 to around 70 per cent in 2015, losing share to minor ports. These major ports, except for the port of Kamarajar, are governed by the Major Port Trust Act, 1961. None of the Indian ports feature amongst the top 20 ports of the world. Interestingly, several ports in Asia, namely, seven ports from China, Singapore, Hong Kong and Malaysia are on that list. Several studies and reports have shown that privatization in India did not yield the desired results. Ports in India have adopted a hybrid mode of governance, aligned between a landlord port model and a service port model. This paper aims to address the question – What is the optimal way to mix privatisation and government control in the operations of major ports of India.

In this paper, the authors attempt to develop an optimization model for port planners to decide on the optimum mix of privatized and self-managed operations so as to maintain efficiency and maximize revenue.

The model tested on a major port in the country shows that the present privatization policy followed by the port needs revision. A similar plan to revise their policies can be carried out for other major ports in the country.

The model is generic and can be used by any port in the world operating under conditions similar to those in India.

The purpose of this paper is to analyze certain organizational changes that occur after privatization. More specifically, the authors analyze from an agency theory perspective how changes at the corporate governance level (ownership type/structure and board of directors) influence firm strategy, and what implications these issues have for the design of compensation mechanisms.

The methodology employed in the study can be described as a longitudinal multiple case study approach. A multiple case study enables the comparison of pre- and post-privatization periods in five Spanish companies. This methodology is especially suitable to track the organizational changes occurring in relation to the firms’ internal management.

First, the variables that traditionally relate to greater board independence in monitoring do not suffer from variation after privatization. Second, the interests of the firms’ new ownership have an impact on firm strategy after privatization. Finally, compensation system design clearly aligns with firm strategy after privatization.

The research is based on a multiple case study approach, which limits the scope and generalizability of the findings.

Whereas research in privatization generally adopts a macroeconomic or political perspective, organizational and managerial implications are current aspects in need of further examination. This research offers a study that integrates three sets of variables (corporate governance, strategy and compensation) that have been rarely analyzed in this context.