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Creating and Capturing Value in Public-Private Ties: A Private Actor's Perspective
TL;DR: The authors identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes.
Abstract: Intersecting the boundaries of public and private economic activity, public-private ties carry important organizational strategy, management, and policy implications. We identify the value creation and capture mechanisms embedded in these ties through a theoretical framework of two conceptual public-private structural alternatives, each associated with different value-creating capacities, rationales, and outcomes. Two important restraints on private value capture--public partner opportunism and external stakeholder activism--arise asymmetrically under each form, carrying a critical effect on partnership outcomes.
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10 Jun 2019
TL;DR: A link between DSMs and PPP contracts which adds value at the stage of PPP contract evaluation is demonstrated which sheds some light on an important aspect of the public sector to consider the improvement of current policies.
Abstract: The purpose of this paper is to establish a conceptual framework to assist decision makers in identifying an appropriate decision-supporting method (DSM) to evaluate public-private partnership (PPP) contract types in a disciplined and systematic manner.,A systematic literature review was conducted to compare and analyse DSMs in construction procurement processes, and explore the benefits and limitations of using DSMs. A conceptual framework is then developed to accommodate client characteristics when selecting DSM in a PPP context. An example was obtained to illustrate the implementation of the proposed framework.,DSMs employed in the procurement method selection are identified by using a systemic literature review. The benefits and limitations of each DSM are established and comparisons of DSMs are provided to fit the client characteristics and a conceptual framework is developed to assist decision makers in choosing DSM for contract selection.,This paper demonstrates a link between DSMs and PPP contracts which adds value at the stage of PPP contract evaluation. Also, the proposed framework sheds some light on an important aspect of the public sector to consider the improvement of current policies (PPP framework/guideline).
13 citations
TL;DR: A stable legal and regulatory framework must be established that is properly and easily enforced to avoid confusing stakeholders with too many changes and it is also important to ensure that transparency and accountability measures are strengthened.
Abstract: Background Saudi Arabia is considering increasing the role of the private sector’s participation in financing and delivering healthcare services through the adoption of Public-Private Partnerships (PPPs) However, the adoption and successful implementation of PPPs in the Saudi healthcare sector requires careful attention to overcome potential obstacles Objectives This study investigates and identifies potential barriers to the successful implementation of PPPs in the Saudi healthcare sector Methods A pre-tested interviewer-administered questionnaire was used to collect data from 72 respondents over a two-month period Respondents were asked to rate the degree of influence of potential key barriers using a five-point Likert scale The collected data was analysed using descriptive and inferential statistics Results The evidence showed that the top three barriers, as rated by the respondents, were legal barriers, including delays in receiving approval and permits and law and regulation changes, environmental barriers, including lack of transparency and accountability and technological barriers, including a shortage of professionals qualified to handle PPP projects Conclusions The barriers identified suggested that the government should ensure that PPPs are implemented in a timely manner to ensure that private sector involvement yields the intended benefits Furthermore, a stable legal and regulatory framework must be established that is properly and easily enforced to avoid confusing stakeholders with too many changes It is also important to ensure that transparency and accountability measures are strengthened
13 citations
TL;DR: In this paper, the authors explored the sources of value and the effects of contract control mechanisms for value appropriation in public-private partnerships, and found that resource values have little influence on decisions to form a partnership and partner's (un)trustworthiness and social activism by external stakeholders have a discernible effect on their decisions.
Abstract: Public private partnerships are rationalized on shared value creation by combining public sector management and oversight with private sector resources for a direct provision of a public good or service. Yet little is known about what are the sources of value and the effects of contract control mechanisms for value appropriation. This paper explores this issue from the perspectives of both public sector agencies and private sector firms involved in the provision of toll roads. Using data collected from a stated choice experiment on toll road participation to obtain a composite measure of resource values, we find that resource values have little influence on decisions to form a partnership, while partner’s (un)trustworthiness and social activism by external stakeholders have a discernible effect on their decisions. Mitigating controls moderate these influences. An internal coordination framework within the public organization and the enactment of institutional policy can help to reap the most from the combined resources for shared value creation, particularly when trust is yet to be established during the contracting phase.
12 citations
TL;DR: In this paper, the authors explore the potential application of platform ecosystem theory to the commercial urban development process, where there is now great uncertainty regarding the future economic implications and societal requirements of physical commercial space.
12 citations
TL;DR: Zhang et al. as mentioned in this paper explored the critical conditions and main logics behind opportunistic behaviors through literature analysis and determined the connections between conditions and the credit default in the Chinese Government-Pay Public-Private Partnership (PPP) projects according to 15 cases from the field of ecological construction.
Abstract: Credit is regarded as a key factor to maintain the sustainability of cooperation between public authorities and social capitals in Government-Pay Public-Private Partnership (PPP) projects. The credit default of local public sectors has become a formidable force to cause termination in several cases. The study aims to explore the critical conditions and main logics behind opportunistic behaviours through literature analysis. In this research, political performance, fiscal illusion, subjective willingness, and objective limitation are identified as four certain conditions. Additionally, the crisp-set Qualitative Comparative Analysis (csQCA) method is applied to determine the connections between conditions and the credit default in the Chinese Government-Pay PPP projects according to 15 cases from the field of ecological construction. Consequently, two combinations with complete sufficiency leading to severe extent of credit default are categorized. The configuration of political performance and fiscal illusion is dominant, thereby causing severe extent of credit default in the preimplementation link. Correspondingly, the configuration of subjective willingness, objective limitation, and nonpolitical performance is crucial in the implementation and postimplementation links. Moreover, fiscal illusion alone could be totally sufficient to lead to a termination. This research not only enriches the theoretical system on credit default of public authorities in Government-Pay PPP projects but also provides reference for all participants to forecast the potential risks especially the credit default in PPP projects.
12 citations
References
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01 Jan 1990TL;DR: Douglass C. North as discussed by the authors developed an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time.
Abstract: Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time. Institutions exist, he argues, due to the uncertainties involved in human interaction; they are the constraints devised to structure that interaction. Yet, institutions vary widely in their consequences for economic performance; some economies develop institutions that produce growth and development, while others develop institutions that produce stagnation. North first explores the nature of institutions and explains the role of transaction and production costs in their development. The second part of the book deals with institutional change. Institutions create the incentive structure in an economy, and organisations will be created to take advantage of the opportunities provided within a given institutional framework. North argues that the kinds of skills and knowledge fostered by the structure of an economy will shape the direction of change and gradually alter the institutional framework. He then explains how institutional development may lead to a path-dependent pattern of development. In the final part of the book, North explains the implications of this analysis for economic theory and economic history. He indicates how institutional analysis must be incorporated into neo-classical theory and explores the potential for the construction of a dynamic theory of long-term economic change. Douglass C. North is Director of the Center of Political Economy and Professor of Economics and History at Washington University in St. Louis. He is a past president of the Economic History Association and Western Economics Association and a Fellow, American Academy of Arts and Sciences. He has written over sixty articles for a variety of journals and is the author of The Rise of the Western World: A New Economic History (CUP, 1973, with R.P. Thomas) and Structure and Change in Economic History (Norton, 1981). Professor North is included in Great Economists Since Keynes edited by M. Blaug (CUP, 1988 paperback ed.)
27,080 citations
TL;DR: The population problem has no technical solution; it requires a fundamental extension in morality.
Abstract: The population problem has no technical solution; it requires a fundamental extension in morality.
22,421 citations
01 Mar 2010
18,472 citations
Book•
01 Jan 1984TL;DR: The Stakeholder Approach: 1. Managing in turbulent times 2. The stakeholder concept and strategic management 3. Strategic Management Processes: 4. Setting strategic direction 5. Formulating strategies for stakeholders 6. Implementing and monitoring stakeholder strategies 7. Conflict at the board level 8. The functional disciplines of management 9. The role of the executive as mentioned in this paper.
Abstract: Part I. The Stakeholder Approach: 1. Managing in turbulent times 2. The stakeholder concept and strategic management 3. Stakeholder management: framework and philosophy Part II. Strategic Management Processes: 4. Setting strategic direction 5. Formulating strategies for stakeholders 6. Implementing and monitoring stakeholder strategies Part III. Implications for Theory and Practice: 7. Conflict at the board level 8. The functional disciplines of management 9. The role of the executive.
17,404 citations
TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations