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Journal ArticleDOI

Rethinking Public-private Partnerships: An Unbundling Approach

TL;DR: In this paper, the authors argue that risk and uncertainty loom large in public-private partnership (PPP) and there is a need to consciously move away from long term, rigid, monolithic, and complex contracts and adopt short term, flexible, modular and simple arrangements that allow for effective management.
Abstract: Despite numerous failure stories the interest in Public-private Partnerships (PPPs) is growing the world over, giving rise to a “PPP Paradox”. Taking a definitional perspective and leveraging learnings from the management literature on strategic alliances, the need for a fundamental rethink of the PPP world view is emphasized to explain this paradox. It is argued that in PPPs, where risk and uncertainty loom large, there is a need to consciously move away from long term, rigid, monolithic, and complex contracts and adopt short term, flexible, modular and simple arrangements that allow for effective management. We view this as an unbundling approach. The PPI World Bank database and experiences from the Indian highway sector are leveraged to contextualize the arguments made.
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Journal ArticleDOI
TL;DR: In this article, the authors presented a systematic review to analyse PPP studies towards identifying win-win constructs and then integrated findings into a conceptual model, including optimal assessment and fair allocation of project risks, reasonable concessions period, flexible contracting, equal and active participation and coordination of public and private actors and strategic negotiation.
Abstract: PurposeAchieving the win–win goal in public–private partnership (PPP) has gained much research interest in recent times. These studies have addressed the achievement of win–win from various perspectives. An integration of the constructs from these various perspectives improves approach to attaining win–win throughout the entire project delivery. This study, therefore, becomes the first systematic review to analyse PPP studies towards identifying win–win constructs and then integrates findings into a conceptual model.Design/methodology/approachThis study adopted a four-staged systematic review method. This includes concept development, papers retrieval, selection of relevant papers and qualitative analysis. Thematic analysis was used at the qualitative analysis stage for the identification and categorization of constructs and finally, systems thinking was adopted in integrating the findings into a conceptual modeFindingsThe achievement of win–win between government and private investors is of much desire hence a more conscious approach towards it is ideal. A total of 40 constructs were identified and were later categorised into six components. Some constructs identified include optimal assessment and fair allocation of project risks, reasonable concessions period, flexible contracting, equal and active participation and co-ordination of public and private actors and strategic negotiation.Originality/valueThis paper provides an improved definition of win–win scenario in PPP infrastructure project delivery. Furthermore, the novel approach of integrating win–win constructs into a systemic conceptual model is very relevant to PPP body of knowledge and practice. The study concludes with plausible research directions to further improve the achievement of win–win in PPP.

13 citations

Posted Content
TL;DR: In this paper, the authors investigated the reasons for the development of government relations at its present stage and examined the characteristics of PR development in Russia and substantiated the need for the implementation of GR into Russian enterprises and for training of highly qualified GR managers in Russia.
Abstract: New management tools are required to enhance interaction between Russian companies and government agencies for innovation development. A major interactive tool are Government Relations (GR) communications promoting a new relationship model in terms of innovative system management. Interaction with the authorities is a major factor in innovation development, and the company’s excellent reputation in the eyes of the authorities is a key element for business success and implementation of innovations. The study provides an explanation of the notion of ‘Government Relations’ (GR) and examines various academic approaches to GR in modern economics. We investigated the reasons for the development of GR at its present stage. The article looks at several GR tools in Russia public Relations (PR), public-private partnership and corporate social responsibility. We analyzed differences between lobbying and GR and demonstrated that lobbying is one of the key components (active phase) of GR activity. Data are provided on activities of the GR departments of major corporations of the Russian Federation. Furthermore, we examined the characteristics of PR development in Russia and substantiated the need for the implementation of GR into Russian enterprises and for training of highly qualified GR managers in Russia.

8 citations

Journal ArticleDOI
TL;DR: The findings suggest that while the environmental quality evaluation system created in contracts for government payment seems to be optimal for protecting the public interest, it actually strains the partnership between the two parties and so its implementation should be considered on a case by case basis.
Abstract: The Public and Private Partnership (PPP) model has been used to provide public services and goods. In China, local governments are willing to use the PPP model in many public services, such as integrated river management (IRM) projects, due to ease fiscal budget and the improved access to technology from the private sector. However, there has not been any specific discussion in the literature for applying the PPP model to IRM projects. In this study, we find that the PPP model results in the non-standardization of IRM projects. Our research paper builds the PPP operation framework for IRM projects. Our findings suggest that while the environmental quality evaluation system created in contracts for government payment seems to be optimal for protecting the public interest, it actually strains the partnership between the two parties and so its implementation should be considered on a case by case basis. Since the history of IRM projects using the PPP model is short, the actual performances of these types of projects has not yet been demonstrated. Local governments should be cautious about adopting the PPP model for such projects, and private companies should be cautious about their involvement. Our research will garner more scholarly attention to the application of the PPP model in complex projects.

5 citations

References
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Journal Article
TL;DR: As businesses as diverse as auto manufacturing and financial services move toward modular designs, the authors say, competitive dynamics will change enormously: no longer will assemblers control the final product: suppliers of key modules will gain leverage and even take on responsibility for design rules.
Abstract: Modularity is a familiar principle in the computer industry. Different companies can independently design and produce components, suck as disk drives or operating software, and those modules will fit together into a complex and smoothly functioning product because the module makers obey a given set of design rules. Modularity in manufacturing is already common in many companies. But now a number of them are beginning to extend the approach into the design of their products and services. Modularity in design should tremendously boost the rate of innovation in many industries as it did in the computer industry. As businesses as diverse as auto manufacturing and financial services move toward modular designs, the authors say, competitive dynamics will change enormously. No longer will assemblers control the final product: suppliers of key modules will gain leverage and even take on responsibility for design rules. Companies will compete either by specifying the dominant design rules (as Microsoft does) or by producing excellent modules (as disk drive maker Quantum does). Leaders in a modular industry will control less, so they will have to watch the competitive environment closely for opportunities to link up with other module makers. They will also need to know more: engineering details that seemed trivial at the corporate level may now play a large part in strategic decisions. Leaders will also become knowledge managers internally because they will need to coordinate the efforts of development groups in order to keep them focused on the modular strategies the company is pursuing.

1,741 citations

Journal ArticleDOI
TL;DR: In this article, the authors examine the management of strategic alliances using the theoretical frames of transactions cost, social network theory and the resource-based view, and conclude that managing alliances is crucial for firms to gain competitive advantage and create value with strategic alliances.

1,411 citations

Journal ArticleDOI
TL;DR: In this article, the authors propose a comprehensive framework for understanding alliance instabilities based on the notion of internal tensions, which can be viewed as being constituted by three key pairs of competing forces: cooperation versus competition, rigidity versus flexibility, and short-term versus long-term orientation.
Abstract: The instabilities of strategic alliances have been examined in the literature through a number of theoretical approaches. Alliance instabilities refer to major changes or dissolutions of alliances that are unplanned from the perspective of one or more partners. Although the literature identifies certain characteristics of strategic alliances that may lead to their unplanned dissolution, the extent of our understanding of this subject appears to be fragmented and incomplete. In this article we propose a comprehensive framework for adequately understanding alliance instabilities based on the notion of internal tensions. We suggest that strategic alliances are sites in which conflicting forces develop and which can be viewed as being constituted by three key pairs of competing forces--namely, cooperation versus competition, rigidity versus flexibility, and short-term versus long-term orientation. This tensions framework helps us in explaining the intrinsic vulnerability of alliances in terms of a wide range of internal contradictions and enables us to examine, in an integrated manner, the incidence, dynamics, and eventual dissipation of the inherent instabilities. We discuss the interrelationships among the different internal tensions and their impacts on different types of strategic alliances. We also examine the termination of alliances through mergers/acquisitions and dissolution. Finally, we suggest ways to empirically test the various ideas and propositions developed here and indicate directions for further research.

1,056 citations

Journal ArticleDOI
TL;DR: The authors developed a process model of navigating such paradoxes: in sensemaking about paradoxical outcomes, actors grapple with definition of success and can transform the organizational logic, or novel synthesis between them when outside perspectives enable a clearer view of the paradox.
Abstract: Hybrid organizations combine institutional logics in their efforts to generate innovative solutions to complex problems. They face unintended consequences of that institutional complexity, however, which may impede their efforts. Past scholars have emphasized conflicting external demands, and competing internal claims on organizational identity. Data from an in-depth field study of the public-private Cambridge Energy Alliance suggest another consequence: paradoxes of performing (Smith & Lewis, 2011) that generate ambiguity about whether certain organizational outcomes represent success or failure. This article develops a process model of navigating such paradoxes: in sensemaking about paradoxical outcomes, actors grapple with definition of success and can transform the organizational logic. The result can be oscillation among logics, or novel synthesis between them when outside perspectives enable a clearer view of the paradox. Hybrid organizations' capacity for innovation depends in part on the results of this change process.

930 citations