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INTRODUCTION
- Public-Private Partnership CSF
- Background
- Theoretic model
- Social Exchange Theory
- The Agency Theory
- The Resource Dependence Theory
- Statement to the problem
- Research questions
- Aims and objectives
- Research hypothesis
- Research Contribution
It should be noted that the PPP movement in the early 1980s supported the existence of a boundary between the two industries. Shi et al. (2016) gap in the ratio of public-private partnerships is not clear, so more needs to be done to determine the actual impact. We believe that theory is the best orientation when assessing the relationship of public-private partnership in the implementation of a public project.
LITERATURE REVIEW
Previous Literature Review
- Evolution of PPP
In the BOT, the private sector is contracted to design, build and operate a project for a contracted period of time, then return it to the public. The government finances the project and its ownership remains with the public even during the contract period. In the UK, DFBO is the adopted model for the construction model PFIs (Osei-Kyei & Chan 2015).
Barriers and Challenges
Design Build Finance Operate (DFBO) is another model where the private sector accepts some of the risk associated with traffic demand, but user tolls are handled by the public sector. It is imperative that parties in a public-private partnership arrangement properly manage these factors, as they are important indicators of project success and progress. As such, the private sector may face errors in the implementation phase, resulting in project delay.
Success Factors
- Risk Allocation
- Government Guarantee
- Local Financial Market
- Macroeconomic Conditions
- Reduced Public Administration Cost and Project Life-Cycle Cost
- Cost-Benefit Analysis
Government guarantees ensure the economic viability of the project by addressing the profitability requirements of the private sectors. On the other hand, a comprehensive analysis of project life cycle costs is useful as it illustrates. Cost-benefit analysis promotes multi-sectoral objectives that are crucial to the success of the PPP initiative.
Critical Success Factors Related to Regulation
- Strong Private Consortium
- Transparent and Competitive Procurement
- Political Support
- Favorable Legal Framework
- Sound Economic Policy
- Shared Authority between Private and Public Parties
- Public/Community Support
A good relationship is also essential for the cooperation and coordination of the parties to ensure that the objectives of the PPPs are achieved (Chan et al. 2010). Transparency in PPPs should be observed from the tendering process to the delivery of the PPP project. PPP is a procurement process that explains the need for transparency to ensure the success of the project.
The importance of transparency lies in the fact that negative public perception of the PPP project usually compromises the implementation of the project. Information about project delivery and implementation should be made public for accountability (Osei-Kyei & Chan 2015). A dedicated public agency is vital to the transparency and success of the procurement process.
This emphasizes the importance of transparency in the procurement process to ensure value for money. Economic policies that promote stable and economic growth are essential to the implementation of the OPP project initiatives. Management control ensures that the partners work within the framework of the PPP project and deliver timely results.
Successful completion and implementation of a PPP project thus requires contract management to monitor the initiative's progress.
Critical Success Factors Related to Technology
- Project Technical Feasibility
- Effective Transfer of Technology and Innovation
- Suitability of the PPP Arrangement
This is an important success factor where the private sector transfers technology and innovation to the public sector. The private sector is widely known for its application of the latest technologies to business to maintain its competitive edge. The effective transfer of technology should follow a long-term commitment by the private party to educate the public party about the innovation and its application.
On the other hand, the public party must ensure that it covers the costs of developing the innovation and subsequent training. A comprehensive analysis of these elements thus gives a clear picture of the kind of PPP model that is suitable for the project. Meeting the social need is another criterion for determining the suitability of the PPP scheme.
The PPP must fully meet the needs of the public by clearly adopting the structure and design of the project that will meet the specifications of the prescribed outputs. As such, project needs are usually assessed prior to procurement processes to ensure that the tendering process selects the best party to deliver the public facility. Consequently, performance indicators have been established to determine the progress of the project in achieving this objective.
The PPP model should align with the goals and objectives of the projects, as well as meeting the needs of the public.
Benefits of CSFs
- Tangible benefits
- Intangible benefits
According to Nita and Stefea (2014), reduced costs take the forms of reduced waste, increased motivation, goal congruence and effective strategy evaluation. For example, PPP will realize reduced costs in their projects when the costs for the outputs exceed those of the inputs. Getting new customers from the perspective of CSFs lowers the customer acquisition cost in every year.
According to Ginger (2015), intangible elements include increased customer satisfaction, improved staff morale, better regulatory and legal compliance and improved strategic alignment. According to Dye (2011), the term morale refers to the general feeling among the project team members or employees at the workplace. Morale plays a significant role among the project team members and determines the success of a given project.
Improved regulatory and legal compliance by a company enables it to minimize or eliminate litigation costs. According to Vargas et al. 2013), strategic alignment is a continuous and dynamic process in organizations that enables synchronization, integration, consistency and support aimed at sustaining competitive business performance. From a project management perspective, strategic alignment serves to ensure that essential aspects of a project, such as the work.
Strategic alignment is important during the execution of a project and it ensures that the project manager and the project team members have clear objectives for a given project.
Benefit Realization
- Value generation in benefit realization
- The process of benefit realization
- Traditional versus modern principles of benefit realization
Type of investment determines benefits Benefits are determined by an organization and its type of businesses.
RESEARCH METHODOLOGY
- Introduction
- Knowledge Creation Methods
- Research Philosophy
- Inductive Approach
- Deductive Approach
- Research Design
- Sampling Size and Techniques
- Data Collection
- Secondary Data Collection
- Primary Data Collection
- Access to Participants
- Research Approach
- Research Strategies
- Questionnaire Design
- Role of the Researcher
- Ethical Considerations
A range of data will be analyzed to help identify the impact of CSFs on the success of PPP projects. The philosophy of interpretation will be used to identify, reflect on different aspects related to PPP and to classify the meanings of the findings in order to reach conclusions. Observations will be made from previous studies, literature and theories on CSFs and PPPs, then generalizations will be developed to support the fundamental gaps regarding the success of PPPs and CSFs.
After identifying the gaps and weaknesses in relation to existing ideas about PPP, deductive approach will be applied to highlight and address the gaps and weaknesses and/or recommend remedies. Data relating to CSFs and PPP will be collected and analyzed if a causal relationship between CSFs and PPP has been identified. A research strategy will be developed, data on PPP and its success factors in the UAE collected and data analyzed to come up with new perspectives specific to the UAE.
Frequency and resources will be used to inform how each CSF relates to aspects of the PPP. Differences will be identified based on the reasons for adopting the PPP factors, organizational structure and years of tenure in the respective organizations. The questionnaires were designed in the survey monkey platform (an online entity that enables conducting surveys by providing a platform and tools for data collection).
E-mails were sent to potential participants asking for consent to participate in the study.
RESULTS AND FINDINGS
Descriptive statistics
60.3% of respondents indicated that a government guarantee could very likely result in a successful PPP. 45.6% of respondents indicated that local financial markets were very likely the reason for the PPP success. 38.2% of respondents believed that cost efficiency in projects would most likely result in success in PPPs.
44.1% were neutral on whether capital market capacity was likely to drive the success of the PPP. 41.2% of respondents believed that critical market tools were unlikely to affect the success of PPP. 38.2% of respondents thought that the country's economic and political stability was very likely to drive the PPP's success.
48.5% of respondents believed that the formulation of appropriate economic policies would very likely lead to the success of PPPs. The majority of respondents, 54.4%, believed that effective transfer of technology and innovation would very likely lead to success in PPPs. 41.2% of respondents were neutral about the likelihood that the financial analysis will result in the success of the PPP.
27.9% of respondents were neutral on whether the importance of innovations would lead to the success of PPPs. 30.9% of respondents believed that transfer of modern technology was likely to create success for PPPs. 44.1% of respondents believed that achieving national standards was very likely to lead to PPP success.
AND CONCLUSION
Studies have been conducted on involving or involving the private sector in public projects affecting the success of public projects. However, most of these studies have focused on the negative impact of public private partnerships and how it should be organized to be successful. The notion of whether public-private is the most efficient service delivery technique has been extensively analyzed (Kumaraswamy et al., 2016).
The emphasis of studies is on the administrative and organizational point of view or the centrality of the state and private life. They are also rooted in the political system, both in management and project management (Kumaraswamy et al., 2016). It will also contribute to the sector on market access techniques and provide reasons why most governments have preferred the method over the traditional one.
In doing so, the researcher hopes to contribute to the understanding of how management skills and expertise affect PPPs and subsequently project implementation. The option of financing from private industry can be directed to the provision of public services through partnerships. Public-private adoption promotes private initiative in addition to its benefits, starting with the involvement of the private sector in planning, design, operation and maintenance.
Evaluating the Effect of Contract Timing on Life Cycle Design Innovation in Public-Private Partnerships: Comparative Case Study of Highway Projects.
