Advertisement

Performance of public private partnerships: An evolutionary perspective

  • C.W. Furneaux
  • K. A. Brown
  • S. Tywoniak
  • A. Gudmundsson
Conference paper

Abstract

PPPs are held to be a powerful way of mobilising private finance and resources to deliver public infrastructure. Theoretically, research into procurement has begun to acknowledge difficulties with the classification and assessment of different types of procurement, particularly those which do not sufficiently acknowledge variety within specific types of procurement methods. This paper advances a theoretical framework based on an evolutionary economic conceptualisation of a routine, which can accommodate the variety evident in procurement projects, in particular PPPs. The paper tests how the various elements of a PPP, as advanced in the theoretical framework, affect performance across 10 case studies. It concludes, that a limited number of elements of a PPP affect their performance, and provides strong evidence for the theoretical model advanced in this paper.

Keywords

Private Sector Negative Externality Public Private Partnership Complex Adaptive System Public Infrastructure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Duffield, C., P. Raisbeck, and M. Xu, Benchmarking Study, Phase II. Report on the performance of PPP projects in Australia when compared with a representative sample of traditionally procured infrastructure projects. . 2008, National PPP Forum MelbourneGoogle Scholar
  2. 2.
    Chan, C., et al., Public Infrastructure Financing: An International Perspective, A.G.P. Commission, Editor. 2009, Australian Government Publishing Service: CanberraGoogle Scholar
  3. 3.
    Vining, A.R. and A.E. Boardman, public-private partnership in Canada: Theory and evidence. Canadian Public Administration / Administration Publiqiue du Canada, 2008. 51(1): p. 9-44.Google Scholar
  4. 4.
    Tookey, J.E., et al., Construction procurement routes: re-defining the contours of construction procurement. Engineering, Construction and Architectural Management, 2001. 8(1): p. 20-30.Google Scholar
  5. 5.
    Nelson, R.R. and S.G. Winter, An evolutionary theory of economic change. 1982, Cambridge, MA: Harvard University Press.Google Scholar
  6. 6.
    Feldman, M.S., Organizational routines as a source of continuous change. Organization Science, 2000. 11(6): p. 611-629.CrossRefGoogle Scholar
  7. 7.
    Feldman, M.S., A performative perspective on stability and change in organizational routines. Industrial and Corporate Change, 2003. 12(4): p. 727-752.CrossRefGoogle Scholar
  8. 8.
    Becker, M.C., Organizational routines: a review of the literature. Industrial and Corporate Change, 2004. 13(4): p. 643-677.CrossRefGoogle Scholar
  9. 9.
    Kauffman, S.A., The Origins of Order: Self-Organisation and Selection in Evolution 1993, New York: Oxford University Press.Google Scholar
  10. 10.
    Kauffman, S.A., At home in the universe: The search for the laws of Self-Organization and Complexity 1995, New York: Oxford University Press.Google Scholar
  11. 11.
    Becker, M.C., T. Knudsen, and J.G. March, Schumpeter, Winter, and the sources of novelty. Industrial and Corporate Change, 2006. 15(2): p. 353–371.CrossRefGoogle Scholar
  12. 12.
    Winter, S., Optimization and evolution in the theory of the firm, in Adaptive Economic Models, R.H. Day and T. Groves, Editors. 1975, Academic Press: New York. p. 73-118.Google Scholar
  13. 13.
    Rivkin, J.W. and N. Siggelkow, Balancing search and stability: Interdependencies among elements of organizational design. Management Science, 2003. 49(3): p. 290-311.CrossRefGoogle Scholar
  14. 14.
    Levinthal, D.A., Adaptation on rugged landscapes. Management Science, 1997. 43: p. 319-340.CrossRefGoogle Scholar
  15. 15.
    Levinthal, D.A. and M. Warglien, Landscape design: Design for Local Action in Complex Worlds Organization Science, 1999. 10(3): p. 342-357.Google Scholar
  16. 16.
    Holland, J.H., Hidden Order: How adaptation builds complexity. . 1995, New York: Basic Books.Google Scholar
  17. 17.
    Gell-Man, M., Complex Adaptive Systems, in The Mind, The Brain, and Complex Adaptive Systems, H. Morowitz and J.L. Singer, Editors. 1994, Westview Press: Santa Fe. p. 11-24.Google Scholar
  18. 18.
    Pentland, B.T., Conceptualising and measuring variety in the execution of organizational work processes. Management Science, 2003. 49(7): p. 857-870.CrossRefGoogle Scholar
  19. 19.
    Globerman, S. and A. Vining, A Framework for Evaluating the Government Contracting-Out Decision with an Application to Information Technology Public Administration Review, 1996. 56(6): p. 557-586.Google Scholar
  20. 20.
    Vining, A. and S. Globerman, A Conceptual Framework for Understanding the Outsourcing Decision. European Management Journal, 1999. 17(6): p. 645-654.CrossRefGoogle Scholar
  21. 21.
    Chan, A.P.C. and A.P.L. Chan, Key performance indicators for measuring construction success. Benchmarking: An international journal, 2004. 11(2): p. 203-221.CrossRefGoogle Scholar
  22. 22.
    Coase, R.H., The Nature of the Firm. Economica, 1937. 4(16): p. 386-405.CrossRefGoogle Scholar
  23. 23.
    Osbourne, S.P. and K.A. Brown, Managing change and innovation in public service organizations. 2005, New York: Routledge.Google Scholar
  24. 24.
    Stake, R.E., Qualitative case studies, in The Sage Handbook of Qualitative Research Methods, N. Denzin and Y.S. Lincoln, Editors. 2005, Sage: Thousand Oaks. p. 443-466.Google Scholar
  25. 25.
    Becker, M.C., The concept of routines: some clarifications. Cambridge Journal of Economics, 2005. 29: p. 249-262.CrossRefGoogle Scholar
  26. 26.
    Babbie, E., The practice of social research. 10th ed. 2004, Belmont, CA: Wadsworth/Thompson Learning.Google Scholar
  27. 27.
    Eisenhardt, K.M., Building theories from case study research, in The Qualitative Researcher’s Companion, A.M. Huberman and M.B. Miles, Editors. 2002, Sage Publications: Thousand Oaks. p. 5–31.Google Scholar
  28. 28.
    Yin, R.K., Case Study research: Design and Methods. 3rd ed. 2003, Thousand Oaks: Sage Publications.Google Scholar
  29. 29.
    Eisenhardt, K.M., Better stories and better constructs: The case for rigor and comparative logic. Academy of Management Review, 1991. 16(3): p. 620-627.CrossRefGoogle Scholar
  30. 30.
    Stake, R.E., Case studies, in Strategies of Qualitative Enquiry, N. Denzin and Y.S. Lincoln, Editors. 2003, Thousand Oaks: Sage. p. 134 - 164.Google Scholar
  31. 31.
    Lee, T.W., Using qualitative methods in organizational research. 1999, Thousand Oaks: Sage.Google Scholar
  32. 32.
    Cresswell, J.W., Qualitative Inquiry and Research Design: Choosing among five approaches. 2nd ed. 2007, Thousand Oaks, CA: Sage Publications.Google Scholar
  33. 33.
    NSW Government, Working with Government: Risk Allocation and Commercial Principles, N. Treasury, Editor. 2007, NSW Government Sydney.http://www.treasury.nsw.gov.au/__data/assets/pdf_file/0012/3135/risk_allocation.pdfGoogle Scholar
  34. 34.
    Deloitte, Closing the Infrastructure Gap: The Role of Public-Private Partnerships. 2006, Deloitte Research: NPD.http://www.infrastructureaustralia.gov.au/files/Closing_the_Infrastructure_Gap-The_role_of_PPPs_Deloitte_2006.pdfGoogle Scholar
  35. 35.
    Infrastructure Australia, National Public Private Partnership Guidelines. 2008, Australian Government Canberra.http://www.infrastructureaustralia.gov.au/files/National_PPP_Guidelines-Vol_4_PSC_Guidance_Dec_08.pdfGoogle Scholar
  36. 36.
    Furneaux, C.W. and K.A. Brown, Capabilities, institutions and markets: A cross jurisdictional analysis of embedded public values in public works procurement in Australia, in Infrastructure Policies and Public Value panel track, International Research Symposium on Public Management XI. 2007: Potsdam (Germany)Google Scholar

Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  • C.W. Furneaux
    • 1
    • 2
  • K. A. Brown
    • 3
  • S. Tywoniak
    • 1
    • 2
  • A. Gudmundsson
    • 2
  1. 1.CRC for Integrated Engineering Asset ManagementBrisbaneAustralia
  2. 2.School of Management, Faculty of BusinessQueensland University of TechnologyBrisbaneAustralia
  3. 3.School of Tourism and Hospitality ManagementSouthern Cross UniversityCoffs HarbourAustralia

Personalised recommendations