Hu, Z; Li, Q; Liu, T; Wang, L and Cheng, Z (2021) Government equity investment, effective communication and public private partnership (PPP) performance: Evidence from China. Engineering, Construction and Architectural Management, 28(9), pp. 2811-2827. ISSN 0969-9988
Abstract
Purpose: Public private partnership (PPP) has gained increasing popularity around the globe. Whether the government needs to participate in the PPP special purpose vehicle (SPV) as an equity coinvestor is a critical issue in PPP development. This research aims to examine the influence of government equity investment on PPP performance by taking public-private communication as an intermediate variable. Design/methodology/approach: A questionnaire survey was adopted as the main research method. PPP practitioners with extensive experiences from both the public and private sectors were targeted respondents. The survey results were subsequently analyzed using statistical data analysis method. Findings: Based on the results from the questionnaire survey, this research indicates an inverted U-shaped relationship between the ratio of government equity and performance in PPP projects. In addition, communication plays a mediating role between government equity investment and PPP project performance. Originality/value: This research explicates the relationship between the equity structure in a PPP SPV and the project performance. It provides important guidance and reference for PPP practitioners to structure the SPV and associated financial and commercial arrangements. It also offers valuable insights into the development of PPP policy, especially regarding the structuring of PPP models in China and elsewhere.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | communication; government equity; performance evaluation; public-private partnership |
| Index terms: | public private partnership, project performance, private sector, partnership, special purpose vehicle, critical issue, performance evaluation, China, practitioner, evidence, questionnaire, methodology, survey, data analysis |
| Subjects: | Geography, project management theory and practice, performance measurement, research methods, industry analysis, partnership management, practitioner, evaluation and assessment methods, data collection methods, risk assessment, data analysis and analytics, contractual arrangements, financial and cost management |
| Topics: | Cost Management, Business Strategy, Project Management, Geographical Context, Research Practice, Roles and Professions, Stakeholder Management, Risk Management, Procurement, Quality Management |
| Descriptive scope: | 5 PCTEA |
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