Can relational governance improve sustainability in public-private partnership infrastructure projects? An empirical study based on structural equation modeling

Tian, B; Wang, Z; Li, C and Fu, J (2023) Can relational governance improve sustainability in public-private partnership infrastructure projects? An empirical study based on structural equation modeling. Engineering, Construction and Architectural Management, 30(1), pp. 19-40. ISSN 0969-9988

Abstract

Purpose: According to relational contract theory, relational governance has potential to improve public-private partnership (PPP) infrastructure project sustainability. The main purpose of this research is to investigate the association between relational governance and the sustainability of PPP infrastructure projects. Further, this study examines the mediating effect of managerial innovation and the moderating role of public involvement. Design/methodology/approach: Research data were collected from 158 valid questionnaires completed by Chinese PPP professionals. Structural equation modeling (SEM) was then employed to test five hypotheses. Findings: Results indicate a positive correlation between relational governance and PPP infrastructure project sustainability. This linkage is regulated by public involvement. In addition, managerial innovation plays a mediating role between relational governance and the sustainability of PPP infrastructure projects. Originality/value: This study verifies the relationship between relational governance and PPP infrastructure project sustainability, as well as intermediary and regulatory factors, providing a new approach to achieving sustainability in PPP infrastructure projects.

Item Type: Article
Uncontrolled Keywords: public-private partnership; relational governance; sustainability
Index terms: structural equation modelling, methodology, questionnaire, linkage, contract theory, partnership, governance, infrastructure project, intermediary, empirical study
Subjects: research methods, statistical analysis, infrastructure and transport systems, partnership management, business, data collection methods, legal systems
Topics: Legal Issues, Stakeholder Management, Governance, Business Strategy, Engineering Principles, Research Practice
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here