Odoemena, A T and Horita, M (2018) A strategic analysis of contract termination in public-private partnerships: Implications from cases in Sub-Saharan Africa. Construction Management and Economics, 36(2), pp. 96-108. ISSN 0144-6193
Abstract
The paper examines empirically what contributes to the problem of contract termination in public-private partnerships (PPPs) from the perspectives of theories on contracts, transaction costs and industrial organizations. Based on a theoretical exploration of a model of the holdup and underinvestment problems, we identified the profit-sharing mechanism as the contract type that most predisposes a PPP to the inefficiencies that lead to contract termination. We then conducted an empirical examination of a data-set of PPP contracts in sub-Saharan Africa. Using rough sets theory and the logic of explanatory power, we found that contract type outweighs other factors, such as sector and nationality, in the explanation of contract termination.;The paper examines empirically what contributes to the problem of contract termination in public-private partnerships (PPPs) from the perspectives of theories on contracts, transaction costs and industrial organizations. Based on a theoretical exploration of a model of the holdup and underinvestment problems, we identified the profit-sharing mechanism as the contract type that most predisposes a PPP to the inefficiencies that lead to contract termination. We then conducted an empirical examination of a data-set of PPP contracts in sub-Saharan Africa. Using rough sets theory and the logic of explanatory power, we found that contract type outweighs other factors, such as sector and nationality, in the explanation of contract termination.;
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | holdup; underinvestment; rough sets; contract termination; public-private partnerships; explanatory power; partnerships; public private partnerships; empirical analysis; contracts |
| Index terms: | transaction cost, contract termination, industrial organization, Sub-Saharan Africa, profit, exploration, underinvestment, holdup, partnership, rough set, explanatory power, strategic analysis, public private partnership |
| Subjects: | business, environmental resource management, economic analysis, data science, contractual arrangements, economics, physical geography and landforms, theoretical framing, contract management, partnership management, financial analysis, industry analysis |
| Topics: | Contract Administration, Supply Chain Management, Stakeholder Management, Procurement, Sustainability, Business Strategy, Cost Management, Research Practice, Geographical Context |
| 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