Augustine Senanu Komla Kukah, De-Graft Owusu-Manu, Edward Badu, David John Edwards and Eric Asamoah
The purpose of this paper was to first identify and then model the impact of critical success factors (CSFs) of public–private partnership (PPP) power projects.
Abstract
Purpose
The purpose of this paper was to first identify and then model the impact of critical success factors (CSFs) of public–private partnership (PPP) power projects.
Design/methodology/approach
Review of empirical literature came out with 20 CSFs which were ranked by experts and industry practitioners through a two-round Delphi questionnaire survey.
Findings
These CSFs were grouped into CSF groups (CSFGs) using component analysis, and they served as the input variables for fuzzy analysis. The six components were collaboration and transparency, guarantee and permits, socio-political support, expected profitability, technical feasibility and risk allocation (RA). Overall success index of PPP power projects in Ghana was 5.966 and showed there is high impact of CSFGs on project success. Fuzzy analysis also confirmed RA as the most significant CSFG.
Originality/value
The model developed can serve as a multi-dimension CSF framework that can be used as a success attainment tool for PPP power projects. For policy developers and stakeholders, the model serves as a pointer to issues which the government/public sector must focus on to attract huge investments from the private sector in the power sector.
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E. Badu, D.J. Edwards and D. Owusu‐Manu
Trade credit is treated as a financial intermediation device whereby construction vendors act as financial providers to their customers through deferred payments of goods…
Abstract
Purpose
Trade credit is treated as a financial intermediation device whereby construction vendors act as financial providers to their customers through deferred payments of goods purchased. The purpose of this paper is to investigate and report upon the key factors and motives influencing vendors' decision on trade credit provision to small to medium sized construction firms.
Design/methodology/approach
Adopting deductive methodological approach, this paper utilises a combination of primary data emanating from structured survey questionnaires supplemented by secondary source of data from an extensive literature review, to present insightful commentary about trade credit provision in Ghana. The structured survey questionnaire was administered to 100 construction vendor firms/suppliers to elicit relevant data about their trade credit intentions. Drawing upon the principles of a total design method (TDM) of survey, a relatively high response rate of 57 percent was achieved. Principal component (factor) analysis was adopted to obtain simplification of variables and to detect underlying dimensions and reveal potential complex structures within decision variables.
Findings
The underlying constructs and motives of vendors on trade credit were intricately interwoven in two principal factors: risk distribution and liquidity; and sustaining business relationship and liquidity. Despite the uncharacteristic manifestation of the liquidity measure being associated with the two principal components, the findings demonstrate the relative importance of liquidity in the trade credit debate. A critical observation stemming from the analysis was that trade policy was absent within the trade credit market in Ghana; this poses a potential threat to trade credit exchange and its development.
Originality/value
The paper's methodological approach is uniquely positioned between the conceptual and empirical interface and the overarching research is pioneering within the developing world nation of Ghana. The paper's findings will be useful to contractors, particularly, small and medium size contractors who are considering feasible finance options; and vendors who seek to consolidate their clientele base.
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Ernest Kissi, Divine Kwaku Ahadzie, Theophilus Adjei-Kumi and Edward Badu
The aim of the paper is to examine the challenges to the pricing of construction projects in the Ghanaian industry. This remains a persistent problem among construction…
Abstract
Purpose
The aim of the paper is to examine the challenges to the pricing of construction projects in the Ghanaian industry. This remains a persistent problem among construction stakeholders because price is the basis for which offers are made. Project stakeholders are always faced with challenges relating to effective and efficient pricing system making it difficult to achieve value for money.
Design/methodology/approach
Research data were collected through a questionnaire survey involving quantity surveyors in the Ghanaian construction industry. Data collected were analyzed using exploratory factor analysis which helped to reduce the factors into six components. Confirmatory factor analysis (CFA) was further carried out to explore whether these six observed variables would form a latent variable called challenges to pricing of construction projects.
Findings
The paper highlighted six underlying challenges which were cost-related, managerial-related, quality-related, variation of works, poor understanding of the terms of contract and time-related. Strong and significant relationships were found between all six of the observed variables. A CFA confirmed that they formed a latent variable the authors called challenges to pricing of construction projects.
Research limitations/implications
The findings clearly can serve as a reference for both developed and developing countries in the quest for finding an antidote to pricing challenges. In addition, use of CFA improves measurement of the constructs and thus enhances understanding of the underlying components of a construct and their individual relationship with pricing. The paper is particularly useful for policy making and industry regulation because it identifies some of the factors that need attention.
Originality/value
This paper presents an exceptional contribution to the construction management literature by concentrating on the factors that challenge effective and efficient pricing system in the construction industry.
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E. Badu, D.J. Edwards, D. Owusu‐Manu and D.M. Brown
Failure to resolve Ghana's infrastructure deficit, coupled with inability of traditional financing methods to meet current infrastructure demand, have triggered recent studies to…
Abstract
Purpose
Failure to resolve Ghana's infrastructure deficit, coupled with inability of traditional financing methods to meet current infrastructure demand, have triggered recent studies to explore strategic issues underpinning innovative financing (IF) of infrastructure. The purpose of this study is to explore potential impediments inherent in IF tools available to Ghana.
Design/methodology/approach
The empirical aspect of the investigation used structured interviews and a survey questionnaire to gather data from project implementation agencies with experience of infrastructure IF. Factor analysis (principal component analysis) established which variables measured aspects of the same underlying dimensions.
Findings
A total of three key challenges were identified, and explained in terms of: investment capacity; implementation and revenue mobilization. Findings provide an early failure signal when implementing IF.
Practical implications
Conclusions and recommendations are of benefit to various international development partners and governmental and non‐governmental organizations that develop and/or implement infrastructure projects. Further research will seek to explore strategic, innovative solutions to on‐going challenges.
Originality/value
Knowledge of the critical challenges facing implementation of IF remain scant and incomplete.
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Ernest Kissi, Theophilus Adjei-Kumi, Edward Badu and Emmanuel Bannor Boateng
Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI…
Abstract
Purpose
Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry.
Design/methodology/approach
Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI.
Findings
Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence.
Practical implications
The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing.
Originality/value
This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.
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In addition to lower value for money and the loss of trust in government, procurement corruption threatens to produce a vicious cycle whereby honest firms self-select out of…
Abstract
Purpose
In addition to lower value for money and the loss of trust in government, procurement corruption threatens to produce a vicious cycle whereby honest firms self-select out of public procurements, further increasing corruption and decreasing value for money. This paper aims to explore this vicious cycle hypothesis.
Design/methodology/approach
This paper uses a survey of businesses registered with the procurement regulator in Honduras, a country with high grand corruption but low levels of administrative procurement corruption. The study uses the survey to test the effects of experiences and perceptions of corruption and personal connections on perceptions of fairness and intention to bid on future procurements.
Findings
This study finds that experiences with bribery and the perceived importance of personal and party connections undermine perceptions of fairness, particularly for firms bidding with Honduras’s public works agency. While firms that have not bid recently view the process as less merit-based than those that have, the study does not find that perceptions of fairness influence intention to bid in the future as the vicious cycle hypothesis would suggest.
Social implications
This research suggests that even firms that are frustrated with procurement irregularities are willing to tolerate them to access government markets.
Originality/value
The study benefits from a unique survey of businesses on issues of corruption and connections in a challenging procurement environment.
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Albert P.C. Chan and Ernest Effah Ameyaw
The past few years have seen some private sector involvement in urban and small-town water provision in Ghana, as the government strives to improve access to water supply services…
Abstract
Purpose
The past few years have seen some private sector involvement in urban and small-town water provision in Ghana, as the government strives to improve access to water supply services for its citizens in line with millennium development goals. Since 1995, both central and local governments have entered into various forms of public-private partnerships (PPPs) contracts. The paper aims to examine challenges and investment needs of Ghanaian water supply sector that necessitated private sector involvement; trends, and factors that constrain the development and implementation of projects with private sector involvement in the sector.
Design/methodology/approach
A research approach integrating multi-stage critical review of relevant related literature and case studies is adopted in this paper. The study is further informed by the authors' experience in the sector and knowledge of PPPs. Analysis of data from different sources, using both approaches, provides both historical and contemporary approach to water management practice in Ghana.
Findings
The paper reveals that the Ghanaian water supply sector mirrors the classic challenges of public sector utilities in developing countries. Under-investment by government is the major cause of the ill-performance of the sector, necessitating private sector involvement. Management contract has emerged as a popular form of water supply PPP in Ghana. Further, optimal risk allocation has not been widely adopted in these contracts, and not yet been given much attention by practitioners and researchers in the literature of water management in Ghana.
Originality/value
The paper provides useful insights into the constraints of the water supply sector, development and implementation challenges of PPPs in the sector, and prompts a need for more research on risk allocation in water supply PPP contracts.
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Isaac Akomea-Frimpong, Xiaohua Jin, Robert Osei-Kyei and Augustine Senanu Kukah
The contribution of the public–private partnership (PPP) model towards the achievement of the United Nation (UN)'s Sustainable Development Goals (SDGs) has been widely…
Abstract
Purpose
The contribution of the public–private partnership (PPP) model towards the achievement of the United Nation (UN)'s Sustainable Development Goals (SDGs) has been widely acknowledged. However, limited studies have shed light on the connection between PPPs and the achievement of these coveted goals in Ghana. In this study, the authors aimed at analysing and synthesising the existing literature on the use of PPP to achieve sustainability in infrastructure projects in the country.
Design/methodology/approach
A three-step approach was used to retrieve and review 60 selected articles aided by content analysis.
Findings
The analysis showed that all existing relevant publications on the application of the PPP model to attain UN’s SDGs in the country are organised around dominant themes, such as poverty alleviation, urban development, waste management and risk management. However, the review revealed little studies exist on pertinent issues relating to PPPs and sustainable development goals, such as climate action, critical resilience, sustainable finance and clean energy.
Research limitations/implications
Although the study is limited to 60 articles in Ghana, the results reveal pertinent gaps for further research studies to achieve sustainable infrastructural development in Ghana and other countries.
Practical implications
Holistically, the outcome of this study will serve as a guide to project managers to understand essential issues on attaining sustainability on public projects.
Originality/value
This article contributes to the literature and practice on the significance of PPP in mainstreaming UN's SDGs in public infrastructure projects.
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Yakubu Salisu and Lily Julienti Abu Bakar
The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and…
Abstract
Purpose
The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and small and medium enterprises (SMEs) performance in developing economy of Africa.
Design/methodology/approach
A quantitative survey design was employed to collect the data from owner/manager of manufacturing SMEs in Nigeria. Partial least square structural equation model was used in the evaluation of both the measurement and structural models to determine the reliability and validity of the measurement and test the hypotheses, respectively.
Findings
The statistical result indicates a positive relationship between technological capability, learning capability and SMEs performance. Equally, relational capability significantly and positively relates to SMEs learning capability. However, relational capability negatively relates to SMEs performance, while technological capability also negatively relates to learning capability. Furthermore, learning capability mediates the negative relationship of relational capability and SMEs performance to significant positive relationship, while it does not mediate the relationship of technological capability and performance.
Research limitations/implications
The analysis of this study is restricted to only resource-based view and dynamic capability theory. Data of the study were collected once a time on a self-reported technique. The study contributed significantly to the body literature on technological and relational capabilities and performance. It also demonstrated the need for SMEs manager to recognize and appreciate the roles of these strategic capabilities in achieving sustainable competitive position.
Practical implications
Through relational capability SMEs develops efficient collaborative relationship to acquire new techniques, knowledge. This is specifically, essential for SMEs firms from less developing and emerging economies as they are lagging behind at the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets. Similarly, technological capability enable firms to identify acquire and apply new external knowledge to develop operational competencies which may lead to the attainment of superior performance.
Social implications
Government policies and programs designed to support technological development and innovation must be adjusted to consider the peculiar nature of SMEs firms in terms of technology and innovativeness that enhances competitive position and performance.
Originality/value
This study empirically examined the relationship of technological and relational capabilities and the SMEs learning capability and performance.
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Nicholas Chileshe, David John Edwards, Neema Kavishe and Theo C. Haupt
The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in developing…
Abstract
Purpose
The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in developing countries are fraught with challenges that often engender bidding practices (such as collusion through price fixing and intentional lower bidding) and threaten business survival. Therefore, in the quest to better understand these challenges and viable advocate solutions for overcoming them, this paper aims to identify the key challenges impacting the bid decision process by small indigenous building contractors in Dar es Salaam, Tanzania, and establish the strength of their relationship between the pairs of key challenges.
Design/methodology/approach
A comprehensive literature review was conducted to identify nine challenges impacting the bid decision of indigenous building contractors in Tanzania, which were used to design a questionnaire survey. Data collected were analysed using descriptive statistics, mean score, inferential statistics (One sample t-tests), Kendall’s concordance and correlation analysis.
Findings
Challenges identified from a literature review were empirically tested using survey responses accrued from 33 participating small indigenous building contractors in Dar es Salaam, Tanzania. The findings illustrate that lack of liquidity, profit returns, lack of equipment, lack of experience of several works and procurement procedures are perceived as being the five most critical challenges. Project location, site accessibility and lack of labour were least critical. The major finding from the correlation analysis was the existence of the strong and positive correlation between “project location” and “site accessibility”.
Research limitations/implications
The study is limited by its sample and geographical settings which focussed and confined the results on one country, Tanzania. However, the findings can be considered as important for other developing countries wishing to gain insights into the challenges impacting bid decisions.
Practical implications
Measures for addressing the identified challenges impacting the bidding decisions of the indigenous small building contractors would be undertaken. The findings will enable contractors to not only reconcile the challenges with the industry and in so doing benefit both themselves and the clients but also enable them to be better prepared to deliver contractual obligations and generate socio-economic wealth. Government and policymakers will also be able to appropriately develop macro interventions for managing these challenges, which could be custom-tailored to indigenous small contractors. Finally, improving the ability of local firms to compete in the construction industry has been recognised as having the potential of advancing socio-economic development within the comity of developing countries.
Originality/value
The study enhances government, client and practitioners’ understanding of the challenges affecting the bidding practices among the indigenous building contractors in Tanzania. This area of investigation has previously been under explored particularly sub-Saharan Africa.