Muhammad Ayat, Mehran Ullah, Zeeshan Pervez, Jonathan Lawrence, Chang Wook Kang and Azmat Ullah
The study aims to examine the impact of key variables on the success of solicited and unsolicited private participation in infrastructure (PPI) projects using machine learning…
Abstract
Purpose
The study aims to examine the impact of key variables on the success of solicited and unsolicited private participation in infrastructure (PPI) projects using machine learning techniques.
Design/methodology/approach
The data has information on 8,674 PPI projects primarily derived from the World Bank database. In the study, a machine learning framework has been used to highlight the variables important for solicited and unsolicited projects. The framework addresses the data-related challenges using imputation, oversampling and standardization techniques. Further, it uses Random forest, Artificial neural network and Logistics regression for classification and a group of diverse metrics for assessing the performances of these classifiers.
Findings
The results show that around half of the variables similarly impact both solicited and unsolicited projects. However, some other important variables, particularly, institutional factors, have different levels of impact on both projects, which have been previously ignored. This may explain the reason for higher failure rates of unsolicited projects.
Practical implications
This study provides specific inputs to investors, policymakers and practitioners related to the impacts of several variables on solicited and unsolicited projects separately, which will help them in project planning and implementation.
Originality/value
The study highlights the differential impact of variables for solicited and unsolicited projects, challenging the previously assumed uniformity of impact of the given set of variables including institutional factors.
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Yanxi Li, Heng Zhao and Shanshan Ouyang
The privatization of infrastructure promotes efficiency and service standards. While cross-border private participation infrastructure (PPI) projects hosted in emerging markets…
Abstract
Purpose
The privatization of infrastructure promotes efficiency and service standards. While cross-border private participation infrastructure (PPI) projects hosted in emerging markets have become more prevalent in recent years, there have also been more failures. The purpose of this paper is to investigate how governance distance affects the survival of cross-border PPI projects.
Design/methodology/approach
The authors provide theoretical justification and empirical evidence to verify our views. The authors test the hypotheses on a sample of 4,678 cross-border PPI project investments made in emerging market countries between 1990 and 2016. Estimation techniques consist of a binary logistic regression model and a rare events logistic model.
Findings
The findings suggest that increased governance distance can lead to project failure. The study results show that governance distance is negatively correlated with the probability of project survival. Greenfield investment intensifies the negative effect of governance distance while competitive contracts mitigate the negative effect of governance distance.
Practical implications
The results reveal that transnational investment in infrastructure projects is susceptible to institutional differences between home and host countries. Therefore, both private enterprises and host government should pay attention to the impact of inter-country differences on negotiations and project operation. Competitive contracts mitigate this negative effect, but entering in the form of greenfield investment amplifies the negative effect of distance.
Originality/value
Transnational industrial engineering projects are easily affected by the differences in governance levels between the two countries. This study introduces governance distance into the field of infrastructure projects, focusing on the impact of differences between home and host countries on transnational projects. The findings on infrastructure projects that are closely related to host government contribute to the literature by broadening the research of institution and distance.
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Muhammad Ayat, Sheheryar Mohsin Qureshi and Changwook Kang
The purpose of this study is to propose an improved framework for managing Private Participation in Infrastructure ICT (PPI-ICT) projects in the context of developing countries as…
Abstract
Purpose
The purpose of this study is to propose an improved framework for managing Private Participation in Infrastructure ICT (PPI-ICT) projects in the context of developing countries as the requirements to manage them are different in several aspects.
Design/methodology/approach
The framework has been proposed based on an exhaustive literature review and statistical analysis of the PPI-ICT projects’ data set using logistic regression, F-test and student’s t-test. The proposed framework was also applied to the PPI-ICT projects.
Findings
The framework is an extension to NTCP (novelty, technology, complexity and pace) approach by including extrinsic factors such as income of the country, climate risk, religious diversity, political stability, regularity quality and control of corruption. The proposed framework was used to analyze project characteristics and their external conditions in the context of developing countries. Based on the analyses, the authors have presented a detailed set of recommendations for project managers, practitioners and governments to improve the success rate of these projects.
Originality/value
The major contribution of this study is the framework, which encompasses the NTCP model as well as extrinsic characteristics of PPI-ICT projects. The proposed framework is meant to assist the project managers to comprehend the project characteristics and its external environment to identify an adequate approach for managing projects successfully.
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Muhammad Ayat, Azmat Ullah and Changwook Kang
The primary purpose of this study is to explore the relationship between the unsolicited proposal (USP) and the performance of private participation infrastructure (PPI) projects…
Abstract
Purpose
The primary purpose of this study is to explore the relationship between the unsolicited proposal (USP) and the performance of private participation infrastructure (PPI) projects in developing countries.
Design/methodology/approach
The main data set for this study was collected from the World Bank database consisting of 8,951 PPI projects that occurred in developing countries from 1996 to 2020. Hierarchical logistic regression was applied for investigating the effects of USPs on project success. Three moderators, namely, control of corruption, presence of local sponsor and project size were also included in the model to test the impact of their interactions with the USP on the performance of PPI projects. Further, to assess the impact of the effect of USPs, the average marginal effect was calculated. The framework used in this study consists of 18 control variables, three moderators and one noncontrolled independent variable (the USP).
Findings
The results of hierarchical logistic regression indicate that USPs have a significant and negative effect on the success of PPI projects occurring in developing countries. The negative effect of a USP weakens with the presence of local sponsors and stronger control of corruption in the host country. However, contrary to the authors’ expectations, the results show that project size does not significantly affect the association between USPs and the success of PPI projects. Moreover, the results of average marginal effects show that the negative impact of USP on the success of PPI projects ranges between 2.4% and 3.8%.
Originality/value
This study quantifies the negative impact of USP on the success of PPI projects in developing countries, which will be helpful for the practitioners to understand the associated risk with USP projects. Furthermore, it also identifies the moderating roles of control of corruption and the presence of local sponsors on the relationship between USP and the success of PPI projects.
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Kristin B. Munksgaard, Majbritt Rostgaard Evald, Ann Højbjerg Clarke and Torben Munk Damgaard
Public-private innovation (PPI) is often claimed to contribute to societal welfare, to bring positive effects to the public sector and to open new markets to private firms…
Abstract
Purpose
Public-private innovation (PPI) is often claimed to contribute to societal welfare, to bring positive effects to the public sector and to open new markets to private firms. Engaging in public-private relationships for innovation is, however, also recognised as challenging and problematic. The purpose of this paper is to discuss the managerial and strategic challenges faced by private firms when engaging in public-private relationships for innovation.
Design/methodology/approach
This qualitative study presents ten firms’ engagement in public-private relationships. Half of them are experienced in innovation in public-private relationship, the other half are engaging in public-private relationships for the first time. Cross-case analysis brings insight into how these different types of firms strategize for handling relationships with public partners.
Findings
Contrary to non-experienced firms, experienced firms deliberately build a long-term strategy for engaging in PPI in expectation of outcome from more than a single project. They not only engage in building an understanding of the public using setting, but also seek to bridge with the public developing and producing setting to a greater extent than less experienced firms. The experienced firms utilise relationships with actors in the wider public network as a device and an asset for overcoming challenges and for reaping benefits from their engagement.
Originality/value
The study outlines the characteristics of strategizing among the most experienced firms and their special ability to embrace the complexity of the public sector network while working simultaneously on developing innovation for specific public counterparts.
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The purpose of this paper is to examine the progress in public and patient involvement (PPI) in public health research, and identify the relevant problems and solutions.
Abstract
Purpose
The purpose of this paper is to examine the progress in public and patient involvement (PPI) in public health research, and identify the relevant problems and solutions.
Design/methodology/approach
To explore the advantages and drawbacks of PPI in health research, drawing on studies which have looked at the barriers to effective PPI, as well as the benefits to all parties.
Findings
Guidelines have emerged from recent research for the process of PPI throughout a project; however different schemes for PPI will apply, depending on the context.
Research limitations/implications
There are not many well-researched studies into PPI in this area. A frequent limitation in research projects is that there is not sufficient provision for PPI. The implication is that more time and funding should be made available for well-planned PPI.
Practical implications
Researchers need to find more ways for involvement, as well as optimising current methods.
Social implications
The growth of PPI has opened up channels of communication and developed new roles for people in research, who would not otherwise be involved.
Originality/value
The paper draws together a range of studies in an original way, as well as using some unpublished material. It is an area of current interest.
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Alireza Talebi and Davar Rezania
Governance of projects is a dynamic process that involves the interaction of agents, opportunities, rules, instruments and legitimacy. The authors conducted a case study of the…
Abstract
Purpose
Governance of projects is a dynamic process that involves the interaction of agents, opportunities, rules, instruments and legitimacy. The authors conducted a case study of the governance of exploratory projects in public procurement of innovation in a local government. The authors consider both contextual aspects that impose requirements on the procurement process and procedural aspects of how the different actors interact with each other. In particular, the purpose of this study is to investigate how actors make sense of the projects and how governance evolves over their lifetime.
Design/methodology/approach
To engage in an open-system investigation of exploratory public procurement of innovation (PPI) projects, the authors adopted a case study approach in which they collected a variety of data including publicly available documentary evidence, interviews with project participants and project evaluation reports. The authors used transcripts of 17 interviews with project participants conducted independently to gain an initial understanding of the case. They conducted additional semi-structured interviews with projects’ participants (ten interviews in total) and used theory-driven analysis (Pawson and Tilley, 1997) based on Borrás and Edler’s (2014) model of governance.
Findings
The authors identified four stages – problem identification, partner selection, partnership development and evaluation and commercialization – these projects. The case demonstrates how governance changes in each stage and at the three levels of policy, network and projects. Each level has its own governance pillar. The results suggest that a multi-level perspective (MLP) can be a fruitful framework to study governance of projects in these contexts.
Research limitations/implications
The authors note that the number of participants in the network of this case is not very large. Other organizations that aim to adopt PPI may need to pay attention to the complementarity and the number of partners in the network. In this case, organizations were motivated to collaborate as each had its own objectives which were distinct but complementary.
Practical implications
Co-creation of value is currently a topic of interest for public policy reform across the globe. The case indicates that procurement for innovation requires a degree of coordinated change across governmental departments, such as planning, legal and procurement to implement the policy and related support systems. Furthermore, the authors observed that a portfolio approach to inter-organizational collaboration with different partners was effective. Each partner has its own objective, but they complement one another. A portfolio of different, though complementary, inter-organizational arrangements enables various complementary instruments and various logics to be used.
Social implications
The public sector is an important actor in driving innovation in products and services that fulfill societal needs. This is explored in public procurement of innovation. In this process, several partners from private and public sectors are involved. This partnership is mainly used to co-create the value and encourage innovation to benefit the citizens. However, to serve this goal, the case indicates that procurement for innovation requires a degree of coordinated change across governmental departments, such as planning, legal and procurement to implement the policy and related support systems. For this phenomenon MLP should be used as an inclusive framework to study socio-technical change.
Originality/value
The analysis of the case presented in this study demonstrates that even in the case of temporary public procurement of innovation projects, governance is layered. The three pillars of governance not only interact at each layer but also communicate across layers. Even though the interaction of the three pillars of governance is well established in the literature on socio-technical change, the interaction across levels in the context of temporary projects is novel. The authors contribute to the literature on governance of such projects by highlighting the stratification of governance.
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Karim A. Iskandar, Awad S. Hanna and Wafik Lotfallah
Healthcare-sector projects are some of the most complex in modern practice due to their reliance on high-tech components and the level of precision they must maintain. Existing…
Abstract
Purpose
Healthcare-sector projects are some of the most complex in modern practice due to their reliance on high-tech components and the level of precision they must maintain. Existing literature in healthcare performance specifically is scarce, but there is a recent increasing trend in both healthcare construction and a corresponding trend in related literature. No previously existing study has derived weights (relative importance) of performance metric in an objective, data-based manner. The purpose of this paper is to present a newly developed mathematical model that derives these weights, free of subjectivity that is common in other literature.
Design/methodology/approach
This paper’s model considers 17 exceptional projects and 19 average projects, and reveals the weights (or relative importance) of ten performance metrics by comparing how projects relate to one another in terms of each metric individually. It solves an eigenvalue problem that maximizes the difference between average and exceptional project performances.
Findings
The most significant weight, i.e. the performance metric which has the greatest impact on healthcare project performance, was request for information per million dollars with a weight of 16.07 percent. Other highly weighted metrics included construction speed and schedule growth at 13.08 and 12.23 percent, respectively. Rework was the least significant metric at 3.61 percent, but not all metrics of quality had low ratings. Deficiency issues per million dollars was weighted at 11.61 percent, for example. All weights derived by the model in this paper were validated statistically to ensure their applicability as comparison and assessment tools.
Originality/value
There is no widely accepted measure of project performance specific to healthcare construction. This study’s contribution to the body of knowledge is its mathematical model which is a landmark effort to develop a single, objective, unified project performance index for healthcare construction. Furthermore, this unified score presents a user-friendly avenue for contractors to standardize their productivity tracking – a missing piece in the practices of many contractors.
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Jan Stentoft Arlbjørn and Per Vagn Freytag
Compared with the private sector, the public sector's procurement process differs in several respects. The purpose of this paper is to analyze the possibility for mutual learning…
Abstract
Purpose
Compared with the private sector, the public sector's procurement process differs in several respects. The purpose of this paper is to analyze the possibility for mutual learning and the value between the public and private sectors and also to identify both drivers and barriers for benchmarks between the two sectors.
Design/methodology/approach
The paper is based on in‐depth literature reviews of comparisons between private and public procurements. The paper is, furthermore, derived from two case studies: one in a chain perspective and another that concerns public‐private innovation.
Findings
Extant literature contains limited contributions that compare public procurement practice with private purchasing practice. Using tendering to regulate procurement is troublesome and may hamper the possibility to learn and gain value measured on a broader scale. Wider collaboration may provide more possibilities to learn and gain value.
Research limitations/implications
The empirical part of the paper rests on two case studies. The procurement process of a single item has been studied as have new cooperation modes between the public and private sectors.
Practical implications
The paper provides supply chain management (staff) input as to examples in which comparisons of procurement and purchasing processes might add value. The paper argues that both sectors can learn from each other.
Originality/value
This paper is the first report about an in‐depth literature review of comparisons of public procurement with private purchase, and it is the first to empirically analyze a chain of relations from private‐private to private‐public. It further addresses new ways to perceive the EU Directive of public tendering.
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Public–Private Partnerships (PPPs) are used worldwide to reduce the infrastructure gap. Public entities encourage private sector involvement through PPPs, but the degree of such…
Abstract
Public–Private Partnerships (PPPs) are used worldwide to reduce the infrastructure gap. Public entities encourage private sector involvement through PPPs, but the degree of such commitment is affected by several factors, related to the specific PPP project and to the institutional and economic environment in the host country. The purpose of this chapter is to perform an empirical analysis of the determinants of the degree of private sector participation in PPPs in developing and emerging countries. This chapter explores fractional response models to explain the degree of private participation in PPPs using data from 2000 to 2014, obtained from the World Bank’s PPI database. The results suggest that the type of project is a key determinant of the degree of private sector involvement. Favourable fiscal conditions and the existence of explicit support from the government (direct or indirect) increase the degree of private involvement. Multilateral support reduces private participation, emphasizing a substitution effect. In the same way, private sector involvement appears as a substitute to overcome failures in countries with poor financial systems. The results are particularly important for public authorities. This chapter identifies key factors that can foster private sector involvement in PPPs. Although the expansion of PPPs is a well-accepted reality, empirical studies that explore factors that affect the degree of private sector involvement are still lacking. This chapter particularly addresses this topic.