Public private partnerships in the provision of tolled roads: Shared value creation, trust and control

Demi Chung and David Hensher

Transportation Research Part A: Policy and Practice, 2018, vol. 118, issue C, 341-359

Abstract: Public private partnerships are rationalized on shared value creation by combining public sector management and oversight with private sector resources for a direct provision of a public good or service. Yet little is known about what are the sources of value and the effects of contract control mechanisms for value appropriation. This paper explores this issue from the perspectives of both public sector agencies and private sector firms involved in the provision of toll roads. Using data collected from a stated choice experiment on toll road participation to obtain a composite measure of resource values, we find that resource values have little influence on decisions to form a partnership, while partner’s (un)trustworthiness and social activism by external stakeholders have a discernible effect on their decisions. Mitigating controls moderate these influences. An internal coordination framework within the public organization and the enactment of institutional policy can help to reap the most from the combined resources for shared value creation, particularly when trust is yet to be established during the contracting phase.

Keywords: Public private partnership; Value creation; Transaction cost economics; Mitigating controls; Trust; Tollroad concession (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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DOI: 10.1016/j.tra.2018.08.038

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