Is Public–Private Partnership (PPP) a Preferred Strategy for Procuring Smart Infrastructure in Developed Countries: An Empirical Study of the Perceived Benefits, Barriers and Recommended Strategies

Nimesha Sahani Jayasena, Daniel W. M. Chan and Mohan M. Kumaraswamy
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Nimesha Sahani Jayasena: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China
Daniel W. M. Chan: Department of Building and Real Estate, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China
Mohan M. Kumaraswamy: Department of Civil Engineering, The University of Hong Kong, Pokfulam Road, Hong Kong, China

Sustainability, 2022, vol. 14, issue 11, 1-25

Abstract: Attention to Smart Infrastructure (SI) has risen due to its advantages, including better access, increased quality of life, and simplified maintenance management. To develop SI, Public–Private Partnerships (PPPs) are identified as potentially beneficial procurement strategies, which boost capacities to manage risks by pooling diverse resources. However, the applicability of PPP in SI developments in developed countries is scarcely researched. This may be due to underestimating the other potential benefits from PPP, although developed countries may have their own funding to develop SI. Hence, this research aims to evaluate the significant factors influencing the success of PPP in SI projects in developed countries based on public-sector satisfaction (S1), private-sector satisfaction (S2), and end-user satisfaction (S3). A comprehensive literature review was followed by expert interviews and an international survey, focusing on developed countries. The Partial Least Squares Structural Equation Modeling (PLS-SEM) technique was applied to map the connections amongst the influencing factors and S1, S2, and S3. The results reveal that legal and political-related factors significantly impact on S2 and S3, while social barriers significantly impact on S1. The effect of the constructs and factors on S1, S2, and S3 along with their rankings are unveiled in this research paper, providing a sound basis to increase success levels and minimize shortfalls in PPP to boost SI developments in developed countries.

Keywords: Public–Private Partnership (PPP); Smart Infrastructure (SI); developed countries; benefits and enablers; barriers; recommended strategies; Partial Least Squares Structural Equation Modelling (PLS-SEM) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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