CONTRACTUAL INCOMPLETENESS AND RENEGOTIATIONS OF PUBLIC PRIVATE PARTNERSHIPS: A MIXED-METHODS ANALYSIS

Joaquim Sarmento
Additional contact information
Joaquim Sarmento: ISEG – Lisbon School of Economics and Management, Universidade de Lisboa, Portugal

Portuguese Journal of Management Studies, 2019, vol. 24, issue 1, 3-19

Abstract: Public-private partnerships (PPPs) are frequently renegotiated. The reason is that these long-term contracts (of over 30 years) require major investments and therefore are necessarily incomplete. Thus, research perceives the renegotiation of PPPs as their biggest pitfall. The abnormal occurrence of renegotiations leads to low efficiency and potential problems in this type of organizational choice. This study addresses the contractual incompleteness and the effect of renegotiations by using Portuguese PPPs. The use of mixed methods (a qualitative approach using fsQCA and a quantitative one) provides a deeper knowledge of the conditions that can cause renegotiations. The results show that investment, debt, type of shareholder, and type of payment have a strong effect on the occurrence or absence of renegotiations. Regulatory agencies responsible for both the creation and the renegotiation of PPPs must consider these findings in the design of PPP contracts, particularly regarding the payment conditions of each project, as this is a critical condition for posterior renegotiation of contracts. Classification- JEL:

Keywords: Mixed methods; fsQCA; public private partnerships; renegotiations; contract incompleteness. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ejms.iseg.ulisboa.pt/files/3_EJMS_Vol24_Issue1_2019_Sarmento.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pjm:journl:v:xxiv:y:2019:i:1:p:3-19

DOI: 10.5455/EJMS/292963/2019

Access Statistics for this article

Portuguese Journal of Management Studies is currently edited by Luís Mota de Castro, Tiago Cardão-Pito, Mark Crathorne

More articles in Portuguese Journal of Management Studies from ISEG, Universidade de Lisboa Contact information at EDIRC.
Bibliographic data for series maintained by Luís Mota de Castro, Tiago Cardão-Pito, Mark Crathorne ().