The Governance of Public-Private Ties Model: How to Govern the PPPs Infrastructure Project Effectively (An Indonesia Case)

Abstract

Even though the Public-Private Partnerships model in public infrastructure provision has proliferated in the last decade, its effectiveness with respect to the addressed problems has remained very challenging. The purpose of this study is to explore how the public-private ties model strategically managed in creating value to involved parties as well as to other stakeholders. This empirical study consolidated the value creation theories in strategic management and theories of governance in new public management discourse. It utilized an original primary dataset collected by a survey of 132 involved companies in Indonesia infrastructure development. There are at least two significant findings. First, the public infrastructure provision is beyond physical development activities. It is an economic and public value creation process. Second, the dynamic capability exploration must be executed in a way of democratic accountability, having strong stakeholders' procedural legitimacy, and public participation enforcement. The value creation needs a collaborative governance in accordance that the model is vulnerable due to endemic conflict and tensions. This research leaves out two side effect of governance. Other than as a value creation component, the governance also can perform as a value destruction of the public-private ties model. These findings have important theoretical and managerial implication for public policy to encourage private willingness participating in infrastructure development.

Utaut Approach Application to Analyze the Determinants of Fintech Market Aggregator User Satisfaction

“…PLS-SEM is used for theory confirmation and explains if there was a relation between the latent variable [18]. PLS-SEM also used in quantitative research for a model that involves latent variables with some indicators [19].…”

Public participation in infrastructure projects: an integrative review and prospects for the future research

“…In this way, researchers mainly focused on the effectiveness, influence factors, governance mechanism and so on from a macro perspective (Wu et al , 2019; Sulaksono et al. , 2017; Sudiyono et al. , 2017; Attenborough and Frederick, 2016).…”

“…According to deliberative democracy theory and public administration theory, in a pluralistic society, people have reached a consensus about the importance of Public participation public participation in infrastructure projects. In this way, researchers mainly focused on the effectiveness, influence factors, governance mechanism and so on from a macro perspective (Wu et al, 2019;Sulaksono et al, 2017;Sudiyono et al, 2017;Attenborough and Frederick, 2016). The theory of public participation ladder is also an important theory in this field, through which scholars studied the development stages and specific processes, trying to explore the perfect mode of the public participating in infrastructure projects (Yu and Leung, 2015;Leung et al, 2014).…”