Identifying macro-environmental critical success factors and key areas for improvement to promote public-private partnerships in infrastructure

Andreas Wibowo · Hans Wilhelm Alfen

74 citations0/0 files storedEngineering Construction & Architectural Management

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Public-Private Partnership Projects Construction Project Management and Performance Fiscal Policy and Economic Growth

Abstract

Purpose – The purpose of this paper is to identify macro-environmental critical success factors (CSFs) and key areas for improvement for public-private partnerships (PPP) in infrastructure development, using Indonesia as a case study. Design/methodology/approach – The methodology includes the definition of CSFs based on the United Nations for Economic and Social Commission for Asia and the Pacific's self-assessment diagnostic tool and a survey on importance and performance attributes, the application of gap analysis (GA) and importance-performance analysis to prioritize areas needing urgent improvements, and the use of inter-rater agreement analysis to examine to what extent the ratings tend to converge on the same conclusions regarding importance and performance. Findings – Out of 40 possible success factors, a total of 16 are identified as CSFs in the context of Indonesia. GA suggests that no performance ratings exceed importance ratings for the identified CSFs, indicating the need for remedial actions. The factors requiring immediate improvements are all associated with commitments: to policy continuity, financial transparency, and corruption eradication. Practical implications – Although the paper discussing a specific country, the proposed approach is replicable and adaptable in different country contexts. Indonesia's experience can also be of value to governments facing similar problems in encouraging private investment in infrastructure. Originality/value – The paper contributes to the body of knowledge on PPP in infrastructure development by focussing exclusively on macro-environmental CSFs and Indonesia's PPPs, which are both rarely discussed in the existing literature.

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References

1977Importance-Performance Analysis 2007Answers to 20 Questions About Interrater Reliability and Interrater Agreement 2000Within-group agreement, non-independence, and reliability: Implications for data aggregation and analysis.2004The allocation of risk in PPP/PFI construction projects in the UK 2005Critical success factors for PPP/PFI projects in the UK construction industry 2004Critical Success Factors for Public–Private Partnerships in Infrastructure Development 2007Public-Private Partnerships: Principles of Policy and Finance 2003A Comparison of Approaches to Importance-Performance Analysis

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