Examining the Interrelationship among Critical Success Factors of Public Private Partnership Infrastructure Projects

• Main Authors: Shiying Shi, Heap-Yih Chong, Lihong Liu, Xiaosu Ye
• Format: Article
• Language: English
• Published: MDPI AG 2016-12-01
• Series: Sustainability
• Subjects: public private partnership; interrelationship; critical success factor; sustainability; structural equation model
• Online Access: http://www.mdpi.com/2071-1050/8/12/1313

Examining the interrelationships among critical success factors (CSFs) for public private partnership (PPP) projects is of importance for improving PPP project performance and maintaining the sustainability of PPP project implementation. Previous studies mostly focused on the identification of the CSFs for PPP projects; limited studies investigated the interrelationships among CSFs. Hence, the research objectives are (a) to determine the interrelationships among CSFs of PPP projects taking into account the public and (b) to identify influence paths contributing to take advantage of CSFs in the process of PPP implementation. A literature review and expert interviews were adopted to construct the CSFs framework; nine hypotheses were constructed and tested by the structural equation modelling (SEM) based on the data collected from a questionnaire survey. This research reveals that the relationship between public and private partners is the leader-follower relationship, not the partnership relationship, in PPP projects, indicating that the responsibilities, power or resources existing among partners are very unequal. It also highlights that public involvement has a negative effect on the process of service provisions, and costs and risks exist in the process of public involvement in PPP projects. The determined interrelationships among CSFs will contribute to the sustainability and success of a PPP project.