Do regional characteristics influence PPP contract governance skills requirements?

Abstract

Purpose

This study aims to seek, on the basis of Hofstede's culture consequences, to explore the notion that regional characteristics may influence the prioritisation of certain types of public-private partnerships (PPP) contract governance skills over others. It further sets out to determine which skills are considered the most critical between the groups of respondents surveyed.

Design/methodology/approach

To bring this important and neglected perspective into the mainstream of PPP discussions, the study, being of an exploratory nature, relied on a survey of 340 respondents from around the globe. The respondents are a rich mix of public policy experts, economists, construction professionals, project finance experts, lawyers and academic researchers in PPP.s.

Findings

Analysis revealed that, regional characteristics was an important factor influencing skills prioritisation. Furthermore, exploratory factor analysis with Monte Carlo principal component analysis (PCA) confirmation revealed that project management, contract design, negotiations, performance management and stakeholder management skills were very critical for successful contract management of PPP projects.

Practical implications

The findings indicate that the design and implementation of regulatory governance for infrastructure PPPs should be context-specific rather than the current one-size-fits all model. Training should be tailored to reflect regional specific characteristics.

Originality/value

Studies are increasingly pointing to the absence of critical PPP skills among institutions responsible for managing PPP contracts. This lack of capacity has resulted in poor oversight of private companies providing public services resulting in poor services, and financial recklessness, which threaten the sustainability of service provision.

Citation

Umar, A.A., Zawawi, N.A.W.A. and Abdul Aziz, A.R. (2023), "Do regional characteristics influence PPP contract governance skills requirements?", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-08-2022-0729