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Public value creation and appropriation (PVCA) framework regarding PPP settings
Source publication
Scholars have extensively investigated public value creation and appropriation concerning public services delivered strictly by the government and public-private arrangements, such as public-private partnerships (PPPs). However, such studies often focus on value for money and economic performance criteria. This study examines how public value can b...
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Currently, the projects that can be carried out through Public Private Partnerships in the livestock sector are under the influence of specific market risk factors, with a great impact on the efficiency of public or private investments and their success. This research aims to analyze some of the market risk factors that affect the organization and...
Citations
... With reference to the first, some literature explores governments' creation/destruction of public value, but there is little about PPPs. Furthermore, as highlighted by dos Reis and Gomes (2023), these studies often focus only on the quality-price ratio and economic performance criteria (Hodge and Greve 2017;Grimsey and Lewis 2005), without employing a 360-degree vision of value, which also includes social value (Quélin, Kivleniece, and Lazzarini 2017). Therefore, considering their expertise in the provision of services of general (and public) interest, it is appropriate to analyze the creation/destruction of social value in the evaluation of PPPs (Lazzarini 2020;Cabral et al. 2019). ...
COVID‐19 radically changed how public services (activities of general interest) are pursued and administered. The search for resilient models has prompted public administration to test new regulatory approaches and to involve the third sector in the provision of primary services. This study investigates the sustainability and capacity of these models, specifically the implementation of a co‐planning and co‐design model aimed at measuring the possible creation of value and achieving common objectives. On the basis of an analysis of the development of the Turin Fast Track City project, the study employs a longitudinal method to identify not only the sustainability of the model but also new effective performance measurement tools, such as SIA analysis and integrated social accounting using financial and non‐financial elements. The study also highlights critical elements aimed at supporting future investigations.
... Contemporary research on the risks of PPPs includes three aspects: First, a number of studies have found that it is important for both governmental and private sectors to manage risks from a project life-cycle perspective, identifying and assessing risks as early as possible, as well as allocating them to the parties that are best able to control them [13,19,20]. Second, a large number of studies have focused on the identification of categories of risk from different perspectives [21,22]. ...
... In terms of information and communication, risk itself is a social construct and dialogue process. Assessing the sources and distribution of risk and identifying the party with the greater risk-taking and coping capacities require accurate and detailed information and diverse mechanisms for the sharing and communication of information [5,19]. However, conflicts of interest, institutional logic, and differing objectives between the public and private sectors cause both sectors to conceal information, leading to information asymmetry [57,64,75,76]. ...
As an important part of market-based reforms, the issue of “risk” has always been a part of the public–private partnership (PPP) debate, and the way in which risks are managed determines the sustainability of market-based reforms. This study systematically examines how the institutional environment and institutional arrangements affect the effectiveness of PPP risk identification and allocation. The study aims to establish a multi-source database of all publicized PPP projects in 31 provinces during the period of 2017–2021 in China, and it incorporates different levels of influencing factors, such as the institutional environment and institutional arrangements, into a framework. Through the application of a multilevel model, the impact of the political–institutional structure at the provincial level and institutional arrangements at the social capital and project levels on PPP risk identification and allocation is judged hierarchically. It is found that only social capital at the institutional environment level can directly and positively contribute to the effective identification and allocation of PPP risks, while both the degree of potential market competition and the degree of integration at the project level have a positive effect on its risk profile. In addition, there are cross-level moderating effects, with social capital, government transparency, and government–business relations positively improving risk allocation and identification through the degree of market competition, with no significant coordinating effect on the degree of contractual integration. This study goes beyond the existing one-dimensional risk profile analysis and risk typology to dismantle the “black box” of risk identification and allocation, which is a process of continuous negotiation, and to provide a sustainable governance mechanism for the market-oriented reform of public services in the institutional arena.
... They found that a series of improvements regarding value delivery can be conveyed to end users at relatively low or no cost. dos Reis and Gomes (2023) addressed the lack of studies on public value creation in comparison to the economic performance of PPP projects and developed a mechanism that shows how public value can be generated in these projects. ...
Purpose
Many countries struggled to respond to the pandemic burden; in fact, most suffer from healthcare incapacity generally. Therefore, they need to find innovative systems to compensate for their deficiencies in dealing with current and future problems. One such goes down the public-private partnership (PPP) route. It is important to note, however, that PPP is not a magic wand, and some of these projects have been criticized for overruns that exceed the value created. Aiming to promote the value created in healthcare PPP projects, this study aims to identify factors and critical points related to their implementation.
Design/methodology/approach
A two-stage literature review was conducted to shape semi-structured interviews. Based on this, the questions to be asked in the interviews were prepared. The interviews were conducted with twelve experts. The transcripts of the twelve semi-structured interviews were analyzed using manual thematic analysis to reveal the most critical value-creation factors (VCFs). The VFCs were validated by comparing them with the studies in the literature and by having focus group discussions (FGDs) with the experts. Finally, in an FGD, the experts discussed how these factors affect value creation in healthcare PPP projects.
Findings
The findings show that VFCs can be categorized into four dimensions: assets, partnership synergy, cooperation environment and processes. Based on the frequency of codes during the thematic analysis, the most frequently addressed VFCs in each category were identified. These were complementary skills and resources, attitude, early establishment of the operational body and effective design development, respectively.
Practical implications
This research contributes to both society and practice by unveiling VCFs and effective ways to achieve them in healthcare PPP projects. Thus, practitioners can generate more value and bring value to the forefront of healthcare PPPs, which can then enhance the value gained by society.
Originality/value
Studies to date have offered little about VCFs and how to realize value in PPP projects by considering the factors involved in them. Moreover, value creation in PPP healthcare projects has largely remained unexplored, despite PPPs being adopted and investigated quite commonly.
... They defined public value by highlighting accountability, transparency, responsiveness, responsibility, and quality. Finally, dos Reis and Gomes (2022) modeled public value creation and public-value appropriation in PPPs by defining the relationships between four public value mechanisms: information sharing, public and private capabilities, risk governance, and stakeholder orientation. The following section describes the business models and the need for an in-depth investigation of business models in the PPP project context. ...
... The business model proposed here follows these three main components (Fig. 2). Additionally, dos Reis and Gomes (2022) mentioned the interplay of value-creation components and stated that business models should be developed by establishing Governance Assets Processes ...
Due to the capacity deficits of the healthcare sector, governments faced many difficulties when responding to the burden caused by the COVID-19 pandemic. Private sector involvement in healthcare facilities delivery enabled through public-private partnerships (PPPs) can play a crucial role in overcoming these capacity deficits. Although PPP projects can help to overcome infrastructure deficiencies, some are criticized due to the low value created for stakeholders. These include not only society in general, which uses the healthcare facilities, but also the project participants. Value generation for the latter is also an essential objective of PPP healthcare projects in a generic view, which is often neglected. This study aims to understand value creation in healthcare PPPs by developing a framework based on concepts related to the project value and eventually proposing a business model to maximize the generated value at the organizational level for all stakeholders. In order to achieve the study objective, insights are obtained from a literature survey, semistructured interviews, and focus group discussions. A value-creation model consisting of components and subcomponents of value generation and the relationship between these is proposed. The model demonstrates that the process component plays a central role in value creation, requiring sufficient assets of the parties engaged in and the appropriate governance of PPP projects. The value-creation model proposed here further highlights the driving role of a well-balanced legal framework and organizational learning. All the identified subcomponents are found to be interrelated, highlighting the importance of the proposed business model design in value creation. Overall, given the lack of healthcare facility capacity in many countries and the need to create value in healthcare PPP attempts, the proposed value-creation model is expected to help project participants develop a more value-centric way of managing, controlling, and operating these projects.
... Por otro lado, la generación de valor público involucra la comunicación de la gestión de la organización que crea valor, la participación de los stakeholders en ésta y la confiabilidad percibida de la organización pública o quien genera el valor público desde procesos de rendición de cuentas (Ballintyne y Mintrom, 2018;Brugger et al., 2014;Cabral et al., 2019;Chatfield y Reddick, 2020;dos Reis y Gomes, 2022;Hansen y Fuglsang, 2020;Ma y Chang, 2019;Mintrom y Luetjens, 2017;Pooe y Munyanyi, 2022). Por otro lado, la creación del valor público supone la orientación hacia los stakeholders internos y externos y una interacción permanente, a través de un trabajo colaborativo con roles que permiten adicionar, desde su posición, a la generación de valor y dan sentido a lo público mediante su compromiso con el proceso (Hansen Este trabajo colaborativo es complejo y debe acompañarse con una explicación de los temas públicos en cada uno de los contextos y para cada tipo de stakeholders receptor de la información para fomentar la participación, obtener mayor diversidad de stakeholders involucrados y hacer atractiva la creación de valor público (Ma y Chang, 2019;Mintrom y Luetjens, 2017;Neumann et al., 2019). ...
... Otra forma de analizar los componentes de la creación de valor es a través de dimensiones como el retorno financiero, el poder, el estatus y la satisfacción y que van más allá de los stakeholders, próximos a la organización hacia otros que se benefician de las actividades y esfuerzos de las organizaciones públicas para construir valor (Cabral et al., 2019;dos Reis y Gomes, 2022). ...
... Otros autores plantean la urgencia de alinear los actores públicos y privados en torno a la creación de valor público, para lo cual es necesario un desarrollo teórico y empírico de este, que permita tener mayor visibilidad en el proceso y facilite su cocreación en un mundo cambiante como el actual (Brugger et al., 2014;Cabral et al., 2019;dos Reis y Gomes, 2022). Esto posibilitará un ambiente donde la negociación y los acuerdos en torno al valor público sean propicios, a través de la diferenciación e incorporación de la diversidad de los stakeholders en la creación de valor público en nuevos ambientes de colaboración que en la actualidad han sido poco explorados o no tienen un marco teórico tan sólido (Cabral et al., 2019;dos Reis y Gomes, 2022). ...
La creación de valor tiene especial atención en la gestión pública e incorpora el punto de vista de los stakeholders en su creación y entrega. No obstante, estudios precedentes concluyen que no hay suficiente evidencia teórica y empírica sobre el tema y los vacíos permanecen. Por esto, se desarrolló la investigación bajo la metodología de revisión sistemática de literatura, sintetizando los hallazgos de la creación de valor público desde la perspectiva de los stakeholders. Para ello, se empleó la declaración PRISMA, con una búsqueda de literatura del periodo 2012- 2022 en las bases de datos Web of Science (WoS), ProQuest y Scopus. Después de filtrar 40 artículos, 14 de estos se ajustaron al propósito de la investigación y sobre estos se realizó un análisis de contenido utilizando el software NVIVO. En los resultados se destaca la diversidad de los componentes de la creación de valor público, pero los hallazgos coinciden en la manera colaborativa como las organizaciones públicas construyen valor con sus stakeholders. Las limitaciones del estudio se refieren al tipo de documentos empleados y a las bases de datos utilizadas que no permiten realizar análisis más profundos. Por último, para futuras investigaciones se recomienda explorar la creación de valor público y sus componentes de una manera global, reconociendo que es un aspecto que trasciende la esfera pública.
Public–private partnership (PPP) is now focused on project value creation, with trust playing a crucial role. This study models trust evolution among stakeholders using evolutionary game theory and simulations, revealing that higher initial and sustained trust boosts project value. However, overreliance on trust can lead to deregulation and neglect of contracts, harming outcomes. Spillover effects and speculative behavior also threaten value creation. The study identifies an optimal incentive range for reputation gains, highlighting the need for balanced trust mechanisms, effective incentives, and penalties to ensure collaboration and project success.
Why does government use Public–Private Partnerships (PPPs)? Besides their economic values, we argue PPPs are used for political reasons. Employing a political agency framework, we explain how politicians use PPPs to appear competent and extract rents, and under what conditions these political potentials are attractive and accessible to politicians. By analysing U.S. state-level data, we reveal some political and fiscal variables that are associated with PPP initiations and uncover state PPP legal framework diminishes the associations. By echoing literature on public administration, political economy and state politics, our research responds to the call to study the political natures of PPPs.
Performance audits help to evaluate the performance of the audited public sector entities and, if the recommendations are implemented, contribute to their improvement. In light of the fact that the public sector is primarily concerned with the creation of value for society and for consumers of public services, it is essential that the impact of performance audits is determined with a specific focus on the creation of public value. Although the theory that Supreme Audit Institutions contribute to the creation of public value through their performance audit reports is beginning to emerge in the academic community, no criteria have yet been proposed to determine the impact of performance audits on the creation of public value. The objective of the study is to propose a framework for evaluating the creation of public value that is grounded in empirical evidence and incorporates a range of criteria for measuring the impact of performance audits on public value. In order to ascertain whether the objectives set out in the recommendations contained in the performance audit reports could be linked to the elements of a public value creation evaluation framework identified in the academic literature, a content analysis of the recommendations in the performance audit reports was conducted. A comprehensive analysis was conducted of all 114 reports published by the Lithuanian Supreme Audit Institution over the period from 2015 to 2022. The content analysis identified the segments of the content of the recommendations of the performance audit reports that are linked to the creation of public value. The aforementioned segments have been assigned detailed codes, which have been aggregated into a coding system. They provide a framework for the evaluation of public value creation, encompassing the four key directions of public value creation: consumers and society; strategy; governance; and supply chain. The criteria identified in each direction serve to reveal the impact of the objectives set out in the recommendations included in the performance audit reports on the creation of public value. Evaluating the impact of performance audit in terms of public value creation is important for managers, policy makers and other decision makers in audited public entities. The proposed framework for evaluating public value creation would help to measure this impact.
Administrative burden is experienced by both individuals and businesses when dealing with government entities. While previous literature suggests administrative burden arises from the deliberate choices of political actors, this study highlights how bureaucratic redundancies also lead to administrative burden. Using a dataset of public‐private partnerships (PPPs) in China, this study explored the influence of bureaucratic redundancy on administrative burden, in particular contractors' compliance costs caused by PPP regulations. The analysis found that bureaucratic redundancy has a positive and curvilinear relationship with compliance costs, which in turn has a positive relationship with the likelihood of PPP contract termination. These results hold even after controlling for political and economic factors. Nevertheless, such effects can be mitigated through government reforms, such as jurisdictional reduction and legislative centralization.
The study investigates how contractual and relational governance influence partner behaviors and promote sustainability performance of infrastructure public‐private partnerships (PPPs). Survey data from 217 Chinese PPP projects were analyzed using partial least squares structural equation modeling. This study found that both contractual and relational governance have positive effects on PPP sustainability, with contractual governance having a stronger impact. Contractual governance complements relational governance in promoting cooperative behavior, but relational governance does not amplify the effect of contractual governance on opportunistic behavior. The findings highlight the role of contracts in curbing opportunism and promoting collaboration via multiple functions of control, coordination, and adaption, while also revealing the limitations of relational approaches in the context of government‐business relationships and performance ambiguity. This study contributes to the PPP governance literature by uncovering the individual and interactive effects of contractual and relational governance on the economic, social, and environmental aspects of PPP sustainability.