Public Private Partnership Article

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Public-private partnership (PPP), partnership between an agency of the government and the private sector in the delivery of goods or services to the public. Areas of public policy in which public-private partnerships (PPPs) have been implemented include a wide range of social services, public transportation, and environmental and waste-disposal services.
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Although PPPs are an ancient phenomenon, they were not studied seriously by scholars until the late 1980s, when they began to be adopted in public administration and management in both developed and developing countries. PPPs have been a topic of political controversy and scholarly debate, especially regarding the advantages and disadvantages of PPPs in comparison with traditional government-run services and the nature of the partnerships they bring about.
public investment: Public-private partnerships
In the 1990s, innovative uses of private finance to fund public goods and services, called public-private...
In its most basic sense, a partnership is any business or institutional association within which joint activity takes place. A PPP exists from the moment one or more public organizations agree to act in concert with one or more private organizations. PPPs embrace public-sector partnerships with both businesses and organizations in civil society, including community organizations, voluntary organizations, and nongovernmental organizations (NGOs).
The partnership involved in a PPP is not equivalent to any simple contractual relation. Although such relations are sometimes labeled “partnerships” by the parties concerned, they do not by themselves constitute a genuine PPP, which implies a triadic relationship between the public authority, the private-sector partner, and members of the public concerned with the service. A PPP is—or should be—a mutually beneficial agreement directed toward serving a social purpose.
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But it is also true that a multiplicity of agreements or contracts, more or less formal in nature and sometimes very informal, may give rise to a genuine partnership. The most-institutionalized forms of partnership may evolve into formalized permanent structures. In practice, PPPs tend to change over time, because it is in the nature of a partnership to develop and to adapt to the special circumstances of its particular field of operation. In the latter regard, political cultures and traditions have considerable impact.
It is possible to distinguish between substitutive and collaborative forms of partnership. Under substitutive partnership, the private partner replaces the public agency more or less completely, as has happened in the French system of outsourcing public services. Under collaborative partnership, typical of German organizations, each private partner has a specific function, which is determined by the particular profession with which the partner is associated.
PPPs have been widely adopted. Indeed, in many developed countries (e.g., the United States, the United Kingdom, France, Italy, and the Netherlands), their use has been mandated through legislation. In France, for example, the PPP concept is of quite long standing, and, since the 1980s, PPPs have been implemented in almost all areas of public policy.
Concerning the international level and developing countries, partnerships between international donors and nongovernmental development organizations (NGDOs) have also increased in scope and significance. The World Bank has sought to cooperate with NGDOs as partners, and several reports and evaluations have called for improvements in World Bank procedures regarding partnerships with NGDOs.
public investment: Public-private partnerships
In the 1990s, innovative uses of private finance to fund public goods and services, called public-private...…
…it is often called a public-private partnership and involves public-sector investment and expertise...…
Social service, any of numerous publicly or privately provided services intended to aid...…
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February 2018
Public Management Review 20(2):293-316
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Public-private partnerships (PPPs) have become popular tools to deliver infrastructure and public services around the world. As an innovative public procurement approach, PPPs have drawn considerable attention from academic circles. In order to enhance our knowledge of PPPs, the authors conducted a systematic literature review of articles published in international journals of the Public Administration (PA) discipline. Four main topics in this discipline are identified by means of social network analysis, including PPP concept, risk sharing amongst PPP participants, the drivers of PPP adoption, and PPP performance. Seven propositions about the four topics are summarized. Directions for future research are also considered.
Evolution of PPP articles over time.
Cumulative citations per author (top 20 authors).
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ISSN: 1471-9037 (Print) 1471-9045 (Online) Journal homepage: http://www.tandfonline.com/loi/rpxm20
Public–private partnership in Public Administration
Huanming Wang, Wei Xiong, Guangdong Wu & Dajian Zhu
To cite this article: Huanming Wang, Wei Xiong, Guangdong Wu & Dajian Zhu (2018)
Public–private partnership in Public�Administration discipline: a literature review, Public
Management Review, 20:2, 293-316, DOI: 10.1080/14719037.2017.1313445
To link to this article: https://doi.org/10.1080/14719037.2017.1313445
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Citing articles: 5 View citing articles
Public–private partnership in Public Administration
Faculty of Humanities and Social Sciences, Dalian University of Technology, Dalian, Liaoning
School of Economics and Management, Tongji University, Shanghai, China;
School of Tourism and Urban Management, Jiangxi University of Finance and Economics,
Public–private partnerships (PPPs) have become popular tools to deliver infrastruc-
ture and public services around the world. As an innovative public procurement
approach, PPPs have drawn considerable attention from academic circles. In order to
enhance our knowledge of PPPs, the authors conducted a systematic literature
review of articles published in international journals of the Public Administration
(PA) discipline. Four main topics in this discipline are identified by means of social
network analysis, including PPP concept, risk sharing amongst PPP participants, the
drivers of PPP adoption, and PPP performance. Seven propositions about the four
topics are summarized. Directions for future research are also considered.
KEYWORDS Public–private partnership; Public Administration discipline; literature review
Public–private partnerships (PPPs), as cooperative institutional arrangements
between public and private sectors, have received considerable attention over the
past 40 years. PPP has been widely used in the fields of infrastructure and public
services, such as transportation, water and sewage, energy, environment protection,
public health, and others. Many countries and regions have been promoting PPP to
overcome the traditional drawbacks of public procurement. The UK, Australia,
Portugal, Spain, and other developed countries have witnessed a steady growth in
the number of PPP projects. Developing countries are also using PPPs to build and
operate their own infrastructures. For instance, until 30 September 2016, China had
witnessed no fewer than 10,471 PPP projects. The total investment in these projects
has amounted to 12.46 trillion Yuan.
At the same time, the literature addressing PPP has also shown impressive growth.
Some authors suggest that the PPP phenomenon has become a new form of govern-
ance (Osborne 2000). Many governments around the world are becoming more and
more dependent on private actors for the implementation of public policies.
However, this means governments need cooperation from various actors (Teisman
and Klijn 2002). In this respect, PPP can be seen as a cooperative institutional
CONTACT Wei Xiong kevinxiong@tongji.edu.cn
© 2017 Informa UK Limited, trading as Taylor & Francis Group
https://doi.org/10.1080/14719037.2017.1313445
arrangement between public and private sector actors (Hodge and Greve 2007). PPP
might very well be able to deal with the complex policies, projects, and public service
issues to be faced. This is because PPP involves joint development and risk sharing
between the partners, which are areas the traditional procurement processes failed to
address. This finding implies that the PPP phenomenon has transformed into a type
of governance scheme or mechanism, rather than just being some sort of language
game. However, it is not an easy task to convert a theory or idea into actions. For
instance, some research has found that many actors are far too preoccupied with their
own procedures and internal issues to be able to act as effective partners (Klijn and
Thus, the PPP phenomenon has attracted considerable attention from many
scholars and many areas of interest, including disciplines ranging from Economics
to Management Science and Public Administration (PA) (Spielman, Hartwich, and
Grebmer 2010). The approach to the study of PPPs, particularly when it comes to the
disciplines of Economics and Management Science, is from the perspective of PPP
being a kind of micro-level partnership. Researchers from these two fields focus on
how to design, tender, operate, and maintain PPP projects. For instance, a great deal
of the work conducted by economists on PPP has been concerned with the optimality
of the bundling of the various tasks (e.g. design, tender, and operations) rather than
on how each task can be completed by a single partner (Ross and Yan 2015). Some
authors used the papers in the construction journals to show the PPP research topics
and trend (Ke et al. 2009). However, we have not yet been able to find any articles
which discuss the PPP research process from the PA perspective. In this article, we
are trying to fill this gap and understand how scholars from the PA perspective look
at PPP. This study addresses the following questions:
(1) What are the prevailing themes of PPP in the PA discipline journals?
(2) What are the main contributions of those themes by combining a subjective
To answer those questions, this study conducts a systematic literature review
(SLR) about PPP in the PA discipline. The main results show that, although PPP
has become a popular approach to supply infrastructure and public services, there is
no general agreement on their definition, risk management, drivers of adoption of
PPP, and performance evaluation. This study offers seven propositions concerning
those issues. Besides, the results are useful for both PPP researchers and policymakers
to identify the key issues and tendency.
An SLR method differs from traditional narrative methods, because the former has a
more explicit selection process for articles (Torchia, Calabro, and Morner 2015). All
previously published journal articles in the discipline of PA are identified via the ISI
Web of Science Database. This database contains all such articles from all past years,
prior to 31 December 2016. Taking the whole sample study could reduce the bias that
would be generated from selecting only small samples, thus making our study more
reliable and transparent (Ferrer, Thome, and Scavarda forthcoming). Five steps were
required to conduct the SLR (see Figure 1), as follows:
Step 1: Planning and formulating the problem. The authors discussed the research
questions and understood the main themes of PPP in the PA discipline.
Step 2: Searching the literature. Using ISI Web of Science, we expanded the
research period from the earliest available date up to 30 December 2016. The
search settings in the database were: Title = Public-Private Partnership or PPP
or Private Finance Initiatives or Build Operate Transfer or BOT or Design Build
Finance Maintain or DBFM or Transfer Operate Transfer or Build Operate
Own Transfer. Time span = all years. Discipline = public administration or
political science. Types = articles. This research yielded 186 articles.
Step 3: Data gathering and quality evaluating. After selecting the articles, we
made some basic statistic issues like the years of publication, countries of
analysis, journal titles, citations per author, and main theories used to study
PPP. Then, we selected the keywords and used social network to display the
Step 4: Data analysis and interpretation. We read the entirety of the selected
articles, including the aims of the research, framework, method, results, and
Figure 1. Summary of the systematic review process.
conclusions. This step used an inductive approach to qualitative content analy-
sis complemented with a quantitative visualization co-word analysis.
Step 5: Presenting the results and addressing the future research direction.
This section presents the results of our SLR, including the years of publication,
countries of analysis, journal titles, citations per author, and the main research
theories and topics of those articles.
As shown in Figure 2, current trend shows that the number of articles relating to PPP
is steadily increasing. The articles have been indexed by ISI Web of Science since
1983, and the research peak (relating to PPP) appeared in 2016. We can claim that, in
recent years, PPP has been a popular topic in the PA discipline.
The countries selected for analysis are scattered all over the world. For the purposes
of this study, we only selected countries that were analysed at least by two PPP-
related articles. In Figure 3, we see that the majority of PPP articles focus on the UK.
This finding is not surprising because the UK was the first country to adopt Private
Finance Initiatives (PFIs). Moreover, most of the countries or regions we researched
are developed economies. This undoubtedly happened because the developed coun-
tries have mature systems of government regulation, as well as normalization market
rules. Those regulatory systems and market rules are crucial preconditions for any
PPP. In addition, those developed countries have all made a clear policy choice in
favour of using PPP. Some developing countries, such as China and India, have also
Figure 2. Evolution of PPP articles over time.
adopted PPP. Since 2014, China’s central government has been promoting the use of
PPP for the provision of necessary infrastructure.
All the analysed articles were published in PA- or Political Science-type journals (in
English). These articles were indexed by ISI Web of Science. The 186 articles which
we obtained were published in 56 different journals. Table 1 shows the journals that
have published at least two PPP articles in the past. The journal with the highest
1 Public Money & Management 25 13.441
2 Public Performance & Management Review 14 7.527
3 Public Management Review 11 5.914
4 Local Government Studies 10 5.376
5 Public Administration Review 9 4.839
7 Canadian Public Administration 8 4.301
8 International Review of Administrative Sciences 8 4.301
9 Environment and Planning C: Government and Policy 8 4.301
10 Public Administration and Development 7 3.763
11 Australian Journal of Public Administration 5 2.688
12 Lex Local-Journal of Local Self-Government 5 2.688
14 International Public Management Journal 4 2.151
16 Journal of Comparative Policy Analysis 3 1.613
17 Transylvanian Review of Administrative Sciences 3 1.613
18 Administration & Society 2 1.075
21 Studies in American Political Development 2 1.075
22 Social Policy Administration 2 1.075
Only journals that published at least two papers about PPP were selected.
quantity of publications is ‘Public Money & Management,’which has published
twenty-five papers relating to PPPs.
Figure 4 shows the cumulative citations per author. The cumulative citations per
author statistics could indicate the authors’academic impact in the PPP field. On the
one hand, we found that Klijn (a professor at Erasmus University Rotterdam)
published the most papers in the PA- or Political Science-type journals. On the
other hand, we found that Hodge, a professor at Monash University, has published
three PPP-related papers, and his number of cumulative citations (262) is the highest.
Greve (a professor at Copenhagen Business School and coauthor with Hodge) also
has a high number of citations. In addition, Klijn, Koppenjan, Teisman, and
Edelenbos (all four of whom are professors at Erasmus University Rotterdam),
Bovaird (a professor at the University of Birmingham), Bloomfield (vice president
of the Clarus Group) and others also have high a cumulatively high number of
citations. Moreover, indications are that cooperation between authors significantly
increases both their academic output and impact. For example, Hodge and Greve,
and Klijn and Teisman cooperated with each other to publish several papers, and all
these academics’papers have a high number of citations.
Figure 4. Cumulative citations per author (top 20 authors).
Main theories used to study PPP in the journals of PA discipline
Figure 5 shows the main theories to study PPP in the journals of PA discipline.
Generally, there are three types of knowledge background to develop theoretical
models to discuss about PPP. Firstly, the PPP is analysed in an economics back-
ground. For instance, transaction costs theory concerns the optimal governance
structure of transactions. Property rights theory deals with the incompleteness of
PPP contracts. Principal–agent theory concerns the incentive problems caused by
information asymmetry between public and private parties. Secondly, the PPP is
analysed in a public management and policy background. For instance, network and
governance theories are used to study the cooperation between public and private
sectors. Public choice theory and New Public Management concern competition
mechanisms for the provision of infrastructure and public service. Thirdly, the PPP
is analysed in an organizational management background. For instance, stakeholder
theory concerns PPP needs to balance the benefits of stakeholders. Institutional
theory takes the PPP as an institution, and they argue that gaining inst
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