Identifying Critical Success Factors of Public Private Partnership Projects in Türkiye

Yıl 2024, Cilt: 28 Sayı: 1, 30 - 50, 29.02.2024

Elif Durna Beliz Özorhon Semih Caglayan

https://doi.org/10.16984/saufenbilder.1334483

Öz

Public private partnerships (PPPs) have become increasingly common as a result of states' shifting roles in infrastructure services from service providers and operators to policymakers and regulators. PPPs have been established as a prominent technique of public service procurement in both developed and developing countries. PPPs give the parties the opportunity to split the costs and risks of providing a public service or building a public infrastructure. Successful project management is crucial, especially in light of PPP projects' size and complexity. This study investigates the critical success factors (CSFs) of PPP investments in developing countries. In this regard, 23 CSFs were selected based on a thorough literature review, and a questionnaire survey was run to examine the impact of those factors on PPP performance. The information is gathered from 82 different companies in Türkiye that represent both the public and private sectors. The statistical analysis results show that favorable legal framework, detailed and clear project identification, and extensive cost-benefit assessment are the most significant drivers of success. Additionally, factor analysis is used on the data to investigate and identify underlying correlations between the factors, as well as to categorize them into fewer, more focused, and more thorough factors. The results of factor analysis suggest five dimensions; namely project finance, project management, operational factors, procurement, and organizational factors. The study's findings are anticipated to benefit both the public sector in its focus on legal concerns to permit better operation and the contractors in its examination of their capacity to manage big projects more effectively.

Anahtar Kelimeler

Public Private Partnerships, Construction Industry, Critical Success Factors, Factor Analysis, Project Management

Kaynakça

• [1] Ministry of Development. “Advances in PPP in Türkiye and in the World”, Republic of Türkiye Ministry of Development Memorandum, Ankara, Türkiye, 2012.
• [2] C. T. Amponsah, “Public-Private Partnerships: Critical Success Factors for Procurements of Capital Projects,” Ph.D. dissertation, Capella University, 2010
• [3] B. Li, A. Akintoye, An Overview of Public-Private Partnership. Public-Private Partnerships: Managing Risks and Opportunities, Blackwell Science Ltd, 2003.
• [4] L. Y. Tang, Q. Shen, E. W. L. Cheng, “A review of studies on Public–Private Partnership projects in the construction industry,” International Journal of Project Management, vol. 28, pp. 683-694, 2010.
• [5] M. C. Jefferies, R. Gameson, S. Rowlinson, “Critical success factors of the BOOT procurement system reflections from the stadium Australia case study,” Engineering Construction and Architectural Management, vol. 9, no 4, pp. 352-361, 2002.
• [6] C. Hardcastle, P. J. Edwards, A. Akintoye, B. Li, “Critical success factors for PPP/PFI projects in the UK construction industry: a factor analysis approach,” Construction Management and Economics, vol. 23, no 5, pp. 459-471, 2005.
• [7] Z. Y. Zhao, J. Zuo, G. Zillante, X. W. Wang, “Critical success factors for BOT electric power projects in China: Thermal power versus wind power,” Journal of Renewable Energy, vol. 35, pp. 1283-1291, 2010.
• [8] X. Meng, Q. Zhao, Q. Shen, “Critical success factors for transfer–operate–transfer urban water supply projects in China,” Journal of Construction Engineering and Management, vol. 27, no 4, pp. 243-251, 2011.
• [9] A. Gupta, M. Gupta, R. Agrawal, “Identification and ranking of critical success factors for BOT projects in India,” Management Research Review, vol. 36, no 11, pp. 1040-1060, 2013.
• [10] D. K. H. Chua, Y. C. Kog, P. K. Loh, “Critical success factors for different project objectives,” Journal of Construction Engineering and Management, vol. 125, no 3, pp. 142-150, 1999.
• [11] R. Morledge, K. Owen, “Critical success factors in PFI projects,” in 14th Annual ARCOM Conference, University of Reading, Association of Researchers in Construction Management, 1998, pp. 565-74.
• [12] European PPP Expertise Centre, “Market update - First half of 2013”, Luxembourg, 2013.
• [13] A.P. Gurgun, A. Touran, “Public-private partnership experience in the international arena: Case of Türkiye,” Journal of Management in Engineering, vol. 30, no 6, pp. 04014029, 2014.
• [14] R. Osei-Kyei, A. P. C. Chan, “Review of studies on the critical success factors for public-private partnership (PPP) projects from 1990 to 2013,” International Journal of Project Management, vol. 33, no 6, pp. 1335-1346, 2015.
• [15] A. M. Algarni, D. Arditi, G. Polat, “Build-operate-transfer in infrastructure projects in the United States,” Journal of Construction Engineering and Management, vol. 133, no 10, pp. 728-735, 2007.
• [16] D. Jamali, “Success and failure mechanisms of public private partnerships (PPPs) in developing countries: Insights from the Lebanese context,” International Journal of Project Management, vol. 17, no 5, pp. 414-430, 2004.
• [17] L. Qiao, S. Q. Wang, R. L. K. Tiong, T. S. Chan, “Framework for critical success factors of BOT projects in China,” The Journal of Project Finance, vol. 7, no 1, pp. 53-61, 2001.
• [18] R. Agrawal, “Successful Delivery of Public-Private Partnerships for Infrastructure Development,” Ph.D. dissertation, Jaypee Institute of Information Technology, Noida, India, 2010.
• [19] S. Ismail, “Critical success factors of public private partnership (PPP) implementation in Malaysia,” Asia-Pacific Journal of Business Administration, vol. 5, no 1, pp. 6-19, 2013.
• [20] H. Alinaitwe, R. Ayesiga, “Success factors for the implementation of public–private partnerships in the construction industry in Uganda,” Journal of Construction in Developing Countries, vol. 18, no 2, pp. 1-14, 2013.
• [21] B. Acikgoz, “Public-Private partnership—the case of Türkiye,” in Public Financial Management Reforms in Türkiye: Progress and Challenges, Singapore, 2020, Volume 1, pp. 105-118.
• [22] O. Okudan, C. Budayan, “Determination of the critical success criteria for public-private partnership (PPP) projects in Türkiye,” Politeknik Dergisi, vol. 24, no 4, pp. 1675-1689, 2020.
• [23] M. Balcilar, G. Uzuner, C. Nwani, F. V. Bekun, “Boosting energy efficiency in Türkiye: The role of public–private partnership investment,” Sustainability, vol. 15, no 3, pp. 2273, 2023.
• [24] M. Top, C. Sungur, “Opinions and evaluations of stakeholders in the implementation of the public‐private partnership (PPP) model in integrated health campuses (city hospitals) in Türkiye,” The International Journal of Health Planning and Management, vol. 34, no 1, pp. e241-e263, 2019.
• [25] H. Oge, T. Bas, “Public–private partnership healthcare projects in Türkiye,” The Journal of Business Science, vol. 4, no 2, pp. 105-119, 2016.
• [26] D. Bulbul, “Evaluation of the public private partnership practices in terms of financial transparency in Türkiye,” The Journal of International Scientific Researches, vol. 2, no 7, pp. 93-108, 2017.
• [27] C. Budayan, O. Okudan, I. Dikmen, “Identification and prioritization of stage-level KPIs for BOT projects–evidence from Türkiye,” International Journal of Managing Projects in Business, vol. 13, no 6, pp. 1311-1337, 2020.
• [28] C. Budayan, “Evaluation of delay causes for BOT projects based on perceptions of different stakeholders in Türkiye,” Journal of Management in Engineering, vol. 35, no 1, pp. 04018057, 2019.
• [29] K. Kuru, D. Artan, “A canvas model for risk assessment and performance estimation in public–private partnerships,” International Journal of Construction Management, vol. 20, no 6, pp. 704-719, 2020.
• [30] R. J. Might, W. A. Fisher, “The role of structural factors in determining project management success,” IEEE Transactions on Engineering Management, vol. 32, no 2, pp. 71-77, 1985.
• [31] H. Kerzner, “In search of excellence in project management,” Journal of Systems Management, vol. 38, no 2, pp. 30-39, 1987.
• [32] D. E. White, J. R. Patton, “Metrics and critical success factors for managing organizations by projects,” IEEE Transactions on Engineer Management, vol. 37, no 4, pp. 252-253, 1990.
• [33] Y. Y. Wong, T. E. Maher, “New key success factors for China’s growing market,” Business Horizons, vol. 30, no 2, pp. 43-52, 1997.
• [34] D. B. Ashley, C. S. Laurie, E. J. Jaselskis, “Determinants of construction project success,” Project Management Journal, vol. 18, no 2, pp. 69-79, 1987.
• [35] J. K. Pinto, J. G. Covin, “Critical factors in project implementation: A comparison of construction and R&D projects,” Technovation, vol. 9, pp. 49-62, 1989.
• [36] D. Dvir, S. Lipovetsky, A. Tishler, A. J. Shenhae, “In search of project classification: A non-universal approach to project success factors,” Research Policy, vol. 27, pp. 915-935, 1998.
• [37] B. C. Ghosh, T. W. Liang, T. T. Meng, B. Chan, “The key success factors, distinction capabilities and strategic thrusts of top SMEs in Singapore,” Journal of Business Research, vol. 51, pp. 209-221, 2001.
• [38] J. K. Pinto, D. P. Slevin, “Critical factors in successful project implementation,” IEEE Transactions on Engineering Management, vol. 34, no 1, pp. 22-27, 1987.
• [39] M. K. Parfitt, V. E. Sanvido, “Checklist of critical success factors for building projects,” Journal of Management in Engineering, vol. 9, no 3, pp. 243-249, 1993.
• [40] P. Galilea, F. Medda, “Does the political and economic context influence the success of a transport project? An analysis of transport public-private partnerships,” Research in Transportation Economics, vol. 30, pp. 102-109, 2010.
• [41] D. K. H. Chua, Y. C. Kog, P. K. Loh, E. J. Jaselskis, “Neural networks for construction project success,” Expert Systems with Applications, vol. 13, no 4, pp. 317-328, 1997.
• [42] H. Kerzner, “In Search of Excellence in Project Management: Successful Practices in High Performance Organizations,” Van Nostrand Reinhold, New York, USA, 1998.
• [43] A. Clarke, “A practical use of key success factors to improve the effectiveness of project management,” International Journal of Project Management, vol. 17, no 3, pp. 139-145, 1999.
• [44] J. Shenhar, D. Dvir, O. Levy, “Mapping the dimensions of project success,” Project Management Journal, vol. 28, no 2, pp. 5-13, 1997.
• [45] D. Dvir, T. Raz, A. J. Shenhar, “An empirical analysis of the relationship between project planning and project success,” International Journal of Project Management, vol. 22, pp. 24-30, 2002.
• [46] R. L. K. Tiong, “CSFs in competitive tendering and negotiation model for BOT projects,” Journal of Construction Engineering and Management, vol. 122, no 3, pp. 205-211, 1996.
• [47] J. Birnie, “Private finance initiative (PFI) – UK construction industry response,” Journal of Construction Procurement, vol. 5, no 1, pp. 5-14, 1999.
• [48] M. J. Brodie, “Public/private joint ventures: The government as partner-bane or benefit?” Real Estate Issues, vol. 20, no 2, pp. 33-39, 1995.
• [49] S. G. Hambros, Public-Private Partnerships for Highways: Experience, Structure, Financing, Applicability and Comparative Assessment, Hambros SG, Canada, 1999.
• [50] G. Zantke, B. Mangels, “Public sector client-private sector project: Transferring the state construction administration into private hand,” Engineering, Construction and Architectural Management, vol. 6, no 1, pp. 78-87, 1999.
• [51] D. C. Murphy, B. N. Baker, D. Fisher, Determinants of Project Success, Boston College School of Management, Boston, 1974.
• [52] N. Baker, D. C. Murphy, D. Fisher, Factors Affecting Project Success: Project management handbook (2nd ed.), John Wiley & Sons, New York, USA, 1988.
• [53] Li, A. Akintoye, P. J. Edwards, C. Hardcastle, “Critical success factors for PPP/PFI projects in the UK construction industry,” Construction Management and Economics, vol. 23, pp. 459-471, 2005.
• [54] S. Lipovetsky, A. Tishler, D. Dvir, A. Shenhar, “The relative importance of defense project success dimensions,” R&D Management, vol. 27, no 2, pp. 97-106, 1997.
• [55] J. K. Pinto, J. P. Prescott, “Variation in critical success factors over the stages in the project life cycle,” Journal of Management, vol. 14, no 1, pp. 5-18, 1988.
• [56] T. Kayworth, D. Leidner, “The global virtual manager: A prescription for success,” European Management Journal, vol. 18, no 2, pp. 183-194, 2000.
• [57] M. A. Tas, E. Cakir, “Green supplier selection using game theory based on fuzzy SWARA,” Sakarya University Journal of Science, vol. 25, no 4, pp. 885-897, 2021.
• [58] S. C. Turan, M. A. Cengiz, “Determining the factors that influence the effectiveness of the health sector in the OECD countries,” Sakarya University Journal of Science, vol. 24, no 5, pp. 1094-1104, 2020.
• [59] J. Jaselskis, D. B. Ashley, “Optimal allocation of project management resources for achieving success,” Journal of Construction Engineering and Management, vol. 117, no 2, pp. 321-340, 1991.
• [60] L. F. Alarcon, D. B. Ashley, “Modeling project performance for decision making,” Journal of Construction Engineering and Management, vol. 122, no 3, pp. 265-273, 1996.
• [61] J. Nahapiet, H. Nahapiet, “A comparison of contractual arrangements for building projects,” Construction Management and Economics, vol. 3, no 3, pp. 217-231, 1985.
• [62] O. Gun, P. Y. Kumru, Z. Aladag, “Developing a model for measuring project performance with software life cycle process metrics and calculating project success score,” Sakarya University Journal of Science, vol. 24, no 3, pp. 536-554, 2020.
• [63] J. C. Nunnally, Psychometric Theory. (2nd ed.), McGraw-Hill, New York, 1978.
• [64] Cheung, A. P. C. Chan, S. Kajewski, “Factors contributing to successful public private partnership projects, comparing Hong Kong with Australia and the United Kingdom,” Journal of Facilities Management, vol. 10, no 1, pp. 45-58, 2012.
• [65] B. G. Hwang, X. Zhao, M. J. S. Gay, “Public private partnership projects in Singapore: Factors, critical risks and preferred risk allocation from the perspective of contractors,” International Journal of Project Management, vol. 31, no 3, pp. 424-433, 2013.
• [66] U. Emek, “Turkish experience with public private partnerships in infrastructure: Opportunities and challenges,” Utilities Policy, vol. 37, pp. 120-129, 2015.
• [67] M. C. Jefferies, “Critical success factors of public private sector partnerships: A case study of the Sydney SuperDome,” Engineering, Construction and Architectural Management, vol. 13, no 5, pp. 451-462, 2006.
• [68] J. Mota, A. C. Moreira, “The importance of non-financial determinants on public-private partnerships in Europe,” International Journal of Project Management, vol. 33, no 7, pp. 1563-1575, 2015.
• [69] C. M. Tam, W. Y. Li, A. P. C. Chan, “BOT applications in the power industry of South East Asia: A case study in China,” in CIB W92 Procurement Systems Symposium, University of Hong Kong, 175, Hong Kong, 1994, pp. 315-322.
• [70] A.A. Abdul-Rashid, S. J. K. Puteri, U. A. Ahmed, J. Mastura, “Public Private Partnerships (PPP) in Housing Development: The Experience of IJM Malaysia in Hyderabad, India,” in World Conference on Accelerating Excellence in the Built Environment, Birmingham, UK, 2006.
• [71] P. Corbett, R. Smith, “An Analysis of the Success of the Private Finance Initiative as the Government's Preferred Procurement Route,” Accelerating Excellence in the Built Environment Conference, Birmingham, UK, 2006.
• [72] M. J. Norusis, SPSS for Windows, Professional Statistics, Release 5, SPSS Inc., Chicago, 1992.
• [73] A.O. Sanni, “Factors determining the success of public private partnership projects in Nigeria,” Construction Economics and Building, vol. 16, no 2, pp. 42-55, 2016.
• [74] K. Dithebe, C. O. Aigbavboa, W. D. Thwala, A. E. Oke, “Factor analysis of critical success factors for water infrastructure projects delivered under public–private partnerships,” Journal of Financial Management of Property and Construction, vol. 24, no 3, pp. 338-357, 2019.
• [75] Bennett, Public Private Co-Operation in the Delivery of Urban Infrastructure Services (water and waste), UNDP/Yale Collaborative Program, United Nations Development Program, New York, 1998.
• [76] Payne, “Key legal issues in projects procured under the private finance initiative,” Engineering, Construction and Architectural Management, vol. 4, no 3, pp. 195-202, 1997.
• [77] J. Rubin, W. E. Seelig, “Experience as a factor in the selection and performance of project managers,” IEEE Transactions on Engineering Management, vol. EM-14, no 3, pp. 131-135, 1967.
• [78] A. Mustafa, “Public-private partnership: An alternative institutional model for implementing the private finance initiative in the provision of transport infrastructure,” Journal of Project Finance, vol. 5, no 2, pp. 64-79, 1999.
• [79] T. Richardson, “Project management pitfalls,” Business Management Review, vol. 25, no 8, pp. 49-51, 1995.
• [80] P. W. G. Morris, G. H. Hough, The Anatomy of Major Projects: A study of the Reality of Project Management, Wiley, Chichester, UK, 1987.
• [81] X. Zhang, S. Chen, “A systematic framework for infrastructure development through public private partnerships,” IATSS Research, vol. 36, no 2, pp. 88-97, 2013.
• [82] D. A. Kolb, A. L. Frohman, “An organization development approach to consulting,” Sloan Management Review, vol. 12, no 1, pp. 51-65, 1970.
• [83] T. Manley, “Have you tried project management?” Public Personnel Management, vol. 12, pp. 180-188, 1975.
• [84] R. L. Schultz, D. P. Slevin, “Behavioral considerations in the implementation of marketing decision models,” in Spring and Fall AMA Conference, Wilmington, Delaware, 1972, pp. 494-498.
• [85] D. R. Beck, Implementing Top Management Plans Through Project Management, Project Management Handbook (eds. D. I. Cleland and W. R. Kings), New York, 1983.