IPD-inspired framework for measuring stakeholder integration in public-private partnerships

Abstract

Purpose

In a public-private partnership (PPP), the private sector is represented by a company termed the special purpose vehicle (SPV), which combines different stakeholders including designers, contractors and service providers under one umbrella. Correct SPV team selection is critical to ensure PPP success as the SPV must act as an integrated entity. In fact, unless the SPV takes an active role in developing trust and promoting integration principles, segmentation of interests, highly adversarial atmospheres, loss of value and economic inefficiency will prevail. Absence of awareness of such principles among stakeholders and the scarcity of literature investigating SPV stakeholder integration create great risks that jeopardize project success. Accordingly, to mitigate the aforementioned risks and provide stakeholders with both the knowledge and the tools to instigate and maintain integration, this paper aims to develop and test a framework to measure SPV stakeholder integration, inspired by the correlation between integrated project delivery (IPD) and SPV operations.

Design/methodology/approach

Following a design science research approach, a structured review is conducted to develop the SPV integration metrics and framework. The framework is then validated through face validation by a panel of industry and academic experts to assess its applicability in measuring SPV integration. Finally, the framework is tested on a well-recognized international PPP project to measure the SPV integration level, and the outcomes are discussed and analyzed.

Findings

The framework was able to assess the integration level of the studied SPV highlighting several areas of low-integration settings and providing guidance for achieving better integration.

Originality/value

This research is the first that develops a model to investigate the SPV’s integration level, from a holistic IPD perspective, to enable successful relationship management and enhance collaboration success. This study inspires practical recommendations for PPP practitioners to reduce the risks of segregated SPVs and their contribution to PPP failure.

Citation

Malaeb, Z. and Hamzeh, F.R. (2021), "IPD-inspired framework for measuring stakeholder integration in public-private partnerships", Construction Innovation, Vol. 22 No. 1, pp. 160-184. https://doi.org/10.1108/CI-07-2020-0123