The Governance of Public-Private Ties Model: How to Govern the PPPs Infrastructure Project Effectively (An Indonesia Case)

DOI

10.2991/icbmr-17.2017.32How to use a DOI?

Keywords

Collaborative governance; Cross-sector collaboration; Public-private partnerships; Public-private ties; Value Creation

Abstract

Even though the Public-Private Partnerships model in public infrastructure provision has proliferated in the last decade, its effectiveness with respect to the addressed problems has remained very challenging. The purpose of this study is to explore how the public-private ties model strategically managed in creating value to involved parties as well as to other stakeholders. This empirical study consolidated the value creation theories in strategic management and theories of governance in new public management discourse. It utilized an original primary dataset collected by a survey of 132 involved companies in Indonesia infrastructure development. There are at least two significant findings. First, the public infrastructure provision is beyond physical development activities. It is an economic and public value creation process. Second, the dynamic capability exploration must be executed in a way of democratic accountability, having strong stakeholders' procedural legitimacy, and public participation enforcement. The value creation needs a collaborative governance in accordance that the model is vulnerable due to endemic conflict and tensions. This research leaves out two side effect of governance. Other than as a value creation component, the governance also can perform as a value destruction of the public-private ties model. These findings have important theoretical and managerial implication for public policy to encourage private willingness participating in infrastructure development.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Krist Ade Sudiyono
AU  - Tirta Mursitama
AU  - Boto Simatupang
AU  - Mohammad Hamsal
PY  - 2017/11
DA  - 2017/11
TI  - The Governance of Public-Private Ties Model: How to Govern the PPPs Infrastructure Project Effectively (An Indonesia Case)
BT  - Proceedings of the International Conference on Business and Management Research (ICBMR 2017)
PB  - Atlantis Press
SP  - 347
EP  - 357
SN  - 2352-5428
UR  - https://doi.org/10.2991/icbmr-17.2017.32
DO  - 10.2991/icbmr-17.2017.32
ID  - Sudiyono2017/11
ER  -