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http://dx.doi.org/10.12652/Ksce.2015.35.2.0471

Performance Prediction Model for Public-Private Partnership Projects Considering Stakeholders' Profitability  

Yeo, Dong Hoon (Hyundai Engineering & Construction Co., Ltd.)
Yu, Giwon (Yonsei University)
Lee, Kang-Wook (Yonsei University)
Han, Seung-Heon (Yonsei University)
Publication Information
KSCE Journal of Civil and Environmental Engineering Research / v.35, no.2, 2015 , pp. 471-480 More about this Journal
Abstract
The market of public-private partnership (PPP) projects has reduced from 9.4 trillion won in 2007 to 4.5 trillion won in 2012. However, the need of PPP projects is brought up by a massive down scale of government financial business. Previous studies regarding PPP projects mostly evaluate profitability from the financial perspective or analyze risk factors as a whole. Although PPP projects generally have complex structure involving diverse stakeholders, such as contractor, financial investor, and special purpose company (SPC) operators, existing studies have rarely considered the different viewpoints of PPP project stakeholders. Therefore, purpose of this study is to develop a structural equation model (SEM) considering the diverse stakeholders of PPP projects. To this end, the authors first reviewed the organizational structure of PPP projects. Next, the identification of the factors affecting project profitability are done via comprehensive literature reviews. After that, we conducted in-depth interviews and questionnaire surveys to reflect stakeholders' perspectives (contractors, financial investors, and SPC operators). As a result, a SEM model is developed to analyze direct and indirect effect on the PPP project performances. Finally, using the analysis results, relevant implications and directions for improvements are discussed. The prediction of the business performance of contractor, financial investor, and SPC operator is expect to be possible through the model developed and supports the strategy deduction that is appropriate for the participants.
Keywords
Public-private partnership projects; Profitability; Structural equation model; Performance prediction;
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Times Cited By KSCI : 6  (Citation Analysis)
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