Public-Private Partnership Projects and Sustainable Performance : Moderated-Moderation of Environmental Uncertainty, Joint Risk Management and Trust

Abstract

Governments around the world are using Public-Private Partnership (PPP) projects to deliver different services and products in partnership with the Private sector. The sustainable performanceof PPP projects is one of the primary challenges in the project management domain, especially for large infrastructure projects having multiple years duration that exposes them to Environmental Uncertainties affecting overall project success. This study presents a comprehensive framework to achieve Sustainable PPP Project Performance. Initially, Critical Success Factors (CSFs) are identified from extensive literature and then confirm their relevancy and their relationship with Sustainable PPP Project Performance. This study also evaluates the impact of Environmental Uncertainty (EU) as a moderator on the relationship between CSFs and Sustainable PPP Project Performance. Subsequently, Trust and Joint Risk Management (JRM) moderate the moderated impact of EU to achieve Sustainable PPP Project Performance. CSF theory and Agency Theory have been used considering all-encompassing variables including EU, Trust, and JRM as a way forward to deal with agency problems. This study makes an effort to achieve Sustainable PPP Project Performance from the direct relationship of CSFs and the three-way interaction of EU, Trust, and JRM in the paradigm of agency theory. A research methodology is a quantitative approach. An explanatory type of research is used to identify the variables and to determine the link between the proposed conceptual model. Cross-sectional data with a primary method for data collection is used. A questionnaire was used to get the response from the population comprising officials from the Pakistan Public Private Partnership Authority(PPPA), companies undertaking PPP projects, and consultants/ experts involved in the infrastructure PPP projects. Snowball non-probability sampling techniques was used for data collection. A sample size of 394 has been used for data analysis. The analysis provides empirical evidence about the significant correlation between CSFs and Sustainable PPP Project Performance along with the significant moderating impact of the EU on this relationship. Furthermore, it provides evidence of moderated moderation impact of Trust and JRM on the moderated outcome of the EU for the achievement of sustainable PPP Project Performance. The study outcome provides a foundation to formulate a comprehensive framework for Sustainable PPP Project Performance in developing countries as well as the study is valuable to PPPA, companies undertaking PPP projects and consultants working on PPP projects.