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Performance consequences on complexity in Public-private Partnerships: Evidence from Indian Highway Projects
, Kanika Rajput
Published in IJEAS
Volume: 4
Pages: 1 - 10

Public-private partnerships in the highway sector are complex organisational systems. Long term concessions, large size, multiple stake holders, and the changing environment are the source of higher complexity and have performance implications. However, despite the important development impact of PPPs, the link between complexity and performance in this context is not studied. To better understand this link we make a base level of a hypothesis that complexity has performance implications and test the same empirically.

We use a database of highway projects in India, to study the challenges in identifying the performance consequences of increased complexity. We are able to analyse 173 highway PPP projects, restricting ourselves to those which have been successfully constructed (and started commercial operation), and on which reliable data is available. We find complexity, arising from the length of the concession, to be associated with project delays. We also find direct state involvement and project size, both sources of increased complexity, to be positively associated with project cost over runs. Moving further, we review the literature on management of PPPs and identify possible moderators and mediators that could impact this link, paving the way for future research in this direction.

About the journal
JournalInternational Journal of Engineering Applied Sciences and Technology
Open AccessNo