PhD Sample Proposal: Risk allocation in public private partnerships: A stakeholder thematic analysis of perception gaps and its impact on project management

Introduction

Recently, public-private partnerships (PPPs) have emerged as a crucial mechanism for delivering infrastructure and public services worldwide. It has played a key role in shaping modern societies, driving economic growth, boosting innovation, and strengthening social welfare systems (Ahmadabadi and Heravi, 2019; Shahbaz et al., 2020). However, the success of PPP projects mainly depends on effective risk allocation among stakeholders. Recent studies indicate that up to 40% of PPP projects face significant challenges due to disagreements over risk allocation (World Bank, 2023).

Regardless of extensive research in this field, there remains a significant gap in understanding how different stakeholders perceive and interpret risks. These gaps have led to potential misalignments in risk allocation strategies. Understanding these perception gaps is crucial for developing more effective risk management frameworks and improving PPP project outcomes. To address these issues, the current research proposal aims to investigate the perception gaps in risk allocation among key PPP stakeholders and analyze their impact on project management outcomes.

Research aims and objectives

While there are several studies conducted on PPP applications, there is limited evidence on risk allocation in PPPs. As the practice of PPP continues to evolve in both developed and developing countries, understanding the perspectives of different stakeholders involved in PPP can be helpful in providing more efficient and improved services (Wang, 2015). By conducting a thematic analysis, the proposed research will not only help in identifying the perception gaps in project management but also contribute to creating a suitable framework for the implementation of PPPs in new regions (Malek and Shah, 2023). Thus, the primary aim of this research is to investigate how differences in risk perception among PPP stakeholders affect risk allocation strategies and project management outcomes. To achieve this aim, the following objectives will be explored during the course of this research:

• Identifying and analyzing the perception gaps in risk assessment among key PPP stakeholders.
• Developing a thematic framework for understanding the underlying factors influencing these perception gaps.
• Examining the relationship between perception gaps and project management outcomes.
• Proposing evidence-based recommendations for improving risk allocation strategies in PPP projects

The research will also take into consideration the different complexities involved in PPPs. These include regulatory considerations, political and institutional support, local markets and financial framework, transparency, and interest in the implementation of PPPs. A thematic analysis will help in addressing the various PPP practices followed in different countries across the world (Marques and Silvestre, 2017). Moreover, with this thematic analysis, the researchers will be able to propose a holistic framework that will address the key factors contributing to perception gaps in risk assessment among stakeholders. Additionally, it will give an insight into the relationship between stakeholder alignment in risk perception and project success.

Literature review

PPP can be defined as an agreement between the public and private sectors where both sectors undertake joint services to meet the objectives of a service delivery (Batra, 2021). These objectives are often aligned with the profit-oriented objectives of the private sector and involve multiple stakeholders. The concept of risk allocation in PPPs has evolved significantly since its inception in the 1990s. Hardcastle and Boothroyd (2003) stated that in PPP, a risk occurs when either the outcome or consequence of an activity is not certain. The presence of risk in a project can affect the achievement of its objectives and must be managed effectively to achieve project objectives. The study identified major risk factors affecting PPP. These include financial risks, systematic or market risks, non-systematic or specific risks, credit risks, counterparty risks, operational risks, and legal risks. The study also proposed the need for a multidisciplinary dimension for risk management and highlighted the importance of stakeholder involvement in discussing risk allocation and management. Early research by Almarri and Abuhijleh (2017) established the fundamental principle that risks should be allocated to the party best able to manage them. However, recent studies suggest that implementing risks using this principle can be complicated for the stakeholders involved in a PPP. This is because every stakeholder has different perceptions of risk management capabilities and responsibilities (Najeeb, 2024).

Furthermore, Niazi and Painting (2018) highlighted the different risk factors included in PPP that are spread across political, economic, social, and technical dimensions. In another study, Ke et al. (2010) examined the different risk allocation mechanisms employed in PPP projects globally. The study observed that although stakeholders consider the standard risk allocation factors, they fail to take into account specific factors affecting PPPs and stakeholder perspectives. Similar observations were made by Batra (2021) in the study that highlighted the key structural, contextual, environmental, financial, and execution issues faced in PPP involved in the housing market. While the study summarized that these issues need to be dealt with at the policy, governance, and industry levels, it lacked systematic planning and intervention. These existing studies provide valuable insights into risk allocation frameworks and mechanisms in PPPs across different sectors.

On the other hand, Jiang et al. (2009) highlighted the relationship between perception gaps between stakeholders and performance risks in project management. The study showed that stakeholder perception gaps can lead to multiple uncertainties, and thus identification of corresponding coping mechanisms is important to reduce the performance risk. In another study, Park et al. (2020) stated that three main factors impact risk perception in PPP. These include time-dependent risks, financial risks, and construction risks. The study also emphasized the importance of effective communication between stakeholders to mitigate the effects of these risks and build strategies that sustain project development in PPP. However, there is limited understanding of how perception gaps among stakeholders influence risk allocation decisions and project outcomes. By conducting a thematic analysis of stakeholder perspectives on risk allocation, this research aims to address this gap in the existing literature.

Methodology

Due to the exploratory nature of this research, it will implement a mixed-methods approach to get a comprehensive understanding of the research problem. The research will not only examine the nature of PPPs but also explore the perception gaps in risk assessment among key PPP stakeholders. This research aims to use both qualitative and quantitative data from existing literature, case studies, expert interviews, and questionnaires. Thematic analysis has been selected as a research method in this study. This method is useful for identifying, analyzing, organizing, describing, and reporting themes from existing data (Nowell et al., 2017) in an accurate manner. As PPPs involve a diverse range of perceptions of various stakeholders involved, this method can help in identifying similarities and differences between the data collected. This method is ideal for identifying patterns and drawing meaningful conclusions from the available data. Although it focuses on theme and pattern identification, this method suits the purpose of this research as it is ideally used for interpreting social phenomena related to the data and the study’s research question (Neuendorf, 2018).

The research will begin with a detailed investigation to get a better understanding of stakeholder risk perceptions and the factors influencing perception gaps. With the help of semi-structured interviews, the research will understand the different perspectives of key PPP stakeholders. These interviews will also help in knowing about their experiences and decision-making processes related to risk allocation. The qualitative data collected through semi-structured interviews will be analyzed using thematic analysis techniques. This will help in the identification of emerging themes, patterns, and relationships. The research also aims to explore underlying drivers of perception gaps in project management that include cultural differences, organizational biases, and information asymmetries.

Furthermore, a quantitative survey will be circulated among a larger sample of PPP stakeholders from different sectors and geographical locations. The data collected through this survey will be categorized into different themes and analyzed using a structural equation modelling technique. With the help of these surveys, the research also aims to examine the different perceptions involved in risk allocation, such as expected and actual project management outcomes, cost overruns, schedule delays, and stakeholder satisfaction. Finally, the research will compare and validate the findings obtained from quantitative research with existing case studies and empirical research. This will help in refining the research outcome and identifying common themes that lead to perception gaps in PPPs.

Data Collection

To identify perception gaps through qualitative data, different academic papers focusing on risk allocation in PPPs will be collected and analyzed using the grounded theory approach. This approach will help in continual data collection and analysis through different coding stages. These stages will be developed based on themes identified through stakeholder interviews. The grounded theory approach will also help in the identification of gaps in the existing data and the emergence of new themes (Urquhart and Fernández, 2013).

Furthermore, quantitative data analysis of large samples will be done using a questionnaire survey. Using a Likert five-point scale, the respondents will be asked to rate different components of risk allocation involved in project management. The study aims to target these questionnaires to more than 200 stakeholders involved in PPPs across different demographics. To conduct a thematic analysis of the collected data, the study will use NVivo software. With NVivo being a widely used software for qualitative researchers, it will help in managing data and classifying it based on different themes identified during the research. In addition to this, a structural equation modelling approach will be used to examine the relationships between perception gaps and project management outcomes. Finally, through regression analysis, the study will quantify the impact of perception alignment on project success.

Research contributions

The proposed research is expected to make several significant contributions to both the theoretical and practical understanding of risk allocation in PPPs. The research will provide a comprehensive understanding of risk perception gaps among key stakeholders. It will also play a crucial role in the development of a holistic framework for understanding the factors that influence risk allocation decisions in PPP projects. Using the stakeholder theory as the groundwork for this research, the study will explore how different stakeholders perceive and prioritize various risks. This will further give an idea about the behavioural and psychological aspects of stakeholder management. By identifying similarities and differences in the perceptions of stakeholders, the research holds the potential to create an effective framework for enhancing risk management in PPP projects.

In addition to the theoretical contributions, this research also holds the potential to provide evidence-based recommendations for improving risk allocation strategies in PPP projects. Based on the themes identified during research, it can create a framework to identify misalignments in risk perceptions. By identifying these themes early in the project lifecycle, stakeholders can create and implement strategies for targeted interventions. This can further help in better risk allocation and improve the success of PPP projects to a great extent.

However, the proposed research also has certain limitations. While PPPs are common in both developed and developing countries, the success rate of these projects significantly depends on the involvement of stakeholders and support from the government. This means within a similar geography, a PPP may yield the desired outcome, whereas the other may not produce satisfactory results. Thus, to get an in-depth understanding, it is important to cover a larger geographical area. This will prove to be useful for cross-cultural comparisons and assist researchers in developing more globally applicable frameworks. Similarly, the cross-sectional nature of the data collection may limit the ability to capture the long-term, dynamic effects of perception gaps on project outcomes. Thus, longitudinal studies are important in tracking the changes in stakeholder perceptions over the project lifecycle. Furthermore, restrictions in accessing confidential documents or the unwillingness of certain stakeholders to share their perspectives may introduce biases in the data collection. Thus, future research is required to explore alternative data sources and overcome the limitations of the proposed research.

Conclusion

The above research proposal aims to conduct a comprehensive study of risk perception gaps in PPP projects and their impact on project management outcomes. By using a combination of qualitative and quantitative data, the research aims to identify different themes and patterns in risk allocation and perception gaps of stakeholders involved in project management. Through thematic data analysis, the research aims to provide both theoretical insights and practical recommendations for improving risk allocation in PPP projects. The results obtained from this research can be further used to enhance stakeholder alignment, reduce the complexities of risk allocation, and improve the project success of different PPPs.

References

Ahmadabadi, A. A., & Heravi, G. (2019). The effect of critical success factors on project success in Public-Private Partnership projects: A case study of highway projects in Iran. Transport policy, 73, 152-161, https://doi.org/10.1016/j.tranpol.2018.07.004

Almarri, K., & Abuhijleh, B. (2017). A qualitative study for developing a framework for implementing public–private partnerships in developing countries. Journal of Facilities Management, 15(2), 170-189, http://dx.doi.org/10.1108/JFM-07-2016-0031

Batra, R. (2021). A thematic analysis to identify barriers, gaps, and challenges for the implementation of public-private-partnerships in housing. Habitat International, 118, 102454, https://doi.org/10.1016/j.habitatint.2021.102454

Hardcastle, C., & Boothroyd, K. (2003). Risks Overview in Public‐Private Partnership. Public‐Private Partnerships: Managing Risks and Opportunities, 31-57, http://dx.doi.org/10.1002/9780470690703.ch2

Jiang, J. J., Klein, G., Wu, S. P., & Liang, T. P. (2009). The relation of requirements uncertainty and stakeholder perception gaps to project management performance. Journal of Systems and Software, 82(5), 801-808. http://dx.doi.org/10.1016/j.jss.2008.11.833

Ke, Y., Wang, S., & Chan, A. P. (2010). Risk allocation in public-private partnership infrastructure projects: Comparative study. Journal of infrastructure systems, 16(4), 343-351. http://dx.doi.org/10.1061/(ASCE)IS.1943-555X.0000030

Malek, M., & Shah, D. (2023). The attraction of public-private partnerships for road construction in India, as affected by both positive and negative factors. Journal of Project Management, 8(3), 165-176, http://dx.doi.org/10.5267/j.jpm.2023.3.002

Marques, R. C., & Silvestre, H. C. (2017). Regulation performance of public–private partnerships in the Portuguese water sector: A thematic analysis. Journal of Strategic Contracting and Negotiation, 3(3), 157-178, http://dx.doi.org/10.1177/2055563618799069

Najeeb, M. (2024). Political uncertainty in public-private partnership projects (PPPs): a flexible risk mitigation framework for Jordan’s challenging landscape, http://hdl.handle.net/10547/626392

Neuendorf, K. A. (2018). Content analysis and thematic analysis. In Advanced research methods for applied psychology, 211-223, London: Routledge, http://dx.doi.org/10.4324/9781315517971-21

Niazi, G. A., & Painting, N. (2018). Critical success factors for public private partnership in the Afghanistan construction industry. In 8th International Conference on Engineering, Project, and Product Management Proceedings, 91-98, Springer International Publishing. http://dx.doi.org/10.1007/978-3-319-74123-9_10

Nowell, L. S., Norris, J. M., White, D. E., & Moules, N. J. (2017). Thematic analysis: Striving to meet the trustworthiness criteria. International journal of qualitative methods, 16(1), 1609406917733847, https://doi.org/10.1177/1609406917733847

Park, C. Y., Jung, W., & Han, S. H. (2020). Risk perception gaps between construction investors and financial investors of international public–private partnership (PPP) projects. Sustainability, 12(21), 9003, https://doi.org/10.3390/su12219003

Shahbaz, M., Raghutla, C., Song, M., Zameer, H., & Jiao, Z. (2020). Public-private partnerships investment in energy as new determinant of CO2 emissions: the role of technological innovations in China. Energy Economics, 86, 104664, https://doi.org/10.1016/j.eneco.2020.104664

Urquhart, C., & Fernández, W. (2013). Using grounded theory method in information systems: The researcher as blank slate and other myths. Journal of Information Technology, 28(3), 224-236, https://doi.org/10.1057/jit.2012.34

Wang, Y. (2015). Evolution of public–private partnership models in American toll road development: Learning based on public institutions’ risk management. International Journal of Project Management, 33(3), 684-696, https://doi.org/10.1016/j.ijproman.2014.10.006

World Bank. (2023). Public-Private Partnerships Reference Guide Version 3.0. World Bank Publications. https://ppp.worldbank.org/public-private-partnership/sites/default/files/2024-08/PPP%20Reference%20Guide%20Version%203.pdf