Public-Private Partnerships

A Review of Theory and Practice of Performance Measurement

Henry Liu, Peter Love, Jim Smith, Michael Regan, Monty Sutrisna

Research output: Contribution to journalReview article

34 Citations (Scopus)

Abstract

Purpose
This paper reviews the normative literature of performance measurement within the context of Public-Private Partnerships (PPPs). The purpose of this paper is to examine the effectiveness of current ex post evaluations of PPPs and identify a feasible direction to comprehensively and effectively measure the performance of PPP infrastructure projects.

Design/methodology/approach
An in-depth literature review is conducted in this paper. The focus of the review is associated with the general performance measurement and performance measurements of PPPs.

Findings
This paper identifies that conventional ex post evaluation is not robust enough to measure the performance of PPP projects. Based on the characteristics of PPPs, the life-cycle (process-based) evaluation under performance measurement system is a promising approach to comprehensive and effective PPP performance measurement.

Practical implications
The outcomes of this paper can be used as a theoretical base for the development of PPP performance measurement framework.

Originality/value
Performance measurement is essential to business success, whether it is at the organisation or project level. Limitations on public funds have encouraged more and more governments across the world to use PPPs to procure economic and social infrastructure projects. Similar to traditional procurement, ex post evaluation is being widely used in PPP projects. However, PPPs are more complicated than other traditional procurement approaches. Exploration of literature suggests that limited research has been undertaken to examine if conventional ex post evaluation is sufficient to measure the performance of PPPs. This paper will bridge this significant knowledge gap.
Original languageEnglish
Pages (from-to)499-512
Number of pages14
JournalInternational Journal of Productivity and Performance Management
Volume63
Issue number4
DOIs
Publication statusPublished - Apr 2014
Externally publishedYes

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