Value through innovation in long‐term service delivery

Abstract

PurposePublic‐private partnerships (PPPs) and other innovative procurement mechanisms are frequently used to deliver both an asset and a public service over a protracted period. The value streams to the parties involved can be complex, but generally arise from the satisfactory provision of infrastructure that is fit for purpose throughout its life. This research aims to investigate the effectiveness of the facility management (FM) function in delivering long‐term value to both the client and consortium.Design/methodology/approachThis paper describes a case study of a PPP in Australia that delivered social infrastructure in multiple locations to a state government. Drawing upon multiple perspectives from within the consortium, it utilises inductive principles to identify the influences on value generation through innovation by the FM function.FindingsThe ability of an Australian FM contractor to provide value within a PPP context has been shown to reflect some of the attributes described in literature. However, the extent of innovation, especially in the design and construction phases, has been limited by organisational history and capability, and relational and contextual issues.Originality/valueThis research highlights a flaw in the rhetoric relating to PPP delivery, namely the disconnection between the asset delivery and service delivery phases, which stifles the consortium's capacity to innovate and maximise value. It reveals a set of influences that both resonate with the literature and plausibly explain the suboptimal performance of the FM function within an Australian PPP. By using highly iterative analysis leading to within‐case generalisability, it provides a robust basis for wider investigation of the problem.