Government-led critical success factors in PPP infrastructure development

Abstract

Purpose – The purpose of this paper is to identify 30 government-led critical success factors (CSFs) from both the meso and micro levels in public-private partnership (PPP) infrastructure development, measured the importance of these factors, and evaluated the government performance within the Indonesian context. Design/methodology/approach – The authors used weighted gap analysis, the Mann-Whitney test, and the Holland and Copenhaver procedure to support the analysis. Findings – The agreement-adjusted mean scores suggest that the identified CSFs are essential, but that these CSFs underperform in Indonesia. The tests indicated that the gap between performance and importance was significant on both the individual and aggregate level, and no respondent-background bias was observed in the data sets. Practical implications – This paper provides valuable information for prospective international investors who might be interested in alternative PPP investment opportunities in Indonesia. Originality/value – This paper enriches the existing body of knowledge on Indonesia’s PPP activities. This is important as, despite the fact that Indonesia offers one of the largest opportunities in Asia for investment in the national infrastructure sector, studies on Indonesia’s PPPs are rarely reported in the literature. This paper also offers a simple, practical, and replicable approach with a sound theoretical basis that can assist governments in identifying and evaluating PPP-specific determinant factors under their control, as well as in measuring their performance on these factors.