Critical success factors of the overseas PPP infrastructure project from the perspective of Korea
The Public Private Partnership (PPP) modality is actively utilized around the world as a way to attract private investment instead of government investment that is suffering from financial limitations. However, all PPP projects are not able to guarantee successful results due to the intrinsic characteristics of the PPP project, such as long-term business, the complexity of scope, various stakeholders, and complex contracts. As a result, many efforts have been made to understand what affects a successful PPP project. Moreover, most of the studies identifying factors associated with the successful result of the PPP project have been reviewed in countries other than Korea, so research is needed to verify Critical Success Factors (CSFs) of the PPP project from a Korean perspective.
This study aims to evaluate CSFs for the PPP project from the perspective of Koreans through a questionnaire survey with the respondents who have participated in the PPP project using CSFs identified from the comprehensive literature reviews. A preliminary survey was conducted prior to survey to verify the suitability of questions and derive a valid survey result. The questionnaire was designed to evaluate the importance of individual CFSs from 1 to 7 point Likert scale. Using the collected data, the respondents' demographic information was used for descriptive statistics, and the response results were used to determine the relative ranking for 30 CSFs using IBM SPSS software. Then, reliability test, normality test, and significant test were conducted to determine whether the public and private sectors showed different results in the perception of CSFs.
Overall top five ranked CSFs show mean value ranging from 6.38 to 6.64 are (1) Government willingness, (2) Sufficient profitability of the project to attract, (3) Private sector’s capabilities of fulfilling the contract, (4) Strong and good Private consortium, (5) Available financial and capital market.
From a general perspective, the ranking of CSFs can be recognized as having a similar opinion on CSFs of PPP projects in the public and private sectors based on the result of non- parametric Mann-Whitney test.
Another important fact confirmed through this study is that the results found in this study were different from those conducted on non-Koreans in the past. This fact is consistent with previous studies that various CSFs may affect the success of PPP project to a varying degree or may have different results depending on the research environment.
Despite some limitations of this study, the results of this study are considered to be of great help in deriving more successful results when carrying out overseas PPP projects, and further research is needed to identify more accurate CSFs for PPP projects.
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