Performance Objectives Selection Model in Public-Private Partnership Projects Based on the Perspective of Stakeholders

Abstract

Over the years, public-private partnership (PPP) has been acknowledged by many as an innovative approach to the procurement of public projects. The desire for more efficient and effective PPP projects renders the performance management to be increasingly important, in which the influence of the stakeholders must be considered. To implement complete and effective performance management in PPP projects, 15 performance objective attributes are proposed based on the perspectives of different stakeholders. A structured questionnaire survey was conducted to investigate the relative significance of each attribute in four stakeholder groups. According to the survey results, the objective attributes are all important. Integrating all stakeholders’ benefits and selecting the appropriate qualitative level of performance objective in the process of decision making are two particularly important problems because of stakeholders’ different preferences. To resolve these problems, a fuzzy entropy method and a fuzzy TOPSIS method based on projection distance have been developed to calculate the final decision weights in all stakeholder groups and select appropriate performance objective levels for PPP projects, respectively. The final decision weights are obtained using fuzzy entropy to integrate the experiences and knowledge of all stakeholders. An illustrative case study on the Beijing National Stadium project for the 2008 Olympic Games is used to demonstrate the feasibility and practicability of the proposed model.