Failure Path Analysis with Respect to Private Sector Partners in Transportation Public-Private Partnerships

Abstract

Innovative public-private partnerships (PPPs) have created potential opportunities for both public and private sector organizations in developing and managing public transportation networks. Through PPPs, public sector agencies are able to overcome budgetary and technical constraints and private sector companies can obtain long-term and sustained business prospects. However, previous studies have noted that despite possessing experience and skills, private sector companies are prone to making serious mistakes that could lead to the failure of a PPP project. Based on extensive case studies, this paper proposes a failure mechanism model that reflects the trails of mistakes made by private sector partners in transportation PPPs. A questionnaire survey was conducted to validate and assess the criticality of the failure drivers in the failure mechanism model and the causal relationships involved. Multiple regression path analysis was then applied to assess the statistical significance and calculate the path coefficients of the causal relationships depicted by the proposed failure mechanism model. This analysis then yielded the path coefficients, which indicate the causal strength of the proposed failure mechanism model along with its statistical significance. Based on the results of multiple regression path analysis, the failure mechanism model was respecified to reflect the validated and statistical significant causal relationships.