Analysis on the Decision-Making Model of Private Sector Companies in PPP Projects
Successful public-private-partnership (PPP)
implementation can not be achieved without the active participation of
private sector companies. This paper examines the decision-making of
private sector companies in public works delivered by the PPP model
on the basis of social responsibility theory. It proposes that private
sector companies should indentify objectives of entering into PPP
projects, and shoulder relevant social responsibilities, while a
minimum return should also be guaranteed in their favor, so as to
compensate for their assumed risk and support them to take on
responsibilities in the future. The paper also gives a calculation
regarding the appropriate scale and reasonable degree of private sector
involvement in PPP projects through the cost-benefit analysis in a
specific case study, with the purpose to guide the private sector
companies to create a cooperation environment resembling
“symbiosis" and facilitate the smooth implementation of public works
delivered by the PPP model.
[1] Jianqiu Liu, Xianzhong Song, "Social responsibility and the mechanism
of establishing corporate value: a research framework," Accounting
Communications, pp. 127-130, July. 2010.
[2] Shuhao Wang, Zhuofu Wang, "Analysis on problems involved in the
participation of private investors in infrastructure construction projects of
the PPP model," Construction Economics,pp. 65-67,December.2009.
[3] Jianying Liu, Shengjie Li, "Study on the sharing of BOT risks from the
perspective of relevant interest groups,"Modelrn Business and Trade
Industry, pp. 194-195, April. 2010.
[4] Xizhen Gao,Tong Cheng, "Analysis on the decision-making criteria in
public projects," Architecture Economy, pp. 31-33, May.2009.
[5] Junhai Liu, "Social responsibilities of the corporations [M], Beijing: Law
Press, 1999.12-13
[6] Shiyu Liu, "Analysis on the cost and return compensation of companies
taking social responsibilities," Academic journal of Dongbei University of
Finance and Economics, pp. 73-76, June.2009.
[7] Meicun Pan, "Study on the cost and benefit of public products," Academic
journal of Southeast University, pp. 57-61, September.2004.
[8] Michael E. Porter, Mark R. Kramer, "Strategy and Society: Link between
Competitive advantage and corporate social responsibility", Howard
Business Review,November. 2007.
[9] Wei Cheng, Chongqing plans to expand the appliance standard of public
rental housing to people with income below 5000 RMB, Business News.
May.2011.
[1] Jianqiu Liu, Xianzhong Song, "Social responsibility and the mechanism
of establishing corporate value: a research framework," Accounting
Communications, pp. 127-130, July. 2010.
[2] Shuhao Wang, Zhuofu Wang, "Analysis on problems involved in the
participation of private investors in infrastructure construction projects of
the PPP model," Construction Economics,pp. 65-67,December.2009.
[3] Jianying Liu, Shengjie Li, "Study on the sharing of BOT risks from the
perspective of relevant interest groups,"Modelrn Business and Trade
Industry, pp. 194-195, April. 2010.
[4] Xizhen Gao,Tong Cheng, "Analysis on the decision-making criteria in
public projects," Architecture Economy, pp. 31-33, May.2009.
[5] Junhai Liu, "Social responsibilities of the corporations [M], Beijing: Law
Press, 1999.12-13
[6] Shiyu Liu, "Analysis on the cost and return compensation of companies
taking social responsibilities," Academic journal of Dongbei University of
Finance and Economics, pp. 73-76, June.2009.
[7] Meicun Pan, "Study on the cost and benefit of public products," Academic
journal of Southeast University, pp. 57-61, September.2004.
[8] Michael E. Porter, Mark R. Kramer, "Strategy and Society: Link between
Competitive advantage and corporate social responsibility", Howard
Business Review,November. 2007.
[9] Wei Cheng, Chongqing plans to expand the appliance standard of public
rental housing to people with income below 5000 RMB, Business News.
May.2011.
@article{"International Journal of Business, Human and Social Sciences:58141", author = "Xueqin Shan and Chuanming Wu and Wenhua Hou and Xiaosu Ye", title = "Analysis on the Decision-Making Model of Private Sector Companies in PPP Projects", abstract = "Successful public-private-partnership (PPP)
implementation can not be achieved without the active participation of
private sector companies. This paper examines the decision-making of
private sector companies in public works delivered by the PPP model
on the basis of social responsibility theory. It proposes that private
sector companies should indentify objectives of entering into PPP
projects, and shoulder relevant social responsibilities, while a
minimum return should also be guaranteed in their favor, so as to
compensate for their assumed risk and support them to take on
responsibilities in the future. The paper also gives a calculation
regarding the appropriate scale and reasonable degree of private sector
involvement in PPP projects through the cost-benefit analysis in a
specific case study, with the purpose to guide the private sector
companies to create a cooperation environment resembling
“symbiosis" and facilitate the smooth implementation of public works
delivered by the PPP model.", keywords = "Social Responsibility Theory, Cost-benefit Analysis,
PPP Projects, Private Sector Companies, Decision-making Modell", volume = "5", number = "9", pages = "1188-6", }