Abstract
Based on the PPP efficiency system which consists of allocation efficiency, process efficiency, and individual efficiency, we use qualitative comparison analysis of fuzzy sets to study the efficiency advantages of the public-private partnership under the Chinese scenario. The findings are as follows: (1) like public-private partnerships, Chinese-style PPPs have also failed to achieve cooperation. (2) High allocation efficiency can be achieved if competition in bidding processes can be ensured; when bidding procedures cannot be guaranteed to compete, alternatives to high allocation efficiency are either privatized or allocated directly to enterprises that can enable economies of scale; individual effort is a source of allocation efficiency. (3) Competition and economies of scale are necessary conditions for high process efficiency. The private sector’s ownership of assets is a sufficient condition for high process efficiency. (4) High individual efficiency can be achieved if individual efforts can be ensured, and high individual efficiency can also be achieved by the competition of bidding procedures or economies of scale when it is impossible to ensure high levels of individual effort. Privatization is the perfect incentive for high individual efficiency when the competition in the bidding process, individual efforts, and economies of scale cannot be guaranteed.
Highlights
(2) High allocation efficiency can be achieved if competition in bidding processes can be ensured; when bidding procedures cannot be guaranteed to compete, alternatives to high allocation efficiency are either privatized or allocated directly to enterprises that can enable economies of scale; individual effort is a source of allocation efficiency
(4) High individual efficiency can be achieved if individual efforts can be ensured, and high individual efficiency can be achieved by the competition of bidding procedures or economies of scale when it is impossible to ensure high levels of individual effort
E reason for involvement of the private sectors is that they are uniquely determined in the presence of the difference between the efficiency of traditional provision and private partnerships (PPPs) approach. e differences are reflected in the theoretical efficiency advantages and the undoubtedly high transaction costs [14]
Summary
PPP is a procurement model in which the value for money is optimized through efficient allocation of risks, whole life service approach, private sector management skills as well as synergies from interlinking the design, finance, construction, and operations [35]. It can be summarized as a competitive tendering process [29], the binding of different project links [36, 37], private ownership of project assets in a specific period, economies of scale, risk transfer [38,39,40], and cooperation [24, 41]. Each row in the truth table, which is a fundamental tool for the comparative analysis, can be read as a statement about whether the configuration represented in the row is “true” for the corresponding outcome. e third subroutine involves the pairwise comparison of configurations that have the same outcome but differ in one other condition, that is, the truth table minimization process. e last subroutine is to interpret the patterns that result from the truth table minimization so as to understand the efficiency advantage sources of corresponding type efficiency in this study
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
