Abstract
This paper addresses the problem of performance management of operate-transfer (OT) project finance for public sports and leisure centers (SLC) from the perspective of local government. This study contributes to use an evolutionary theory of competitive advantage and mixed-methods, including a modified Delphi method to develop the efficiency-based performance model (EPM) under OT project finance for the public SLCs. The total-factor framework disaggregating the efficiency into an innovative output surplus target ratio (OSTR) provides local governments with a contracted period to manage the SLCs through further specific improvement advice. This study further proposed the four-quadrant matrix formulated by long-term efficiency and short-term profitability to identify the benchmark and improvement directions. The empirical results indicated that there are fifteen SLCs located in the benchmark quadrant. This study provides policy makers in the local governments with a scientific reference to keep or drop the current operating private enterprise in the next concession period. The most underperforming SLCs could follow this proposed quadrant analysis and OSTR index, utilizing their internal resources to develop more attractive and reasonable-price exercise courses for participant growth.
Highlights
Most studies focus on the efficiency improvement of local services through reducing local public expenditure shared by many local governments around the world
The main objective for the private investors of an OT project is profit or revenue, whereas the main goal for the local government is whether the operation of the OT project will give a positive social welfare to the society
These descriptive statistics imply that traditional methods are unable to evaluate the operating performances among these sports and leisure centers (SLC) due to huge operating size differences
Summary
Most studies focus on the efficiency improvement of local services through reducing local public expenditure shared by many local governments around the world. Taylor, and Shibli [6] indicated that the local government provided public sports facilities, including swimming pools and leisure centers, at subsidized prices in the UK. Taiwan’s civil sports and leisure centers (SLCs) were built using central or local government funding and were operated and transferred (OT) to private firms within the contracted years in order to spur their operating performance and generate revenue for the local authority. This is in contrast to the SLCs subsidized by local governments in the UK. There is a paucity of research to propose a new framework on a multi-factor performance assessment for the public sports and leisure facilities using OT project finance
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