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The dramatic plunge in oil prices since the second half of 2014 poses serious challenges for the oil dependent states of Kuwait, Saudi Arabia, and Qatar, and revives their interest in accelerating the implementation of market-based reforms such as outsourcing, privatization, and public-private partnerships. This article challenges the assumption that these reforms offer a panacea for administrative change, and argues that while they might appear to be a solution to the growing fiscal constraints in the three Gulf states, considerable administrative, cultural, economic, and political barriers hinder their effective implementation. The conclusion reached is that western labels of market-based reforms offer limited options for the three states in the absence of strong political will to make fundamental reforms that could alter the state-society relations. It is suggested that further theorization of administrative change is required in cultural contexts, such as the Gulf region, where administration and society are intertwined, and where trying to minimize the role and size of the state, poses a direct threat to the political legitimacy of the ruling elites.

PurposeExisting public–private partnership (PPP) literature that explicitly adopts neo-institutional theory, tends to elucidate the impact of isomorphic pressures and organizational fields and structuration on PPP projects. This paper advances this literature by presenting the institutional work and micro-level dynamics through which actors initiate and implement a new form of project delivery. The authors show how actors enact responses to institutional structuration in the expansion and transformation of an airport from a public entity into a PPP in Saudi Arabia.Design/methodology/approachThe authors use a single case study design that offers an empirically rich and thick description of events such as the dynamic processes, practices and types of institutional work carried out by actors and organizations to deliver the project under investigation.FindingsReligious symbolic work as social integration triggered system integration work, which expanded the power capabilities of individual actors leading the project. Repair work then followed to alleviate the negative effects of disempowering the agency of actors negatively affected by the PPP model and to streamline the project implementation process.Practical implicationsThis research offers several practical implications. For PPPs to operate successfully in contexts similar to the Gulf region, policymakers should provide strong political support and be willing to bear a considerable risk of losses or minimal outcomes during the early phases of experimentation with PPPs. Also, policymakers should not only focus their attention on technical requirements of PPPs but also associate new meanings with the normative and cultural-cognitive elements that are integral to the success of PPP implementation. In order to design strategies for change that are designed to fit the unique cultural and sociopolitical settings of each country, policymakers should empower capable individual actors and provide them with resources and access to power, which will enable them to enforce changes that diverge from institutionalized practices.Social implicationsThis research connected the PPP literature with theoretical frameworks drawn from neo-institutional theory and power. It would be valuable for further research, however, to connect ideas from the PPP literature with other disciplines such as psychology and social entrepreneurship. PPP research examines a recent phenomenon that can potentially be combined with non-traditional streams of research in analyzing projects. Expanding the realm of PPP research beyond traditional theoretical boundaries could potentially yield exciting insights into how the overall institutional and psychological environments surrounding projects affect their initiation and implementation.Originality/valueThe paper contributes new insights regarding the roles of religious symbolic work, allied with social and system integration of power relations in implementing PPP projects. It suggests a theoretical shift from structures and organizational fields – macro- and meso-levels of analysis – to individuals – micro-level – as triggers of new forms of project delivery that break with the status quo.

tackle growing fi scal defi cits, these states are constrained by numerous governance-related, administrative, and regulatory challenges that make PPPs problematic. Effective implementation of the inherently complex and contractual PPP policy requires addressing the existing institutional, economic, bureaucratic, and cultural constraints within these three states. This article concludes with recommendations to mitigate these challenges, that require serious political will and sufficient time to yield positive results, and to attract international investors and contractors to the Gulf region.