Effects of Contract Governance on the Relation of Partnership Critical Success Factors and the Performance of Malaysia Public-Private Partnership Initiatives

Abstract

Much research has been carried out to discover partnership critical success factors that influence public-private partnership success. Since most public-private partnership projects are long-term in nature and include contractual arrangements, there is still a lot to learn about contract governance’s role in public-private partnership performance. Therefore, this study examines the effect of contract governance on the relationship between partnership critical success factors and partnership performance in Malaysia. Stakeholder Theory serves as the underpinning theory for this study. This study employed a quantitative method based on the positivist paradigm to distribute questionnaires. The information was collected from 261 contracting parties’ officials in Malaysian public-private partnership projects regulated by the Malaysian Public-Private Partnership Unit, and a stratified random sampling method was employed. The structural equation model analysis found that eight out of ten hypotheses were supported. According to this study, it has been established that contract governance has a direct favorable influence on partnership performance. However, it is also found that contract governance does not moderate the relationship between partnership critical success factors and partnership performance. Due to time constraints and the emergence of the COVID-19 pandemic, this study was from a cross-sectional viewpoint and adopted a quantitative methodology. The findings of this study are important in the contract governance and partnership performance literature, providing policymakers and concessionaires with new information on the impact of contract governance on public-private partnership project performance. Managers of public-private partnership projects should also be able to enhance their projects’ performance by understanding how contract governance influences the performance of their projects.

Impacts Of Strategic Partnership On Technological Transformation On Manufacturing Firms

“…Further research reveals that business alliances reduce operating expenses and this is attributed to knowledge sharing. Information that reveals how intellectual capital stimulates organizational performance is relevant in the increasingly competitive and globalized world [9,10]. According to past studies, strategic partnership with suppliers improves the quality of products manufactured, reduce the costs of manufacturing, and promote information sharing [11].…”

“…Importantly, parties in strategic partners can experience uncontrolled disclosure of core knowledge as each firm is pursuing its interests. Research in management and marketing suggests that success from strategic partnerships can be achieved based on commitment and trust [10]. Otherwise, businesses stand to risk so much in strategic partnerships and it may not be worth undertaking.…”