4.2.1  Definitions

Key definitions relate to:

Root (2005) suggests that partnerships are formed through agreements in which affected individuals or groups are brought together by mutually shared objectives. Kernaghan (in Trafford and Proctor 2006) offers more complexity in his definition, describing the term as being "a relationship involving the sharing of power, work, support and / or information with others for the achievement of joint goals and / or mutual benefits". Both of these meanings differ from that of an Australian legal definition which describes 'partnership' as "relations that exist between persons carrying on a business in common with a view to profit" (Butt 2004: p.320) (where the persons, or perhaps organisations, may be connected only by their contractual relationship) (Chartered Institute of Purchasing and Supply 2013a). The preferred definition for this research adopts Kernaghan's version. This is primarily because the drivers that lead to PPP agreements (from a public sector point of view) involve VfM propositions that have an aim of benefiting the wider community and are therefore not limited to only supporting the profit motives of private interests. However, Butt's definition of 'partner' - "one who shares, associates or takes part with another or others in something" (Butt 2004: p.320) - is accepted for this research due to its alignment with Kernaghan's view of 'partnership', as stated above.

'Stakeholder' in a 'partnership' context can be conveyed to mean an individual person or group who can influence or be influenced by the accomplishment of an organisation's objectives (Freeman 1984: p.46) or alternatively, as those who have the power to be a threat or benefit (Gibson in Yang, Shen and Ho 2009) to the advancement / achievement of PPP outcomes. These definitions contrast Butt's (2004: p.405) legal perspective which describes stakeholders in terms of conducting financial transactions between parties: "A person or corporation holding money as a deposit in a conveyancing transaction pending completion of the contract, or holding moneys pending determination of a wager or a claim". In context of PPP, and due to the fact that they are multi-faceted and involve multiple stakeholder interests, Freeman's definition is the one that best complements this research.

The preferred definition of 'stakeholders' can be deepened by separating them into external and internal as well as primary and secondary categorisations. According to Cleland and King (1988: p.281), 'external' stakeholders include government, key contractors such as service providers, financial institutions and the general public. In this definition, Cleland and King also include competitors. Competitors, however, have been excluded for the purposes of this research as after a bid for a PPP project has been accepted by the public partner, service providers during the operational phase are entitled to deliver those services exclusively for the length of the contract. Other stakeholders that may be considered 'external' are customers (Savage et al 1991) or otherwise defined as 'service users'. According to Savage et al (1991), 'internal' stakeholders comprise management and employees.

In describing 'primary' stakeholders, Freeman et al (2010: p.26) state that they include financiers, service providers, employees and customers. For PPP this must also include the public partner. As public sector managers and their employees are integral to PPP operations i.e. for providing contractual oversight, they are for this research, included as primary stakeholders and not classified as internal stakeholders, as stated by Savage et al (1991).

Moreover, Freeman et al (2010: p.26) state that 'secondary' stakeholders are the groups (or individuals) that affect primary stakeholders and cite consumer advocates, special interest groups and the media as examples. These definitions are generally supported by Savage et al (1991), who claim that primary stakeholders are the groups that have formal, official or contractual relationships that have a direct economic impact on a project. Secondary stakeholders on the other hand, are those who are not directly engaged in a PPP's economic activities but can influence or be influenced by its outcomes. For this research, partnership management relates to stakeholders that are external and primary to PPP agreements.

The term 'private party' (broadly referred to as the 'private partner' in this research) can be defined as a private sector entity that is contracted-in by government (Partnerships Victoria 2001a: p.11) to fulfil a particular role or obligation, and Savas (2000: p.248) describes PPP 'consortia' (also known as 'concessionaire'), as a group of commercially focused firms that provide complementary services and functions that aim to benefit the group of people that they represent e.g. shareholders. Such consortia typically extend to bankers, investment bankers, professional design teams, construction companies and facility managers. It should be noted that consortia may not be fixed for the full term of the concession - the composition of a consortium and the extent of involvement of particular groups will depend upon the progress made at each PPP phase as well as the specific circumstances of individual projects. The definition of 'consortia' is also broadly comparable with that of 'Special Purpose Vehicle' supplied by Delmon (2011: p.231), a term commonly used in the UK (under PFI) to describe the private partner after the contract has been awarded and implementation responsibility accepted by the consortium for achieving desired outcomes (Greve and Hodge in Osborne 2010: p.157) e.g. for financing, building and operating / maintaining new infrastructure.