RESEARCH DESIGN

The research examined how PPP operational phase partnership, performance and risk management practices can be improved to achieve better VfM outcomes for the public partner. As part of the research, an integrating management model was conceptualised.

The phenomenological research divides into two phases and employs qualitative mixed methods techniques. Literature review across the three management disciplines was used to guide the initial conceptual management model. Semi-structured interviews were then used to confirm the issues embraced. The interview findings informed further model development and a second iteration of the model was presented to an expert focus group for scrutiny and comment. Feedback from this group was used to refine the final iteration of the model.

This paper focuses on the interview findings relating to expectations of VfM in PPP, which informed the initial iteration of the integrating model.

Interviews were held between October 2012 and March 2013. Fifty invitations were distributed and 34 people (68% response rate) agreed to participate in the formal process. Twenty-three interview participants (68%) were from the public sector and 11 (32%) from the private sector. Seven respondents took part in a second interview.

Statistical representativeness of the response sample is difficult, if not impossible, to determine since the eligible population is unknown. Against this, the sample was purposively determined; the respondents all demonstrated substantial experience and knowledge in PPP operational management, and analysis of the responses yielded a 'saturation point' i.e. a stage whereby no new significant issues or further diversity of answers were identified.

The majority of the public sector interview participants were project directors. They have responsibility for administering the public partner's interests in a PPP. However, a range of other government employees were invited to take part, including senior executives from central agencies, government departments and statutory authorities; a commercial manager; as well as a small number of PPP contract managers and a contract administrator. The research sample was drawn from eligible persons from the Australian Government, three Australian state jurisdictions and the Government of the United Kingdom (UK). Essentially this was a convenience sample, due to constraints of time and money.

Selected private sector participants were also invited to offer insights into what they think the public partner should be mindful of during the operating phase of PPPs. The types of private sector participants included senior executives and managers responsible for PPP service delivery; project engineers; and partners from top-tier advisory and legal firms. Many of these participants have substantial experience working in Australian and international PPP markets. Again, this constituted a purposive convenience sample.

The guideline VfM interview questions related to interviewees' understanding of the meaning of VfM in PPP, and their perceptions as to how this might be achieved. However, participants were encouraged to treat the interviews as open. Following this, the NVivo version 10 software application was used to conduct a thematic analysis of transcript data to identify important themes, using a hierarchical data coding process. Table 3 presents an overview of VfM categorisations arising from the thematic analysis and provides the basis for developing the main findings.