Publication
Title
Transaction cost analysis of public infrastructure delivery
Author
Abstract
Purpose The purpose of this paper is to offer a systematic assessment of the magnitude of transaction costs of public infrastructure delivery, based on the three attributes of transaction costs, being the asset specificity, uncertainty and frequency of a transaction. Design/methodology/approach Non-parametric tests were used to test the transaction cost differences between different procurement types. Findings The authors find empirical support, based on a sample of 172 public infrastructure projects in Belgium, that construction firms make higher relation specific investments to their transaction partners under a public-private partnership (PPP) than a under a traditional public procurement (TPP). In addition, the authors found that PPP transactions are burdened by a greater uncertainty and a less mature market than TPP transactions. Research limitations/implications Given the complexity of this research, the scope is limited to: a strict distinction between two procurement types, one geographical area, a limited time scope and a focus on the private sector. Hence, the authors suggest that further research broadens the scope of either one of these aspects in order to get a better understanding of the total transaction cost burden of the public infrastructure market. Practical implications This study offers policy makers form a better understanding of the transaction cost implications when evaluating different procurement types. Originality/value This paper serves as one of the first systematic comparative analyses of the magnitude and determinants of transaction costs for the delivery of public infrastructure.
Language
English
Source (journal)
International Journal of Managing Projects in Business
Publication
2015
ISSN
1753-8378
1753-8386
Volume/pages
8:3(2015), p. 441-456
Full text (Publishers DOI)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
External links
Record
Identification
Creation 10.06.2015
Last edited 11.03.2017