Exploring Public-Private Partnerships in the National Capital Region of the United States
In this article, Yu Wang, Young Hoon Kwak, and Qingbin Cui reflect on the importance of effective public-private partnerships and how these partnerships coincide with efficient utilization of market stakeholder resources. This topic is the inspiration of their research article, “The Power(lessness) of Flexibility in Public–Private Partnerships: Two Capital Projects From the National Capital Region,‘ found in the Project Management Journal.
In the early stage of capital-intensive public-private partnerships (P3s), strategic decision-making is crucial. Particularly, project sponsors are faced with pivotal decisions: how to select the optimal delivery method and the private partner and how to identify the most appropriate project scope. In this article, we present a case study of two large transportation P3 projects in the National Capital Region of the United States from the lens of the new stakeholder theory to examine the role of flexibility in the decision process within these projects.
As residents of the National Capital Region, all three of us authors were intimately familiar with the two projects at the heart of our case study. It was fascinating to witness how they were initiated, procured, and finally delivered, or, on the contrary, postponed. As we have been exposed to news updates, conference discussions, and interactions with individuals from both the public and private sectors, we found numerous intriguing facets within these P3s worthy of exploration. One particularly compelling aspect was the unique procurement process implemented by the Virginia Department of Transportation. This served as a catalyst for our comprehensive and theoretically grounded investigation into these real-life scenarios.
A notable innovation of our study was the integration of the new stakeholder theory into our framework. This theory has emerged recently. It builds upon the long-standing significance of stakeholder theory, offering a more robust analytical foundation for addressing stakeholder-related issues. Incorporating the new stakeholder theory with flexibility in this study sheds light on both theoretical and practical aspects. Through meticulous examination and systematic analysis, we endeavored to elucidate the determinants of P3 success. We hope this study will enlighten both academic scholars and industry practitioners in the mega project management field.
While our published article captures a significant portion of our findings, there exists a myriad of untold stories within the selected cases awaiting further exploration. For instance, the intricate political dynamics among state and local entities significantly influence the trajectory of such mega-projects. This suggests a rich avenue for investigation through the lens of political capital. Additionally, beyond the scope of stakeholder management discussed in our article, plenty of other factors contribute to the outcomes of the selected projects, such as innovative procurement strategies, each presenting an opportunity for valuable research expansion.
