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The Influence of Contractual and Relational Governance on the Sustainable Performance of Public-Private Partnership Projects: Findings from PLS-SEM and fsQCA

Author

Listed:
  • Wenhua Hou

    (Chongqing University)

  • Xiaoqi Peng

    (Chongqing University)

  • Lin Wang

    (Chongqing University)

Abstract

As a widely adopted model of infrastructure and public service provision, the goal of public-private partnership (PPP) projects is gradually shifting from traditional economic orientation to sustainable development orientation. During this process, contractual governance and relational governance are regarded as effective ways to improve the sustainable performance of PPP projects. This paper extends contractual governance (control, coordination, adaptation) and relational governance (trust, communication, reciprocity, and industry practices) to second-order constructs. On this basis, partial least squares structural equation model (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA) are adopted to analyze the questionnaire data of 114 PPP project practitioners, aiming to study the influence of contractual and relational governance on the sustainable performance of PPP projects. The results of PLS-SEM verify the support effect of contractual and relational governance on sustainable performance, and the effect of relational governance is more significant. Furthermore, from the ecological theory perspective, four types of configurations are identified by fsQCA, revealing the combined effects of governance elements. This paper not only enriches the governance mechanism of PPP projects from the perspective of sustainability but also adds enlightenment into PPP project managers to formulate effective governance strategies to improve sustainable performance.

Suggested Citation

  • Wenhua Hou & Xiaoqi Peng & Lin Wang, 2024. "The Influence of Contractual and Relational Governance on the Sustainable Performance of Public-Private Partnership Projects: Findings from PLS-SEM and fsQCA," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10826-10852, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01538-9
    DOI: 10.1007/s13132-023-01538-9
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