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A critical review of the application of TCE in the interpretation of risk allocation in PPP contracts

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  • Chen-Yu Chang

Abstract

Along with the rise of public--private partnerships (PPPs) as a mainstream procurement system, we have seen a growing interest in studies of risk allocation in these projects. One of the serious academic endeavours is to apply both transaction cost economics (TCE) and the resource-based view (RBV) to explain risk allocation patterns found in PPP projects. The existing literature along these lines is deficient in three aspects: inappropriate choice of unit of analysis; poor specification of governance structure; and misinterpretation of asset specificity. A way for improvement is to analyse risk allocation in the context of PPP procurement in its entirety.

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  • Chen-Yu Chang, 2013. "A critical review of the application of TCE in the interpretation of risk allocation in PPP contracts," Construction Management and Economics, Taylor & Francis Journals, vol. 31(2), pages 99-103, February.
    • Handle: RePEc:taf:conmgt:v:31:y:2013:i:2:p:99-103
    DOI: 10.1080/01446193.2012.726365
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    1. Yescombe, E. R. & Yescombe, E. R., 2002. "Principles of Project Finance," Elsevier Monographs, Elsevier, edition 1, number 9780127708515.
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    Cited by:

    1. Bingsong Tang & Nan Li, 2022. "Contractual Governance for Dispute Resolution and Construction Sustainability: Case Studies from China," Sustainability, MDPI, vol. 14(13), pages 1-14, June.
    2. Irún, Beatriz & Monferrer, Diego & Moliner, Miguel Ángel, 2020. "Network market orientation as a relational governance mechanism to public-private partnerships," Journal of Business Research, Elsevier, vol. 121(C), pages 268-282.
    3. Tharun Dolla & Boeing Laishram, 2019. "Bundling in public–private partnership projects – a conceptual framework," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 69(6), pages 1177-1203, December.

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