Negotiating complexity and legitimacy in independent power project development
Many developing countries have encouraged private sector participation in infrastructure activities during the 1990s, including the development of private electricity generation plants, known as independent power projects. The development of power projects involves multiple sets of negotiations with multiple actors over a period of time to ensure the successful completion of the project. The negotiation process has often been slow, contentious, and unpredictable. We highlight the implications of the complexity of power project development. We argue that the developers need to follow a "relationship-oriented" strategy, combining a strategy based on formal contracts and a strategy based on trust building. In such a combined approach, the appropriate balance between the two components shifts over the life cycle of the project. Trust building is critical at the initiation of the project, whereas complete contracting should dominate in the project implementation stage. Our analysis has broader implications for the successful initiation and implementation of politically salient investment projects in developing countries.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 40 (2005)
Issue (Month): 3 (August)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ariño, Africa & de la Torre, Jose & Ring, Peter S., 2001. "Relational quality: Managing trust in corporate alliances," IESE Research Papers D/434, IESE Business School.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, January.
- Parkhe, Arvind, 1998. "Building trust in international alliances," Journal of World Business, Elsevier, vol. 33(4), pages 417-437, January.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Griffith, David A., 2002. "The role of communication competencies in international business relationship development," Journal of World Business, Elsevier, vol. 37(4), pages 256-265, January.
- Jennifer M George & Gareth R Jones & Jorge A Gonzalez, 1998. "The Role of Affect in Cross-Cultural Negotiations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(4), pages 749-772, December.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- Holmstrom, Bengt R. & Tirole, Jean, 1989. "The theory of the firm," Handbook of Industrial Organization,in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 2, pages 61-133 Elsevier.
- Spiller, Pablo T, 1996. "Institutions and Commitment," Industrial and Corporate Change, Oxford University Press, vol. 5(2), pages 421-452.
- Benjamin Esty, 2002. "Returns On Project-Financed Investments: Evolution And Managerial Implications," Journal of Applied Corporate Finance, Morgan Stanley, vol. 15(1), pages 71-86.
- Cullen, John B. & Johnson, Jean L. & Sakano, Tomoaki, 2000. "Success through commitment and trust: the soft side of strategic alliance management," Journal of World Business, Elsevier, vol. 35(3), pages 223-240.
When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:40:y:2005:i:3:p:302-320. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.