IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v9y2019i1p17-d204594.html
   My bibliography  Save this article

Approaches to Risk Identification in Public–Private Partnership Projects: Malaysian Private Partners’ Overview

Author

Listed:
  • Hadi Sarvari

    (Department of Civil Engineering, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan 81595-39998, Iran)

  • Alireza Valipour

    (Department of Civil Engineering, Shiraz Branch, Islamic Azad University, Shiraz 74731-71987, Iran)

  • Nordin Yahya

    (Department of Structure and Materials, Faculty of Civil Engineering, Universiti Teknologi Malaysia, Johor 81310, Malaysia)

  • Norhazilan MD Noor

    (Department of Structure and Materials, Faculty of Civil Engineering, Universiti Teknologi Malaysia, Johor 81310, Malaysia)

  • Michael Beer

    (Institute for Risk and Reliability, Leibniz Universität Hannover, Callinstrasse 34, 30167 Hannover, Germany)

  • Nerija Banaitiene

    (Faculty of Civil Engineering, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania)

Abstract

The complexity of public–private partnership (PPP) projects ensures that risks could emerge and spread in unpredictable ways if they are not well identified and managed. The emergence of PPP projects has brought major changes in the construction industry, the most notable being in procurement methods influencing risk allocation to private parties. Thus, it is crucial to have an effective risk management for public and private partners to eliminate or minimise risks. Formulating an effective risk management system is a crucial challenge faced by both of parties in order to minimise or optimise risks. The aim of this study was to investigate the process of risk identification of private partners in Malaysian PPP projects. Data were collected throughout a 2-month period using a survey with a sample of nine Malaysian companies engaged in PPP projects, and the survey results were analysed using mean scores. The findings indicate that due to a lack of knowledge and experience of Malaysian private partners in the risk identification process, a comprehensive database for risk identification is highly necessary for the private sector. Another issue emerging from the findings is that it may be reasonable to use a combination of risk identification tools for PPP projects with a high level of complexity. The findings of the present study can greatly assist public and private partners to select the most appropriate tools for risk identification at the early stages of PPP projects.

Suggested Citation

  • Hadi Sarvari & Alireza Valipour & Nordin Yahya & Norhazilan MD Noor & Michael Beer & Nerija Banaitiene, 2019. "Approaches to Risk Identification in Public–Private Partnership Projects: Malaysian Private Partners’ Overview," Administrative Sciences, MDPI, vol. 9(1), pages 1-18, February.
  • Handle: RePEc:gam:jadmsc:v:9:y:2019:i:1:p:17-:d:204594
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/9/1/17/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2076-3387/9/1/17/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nerija Banaitiene & Audrius Banaitis, 2012. "Risk Management in Construction Projects," Chapters, in: Nerija Banaitiene (ed.), Risk Management - Current Issues and Challenges, IntechOpen.
    2. Scott Baker & David Ponniah & Simon Smith, 1999. "Risk response techniques employed currently for major projects," Construction Management and Economics, Taylor & Francis Journals, vol. 17(2), pages 205-213.
    3. Alireza Valipour & Hadi Sarvari & Jolanta Tamošaitiene, 2018. "Risk Assessment in PPP Projects by Applying Different MCDM Methods and Comparative Results Analysis," Administrative Sciences, MDPI, vol. 8(4), pages 1-17, December.
    4. Rashid Maqbool & Yahya Rashid, 2017. "Detrimental changes and construction projects: need for comprehensive controls," International Journal of Project Organisation and Management, Inderscience Enterprises Ltd, vol. 9(2), pages 154-170.
    5. Pengcheng Xiang & Fuyuan Jia & Xiaohui Li, 2018. "Critical Behavioral Risk Factors among Principal Participants in the Chinese Construction Industry," Sustainability, MDPI, vol. 10(9), pages 1-22, September.
    6. Emily Poole & Carl Toohey & Peter Harris, 2014. "Public Infrastructure: A Framework for Decision-making," RBA Annual Conference Volume (Discontinued), in: Alexandra Heath & Matthew Read (ed.),Financial Flows and Infrastructure Financing, Reserve Bank of Australia.
    7. Ofer Zwikael & Mark Ahn, 2011. "The Effectiveness of Risk Management: An Analysis of Project Risk Planning Across Industries and Countries," Risk Analysis, John Wiley & Sons, vol. 31(1), pages 25-37, January.
    8. Irem Dikmen Ozdoganm & M. Talat Birgonul, 2000. "A decision support framework for project sponsors in the planning stage of build-operate-transfer (BOT) projects," Construction Management and Economics, Taylor & Francis Journals, vol. 18(3), pages 343-353.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hadi Sarvari & Mansooreh Rakhshanifar & Jolanta Tamošaitienė & Daniel W.M. Chan & Michael Beer, 2019. "A Risk Based Approach to Evaluating the Impacts of Zayanderood Drought on Sustainable Development Indicators of Riverside Urban in Isfahan-Iran," Sustainability, MDPI, vol. 11(23), pages 1-20, November.
    2. Bisola Beatrice Oguejiofor & Ngozi Samuel Uzougbo & Abosede Olusade Kolade & Ahmed Raji & Chibuike Daraojimba, 2023. "Review of Successful Global Public-Private Partnerships: Extracting key Strategies for Effective U.S. Financial Collaborations," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(8), pages 312-331, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michal Gluszak & Remigiusz Gawlik & Malgorzata Zieba, 2019. "Smart and Green Buildings Features in the Decision-Making Hierarchy of Office Space Tenants: An Analytic Hierarchy Process Study," Administrative Sciences, MDPI, vol. 9(3), pages 1-16, July.
    2. Beata Sadowska & Adam Lulek, 2018. "The problem of risk in the economy of sustainable development on the example of the State Forests," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 17(1), pages 103-120, March.
    3. Mai, Nhat Chi, 2016. "A Development Process of PPP Scheme for Infrastructure Projects in Vietnam," OSF Preprints g3e4u, Center for Open Science.
    4. Rocío Rodríguez-Rivero & Isabel Ortiz-Marcos & Javier Romero & Luis Ballesteros-Sánchez, 2020. "Finding the Links between Risk Management and Project Success: Evidence from International Development Projects in Colombia," Sustainability, MDPI, vol. 12(21), pages 1-19, November.
    5. Ji-Myong Kim & Junseo Bae & Seunghyun Son & Kiyoung Son & Sang-Guk Yum, 2021. "Development of Model to Predict Natural Disaster-Induced Financial Losses for Construction Projects Using Deep Learning Techniques," Sustainability, MDPI, vol. 13(9), pages 1-12, May.
    6. Henry J Liu & Peter ED Love & Jim Smith & Michael CP Sing & Jane Matthews, 2018. "Evaluation of public–private partnerships: A life-cycle Performance Prism for ensuring value for money," Environment and Planning C, , vol. 36(6), pages 1133-1153, September.
    7. Fan, Miao & Lin, Neng-Pai & Sheu, Chwen, 2008. "Choosing a project risk-handling strategy: An analytical model," International Journal of Production Economics, Elsevier, vol. 112(2), pages 700-713, April.
    8. Arturas Kaklauskas & Edmundas Kazimieras Zavadskas & Natalija Lepkova & Saulius Raslanas & Kestutis Dauksys & Ingrida Vetloviene & Ieva Ubarte, 2021. "Sustainable Construction Investment, Real Estate Development, and COVID-19: A Review of Literature in the Field," Sustainability, MDPI, vol. 13(13), pages 1-42, July.
    9. Shabir Hussain Khahro & Tauha Hussain Ali & Shafiqul Hassan & Noor Yasmin Zainun & Yasir Javed & Shahbaz Aziz Memon, 2021. "Risk Severity Matrix for Sustainable Public-Private Partnership Projects in Developing Countries," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    10. Sy, Do Tien & Likhitruangsilp, Veerasak & Onishi, Masamitsu & Nguyen, Phong Thanh, 2016. "Different Perceptions of Concern Factors for Strategic Investment of The Private Sector in Public-Private Partnership Transportation Projects," MPRA Paper 96581, University Library of Munich, Germany.
    11. Abraham Park & Chen Yu Chang, 2013. "Impacts of Construction Events on the Project Equity Value of the Channel Tunnel Project," ERES eres2013_97, European Real Estate Society (ERES).
    12. Hwee-Joo Kam & Thomas Mattson & Sanjay Goel, 0. "A Cross Industry Study of Institutional Pressures on Organizational Effort to Raise Information Security Awareness," Information Systems Frontiers, Springer, vol. 0, pages 1-24.
    13. Hadi Sarvari & Mansooreh Rakhshanifar & Jolanta Tamošaitienė & Daniel W.M. Chan & Michael Beer, 2019. "A Risk Based Approach to Evaluating the Impacts of Zayanderood Drought on Sustainable Development Indicators of Riverside Urban in Isfahan-Iran," Sustainability, MDPI, vol. 11(23), pages 1-20, November.
    14. Mohammad Heydari & Kin Keung Lai & Victor Shi & Feng Xiao, 2023. "Public Health Risk Evaluation through Mathematical Optimization in the Process of PPPs," IJERPH, MDPI, vol. 20(2), pages 1-19, January.
    15. Yorela Yenifer Esperilla-Niño-de-Guzmán & María de los Ángeles Baeza-Muñoz & Francisco Jesús Gálvez-Sánchez & Valentín Molina-Moreno, 2024. "Public–Private Partnership (PPP) in Road Infrastructure Projects: A Review of Evolution, Approaches, and Prospects," Sustainability, MDPI, vol. 16(4), pages 1-24, February.
    16. Weddy Bernadi Sudirman & Sarwono Hardjomuljadi, 2011. "Project Risk Management in Hydropower Plant Projects," Journal of Infrastructure Development, India Development Foundation, vol. 3(2), pages 171-186, December.
    17. Yutong Xue & Pengcheng Xiang, 2020. "The Social Risk of High-Speed Rail Projects in China: A Bayesian Network Analysis," Sustainability, MDPI, vol. 12(5), pages 1-23, March.
    18. Yanchun Zhang & Jianglin Gu & Ming Shan & Yazhi Xiao & Amos Darko, 2018. "Investigating Private Sectors’ Behavioral Intention to Participate in PPP Projects: An Empirical Examination Based on the Theory of Planned Behavior," Sustainability, MDPI, vol. 10(8), pages 1-25, August.
    19. Amin Khalifeh & Ahmad Samed Al-Adwan & Mohammed Kasem Alrousan & Husam Yaseen & Belal Mathani & Firas Rashed Wahsheh, 2023. "Exploring the Nexus of Sustainability and Project Success: A Proposed Framework for the Software Sector," Sustainability, MDPI, vol. 15(22), pages 1-18, November.
    20. Nicoleta Daniela IGNAT, 2019. "Risk Assessment Of Projects Co-Financed By The European Social Fund," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 833-844, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:9:y:2019:i:1:p:17-:d:204594. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.