Dissertation Abstracts
What empirical experience is there with PPP projects and policies in Europe?
Author: Thomas F. Eisenhut, thomas.eisenhut@univie.ac.at
Department: Department Economy
University: University of Economics and Business, Austria
Supervisor: Stephan Loidl
Year of completion: 2017
Language of dissertation: English
Areas of Research: Political Sociology , Environment and Society , Economy and Society
Abstract
Thomas F. Eisenhut *1 University of Vienna Masaryk University Brno University of Applied Sciences Vienna University of Heidelberg SCIENTIFIC PAPER LAST VERSION: OCTOBER 2016 Abstract Public Private Partnerships (PPPs) are implemented to evade budgetary restrictions, and to encourage the efficient acquisition of public infrastructure for social welfare. The latter objective is achieved by the introduction of performance-based standards, which are tied to bonuses and penalties, to reward or punish the performance of the contractor. This paper focuses on the cross-regional PPP cooperation projects and the empirical example of the “Twin City Liner” business model, which was implemented between Austria and Slovakia in the so-called “Centrope Region”. The safety-based incentives in PPPs are designed in such a way that the better the safety outcome, the greater the economic reward is for the contractor. The Central Danube Region (CDR) developed the project and the partners are operators of DDSG Blue Danube, belonging to the Wien Holding, run by the city of Vienna. The main aim of this paper is to identify whether the incentives improve the economic and political performance and to determine the consequences of such PPP projects to influence several small and medium sized enterprises (SMEs) in different regions. How can they utilize the potentials of cooperation with the governance infrastructure? How has the general set-up changed for inter-company collaboration in the regions since the establishment of PPPs? Which policy-making benefits do PPP projects imply from the given condition and what the measures are for concur performance business model in these regional-contexts? Consequently, the paper analyzes the existing academic research sources of the PPP and answers questions through an empirical survey of the company’s management. The methodology uses specific working papers essential for the European region’s PPPs and the cross-regional cooperation between SMEs in a global perspective. Concerning the empirical part, this paper uses qualitatively focussed structured guideline surveys. Therefore the cognition technique and the synoptic analysis of content according to the Mayring method were adopted. The research will facilitate discussions on aspects of methodological approaches to research, data capture and analysis, perceived research outcomes and contributions to the body of knowledge, which, while focused on PPP, will also interface with related knowledge area in Value-for-Money and performance management. As a result, the paper attempts to conclude that SMEs are able to benefit from the price advantage of collaboration depending on the geographical location and investments made by PPPs, which enable fiscal tax patronization. In terms of operational resources and long-term synergies the common allocation is considerable. Ideally these facilitate a relieved market entrance for smaller firms and a higher profit for existing enterprises. Essential is the separation of operational settlements, which means the matter of distinct locational competition and it occurs the establishment of co-production within the regions to present itself mutual externally to persist in the global contest. The findings indicate that even through this concept for success is highly influenced by gradual formations that are not very controllable by the contractor, such as the CDR, and it is a positive prototype for prospective similar projects. The implementation of safety incentives by PPPs has a constructive effect in the reduction of political uncertainty, financial risk and market barriers. Keywords: PPP (Public-Private Partnership), CR (Centrope Region), AC (Automobile Cluster), SME (Small and Medium-sized enterprise), Central Danube Region (CDR) * Eisenhut, University of Vienna, Institute for Social Sciences, Universitätsstraße 7, 1010 Wien, Austria, Telephone: + 43 (0) 676 3248695, E-Mail: thomas.eisenhut@univie.ac.at