The Application of Stakeholder Theory to UK PPP Stakeholders

Recruiting the constructs of legitimacy, power and interest, together with a socialnetwork analysis approach, this research identifies the key stakeholders in PublicPrivatePartnerships (PPP) infrastructure projects and delineates their involvement inUnited Kingdom (UK) infrastructure provision. PPP is a provision mechanismcapable of delivering more and better infrastructure, nevertheless, it continues to beassociated with problems. Defined as a collaboration between the public and privatesectors, there is consensus that inherent relationships are a primary source of poorproject performance. Literature shows that successful partnerships nurturestakeholder collaboration, yet an absence of defined systems and mechanisms toidentify stakeholders has manifested in little agreement as to who ought to beinvolved in these arrangements. This research fills this knowledge gap. Through theapplication of Stakeholder Theory, this research determines and profiles the keystakeholders in PPP infrastructure projects. Contingent on their contractualrelationship, the findings of this investigation ascertain the key stakeholders to be theprivate sector Special Purpose Vehicle (SPV) and its constituent members; financiers,construction contractors, facilities management contractors, and the public sectorAuthority. From an examination of these stakeholders and the PPP 'environment',two relationship dynamics are identified. These relationships transition at financialclose, at construction completion and at refinancing. This research adds to knowledgeby not only contributing a framework to identify and understand PPP stakeholders,but also by imparting the fundamentals of these key stakeholders, enhancing theirunderstanding, thereby providing the foundations on which to construct improvedpartnering arrangements.