Organizational and Technological Influence of Public-Private Partnership (PPP) in The Construction Industry: Case Study in Malaysia

The Public-Private Partnership (PPP) plays a critical role in construction industry by taking action to counter public efficiency. In other words, it supports authorities to stretch their assets using the current economic climate. Further, it gives a possibility to simultaneously incorporate the advantages of the private sector in developing new professional skills from different organizational settings [1,2]. The increasing awareness of the performance of PPP globally has supported its use as a procurement mechanism for the government to engage with the private sector to transfers certain level of skills and services. This is fundamental to significantly reduce the upfront costs for the government in providing and maintaining public facilities and to improve public facilities as well as services. PPP in this manner encourages innovative initiation by the private sector [3, 4]. PPP implementation requires a complete systematic approach which is linked to the critical success factors, unlike the traditional procurement method. This brings to notice the variables that enhance organizational performance [1, 5, 6]. Careful implementation of PPP enhances the competitiveness and performance of organizations. This is because of the merging of resources and skills through PPP based on the critical success factors which are crucial for effective and efficient planning and implementation practices. It facilitates contract between the public sector authorities with the private party, therefore; a clear understanding of CSFs will reduce the financial, technical and operational risk in implementing project across diverse fields of human Endeavour [7, 8]. PPP Abstract: This study configures a Private-Public Partnership (PPP) problem of inappropriate enabling environment, lack of mechanisms in defining the relationship between public and private sectors. Although PPP gains high popularity in construction sector, the difficulty in resolving conflicts will cause the poor performance of PPP implementation. Several papers published in major journals have documented real cases of PPP projects, they are, however, suffer in systematically summarizing the organizational and industrial components relationship. Therefore, the main objective of this study is to overview organizational and technological dimensions of PPP in the construction industries in Malaysia, using simple random sampling, there were 238 respondents involved on the survey of hypothesized PPP model. SPSS version 22 and Analysis of Moment Variance (AMOS) software were employed to analyses the data. As a benchmark point, Malaysian construction stakeholders are classified into three categories, namely, federal, state and local level. From the experiment, It shows that the P-value with the ratio of more than 0.05 and at 0.165 value, and also GFI gives more than 0.9 at the value of 0974. The further analysis reveals that the high scoring factors are mostly related to three major aspects; organizational, technology, and characteristic. Implementation of human-related factors will help the PPP to provide an easier platform for continuous improvement of organization’s performance in the industry.