A SYSTEMATIC STAKEHOLDER MANAGEMENT FRAMEWORK FOR MANAGING PUBLIC PRIVATE PARTNERSHIP PROJECTS IN AUSTRALIA

A SYSTEMATIC STAKEHOLDER MANAGEMENT FRAMEWORK FOR
MANAGING PUBLIC PRIVATE PARTNERSHIP PROJECTS IN
AUSTRALIA
A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy
Sajani Jayasuriya
Bachelor of Science (Hons) in Quantity Surveying
School of Engineering
College of Science, Engineering and Health
RMIT University
October 2017

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DECLARATION
I certify that, except where due acknowledgment has been made, the work is that of the author alone;
the work has not been submitted previously, in whole or in part, to qualify for any other academic
award; the content of the thesis is the result of work which has been carried out since the official
commencement date of the approved research program; any editorial work, paid or unpaid, carried
out by a third party is acknowledged; and, ethics procedures and guidelines have been followed.
Name: Sajani Jayasuriya
Date: 08/10/2017

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ABSTRACT
Many countries around the world are in search of new means to engage the private sector in managing
and financing infrastructure through public-private partnerships (PPPs). However, most PPPs face
issues during the design and concession periods. In the Australian and global contexts, stakeholder
management (SM)-related issues have been reported as one of the main reasons for failure. SM is
important for the avoidance of conflicts and the success of projects. Hence, this study focuses on the
development of a SM framework, addressing current and emerging issues in Australian PPP projects.
To achieve the research aim, a literature review, semi-structured interviews and surveys are used.
Initially, existing theories on and the practice of project SM in general construction projects and in
particular in relation to PPPs are explored through a comprehensive review of the literature. The
literature review assisted in the development of the research hypotheses and a conceptual SM
framework for PPP projects. Subsequently, data were gathered through semi-structured interviews
(N=19) and a self-administered online survey (N=357) of project team members who have been
involved with SM-related activities in PPP projects. The qualitative data generated were analysed
using content analysis and the quantitative data were analysed using descriptive statistics, non-
parametric tests, correlation analysis, factor analysis and structural equation modelling (SEM). Based
on the results of the different methods, a SM framework addressing current and emerging issues was
developed. Finally, the developed framework was validated using semi-structured interviews
followed by a process of thematic analysis.
Initially, the twelve most critical issues related to SM and the forty-two most important best practices
related to SM are explored. The thesis then explores three categories of SM-related issues in PPP
projects and eleven components of successful SM for PPP projects. Of these eleven components, four
basic strategies specific to PPPs are explored: consolidation of stakeholder commitment, transparency
in stakeholder engagement, risk awareness through stakeholder engagement and on-going
stakeholder issue identification and monitoring. The findings suggest that effective communication
is the paramount factor in successful SM in PPP projects. A comparative analysis is also undertaken
of the private and the public sector which suggests that most issues are critical for the private sector.
This finding is also supported by the initial semi-structured interviews, in which participants suggest
that the Government sector should be the main driving party in successful SM in PPP projects.
Subsequently, SEM analysis is used to explore the relationships between the SM stages and the
relationships between SM stages and SM-related issues in PPP projects. Of the ten hypotheses, six

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are supported by the data. These confirmed relationships suggest that stakeholder analysis (SA) is the
key to the attainment of successful SM in PPP projects. The relationship between the SM stages and
SM-related issues suggests that stakeholder engagement (SE) is important in attaining effective SM
in PPP projects. Interestingly, the results suggest that SM monitoring is perceived to have more SM-
related issues in PPP projects. The final model also depicts the best practices to cope with specific
SM-related issues in PPP projects. These best practices were generated from the initial semi-
structured interviews and from a correlation analysis of the survey findings.
Based on the research findings, a SM framework for PPP project success is developed using general
problem-solving methodology and the SM framework developed for construction projects by Yang
and Shen (2014). This framework is then validated using semi-structured interviews with industry
experts. The validation results confirm that the framework has a clear structure and information flow.
The validation results also suggested the removal of some best practices to solve some emerging
issues, and some additions are made to the framework to obtain a clear picture of SM in PPP projects.
This research contributes to the PPP knowledge base theoretically and practically. Theoretically, it
explores a set of the most critical SM-related issues in PPP projects and important SM best practices
specific to PPP projects. It also confirms the four essential stages of SM in PPP projects and the
eleven components of SM in PPP projects. Therefore, this study contributes to the existing body of
knowledge by creating a full list of components related to SM specific to PPP projects. Furthermore,
a variety of strategies is recommended to address current and emerging issues in PPP projects. The
proposed SM framework for PPP project management will act as an integrated SM framework in
academia. Practically, it provides a list of SM best practices to solve current and emerging issues.
Therefore, the framework will act as a reference point when an issue related to SM arises. It also
explores the importance of successful SE in PPP projects to reduce SM-related issues, and discusses
the criticality of SA in the process of SM, as it affects all the other stages of SM. This study proposes
a SM framework which portrays the application of best practices and the development of processes
for project managers to implement SM in PPP projects. Furthermore, the proposed framework will
act as an evaluation platform to measure the performance of SM in PPP projects in Australia.
Keywords: Public-private partnerships, stakeholder management, stakeholder management- related
issues, best practices, framework.

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ACKNOWLEDGEMENTS
First and foremost, I would like to acknowledge the generous financial assistance provided by the
Australian Government and RMIT University towards researching and writing this thesis.
I am very grateful to my principal supervisor, Associate Professor Kevin Zhang, who has provided
me with immeasurable support and guidance throughout my candidature. This thesis has benefited
greatly from many stimulating discussions that we have had and his insightful comments. Associate
Professor Kevin Zhang is not merely a supervisor who helps me in carrying out my research, but also
a mentor who focuses on my overall development as an academic. I would also like to thank Dr
Rebecca Yang, my second supervisor, for providing me with complete freedom to explore my own
interests, and for her encouragement, guidance, and assistance throughout this research. She was not
just a supervisor but also a problem solver who listened to all the issues I faced during my PhD
journey. Dr Alex McKnight assisted by proofreading the final draft for grammatical and stylistic
errors.
I wish to thank all the organisations, respondents, and interview participants who supported and
participated in this research. Without their contribution, the data collection process of this research
would not have been possible.
Finally, I would like to thank my husband, Harsha Bartholameuz, for all the assistance and
encouragement that he has given me, and my son, Senuk, for joining to our family during my PhD
candidature. I would also like to thank my parents and my sister, Jayani, for their support. This thesis
is dedicated to my father, Gamini Jayasuriya, and my mother, Ranjani De Silva, to whom I am
indebted forever for everything that I have achieved.

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RESEARCH PUBLICATIONS
Awards
Won the best paper award under the Post Graduate category at the Pacific Association of Quantity
Surveyors Congress 2016, Christchurch, New Zealand, May 2016.
Published conference papers
Jayasuriya, S., Zhang, G., Setunge, S. & Patnaikuni, I. 2014. Critical issues during the concession:
Review of studies on public–private partnership projects. in Proceedings of International Conference
on Emerging Trends in Civil Engineering, Hyderabad, India, 6-8 January 2014, pp. 617-625.
Jayasuriya, S., Zhang, G., & Yang, R. 2015. Stakeholder Management Practice in Public Private
Partnerships: An Australian Experience. in Proceedings of the 2015 Royal Institution of Chartered
Surveyors annual conference (COBRA 2015), Sydney, Australia, 08-10 July 2015.
Jayasuriya, S., Zhang, G., & Yang, R. 2016. Emerging issues related to stakeholder management in
PPP projects: An Australia study. in Proceedings of Pacific Association of Quantity Surveyors
Congress 2016, Christchurch, New Zealand, 20-24 May 2016, pp. 1-10.
Jayasuriya, S., Zhang, G., & Yang, R. 2016. Emerging issues of stakeholder management in PPP
projects and improvement measures: An Australian study, in Nebil Achour (ed.) Proceedings of the
20th CIB World Building Congress 2016: Volume V - Advancing products and services, Tampere,
Finland, 30 May 30 - 3 June 2016, pp. 160-171.
Jayasuriya, S., Zhang, G., & Yang, R. 2016. Strategies for Successful Stakeholder Analysis and
Stakeholder Engagement in PPP Projects. in Proceedings of Australasian Universities Building
Education Association (AUBEA 2016), Cairns, Australia, 06-08 July 2016.
Jayasuriya, S., Zhang, G., & Yang, R. 2017. Structural equation model confirming the strategies for
successful stakeholder management in PPPs. in Proceedings of Australasian Universities Building
Education Association (AUBEA 2017), Melbourne, Australia, 03-05 July 2017.

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Accepted journal papers
Yang, R. J., Jayasuriya, S., Gunarathna, C., Arashpour, M., Xue, X. & Zhang, K. 2017. The Evolution
of Stakeholder Management Practices in Australian Mega construction Projects. Engineering,
Construction and Architectural Management.

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TABLE OF CONTENTS
DECLARATION ................................................................................................................................ I
ABSTRACT ...................................................................................................................................... II
ACKNOWLEDGEMENTS ............................................................................................................ IV
RESEARCH PUBLICATIONS ...................................................................................................... V
TABLE OF CONTENTS .............................................................................................................. VII
LIST OF TABLES ......................................................................................................................... XII
LIST OF FIGURES ...................................................................................................................... XIII
LIST OF ABBREVIATIONS ...................................................................................................... XIV
1. INTRODUCTION ..................................................................................................................... 1
1.1 BACKGROUND .......................................................................................................................... 1
1.2 RATIONALE OF THE RESEARCH ................................................................................................. 3
1.3 RESEARCH QUESTIONS .............................................................................................................. 4
1.4 AIMS AND OBJECTIVES OF THE STUDY ...................................................................................... 4
1.5 SIGNIFICANCE OF THE RESEARCH .............................................................................................. 4
1.6 RESEARCH METHODOLOGY ....................................................................................................... 5
1.7 THESIS STRUCTURE ................................................................................................................... 6
1.8 CONCLUDING REMARKS ............................................................................................................ 7
2. LITERATURE REVIEW ......................................................................................................... 8
2.1 I NTRODUCTION ......................................................................................................................... 8
2.2 PUBLIC P RIVATE PARTNERSHIPS (PPP S )................................................................................... 8
2.2.1 Concepts of PPPs ............................................................................................................ 8
2.2.2 Advantages and disadvantages of PPPs........................................................................ 10
2.2.3 Development of PPPs in infrastructure ......................................................................... 11
2.3 DEFINING THE PPPS AUSTRALIAN CONTEXT .......................................................................... 13
2.4 THE DEVELOPMENT OF PPP RESEARCH IN THE CONSTRUCTION INDUSTRY .............................. 14
2.4.1 Methodology to retrieve PPP-related research............................................................. 14
2.4.2 Research on PPP project success .................................................................................. 18
2.4.3 Research into procurement ............................................................................................ 20
2.4.4 Research on planning and initiation ............................................................................. 21
2.4.5 Research on economics and finance.............................................................................. 23
2.4.6 Research on contract management ............................................................................... 24
2.4.7 Research on stakeholder management .......................................................................... 25
2.5 FUTURE RESEARCH DIRECTIONS ............................................................................................. 26
2.5.1 For researchers in Australia ......................................................................................... 26
2.5.2 For global researchers .................................................................................................. 27
2.6 PPP UNIQUENESS IN STAKEHOLDER MANAGEMENT CONTEXT ................................................. 30
2.7 I NTRODUCTION TO STAKEHOLDER MANAGEMENT IN CONSTRUCTION ..................................... 33
2.7.1 Concept of stakeholder management ............................................................................. 33
2.7.2 The development of stakeholder theory ......................................................................... 36
2.7.3 Key stakeholder management frameworks for construction projects ........................... 38
2.8 STAGES IN STAKEHOLDER MANAGEMENT ............................................................................... 40
2.8.1 Stakeholder analysis ...................................................................................................... 40
2.8.2 Stakeholder engagement ................................................................................................ 42
2.8.3 SM action planning........................................................................................................ 42
2.8.4 Stakeholder monitoring ................................................................................................. 43
2.9 SM- RELATED ISSUES IN PPP PROJECTS .................................................................................. 44
2.9.1 The political agenda in relation to PPP project decisions............................................ 45