Centrally Administered State-Owned Enterprises' Engagement in China's Public-Private Partnerships: A Social Network Analysis

TL;DR

This study uses social network analysis to reveal that central government-owned enterprises dominate China's public-private partnership networks, highlighting their strategic influence and suggesting policy measures to diversify participation.

Contribution

It introduces a network perspective to analyze all PPP participants and their embedded positions, providing a comprehensive view of SOEs' dominance in China's PPP ecosystem.

Findings

CSOEs have a dominant influence in PPP networks.

Policy recommendations include reducing resource gaps for broader participation.

The study covers data from 2012-2017 across various sectors and regions.

Abstract

A salient characteristic of China's public-private partnerships (PPPs) is the deep involvement of state-owned enterprises (SOEs), particularly those administered by the central/national government (CSOEs). This paper integrates the approaches of resource-based view and resource-dependency theory to explain CSOEs' involvement in PPP networks. Built upon a network perspective, this paper differs from earlier studies in that it investigates the entire PPP governance network as a whole and all PPP participants' embedded network positions, rather than individual, isolated PPP transactions. Using a novel data source on PPP projects in the period of 2012-2017, social network analysis is conducted to test hypothesized network dominance of CSOEs' in forming PPPs, in light of CSOEs' superior possession of and access to strategic assets. Research findings suggest that CSOEs have a dominant influence and control power in PPP networks across sectors, over time, and throughout geographic space. It is also suggested that policy makers should reduce resource gaps between SOEs and private businesses, and only in so doing, presence and involvement of non-SOEs in China's PPPs can be enhanced.