PRACTICAL ASPECTS IN CREATION OF CROSS-SECTOR PARTNERSHIPS

Research article
Issue: № 7 (38), 2015
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Ильин И.В.1 , Найденышева Е.Г.2

1Доктор экономических наук, профессор, заведующий кафедрой «Информационные системы в экономике и менеджменте», 2Ассистент кафедры «Информационные системы в экономике и менеджменте», Санкт-Петербургский Политехнический Университет Петра Великого

ПРАКТИЧЕСКИЕ АСПЕКТЫ ФОРМИРОВАНИЯ МЕЖСЕКТОРНЫХ ПАРТНЕРСТВ

Аннотация

В результате анализа межсекторных партнерств были выявлены факторы, влияющие на создание и обеспечивающие устойчивость партнерств. На основе этих факторов была проанализирована существующая процедура конкурсного отбора, предложена процедура дополнительного предварительного отбора для более эффективного использования ресурсов компаний-участников и возможности создания большего количества межсекторных альянсов, в том числе государственно-частных партнерств. 

Дальнейшее исследование рассмотрит различные комбинации ресурсов у компаний из межсекторного партнерства для реализации проектов развития социальной инфраструктуры.

Ключевые слова: Межсекторное партнерство, государственно-частное партнерство, устойчивость, конкурсный отбор.

Ilin I.V.1 , Naidenysheva E.G.2

1Professor, 2Postgraduate student, Peter the Great Saint-Petersburg Polytechnic University

PRACTICAL ASPECTS IN CREATION OF CROSS-SECTOR PARTNERSHIPS

Abstract

An analysis of cross-sector partnerships has shown factors influencing on creation and the stability of partnerships. On the basis of these factors was analyzed the existing competitive selection procedure, proposed a procedure for preliminary selection for a more effective usage of the resources of participating companies and the possibility of creating more cross-sector alliances, including public-private partnerships.

Further research will consider various combinations of resources from companies  in cross-sector partnership for implementing projects of social infrastructure.

Keywords: Cross-sector partnership, public-private partnership, stability, competitive selection.

Public-private partnership is a relatively new form of partnership in Russia, which can be a powerful tool for implementing complex infrastructure projects. It is important to note the cross-sector nature of this interaction: the use of the resources of the business sector (money, know-how, management expertise) to satisfy social needs that is the responsibility of the government sector.

Priority directions of development of PPP are described in the "Program of Socioeconomic Development of the Russian Federation in the medium term (2006-2008 gg.)." They include transport, social, energy and municipal infrastructures. These areas are largely connected with the constructing: renovation and modernization of social infrastructure in the areas of health, education, culture and sports, spa treatment, constructing of social facilities, roads, railways, pipelines, providing of infrastructural facilities for the constructing of affordable housing.

There are many examples of successful alliances of state and business in Russian experience: Western High Speed ​​Diameter, the project "New School of Ugra", the project of ACATI, concession contract for the constructing of high-tech medical centers in Moscow [1] [2] [3]. On the one hand the business provides the orders, on the other hand it satisfies the social needs of the region and, therefore, improves the level and quality of life. Many authors, both Russian and foreign are engaged in the analysis of public-private partnerships and the research of its role in the economy [4] [5] [6], including factors affecting the cross-sector partnership [8] [8] [9].

Purposes and objectives of the article

The purpose of the cross-sector alliance is the achievement of the results defined before the start of the project. However, not all alliances are able to maintain integrity and to implement the project. The reasons for the destruction of the alliance can be internal contradictions or financial failure. In this regard, there is a problem to define the determinants that affect the creation of partnerships and identify potentially reliable and stable partners to achieve common results.

Research

The researches of cross-sector partnerships are characterized by fragmentation and diversity of the theoretical foundations. However, recent researches are focused on a theoretical model, which provides the basis for the study of the formation of the PPP. [7] According to this model, cross-sector partnership can arise when organizations have overlapping goals and will develop only if the staff has the agreement on values, personal connections and relations. This process is closely linked with the development of interpersonal relations of staff. These factors are a prerequisite for the creation of cross-sector relations, we call them "drivers".

Drivers are the factors that motivate the participants to start the development of cross-sector partnerships. Drivers are focused on common objectives and explain the creation of cross-sector partnerships in terms of the participants' expectations about the results that they produce. From this point of view, the creation and stability of the partnership depends on if benefits and costs are greater than a certain level, expected by participants. [8] This balance may be threatened by expectations that, once they derived their benefits, they can withdraw from the partnership and stop to share resources. [9]

In addition, it needs to identify the factors affecting the stability of the partnership after its establishment. We will call factors that maintain and develop partnerships after initial engagement of parts as "enablers". There are three sets of factors that crucially determine the development of cross-sector partnerships: (a) the factors that determine the participants before their participation, (b) the factors that associate with the organization structure of parts or arrangements connecting them, and (c) the context of a partnership.

In practice, many companies claim to be the implementation of a project, it should be noted that the projects in which you can create PPP is several too. This creates a situation where there are few potential projects and few companies who seek to implement these projects. One of the tools allowing to realize such interaction is the organizing of the competitive selection via electronic platforms of trading and procurement. At the moment, the procedure of competitive selection identifies only one winner, and the companies which have not passed the competitive selection is not involved in the project. In case if the company has not enough assets to implement the project alone, such company will not be involved. As a result there may be a situation where there is no winning company that can implement the project on its own assets and there are several companies which are not involved in the project, but have certain assets that are not used anywhere else. And the project cannot be implemented. In this case, the main aim is to coordinate activities so as to combine the assets of companies which are not selected for the project.

As it was noted above, company’s expectations  regarding the results have an important role in the stability of the partnership. If each of the participants knows that he will lose (if he leaves the partnership), he does not want to break the initial agreements of cooperation. From this perspective, the partnership becomes more stable if it has several participants. Now, the procedure of competitive selection may reveal only one winner. Therefore we propose to complement the procedure of competitive selection with a pre-selection procedure. A pre-selection procedure is created to identify the participants, which can be combined into an partnership capable to implement the project.

In the selection criteria for pre-selection procedure we should take into consideration various factors. Let’s divide the factors into classes: financial, business and legal. Financial factors are the absence or presence of debts to economic entities (commercial banks, city administration, etc.), the total cost of the company's assets. Business factors  are the absence or presence of the projects, where the limits on time, budget and quality of work were exceeded. Legal factors are the absence or presence of a disturbance of regime of using urban areas and other real estate, evidenced involvement of company in criminal activities in the economic environment. All these factors can be divided into prohibitive and permissive groups, regardless of their nature (financial, business or legal). The first group includes those factors, the existence of which is unacceptable in the formed partnership, the second group includes those factors that give extra points for a company involved in the preliminary selection. For example, a company with greater assets will get more points than a company with a smaller set of assets.

As a result of preliminary selection there will be determined a group of companies which assets are supplemented each other. For example, if the city administration has lands for construction in property, but no funds for building on these lands, then a company with funds for the construction project should be selected. Another example, the city administration does not have lands for construction project, but has funds. In this case, a company that has lands in property, but has no funds for the project should be chosen. You can describe many situations where the assets of various companies supplement each other, and as a result the project becomes realizable (we will leave this question for further research).

Identify the steps that will help to create such partnerships:

1) Registration companies which take part in the competition on the electronic platform of trade and procurement.

2) Arranging procedure of preliminary selection.

3) Creating a set of companies which assets supplement each other.

4) Arranging procedure of competitive selection.

5a) Determining the winner.

5b) If it is impossible to determine one winner (the assets of one company are not enough), then the identification the alliance of companies-winners takes place.

6) The winner or the alliance of companies, selected in the competition will accomplish the project.

References

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