Aligning agents to principals : an exploration of the job creation possibilities of South Africa’s infrastructure public-private partnerships

Description

This study sought to explore the governance mechanisms that result in agent principal alignment in Public Private Partnerships (PPPs), with specific reference to Job Creation. This is important to understand in South Africa as infrastructure PPPs are central to the government’s economic growth strategy. The Renewable Energy Programme (REIPPPP), a decade-old PPP, was identified as the ideal context given its consistent job-creation alignment between the state and its agents, Independent Power Producers (IPPs). Agency Theory posits that agents are inherently self-interested and thus unlikely to act in the interests of principals. However, while some theoretical propositions envisage instances of agent-principal alignment, what is less known are the precise mechanisms by which this can be achieved. This study explored the questions of moral hazard and adverse selection, which refer to goal conflict and information asymmetry in agent-principal relationships. The research was undertaken through a qualitative study, comprised of secondary data analysis as well as semi-structured interviews. It was found that by aligning contracts across multiple stakeholders, agents can increase their enforcement capacity. Furthermore, a rigorous data collection system accompanied by credible penalties, results in greater compliance. This contribution enhances the theory in respect of governance mechanisms whilst simultaneously providing practical guidance for PPP structuring. / Mini Dissertation (MBA)--University of Pretoria, 2021. / Gordon Institute of Business Science (GIBS) / MBA / Unrestricted

Links & Downloads

1. http://hdl.handle.net/2263/81322
2. Mazwi, NS 2021, Aligning agents to principals : an exploration of the job creation possibilities of South Africa’s infrastructure public-private partnerships, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/81322>
3. S2021

Tags

UCTD

Infrastructure

Public-private partnerships

Job creation

Agency theory

Governance mechanisms

Moral hazard and adverse selection

Additional Fields

Identifer	oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/81322
Date	January 2021
Creators	Mazwi, Ngoku Sakhile
Contributors	Olivier, Johan, [e-mail]
Publisher	University of Pretoria
Source Sets	South African National ETD Portal
Language	English
Detected Language	English
Type	Mini Dissertation
Rights	© 2021 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.