Centrally administered state-owned enterprises’ engagement in China’s public–private partnerships: a social network analysis

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.

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