Strategic governance for modeling institutional framework of public–private partnerships

•This study identifies the significant role of PPP strategy in stimulus plans.•Practices in institutional framework are laid out to improving governance roadmap.•A strategic governance model is constructed for stakeholder management accordingly.•This work shows that the model can steer the economy in global financial crisis.

After the global financial crisis (GFC) in 2008, government agencies were eager to attract private capital to develop large-scale infrastructures and stimulate national economies. This study investigated the major role public–private partnerships (PPPs) played in stimulus plans and the challenges faced when promoting PPPs in response to the 2008 GFC. In Taiwan, practices for PPP institutional frameworks (IFs) have been established to improve the current strategy that policy makers can follow. This paper proposes specific tools and measures as well as a novel strategic governance model comprising 4 stages in a closed-loop process that is based on experiences in Taiwan and constructed to facilitate stakeholder management. The model can be used to identify key stakeholders and their needs, address key stakeholders’ needs, and evaluate the performance of proposed solutions. The findings of this study can be used by governments that intend to enhance IFs and systematically attract private investment in infrastructure projects; economic downsizing and other adverse consequences of GFCs can thus be avoided. In addition, those who intend to participate in PPP projects in Taiwan can benefit from understanding the PPP strategy introduced in this paper.