Managing Productivity in the Infrastructure Sector: A Case Study from Indonesia

Eric R. W. Knight, James D. Meade


This paper considers the nature of assessing productivity and effectiveness in infrastructure investment in the context of governments’ increasing investment in new infrastructure. Taking the case of energy infrastructure investment within Indonesia, this paper makes three contributions: (i) develops a model for assessing infrastructure productivity based on landscape, regime and niche-level changes, (ii) suggests the interconnection between these levels based on sequencing multi-level changes over time, and (iii) shows the role of supply and demand side initiatives in enabling new infrastructure investment is evaluated. 



Artikel ini mempertimbangkan sifat dari penilaian produktivitas dan efektivitas pada investasi infrastruktur dalam rangka peningkatan investasi pemerintah pada infrastruktur baru. Dengan menggunakan kasus investasi infrastruktur energi di Indonesia, artikel ini menghasilkan tiga hal: (i) nembangun model untuk menilai produktivitas infrastruktur berdasarkan perubahan dari lanskap, rezim, dan perubahan di level yang tepat, (ii) menunjukkan interkoneksi antar level-level tersebut berdasarkan perubahan multi-level yang berurutan dari waktu ke waktu, dan (iii) menunjukkan peran dari inisiatif sisi penawaran dan permintaan yang memungkinkan investasi infrastruktur baru untuk dievaluasi.

Kata kunci: Infrastruktur; Investasi; Produktivitas; Kerangka Perspektif Multi-Level; Inovasi

JEL classifications: O25; O33; O38


Infrastructure; Investment; Productivity; Multi-Level Perspectives Framework; Innovation

Full Text:



Arrow, KJ & Debreu, G 1954, ’Existence of an equilibrium for a competitive economy’, Econometrica: Journal of the Econometric Society, vol. 22, no. 3, pp. 265–290.

Asian Development Bank 2010, Sarulla geothermal power generation project data sheet, Asian Development Bank.

Benner, MJ & Tushman, ML 2003, ’Exploitation, exploration, and process management: the productivity dilemma revisited’, The Academy of Management Review, vol. 28, no. 2, pp. 238–256.

Burns, T & Stalker, GM 1966, The management of innovation, Tavistock, London.

Cameron, K & Quinn, R 1988, ’Organizational paradox and transformation’, in R Queen & K Cameron (eds.), Paradox and transformation: toward a theory of change in organization and management, pp. 1–18, Ballinger, Cambridge, MA.

Clark, GL & Monk, AHB 2013a, ’Financial institutions, information, and investing-at-a-distance’, Environment & Planning A, vol. 45, no. 6, pp. 1318–1336.

Clark, GL & Monk, AHB 2013b, ’The scope of financial institutions: in-sourcing, outsourcing and off-shoring’, Journal of Economic Geography, vol. 13, no. 2, pp. 279–298.

Clark, GL, Dixon, AD, & Monk, AHB 2013, Sovereign wealth funds: legitimacy, governance, and global power, Princeton University Press, Princeton, New Jersey.

Crosetti, M 2012, ’Policy, financing & institutional innovations for geothermal power generation in Indonesia’, presentation at Asia Clean Energy Forum, Manila, June 2012. Available from: . [20 September 2015].

Dobbs, R, Pohl, H, Lin, D-Y, Mischke, J, Garemo, N, Hexter, J, Matzinger, S, Palter, R, & Nanavatty, R 2013, Infrastructure productivity: how to save $1 trillion a year, McKinsey Global Institute and McKinsey Infrastructure Practice Report, January.

Doornbosch, R & Knight, ERW 2008, What role for public finance in international climate change mitigation, OECD Roundtable for Sustainable Development, SG/SD/RT(2008)3.

Eisenhardt, KM 1989, ’Making fast strategic decisions in high-velocity environments’, The Academy of Management Journal, vol. 32, no. 3, pp. 543–576.

Farjoun, M 2010, ’Beyond dualism: stability and change as a duality’, The Academy of Management Review, vol. 35, no. 2, pp. 202–225.

Geels, FW 2002, ’Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case study’, Research Policy, vol. 31, no. 8, pp. 1257–1274.

Geels, FW 2005, Technological transitions and system innovations: a co-evolutionary and socio-technical analysis, Edward Elgar Publishing.

Geels, FW & Kemp, R 2006, Transitions, Transformations and Reproduction. Dynamics in Socio-technical Systems’, in M McKelver & M Holmen (eds.), Flexibility and Stability in the Innovating Economy, pp. 227–256, Oxford University Press, Oxford, UK.

Hebb, T & Sharma, R 2014, ’New finance for America’s cities’, Regional Studies, vol. 48, no. 3, pp. 485–500.

Howarth, N 2012, ’Clean energy technology and the role of non-carbon price-based policy: an evolutionary economics perspective’, European Planning Studies, vol. 20, no. 5, pp. 871–891.

Kemp, R 1994, ’Technology and the transition to environmental sustainability: the problem of technological regime shifts’, Futures, vol. 26, no. 10, pp. 1023–1046.

Knight, ERW 2012, ’Five perspectives on an emerging market: challenges with clean tech private equity’, The Journal of Alternative Investments, vol. 14, no. 3, pp. 76–81.

Knight, ERW & Sharma, R 2015, ’Infrastructure as a traded product: A relational approach to finance in practice’, Journal of Economic Geography, p.lbv039. Published online October 30, 2015.

March, JG 1991, ’Exploration and exploitation in organizational learning’, Organization Science, vol. 2, no. 1, pp. 71–87.

Nelson, RR & Winter, SG 1982, An evolutionary theory of economic change, Belknap Press of Harvard University Press, Cambridge, Massachusetts & London, England.

O’Neill, P 2009, ’Infrastructure investment and the management of risk’, in GL Clark, AD Dixon, & AHB Monk (eds.), Managing financial risks: from global to local, pp. 163–188, Oxford University Press, Oxford, U.K.

O’Reilly, CA & Tushman, ML 2013, ’Organizational ambidexterity: past, present and future’, The Academy of Management Perspectives, vol. 27, no. 4, pp. 324–338.

Polycarp, C, Brown, L, & Fu-Bertaux, X 2013, Mobilising climate investment, World Resources Institute.

Pramudatama, R 2012, ’Govt raises prices for geothermal power plants to lure investors’, The Jakarta Post 18 July. Available from: . [2 October 2015].

Schot, J & Geels FW 2008, ’Strategic niche management and sustainable innovation journeys: theory, findings, research agenda, and policy’, Technology Analysis & Strategic Management, vol. 20, no. 5, pp. 537–554.

Schot, J, Hoogma, R, & Elzen, B 1994, ’Strategies for shifting technological systems’, Futures, vol. 26, no. 10, pp. 1060–1076.

Schumpeter, JA 1976, Capitalism, socialism, and democracy, Allen and Unwin, London.

Thompson, JD 2003, Organizations in action: social science bases of administrative theory (Classics in Organization and Management Series), Transaction Publishers, New Brunswick, NJ.

Torrance, M 2009, ’Reconceptualizing urban governance through a new paradigm for urban infrastructure networks’, Journal of Economic Geography, vol. 9, no. 6, pp. 805–822.

Torrance, MI 2007, ’The power of governance in financial relationships: governing tensions in exotic infrastructure territory’, Growth and Change, vol. 38, no. 4, pp. 671–695.

Wahjosoedibjo, A & Hasan, M 2012, ’Geothermal fund for hastening the development of Indonesia’s geothermal resources’, Proceedings of Thirty-Seventh Workshop on Geothermal Reservoir Engineering, Stanford University, Stanford, California, January 30 - February 1, 2012. SGPTR-194

World Bank 2008, Indonesia geothermal power generation development project appraisal document, Washington, DC.


  • There are currently no refbacks.