The Social Factors Of Investors’ Escalation Of Commitment In PPP Project

With the deepening of China’s reform and opening up, the infrastructure needs continue to grow. In order to ease the pressure on government finances, the rational use of social capital and private capital, the state vigorously develop the PPP model:various departments of the central government continuously enacted 29 regulations and guidance since 2014, the local government launched more than 7110 PPP projects, the project involves amounted to 8.260727 trillion yuan. However, PPP projects are currently only a handful of normal operation in China, in the whole process of the project will upgrade a large number of commitments, leading to projects failure. Therefore, only clarifying commitments upgrade on PPP projects, to ensure the smooth progress of PPP projects, especially social factors.Combing the PPP model theoretical knowledge and escalation of commitment through literature review, in order to provide theoretical basis for further research; in research and analysis based on the previous social factors on escalation ofcommitment,finally comprehensive theoretical analysis to social concepts of factors, social environment including the subjective and objective affect individuals’psychology and behavior, prompting the becoming and change of individuals’attitudes for events, and coming out ten social factors list:social norms and consistent action, face-saving and extrinsic excuse, conformity, competition, public opinion, external constraints, individualism, collectivism, overconfidence and risk-seeking. By analysing the PPP typical case Beijing tenth water plant of failure and comparing with escalation of commitment features, we know that the escalation of commitment is the common case at the PPP projects.On the basis of proposed research direction:PPP projects Investors promise upgrading of social factors; finding out which factors can promote investors catch the escalation of commitment in PPP, through questionnaire design and empirical research.At the empirical study,126 valid questionnaires through different stages of completion of reliability, a values were 0.788,0.870 and 0.86,the trusty data.Then different stages of completion of the project come to study Logistic analysis model, and model validation qualified. Final results showed that the PPP project is completed by 20%, and social factors affect investors’ escalation of commitment is mainly about face-saving and extrinsic excuse, individualism, competition, overconfidence and social norms and consistent action; in PPP projects to 50% when investors promise to commitment significant social factors that affect primarily about face-saving and extrinsic excuse, competition and public opinion; when PPP project to 80% for investors significant social factors that influence the main social are norms and consistent action, face-saving and extrinsic excuse, conformity,public opinion and individualism. In addition, with the deepening of PPP projects, willingness of investor appears increasingly strong escalation of commitment. Also based on the results of this study, we propose a lot of measures to prevent investors’ promise of escalation of commitment, to provide some reference for the PPP project investors.