Search results

1 – 10 of 37
Open Access
Article
Publication date: 21 July 2022

Anna-Therése Järvenpää, Johan Larsson and Per Erik Eriksson

This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.

Abstract

Purpose

This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.

Design/methodology/approach

Semi-structured interviews about six infrastructure projects were conducted to identify respondents’ views on innovation possibilities. These possibilities were then analyzed from an organizational control perspective within principal–agent relationships between the Swedish Transport Administration (STA) and their contractors.

Findings

How the client uses control systems affects innovation possibilities. Relying on process control could negatively affect innovation opportunities, whereas output control could have a positive influence. In addition, social control seems to have a weak effect, as the STA appears not to use social control to facilitate joint innovation. Public clients must comply with the Public Procurement Act and, therefore, retain the requirements specified in the tendering documents. Much of the steering of the execution is connected to the ex ante phase (before signing the contract), which affects innovation possibilities in the design and execution phases for the contractor.

Research limitations/implications

This study was conducted with only one client, thus limiting its generalizability. However, the findings provide an important stepping stone to further investigation into balancing control systems and creating innovation possibilities in a principal–agent relationship.

Originality/value

Although public procurement has increasingly been emphasized as a major potential source of innovation, studying how a public client’s use of organizational control systems affects innovation possibilities in the construction sector has received scant attention.

Details

Construction Innovation , vol. 24 no. 7
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 28 March 2022

Muhammad Ayat, Azmat Ullah and Changwook Kang

The primary purpose of this study is to explore the relationship between the unsolicited proposal (USP) and the performance of private participation infrastructure (PPI) projects…

Abstract

Purpose

The primary purpose of this study is to explore the relationship between the unsolicited proposal (USP) and the performance of private participation infrastructure (PPI) projects in developing countries.

Design/methodology/approach

The main data set for this study was collected from the World Bank database consisting of 8,951 PPI projects that occurred in developing countries from 1996 to 2020. Hierarchical logistic regression was applied for investigating the effects of USPs on project success. Three moderators, namely, control of corruption, presence of local sponsor and project size were also included in the model to test the impact of their interactions with the USP on the performance of PPI projects. Further, to assess the impact of the effect of USPs, the average marginal effect was calculated. The framework used in this study consists of 18 control variables, three moderators and one noncontrolled independent variable (the USP).

Findings

The results of hierarchical logistic regression indicate that USPs have a significant and negative effect on the success of PPI projects occurring in developing countries. The negative effect of a USP weakens with the presence of local sponsors and stronger control of corruption in the host country. However, contrary to the authors’ expectations, the results show that project size does not significantly affect the association between USPs and the success of PPI projects. Moreover, the results of average marginal effects show that the negative impact of USP on the success of PPI projects ranges between 2.4% and 3.8%.

Originality/value

This study quantifies the negative impact of USP on the success of PPI projects in developing countries, which will be helpful for the practitioners to understand the associated risk with USP projects. Furthermore, it also identifies the moderating roles of control of corruption and the presence of local sponsors on the relationship between USP and the success of PPI projects.

Details

Journal of Engineering, Design and Technology , vol. 22 no. 3
Type: Research Article
ISSN: 1726-0531

Keywords

Expert briefing
Publication date: 18 April 2024

First cases pursued under the FSR show it could be one of the most far-reaching of the strategic autonomy measures introduced under this Commission. One Chinese company has…

Open Access
Article
Publication date: 9 November 2023

Abdulmohsen S. Almohsen, Naif M. Alsanabani, Abdullah M. Alsugair and Khalid S. Al-Gahtani

The variance between the winning bid and the owner's estimated cost (OEC) is one of the construction management risks in the pre-tendering phase. The study aims to enhance the…

Abstract

Purpose

The variance between the winning bid and the owner's estimated cost (OEC) is one of the construction management risks in the pre-tendering phase. The study aims to enhance the quality of the owner's estimation for predicting precisely the contract cost at the pre-tendering phase and avoiding future issues that arise through the construction phase.

Design/methodology/approach

This paper integrated artificial neural networks (ANN), deep neural networks (DNN) and time series (TS) techniques to estimate the ratio of a low bid to the OEC (R) for different size contracts and three types of contracts (building, electric and mechanic) accurately based on 94 contracts from King Saud University. The ANN and DNN models were evaluated using mean absolute percentage error (MAPE), mean sum square error (MSSE) and root mean sums square error (RMSSE).

Findings

The main finding is that the ANN provides high accuracy with MAPE, MSSE and RMSSE a 2.94%, 0.0015 and 0.039, respectively. The DNN's precision was high, with an RMSSE of 0.15 on average.

Practical implications

The owner and consultant are expected to use the study's findings to create more accuracy of the owner's estimate and decrease the difference between the owner's estimate and the lowest submitted offer for better decision-making.

Originality/value

This study fills the knowledge gap by developing an ANN model to handle missing TS data and forecasting the difference between a low bid and an OEC at the pre-tendering phase.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 13
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 February 2024

Anne-Sophie Thelisson and Olivier Meier

Organizational resilience, defined by a firm’s speed in reaching a dynamic equilibrium after a shock and after the shocks are absorbed, and crisis management are critical in a…

Abstract

Purpose

Organizational resilience, defined by a firm’s speed in reaching a dynamic equilibrium after a shock and after the shocks are absorbed, and crisis management are critical in a global crisis. The concept of resilience is increasingly used in the economic press; nevertheless, few studies demonstrate empirically how firms became resilient and the lessons to be learned from it. Traditionally, the concept of resilience is approached as resistance in the face of a crisis. The authors go further by showing three-loop learning, which is part of a logic of innovation and regeneration. This study aims to examine how a business can regenerate itself by effectively managing the external threats and disruptions caused by a crisis. Also, this study deepens knowledge on learning process. The double-loop learning process is known in the literature as enabling firms to learn from unexpected events and react accordingly. The findings point out a third loop implying the co-invention of a new business model and a collective mindfulness of changes made.

Design/methodology/approach

Using longitudinal data, the authors investigate how the global crisis affects merger negotiations between two companies. This study analyzes the period of dialogue (negotiation) between the two entities with a view to carrying out a merger and then their withdrawal from the project during the pandemic, reshuffling the cards for each company. The negotiation period is not normally disclosed because of its highly confidential and strategic nature and it is therefore difficult for researchers to access merger operations at the negotiation stage. From this viewpoint, this case study was chosen because of the availability of generally inaccessible documentation.

Findings

This in-depth case study provides new insights on organizational resilience and the recovery capacity of a firm. The results underline four main triggers that a firm should develop in facing a major crisis: skills; credits; previous and historical relationships; and corporate culture. Recovery capacity depends on reactivity, flexibility, learning and regeneration. Finally, this study points out a three-loop learning experience that can be understood as a learning process in two steps to generate lasting and adaptive changes.

Research limitations/implications

The limitations are those concerning a single case study.

Practical implications

This study highlights the ability to deal with unexpected events. First, this work identifies concrete items that can be perceived by managers as elements enabling a firm to develop resilience. Second, the results show main elements enabling this capacity as reactivity – both companies react quickly and effectively to disturbances to limit the impact on their performance; or flexibility – firms adapt their business model to deal with disruptions. Third, this work underlines a learning capacity process in three steps to recover capacity. This process stimulates creativity and innovation by the teams and stakeholders by placing them at the heart of the change.

Originality/value

This case provides a vivid illustration of firms’ adaptation to a rapidly evolving context because of a global crisis. Theoretical concepts and empirical findings from the literature are combined to present a single consistent picture.

Details

Journal of Business Strategy, vol. 45 no. 3
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 8 March 2022

Augustine Senanu Komla Kukah, De-Graft Owusu-Manu, Edward Badu and David John Edwards

In comparison to other countries, power generation in Sub-Saharan Africa is poor. The demand for power has surged in recent times and continues to increase at a fast rate. The…

Abstract

Purpose

In comparison to other countries, power generation in Sub-Saharan Africa is poor. The demand for power has surged in recent times and continues to increase at a fast rate. The public–private partnership (PPP) model has been identified as an option to address the challenges in the power sector. The purpose of this research paper is to critically explore the reasons for entering into PPP power projects in Ghana by the public and private parties.

Design/methodology/approach

Questionnaires were used to elicit responses from respondents using a two-round Delphi survey. From 60 respondents contacted in round one, 48 responses were obtained, and these 48 respondents further took part in round two. Mean score ranking was used to rank the reasons for entering into PPP power projects, while analysis of variance (ANOVA) was run to test significant difference in perceptions among the respondents.

Findings

From round 2 of the Delphi survey, the significant reasons for public sector entering into PPP power projects were as follows: achieving improved value for money, access to additional capital, increased certainty of projects and greater efficiency of project delivery services. For private sector, most significant reasons were as follows: obtaining of investment support, improvement in private sector’s international image and synergy with public sector. From ANOVA analysis, there were significant different perceptions among some of factors on the respondent profile variables and the reasons for entering into PPP power projects, while other factors did not have significant different perception.

Originality/value

Significant reasons for both public and private sectors identified would be incorporated by the government when PPP policy guidelines and laws are reviewed. This will aid in the effective implementation of PPP for power projects.

Details

Journal of Engineering, Design and Technology , vol. 22 no. 3
Type: Research Article
ISSN: 1726-0531

Keywords

Open Access
Article
Publication date: 6 July 2022

Klara Granheimer, Tina Karrbom Gustavsson and Per Erik Eriksson

Prior research has emphasised the importance of the early phases of construction projects, as well as the difficulties of procuring engineering services – especially due to the…

Abstract

Purpose

Prior research has emphasised the importance of the early phases of construction projects, as well as the difficulties of procuring engineering services – especially due to the uncertainties. Despite that, studies on the public procurement of engineering services are scarce. Although scholars have shown that uncertainty may affect the choice of control modes, the level of uncertainty that characterises services is not addressed by the two task characteristics: knowledge of the transformation process and output measurability. The purpose is to investigate organisational control in public procurement of engineering services.

Design/methodology/approach

The existing control model was adjusted in this study by conceptually adding uncertainty as a third aspect to the two task characteristics. A single case study of the Swedish Transport Administration was used. The empirical data, comprising 14 interviews with managers from the client and engineering consulting companies, were analysed using flexible pattern matching and visual mapping approaches and then illustrated using the model.

Findings

The public client did not base its choice of control modes on uncertainty, but rather on the other two task characteristics. Consequently, the service providers argued that the chosen control modes reduced their creativity, increased their financial risks and caused unclear responsibilities. This study therefore shows that uncertainty is an important factor to consider in the choice of control modes, both from a theoretical perspective and from the service providers' point of view. The developed model may therefore be useful for researchers as well as practitioners.

Originality/value

This study is the first attempt to add uncertainty as a task characteristic when choosing control modes. The results contribute to the scarce control literature regarding the procurement of engineering services for construction projects and the procurement of other services with high uncertainty.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 13
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 19 April 2024

Atupakisye Mwakolo, Meshack Siwandeti, Leticia Mahuwi and Baraka Israel

The study aims to explore the role of procurement of good governance (PGG) on value for money (VfM) achievement in public construction projects. By investigating various…

Abstract

Purpose

The study aims to explore the role of procurement of good governance (PGG) on value for money (VfM) achievement in public construction projects. By investigating various dimensions of PGG, including transparency, accountability, competition and integrity, this study provides insights into how these factors contribute to the successful achievement of VfM outcomes in public construction projects.

Design/methodology/approach

The data were sourced from 203 construction project practitioners from 24 selected procuring entities in Tanzania using a census approach and a cross-sectional questionnaire survey. Confirmatory factor analysis (CFA) and structural equation modelling (SEM) were used for data analysis.

Findings

The findings of the study revealed a positive and significant impact of various dimensions of PGG on VfM. Specifically, transparency, accountability, competition and integrity were positively and significantly related to VfM, with p-values <0.001. Based on the study findings, we conclude that PGG is an important predictor of VfM achievement in public construction projects.

Practical implications

The study offers policy implications for streamlined PGG and VfM achievement in public construction projects. It is suggested that procuring entities can enhance VfM by enforcing compliance with the principles of PGG throughout the entirety of construction projects. In this case, streamlined legislative frameworks and control mechanisms are crucial components that could enhance PGG and the achievement of VfM.

Originality/value

This study contributes to the academic literature on the strategic role of PGG in enhancing VfM achievement. This is one of the research domains, which has not been adequately researched, particularly in Tanzania’s context. In addition, the study provides valuable insights to policymakers, practitioners and stakeholders involved in public construction projects to improve project outcomes and resource allocation.

Details

LBS Journal of Management & Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-8031

Keywords

Open Access
Article
Publication date: 25 April 2024

Johanna Maria Liljeroos-Cork and Kaisu Laitinen

Infrastructure forms a basis for the operations and sustainability of the modern society. This paper aims to recognize value creation from the infrastructure procurement ecosystem…

Abstract

Purpose

Infrastructure forms a basis for the operations and sustainability of the modern society. This paper aims to recognize value creation from the infrastructure procurement ecosystem perspective to achieve those goals. The pursuit of enhancing value creation involves an examination of infrastructure procurement challenges, boundaries as well as boundary spanners that facilitate effective knowledge transfer and interaction.

Design/methodology/approach

The qualitative study is based on content analysis of 25 thematic interviews. Data was transcribed and coded via Atlas.ti software.

Findings

Infrastructure procurement value creation challenges appear complex and related to boundaries that hamper collaboration, coordination and knowledge sharing. Our results show that these boundaries locate within and between different levels of procurement ecosystem. Therefore, value creation in infrastructure procurement requires boundary spanners for leveraging knowledge sharing and interaction. Artifacts, discussion, processes and brokers as identified boundary spanners are strongly nested and interrelated in the industry. Special attention should be given to supporting individuals to act as brokers, since they play the key roles in trust building, culture steering and usage of other boundary spanners.

Social implications

Promoting value creation in infrastructure procurement helps to achieve socio-economic development goals.

Originality/value

This study offers a unique perspective on value creation in the context of infrastructure by adopting an ecosystem lens and examining boundary crossing mechanisms. The results support future development of collaboration and knowledge sharing practices fostering procurement productivity.

Details

Journal of Public Procurement, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1535-0118

Keywords

Open Access
Article
Publication date: 3 July 2023

Siraj Ahmed, Jukka Majava and Kirsi Aaltonen

The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE…

3356

Abstract

Purpose

The purpose of this study is to investigate the benefits and challenges of implementing circular economy (CE), as well as shed light on the influence of procurement strategy in CE implementation in construction projects.

Design/methodology/approach

A qualitative research approach with abductive reasoning was adopted. The empirical data were collected from the construction industry in the United Arab Emirates (UAE).

Findings

The results reveal that clients, consultants and contractors have limited awareness, knowledge and motivation to implement CE in construction projects. The absence of incentives to design projects following CE principles, lack of involvement of contractors and suppliers, non-use of materials that use CE principles and current procurement strategies are the main challenges for the implementation of CE in the UAE.

Originality/value

Previous research offers limited knowledge on CE and its implementation in construction projects particularly from a procurement strategy perspective. The findings of the study provide new knowledge of the benefits, challenges and role of procurement strategy for implementing CE. It is suggested that collaborative and partnering-based procurement methods are needed to facilitate the effective implementation of CE.

Details

Construction Innovation , vol. 24 no. 7
Type: Research Article
ISSN: 1471-4175

Keywords

1 – 10 of 37