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Open Access
Article
Publication date: 15 October 2020

Barbara Gaudenzi, George A. Zsidisin and Roberta Pellegrino

Firms can choose from an array of approaches for reducing the detrimental financial effects caused by unfavorable fluctuations in commodity prices. The purpose of this…

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Abstract

Purpose

Firms can choose from an array of approaches for reducing the detrimental financial effects caused by unfavorable fluctuations in commodity prices. The purpose of this paper is to provide guidance for effectively estimating the financial effects of mitigating commodity price risk volatility (CPV) in supply chain management decisions.

Design/methodology/approach

This paper adopts two prominent and complementary methodologies, namely, total cost of ownership (TCO and real options valuation (ROV), to illustrate how commodity price risk mitigation strategies can be analyzed with respect to their effect on costs and performance. The paper provides insights through a case study to demonstrate the application of these methods together and establish the benefits and challenges associated with their implementation.

Findings

The paper illustrates advantages and disadvantages of TCO and ROV and how these approaches can be adopted together to contribute to effective purchasing decisions. Supply chain flexibility is a key capability but requires investments. Holistically measuring the financial effects of flexibility investments is imperative for gaining executive management support in mitigating commodity price volatility.

Research limitations/implications

This study can provide supply chain professionals with useful guidance for measuring the costs and benefits related to developing strategies for mitigating commodity price volatility. TCO provides a focus on the costs associated with the commodity purchasing process, and ROV enables the aggregation of all the costs and benefits associated with the use of the strategy and synthesizes them into the net value estimate.

Originality/value

The paper provides a comparison of different but complementary approaches, specifically TCO and ROV, for analyzing the effectiveness of CPV risk mitigation decisions. In addition, these two methods allow supply chain professionals to evaluate and control the financial effects of CPV risk, particularly the impact of mitigation on firm’s cash flows.

Details

Supply Chain Management: An International Journal, vol. 26 no. 1
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 3 September 2018

Nunzia Carbonara and Roberta Pellegrino

The prevailing view in the studies on Public Private Partnerships (PPPs) is that PPPs can improve the quality and efficiency of infrastructure services and facilitates…

Abstract

Purpose

The prevailing view in the studies on Public Private Partnerships (PPPs) is that PPPs can improve the quality and efficiency of infrastructure services and facilitates innovation in infrastructure developments. Although researchers highlight the potentiality of PPP models for stimulating innovation, they do not prove whether and in which conditions the PPP model is capable of developing innovative solutions. This paper aims to provide answers to the following key research questions: Which are the PPP features that favor innovation? How properly structure a PPP to foster innovation?

Design/methodology/approach

With this aim, drawing upon the main streams of studies on innovation, the authors develop a conceptual framework that identifies the PPP features that can influence the innovativeness. Second, they define how these PPP features have to be structured to foster innovation.

Finding

The authors find that a wider involvement of the private sector will increase the level of innovation. The industry structure exerts opposite forces on innovation: the dominance of large-sized firms is positively related to innovative output, whereas the market concentration negatively affects innovation. Performance-based contracts should be used in the context of PPP instead of traditional contracts. Finally, the authors find that, to fully exploit the networking effects on innovation, cooperation and trusting among partners involved in PPPs should be enhanced.

Originality/value

The developed framework identifies the relations existing between each PPP feature and the level of innovation and allows to define how these PPP features have to be structured to foster innovation. The authors contribute to fill the gap in the academic literature on PPP and innovation by proving whether and in which conditions the PPP model is capable of developing innovative solutions. Furthermore, they provide meaningful guidelines to those called to structure the PPP arrangements.

Details

Journal of Public Procurement, vol. 18 no. 3
Type: Research Article
ISSN: 1535-0118

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Article
Publication date: 16 April 2018

Roberta Pellegrino and Nicola Costantino

The purpose of this paper is to focus on productivity as it unfolds during the execution of a particular task, i.e., reinforced concrete operations. The main aim is…

Abstract

Purpose

The purpose of this paper is to focus on productivity as it unfolds during the execution of a particular task, i.e., reinforced concrete operations. The main aim is understanding whether the learning effect explaining the improvement of productivity in subsequent cycles of a given repetitive construction process is mainly attributable to a pure worker learning (independent on the specific site) or to the experience developed by the crew on the site conditions.

Design/methodology/approach

The authors conduct a research that empirically investigates and compares the change in productivity data of a single worker during his/her working life and that of a crew involved in specific repetitive work, such as the concreting activities of a multi-storey building.

Findings

The findings suggest differentiating between productivity gain as a result of the learning effect of the individual worker throughout his/her working life (which is independent of the specific project and site) and that of a crew composed by more workers which repeat reinforced concrete operations in a given specific project.

Research limitations/implications

Despite the great attention reserved to learning in construction, few researchers discuss on the real applicability of the learning curve (LC) theory in the construction industry. The authors contribute to this literature by empirically investigating the contributions that the learning effect of the individual worker and that of a crew repeating a given task (i.e. reinforced concrete operations) in a given project have on the productivity improvement for subsequent cycles of the repetitive construction process.

Practical implications

The findings of this study have important managerial implications. The shape of the LC of the individual worker implies that learning increases relatively slowly in his/her working life (particularly after one to two years), while the effects of the crew experience are immediately significant in a time range of few weeks. This means that a single “one-off” multi-storey building project will show in the first storey the “historical,” individual productivity of the individual workers (i.e. not going to vary significantly in the next few weeks). The productivity improvement in the further storeys will only depend on the project-specific (and collective, for the crew) “learning” due, for example, to better coordination or to other issues that are progressively solved moving from the first storey to the following ones. So, the project-specific LC increases in a faster way than the individual one, and the overall productivity can be improved by accelerating the project-specific learning rate with more accurate project-specific design and management.

Originality/value

This paper enhances the understanding of the contributions that the learning effect of the individual worker and that of a crew repeating a given task (i.e. reinforced concrete operations) in a given project have on the productivity improvement for subsequent cycles of the repetitive construction process. This will contribute to improve the planning and control of site work activities, avoiding time and money wastefulness.

Details

Engineering, Construction and Architectural Management, vol. 25 no. 3
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 3 October 2016

Guido Capaldo, Nicola Costantino, Roberta Pellegrino and Pierluigi Rippa

This paper aims to investigate factors and weaknesses influencing university–industry interactions diffusion and success by focusing on the research services initiatives…

Abstract

Purpose

This paper aims to investigate factors and weaknesses influencing university–industry interactions diffusion and success by focusing on the research services initiatives because there are limited studies in literature focusing on this specific form of interaction between the two actors.

Design/methodology/approach

The authors carried an explorative research based on multiple case studies referring to research services experienced between two big Italian universities and small and medium-sized enterprises located in the same area.

Findings

By conducting a cross-case analysis, the authors highlight categories of data in terms of factors influencing interactions’ diffusion and success, as perceived by researchers and by firms; and weaknesses in the interactions process to identify suggestions for improving interactions’ diffusion and success, from researchers and firms.

Practical implications

The outcomes provide managerial implications useful for agencies supporting the diffusion of innovation among firms and firms’ systems for defining new policies and action plans aimed at making the university–industry interactions faster and more effective, improving the innovation processes within firms.

Originality/value

This paper gives new insight in the analysis of factors enhancing university–industry relationships with a focus on research services collaborations and focusing both on university and industry, where large contributions focus predominantly on both groups.

Details

Journal of Science and Technology Policy Management, vol. 7 no. 3
Type: Research Article
ISSN: 2053-4620

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Article
Publication date: 19 September 2018

Roberta Pellegrino, Nunzia Carbonara and Nicola Costantino

The purpose of this paper is to deal with the maximum interest rate guarantees (MIRGs), and develop a methodology for setting the optimal value of the interest rate cap…

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1204

Abstract

Purpose

The purpose of this paper is to deal with the maximum interest rate guarantees (MIRGs), and develop a methodology for setting the optimal value of the interest rate cap, namely the maximum interest rate above which the private investor will obtain reimbursement from the government, which balances the interests of the parties involved in the project.

Design/methodology/approach

The mechanism underlying the MIRG is modeled through real options. Monte Carlo simulation is employed as the option-pricing method. The resulting real option-based model is applied to the case of the “Camionale di Bari” toll road (Southern Italy).

Findings

The application provides some insights for the policy maker called to define the proper forms of guarantees. Furthermore, the results support the negotiation process, allowing the different actors to structure the guarantee in a way that satisfies all the parties and fairly allocates risks between them according to different operational and financial conditions.

Originality/value

The novelty of the contribution is triple. First, the authors advance the state of the art on government supports by focusing on the interest rate guarantee. Second, the authors enrich the existing studies on MIRG by proposing a quantitative model to set the guarantee in compliance with the public–private win-win principle. The developed real option-based model supports the decision maker in finding the optimal value of the interest rate cap, which is able to satisfy the interests of the parties involved in the project. Third, the authors consider not only the private sponsor and the government, as traditionally made by the models developed for other guarantees, but also the lender.

Details

Built Environment Project and Asset Management, vol. 9 no. 2
Type: Research Article
ISSN: 2044-124X

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Article
Publication date: 7 April 2020

Roberta Pellegrino, Nicola Costantino and Danilo Tauro

This paper provides a comprehensive risk management framework for buyer-supplier relationships where the buyer has the status of a preferred customer with the supplier.

Abstract

Purpose

This paper provides a comprehensive risk management framework for buyer-supplier relationships where the buyer has the status of a preferred customer with the supplier.

Design/methodology/approach

Empirical evidence is offered with a case study on a large multinational organization in the Fast Moving Consumer Goods (FMCG) industry, with some real-life perspectives on the main risks, mitigation strategies, and issues faced when applying the risk management framework.

Findings

The results show that several risks may affect buyer-supplier relationships: not only traditional supply risks but also risks linked to specific initiatives and/or relationships, as well as risks specific to buyer-supplier relationships with a preferred customer status. Customer attractiveness and supplier satisfaction are found as core drivers for the mitigation strategies, which are built to protect the relationship with the supplier, rather than the buying firm alone, knowing that being a preferred customer with preferential resources allocation may increase a firm’s competitive advantage.

Originality/value

The research brings important contributions to the academic literature and interesting insights to strategic purchasing practitioners, by enhancing the existing knowledge on supply risk management in buyer-supplier relationships with a preferred customer status, as well as providing strategic purchasing practitioners a comprehensive view of the risks, which may affect the relationships with a preferred customer status, as well as possible ways to mitigate them.

Details

The TQM Journal, vol. 32 no. 5
Type: Research Article
ISSN: 1754-2731

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Article
Publication date: 18 November 2013

Roberta Pellegrino, Nevena Vajdic and Nunzia Carbonara

Public-private partnerships (PPPs) require the analysis and allocation of a broad spectrum of risks which are considered more complex than in traditional construction…

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1589

Abstract

Purpose

Public-private partnerships (PPPs) require the analysis and allocation of a broad spectrum of risks which are considered more complex than in traditional construction contracts. Traditional risk management techniques tend to ignore the manager's ability to recognize and exploit opportunities, which arise as uncertainties are resolved over time and which could potentially increase the project's value. Therefore it is necessary that the risk management process takes account of the managerial flexibility (e.g. real options). The objective of this paper is to explore the possibilities and rationale for implementing real options strategies in the risk management process.

Design/methodology/approach

The approach is based on a literature analysis aimed at identifying key risks and related mitigation strategies and on real option theory in order to model these strategies as managerial flexibilities that naturally exist or are built “artificially” in contractual conditions and clauses, guarantees, etc.

Findings

The paper develops an option-based risk management framework that associates to each risk the related mitigation strategies, which are expressed in terms of real options. The latter is expressed over the project phases conditioned to the natural evolution of risks over time.

Originality/value

This paper proposes a new “dynamic” risk management approach for PPP projects based on real options that improves the traditional risk management techniques by supporting the decision makers in finding a cost-effective combination of real options (or forms of flexibility) to embed in a PPP investment in order to optimally control risk and maximize investment value.

Details

Built Environment Project and Asset Management, vol. 3 no. 2
Type: Research Article
ISSN: 2044-124X

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Article
Publication date: 7 November 2014

Nunzia Carbonara and Roberta Pellegrino

The purpose of this paper is to provide a comprehensive understanding of the Public Private Partnerships (PPP) in Italy in order to highlight challenges and opportunities…

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1509

Abstract

Purpose

The purpose of this paper is to provide a comprehensive understanding of the Public Private Partnerships (PPP) in Italy in order to highlight challenges and opportunities for a more effective adoption of PPP in Italy. In particular we analyze three key aspects that affect the PPP adoption and implementation, namely the institutional, organizational, and financial ones, and their changes over time.

Design/methodology/approach

To reach the aim, we have conducted an empirical research, gathering qualitative and quantitative relevant information, to characterize three key dimensions affecting the PPP adoption and its effective implementation, namely the institutional, organizational, and financial dimension.

Findings

The analysis of PPP in Italy reveals that, although it is a relatively recent practice, its use is widely spread in delivering public infrastructures. Nevertheless, there are still some shortcomings, related to administrative, financial, and legal issues, that make the application and use of PPP, although considerable in size, less effective and efficient in Italy than in some other countries. In order to overcome these limitations, different interventions are required in order to strength the practices and advance the body of knowledge.

Practical implications

The study formulates useful recommendations for an effective implementation of PPP based on the analysis of the main constraints for the PPP's development in Italy.

Originality/value

The study overcomes the gap of the existing literature on the Italian PPP that have analyzed the phenomenon under two different approaches. Some researchers have investigated the key aspects characterizing PPPs, by adopting a mono-dimensional perspective. Other studies have analyzed the extent of adoption and diffusion of PPP in Italy, by presenting data on PPP projects by sector and/or by types. This paper contributes to fill this gap by providing both a comprehensive analysis of PPP, based on three key dimensions characterizing the PPP adoption and implementation, as well as by presenting an updated picture of the PPP in Italy.

Details

Managerial Finance, vol. 40 no. 11
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 18 July 2016

Nunzia Carbonara, Nicola Costantino and Roberta Pellegrino

– The purpose of this paper is to develop a decision model for choosing the tendering procedure in PPP that minimizes the transaction costs borne by the public sector.

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1229

Abstract

Purpose

The purpose of this paper is to develop a decision model for choosing the tendering procedure in PPP that minimizes the transaction costs borne by the public sector.

Design/methodology/approach

A conceptual model that relates the procurement procedures described in the EU legal framework to launch PPPs and the transaction costs, considering the level of information managed by each procurement procedure has been developed. The authors use this conceptual model to develop propositions about the impact that specific project- and country-related factors have on the choice of the procurement procedure that minimizes the transaction costs.

Findings

The application of the proposed model to the case of the Italian highway “Cispadana” shows its usefulness in orienting the public authority’s choice between the different tendering procedures, taking into account project- and country-related factors.

Research limitations/implications

The present study fills the gap existing in the literature on transaction costs of PPP projects and the procurement procedure used to launch those projects by developing a model that relates the level of transaction costs with a set of key factors, namely the level of information managed during the tendering process, the number of bidders, the project size, the project complexity, and the institutional environment.

Practical implications

As for practitioners, the main contribution of this study lies in offering a tool for supporting the public authority in the decision-making process about the tendering procedures in PPPs without imposing the selection of a specific procedure.

Originality/value

The approach developed provides a new tool to support the contracting authority in the design and choice of the tendering procedures in PPP.

Details

Engineering, Construction and Architectural Management, vol. 23 no. 4
Type: Research Article
ISSN: 0969-9988

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Book part
Publication date: 12 August 2020

Paweł Modrzyéski

Abstract

Details

Local Government Shared Services Centers: Management and Organizations
Type: Book
ISBN: 978-1-83982-258-2

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