nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2008‒02‒02
eight papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Performance of Procrastinators: On the Value of Deadlines By Fabian Herweg; Daniel Müller
  2. Complex Incremental Product Innovation in Established Service Firms: A Micro Institutional Perspective By Vermeulen, P.A.M.; Bosch, F.A.J. van den; Volberda, H.W.
  3. Re-Inventing the Wheel: Knowledge Integration in Fast-changing Environments. By Stefano Brusoni; Lorenzo Cassi
  4. Residual income and value creation: An investigation into the lost-capital paradigm By Magni, Carlo Alberto
  5. Les enjeux économiques et industriels liés au recours aux partenariats public-privé<br />dans le domaine spatial<br />Une application : le contrat de Private Finance Initiative britannique Skynet V By Frédéric Marty
  6. Reframing technical change: Livestock Fodder Scarcity Revisited as Innovation Capacity Scarcity: Part 1. A Review of Historical and Recent Experiences By Hall, Andy; Sulaiman, Rasheed; Dhamankar, Mona; Bezkorowajnyj, Peter; Prasad, Leela
  7. Reframing technical change: Livestock Fodder Scarcity Revisited as Innovation Capacity Scarcity: Part 2. A Framework for Analysis By Hall, Andy; Sulaiman, Rasheed; Bezkorowajnyj, Peter
  8. Reframing technical change: Livestock Fodder Scarcity Revisited as Innovation Capacity Scarcity: Part 3. Tools for Diagnosis and Institutional Change in Innovation Systems By Hall, Andy; Sulaiman, Rasheed; Bezkorowajnyj, Peter

  1. By: Fabian Herweg; Daniel Müller
    Abstract: Earlier work has shown that procrastination can be explained by quasi-hyperbolic discounting. We present a model of effort choice over time that shifts the focus away from completion to performance on a single task. We show that quasi-hyperbolic discounting is detrimental for performance. More intrestingly, we find that being aware of the own self-control problems not necessarily increases performance. Extending this framework to a multi-task model, we show that deadlines help an agent to structure his workload more efficiently, which in turn leads to better performance. Moreover, being restricted by deadlines increases a quasi-hyperbolic discounter's well-being. Thus, we give a theoretical underpinning for recent empirical evidence and numerous casual observations.
    Keywords: Effort Choice; Deadlines; (Quasi-) Hyperbolic Discounting; Naiveté; Present-Biased Preferences; Sophistication
    JEL: A12 D11
    Date: 2008–01–23
  2. By: Vermeulen, P.A.M.; Bosch, F.A.J. van den; Volberda, H.W. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Many product innovation studies have described key determinants that should lead to successful incremental product innovation. Despite numerous studies suggesting how incremental product innovation should be successfully undertaken, many firms still struggle with this type of innovation. In this paper, we use an institutional perspective to investigate why established firms in the financial services industry struggle with their complex incremental product innovation efforts. We argue that although the impact of micro institutional forces is often overlooked in innovation studies, these forces matter for innovation success. Our study complements the existing innovation literature and provides an additional explanation why incremental product innovation is highly complex and suffers from several liabilities in established firms. Using qualitative data from the Dutch financial services sector collected over the period 1997-2002, the paper illustrates how micro institutional forces at the business unit level affect complex incremental product innovation and how the interaction of these forces delivers their impact.
    Keywords: complex incremental product innovation;neo-institutional theory;micro institutional forces;financial services sector
    Date: 2007–11–02
  3. By: Stefano Brusoni (CESPRI - Bocconi University, Milan, Italy.); Lorenzo Cassi (ADIS, Université Paris Sud.)
    Abstract: The aim of this paper is to look at knowledge integration as an organizational capability which leaves traces in intra-organizational networks. To do so, this paper develops a methodology to identify and capture with quantitative data the key characteristics of those organizations that integrate knowledge to solve complex problems. We rely on a two year long project which has gathered extensive qualitative evidence on the micro-level processes which led to the introduction of a radical process innovation in tire manufacturing, i.e. a robotized, modular production process. On this strength, we compare the strategies of two of the world’s leading firms (Michelin and Pirelli) engaged in the effort of developing this breakthrough technology in the 1990s. We look at the evolving structure of their intraorganizational co-inventors’ networks in order to explain the different outcomes of their strategies.
    Keywords: knowledge integration, social network analysis, tire industry.
    JEL: O32 L23 L6
    Date: 2007–12
  4. By: Magni, Carlo Alberto
    Abstract: This paper presents a new way of measuring residual income, originally introduced by Magni (2000a, 2000b, 2003). Contrary to the standard residual income, the capital charge is equal to the capital lost by investors. The lost capital may be viewed as (a) the foregone capital, (b) the capital implicitly infused into the business, (c) the outstanding capital of a shadow project, (d) the claimholders' credit. Relations of the lost capital with book values and market values are studied, as well as relations of the lost-capital residual income with the classical standard paradigm; many appealing properties are derived, among which a property of earnings aggregation. Different concepts and results, provided by different authors in such different fields as economic theory, management accounting and corporate finance, are considered: O'Hanlon and Peasnell's (2002) unrecovered capital and Excess Value Created; Ohlson's (2005) Abnormal Earnings Growth; O'Byrne's (1997) EVA improvement; Miller and Modigliani's (1961) investment opportunities approach to valuation; Keynes's (1936) user cost; Drukarczyk and Schueler's (2000) Net Economic Income, Fernandez's (2002) Created Shareholder Value, Anthony's (1975) profit. They are all conveniently reinterpreted within the theoretical domain of the lost-capital paradigm and conjoined in a unified view. The results found make this new theoretical approach a good candidate for firm valuation, incentive compensation, capital budgeting decision-making
    Keywords: Corporate finance, management accounting, valuation, residual income, value creation, incentive compensation, outstanding capital, lost capital, net present value, book value, market value
    JEL: G11 G31 D40 M52 G30 M40 D46 M41 G12 G0 M21
    Date: 2007–11–13
  5. By: Frédéric Marty (IDEFI - Institut de droit et d'économie de la firme et de l'industrie - CNRS : FRE2814 - Université de Nice Sophia-Antipolis)
    Abstract: Analyse économique du contrat de partenariat public-privé relatif aux satellites de télécommunications de défense Skynet V.<br />Etude de la construction contractuelle et de sa renégociation : impact sur l'équilibre économique du contrat
    Keywords: Contrats publics, PPP, montages financiers
    Date: 2008–01–24
  6. By: Hall, Andy (UNU-MERIT, LINK); Sulaiman, Rasheed (CRISP, LINK); Dhamankar, Mona (LINK); Bezkorowajnyj, Peter (ILRI); Prasad, Leela (ILRI)
    Abstract: This is the first in a series of three papers that develop a conceptual framework for a project on livestock fodder innovation. Livestock is important to the livelihoods of poor people in many regions of the developing world. A generic problem found across this diverse range of production and marketing contexts is the shortage of fodder. This paper argues that to address this problem it is necessary to frame the question of fodder shortage not from the perspective of information and technological scarcity, but from the perspective of capacity scarcity in relation to fodder innovation. To support this position the paper presents case studies of experience from an earlier fodder innovation project. These cases suggest that while fodder technology is important, it is not enough. There is a large institutional dimension to bringing about innovation, particularly with respect to the effectiveness of networks and alliances needed to put technology into use.
    Keywords: Technological Change, Agricultural Technology, Livestock, Poverty Reduction, Partnerships, India, Nigeria
    JEL: O33 Q16 Q18
    Date: 2008
  7. By: Hall, Andy (UNU-MERIT, LINK); Sulaiman, Rasheed (CRISP, LINK); Bezkorowajnyj, Peter (ILRI)
    Abstract: This is the second in a series of three papers that develop a conceptual framework for a project on livestock fodder innovation. The paper begins by reviewing the evolving paradigms of agricultural research and innovation over the last 30 years or so and explains the emergence and relevance of the innovation systems concept to agricultural development. The paper then presents a framework for exploring fodder innovation capacity. This framework gives particular emphasis to the patterns of interaction needed for innovation and the policy and institutional settings needed to enable these processes. The paper concludes with some comments on the difficulties of measuring institutional change and the desirability of tracking institutional change and its relationship to welfare outcomes.
    Keywords: Technological Change, Agricultural Technology, Livestock, Poverty Reduction, Institutional Change, Welfare Outcomes
    JEL: O33 Q16 Q18
    Date: 2008
  8. By: Hall, Andy (UNU-MERIT, LINK); Sulaiman, Rasheed (CRISP, LINK); Bezkorowajnyj, Peter (ILRI)
    Abstract: The exploration of fodder innovation capacity requires tools to undertake the following tasks: (i) Diagnosis of fodder innovation capacity to identify project starting points, including micro and macro elements (ii) Socio-economic benchmarking, and follow-up studies (iii) Pilot innovation cloud process learning/ process-driven intervention correction (iv) Comparative analysis of institutional change processes (iv) Project team process learning And (iv) Project evaluation. There is a wide range of existing tools available to investigate institutional change. This paper reviews these and recommends that an eclectic approach of mixing and matching tools to the emerging circumstances of the research is the best way forward.
    Keywords: Technological Change, Agricultural Technology, Livestock, Poverty Reduction, Evaluation, Benchmarking
    JEL: O33 Q16 Q18
    Date: 2008

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