nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2012‒08‒23
fifteen papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Study of the Management for Successful R&D Projects Supported by Public Funds By YAMAZAKI, Akira; MATSUSHIMA, Kazunari; MIZUNO, Ken-ichiro
  2. Optimal risk allocation in rural next generation infrastructure projects and the role of adequate network modeling: Next generation access, broadband infrastructure projects, business case model By Wirsing, Stephan
  3. IT project portfolio management – a structured literature review By Frey, Thorsten; Buxmann, Peter
  4. Economic Cost-Benefit Analysis (CBA) of Project Environmental Impacts and Mitigation Measure: Implementation Guideline By John A. Dixon
  5. General Balance Functions in the Theory of Interest By David Spring
  6. Ethnic Diversity and Team Performance: A Field Experiment By Sander Hoogendoorn; Mirjam van Praag
  7. Co-operation over Distance? The Spatial Dimension of Inter-organisational Innovation Collaboration By Anja Dettmann; Sidonia von Proff; Thomas Brenner
  8. Determinants of Evolutionary Change Processes in Innovation Networks – Empirical Evidence from the German Laser Industry By Muhamed Kudic; A. Pyka; Jutta Günther
  9. Evaluation of Development Programs: Using Regressions to assess the Impact of Complex Interventions By Chris Elbers; Jan Willem Gunning
  10. Private Equity and the Innovation Strategies of Entrepreneurial Firms: Empirical Evidence from the Small Business Innovation Research Program By Link, Albert N.; Ruhm, Christopher J.; Siegel, Donald S.
  11. Rural Highway Expansion and Economic Development: Impacts on Private Earnings and Employment By Michael Iacono; David Levinson
  12. Need, Merit, and Politics in Multilateral Aid Allocation: A District-Level Analysis of World Bank Projects in India By Peter Nunnenkamp, Hannes Öhler, Maximiliano Sosa Andrés
  13. Aligning climate change mitigation and agricultural policies in Eastern Europe and Central Asia By Larson, Donald F.; Dinar, Ariel; Blankespoor, Brian
  14. Public Development Banks: Addressing the Challenges of Financing Climate Change Mitigation By Diana Smallridge; José Juan Gomes Lorenzo; Michael Peter Rattinger
  15. Working with the grain for reforming the public service : a live example from Sierra Leone By Srivastava, Vivek; Larizza, Marco

  1. By: YAMAZAKI, Akira; MATSUSHIMA, Kazunari; MIZUNO, Ken-ichiro
    Abstract: There are various factors associated with success or failure of R&D projects, such as maturity of the technology, circumstances surrounding R&D systems within companies and environments for commercialization of R&D projects. For R&D projects supported by public funds in particular, it has been difficult to clarify what makes R&D projects successful, because such projects were caught in the idea that they must naturally succeed. What is really required in utilizing public funds for R&D projects, however, is ensuring the public funds should be used most effectively, by making R&D projects truly successful. To do so it is very useful to analyze past cases and identify success factors that can be easily followed. In this study, surveys and interviews were conducted for past publicly supported projects, and success factors were extracted based on the circumstances of the projects by using statistical methods. It was confirmed that the quantitative results were quite consistent with the qualitative anticipation. After streamlining the success factors, further examination of each success factor was carried out for realizing proper management of projects supported by public funds. Next, the guidelines for selection and process management for publicly supported projects while making the best use of these success factors were presented. That is, satisfying the success factors should be a requirement for public support from the start during the selection stage. However, in some cases it is desirable to adopt projects even though the success factors are not satisfied at the time of selection, when such projects are expected to provide extraordinary results in the future. In such cases, executing proper process management and leading projects in a manner that satisfies the success factors is indispensable.
    Date: 2012–07
  2. By: Wirsing, Stephan
    Abstract: Throughout the last decade, the telecommunications sector has been subject to substantial changes in most countries of the world. Increased computational power, higher transmission capacities in combination with an openly and independently designed transport layer for packet switched data (IP) allow for a vast degree of freedom regarding the architecture and independence of services. Especially the transition towards All-IP networks in both, the mobile and the fixed sector, is expected to further extend the scope for end user applications. The usability of the IP-protocol for multiple types of services enables their provision via the same network, and thus services become more independent from physical network infrastructure. Networks with these features are commonly referred to as Next Generation Networks (NGN) or Next Generation Access networks (NGA), respectively. In consequence, operators are confronted with the challenge to fulfill a large number of technological requirements that emerge from the huge variety of distinct service characteristics. --
    Date: 2012
  3. By: Frey, Thorsten; Buxmann, Peter
    Abstract: Recent years have seen an increasing interest in IT project portfolio management. Consequently, a considerable number of respective practices and approaches have been published. However, these contributions are scattered through a large number of journals and conferences and address very different topics. Therefore, this contribution sets out to locate the relevant body of literature related to IT project portfolio management in a structured way and to integrate the existing findings. We discuss the relationship between IT project portfolio management and other kinds of project portfolio management in order to shape the profile of this field of research. In this context we highlight strong interdependencies and a specific governance context as key characteristics of IT project portfolio management. In order to identify success factors and contingency factors we analyze contributions of empirical nature. Additionally, we investigate mathematical approaches and decision support systems in regard to their potential to effectively support IT project portfolio management. Finally, we provide a research agenda with the intention of motivating and directing further contributions in this field.
    Date: 2012–06–12
  4. By: John A. Dixon
    Abstract: This paper provides guidance to Bank staff on how to conduct an expanded, comprehensive economic cost-benefit analysis (CBA) in order to measure net benefits from a project taking both project and environmental factors into account, as required under Directives B.5 and B.9 in the Bank's operational policy OP-703.
    Keywords: Economics, Environment & Natural Resources, cost benefit analysis, project environmental impact, project mitigation measures, environmental economics, Benefit-Cost Analysis
    Date: 2012–07
  5. By: David Spring
    Abstract: We develop an axiomatic theory of balance functions (future value functions) in the theory of interest that is derived from financial considerations and which applies to general regulated payment streams, including continuous payment streams. Balance functions exist and are unique up to an initial choice of deposit and investment accumulation functions. In terms of these balance functions we also construct a unique internal rate of return for each regulated payment stream that is an investment project. This theory subsumes and clarifies previous theories of internal rate of return functions for more specialized classes of investment projects.
    Date: 2012–08
  6. By: Sander Hoogendoorn (University of Amsterdam); Mirjam van Praag (University of Amsterdam)
    Abstract: One of the most salient and relevant dimensions of team heterogeneity is ethnicity. We measure the causal impact of ethnic diversity on the performance of business teams using a randomized field experiment. We follow 550 students who set up 45 real companies as part of their curriculum in an international business program in the Netherlands. We exploit the fact that companies are set up in realistic though similar circumstances and that we, as outside researchers, had the unique opportunity to exogenously vary the ethnic composition of otherwise randomly composed teams. The student population consists of 55% students with a non-Dutch ethnicity from 53 different countries of origin. We find that a moderate level of ethnic diversity has no effect on team performance in terms of business outcomes (sales, profits and profits per share). However, if at least the majority of team members is ethnically diverse then more ethnic diversity has a positive impact on the performance of teams. In line with theoretical predictions, our data suggest that this positive effect could be related to the more diverse pool of relevant knowledge facilitating (mutual) learning within ethnically diverse teams.
    Keywords: Ethnic diversity; team performance; field experiment; entrepreneurship; (mutual) learning
    JEL: J15 L25 C93 L26 M13 D83
    Date: 2012–07–13
  7. By: Anja Dettmann (Working Group on Economic Geography and Location Research, Philipps University Marburg); Sidonia von Proff (Working Group on Economic Geography and Location Research, Philipps University Marburg); Thomas Brenner (Working Group on Economic Geography and Location Research, Philipps University Marburg)
    Abstract: In the literature there is a controversy about the relevance of the spatial dimension in innovation collaboration. We examine the link between the spatial composition of group members and group characteristics which are important for performing innovation projects. To this end, we introduce a social-psychological approach to the field of economic geography. The empirical part is a longitudinal study of 49 inter-organisational innovation groups in Germany. We find that the share of regional partners is rather stable after a funded formation stage. Hence, policy measures aiming at inter-regional collaboration have to be employed at an early stage of group development.
    Keywords: innovation collaboration, collaboration over distance, network formation, Germany
    JEL: L14 R12 O38
    Date: 2012–07
  8. By: Muhamed Kudic; A. Pyka; Jutta Günther
    Abstract: We seek to understand the relationship between network change determinants, network change processes at the micro level and structural consequences at the overall network level. Our conceptual framework considers three groups of determinants – organizational, relational and contextual. Selected factors within these groups are assumed to cause network change processes at the micro level – tie formations and tie terminations – and to shape the structural network configuration at the overall network level. We apply a unique longitudinal event history dataset based on the full population of 233 German laser source manufacturers and 570 publicly-funded cooperation projects to answer the following research question: What kind of exogenous or endogenous determinants affect a firm’s propensity and timing to cooperate and enter the network? Estimation results from a non-parametric event history model indicate that young micro firms enter the network later than small-sized and large firms. An in-depth analysis of the size effects for medium-sized firms provides some unexpected yet quite interesting findings. The choice of cooperation type makes no significant difference for the firms’ timing to enter the network. Finally, the analysis of contextual determinants shows that cluster membership can, but do not necessarily, affect a firm’s timing to cooperate.
    Keywords: network evolution, timing of network entry, innovation networks, German laser industry
    JEL: B52 D85 O32
    Date: 2012–07
  9. By: Chris Elbers (VU University Amsterdam); Jan Willem Gunning (VU University Amsterdam)
    Abstract: There is a growing interest in extending project evaluation methods to the evaluation of programs: complex interventions involving multiple activities. In general a program evaluation cannot be based on separate evaluations of its components since interactions between the activities are likely to be important. We propose a measure of program impact, the total program effect (TPE), which is an extension of the average treatment effect on the treated (ATET). Regression techniques can be applied to observational data from a representative sample to estimate the TPE for complex interventions in the presence of selection effects and treatment heterogeneity. As an example we present an estimate of the TPE for a rural water supply and sanitation program in Mozambique. Estimating the TPE from randomized controlled trials would appear to be an alternative; however, the scope for using RCTs in this context is limited.
    Keywords: program evaluation; randomized controlled trials; policy evaluation; treatment heterogeneity; budget support; sector-wide programs; aid effectiveness
    JEL: C21 C33 O22
    Date: 2012–07–31
  10. By: Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Ruhm, Christopher J. (University of Virginia); Siegel, Donald S. (University at Albany, SUNY)
    Abstract: There is great interest in evaluating the impact of private equity investments on innovation and economic growth. However, there is no direct empirical evidence on the effects of such transactions on the innovation strategies of entrepreneurial firms. We fill this gap by examining a rich project-level data set consisting of entrepreneurial firms receiving Small Business Innovation Research (SBIR) program research awards. We find that SBIR firms attracting private equity investments are significantly more likely to license and sell their technology rights and engage in collaborative research and development agreements. Our results suggest that private equity investments accelerate the development and commercialization of research-based technologies, thus contributing to economic growth. We conclude that both public investments and private investments are key to innovation performance.
    Keywords: Private equity; Innovation; Entrepreneurship; SBIR
    JEL: G24 G34 L26 O31 O33 O38
    Date: 2012–08–02
  11. By: Michael Iacono; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)
    Abstract: With the interstate system substantially complete, the majority of new investment in highways is likely to take the form of selective capacity expansion projects in urban areas, along with incremental expansions and upgrades to expressway or freeway standards of existing intercity highway corridors. This paper focuses specifically on the latter type of project, rural highway expansions designed to connect smaller outstate cities and towns, and examines their effects on industry-level private earnings and local employment. We examine three case study projects in rural Minnesota and use panel data on local earnings and employment to estimate the impacts of the improvements. Our results indicate that none of the projects studied generated statistically significant increases in earnings or employment, a finding we attribute to the relatively small time savings associated with the projects and the maturity of the highway network. We suggest that for rural highway expansion projects, as with other types of transportation projects, user benefits should be a primary evaluation criterion rather than employment impacts.
    Keywords: network expansion, economic evaluation, regional growth, rural development, economic development
    JEL: O18 R42
    Date: 2012
  12. By: Peter Nunnenkamp, Hannes Öhler, Maximiliano Sosa Andrés
    Abstract: The targeting of foreign aid within recipient countries is largely unexplored territory. We help close this gap in empirical research on aid allocation by employing Poisson estimations on the determinants of the World Bank’s choice of project locations at the district level in India. The evidence of needs-based location choices is very weak, even though World Bank activities tend to concentrate in relatively remote districts. Spatial lags prove to be significant and positive pointing to regional clustering. Institutional conditions matter insofar as project locations cluster in districts belonging to states with greater openness to trade. We do not find any evidence that location choices are affected by political patronage at the state or district level. However, the World Bank prefers districts where foreign direct investors may benefit from projects related to infrastructure
    Keywords: aid allocation, World Bank, Indian districts, political constituency
    JEL: F35 F53
    Date: 2012–07
  13. By: Larson, Donald F.; Dinar, Ariel; Blankespoor, Brian
    Abstract: Greenhouse gas emissions are largely determined by how energy is created and used, and policies designed to encourage mitigation efforts reflect this reality. However, an unintended consequence of an energy-focused strategy is that the set of policy instruments needed to tap mitigation opportunities in agriculture is incomplete. In particular, market-linked incentives to achieve mitigation targets are disconnected from efforts to better manage carbon sequestered in agricultural land. This is especially important for many countries in Eastern Europe and Central Asia where once-productive land has been degraded through poor agricultural practices. Often good agricultural policies and prudent natural resource management can compensate for missing links to mitigation incentives, but only partially. At the same time, two international project-based programs, Joint Implementation and the Clean Development Mechanism, have been used to finance other types of agricultural mitigation efforts worldwide. Even so, a review of projects suggests that few countries in Eastern Europe and Central Asia take full advantage of these financing paths. This paper discusses mitigation opportunities in the region, the reach of current mitigation incentives, and missed mitigation opportunities in agriculture. The paper concludes with a discussion of alternative policies designed to jointly promote mitigation and co-benefits for agriculture and the environment.
    Keywords: Climate Change Mitigation and Green House Gases,Wetlands,Climate Change Economics,Environmental Economics&Policies,Energy and Environment
    Date: 2012–06–01
  14. By: Diana Smallridge; José Juan Gomes Lorenzo; Michael Peter Rattinger
    Abstract: Though the need to scale up financing to mitigate climate change and the associated challenges and barriers are well documented, there has been little discussion of the role that can be played by Public Development Banks (PDBs), either national or subnational. These institutions have a privileged position in their local markets, strong knowledge of their countries' development needs, and opportunities and vast experience in long-term investment financing. As a result, they are uniquely positioned to catalyze the supply of financing for and stimulate the demand for investment projects to mitigate climate change within their respective countries. This technical note discusses lessons learned from a number of PDBs within the Latin American and Caribbean (LAC) region and examples of best practices, processes and products in support of climate change mitigation from PDBs around the world.
    Keywords: Financial Sector :: Financial Markets, Financial Sector :: Financial Services, Environment & Natural Resources :: Climate Change, Economics :: Investment, Public Development Banks, Investment financing
    JEL: G21 G20
    Date: 2012–07
  15. By: Srivastava, Vivek; Larizza, Marco
    Abstract: Development practitioners still lack a critical mass of empirical evidence which can help identify the set of interventions that are more likely to work, and inform the design and implementation of feasible reforms. This paper contributes to fill this gap by looking at the case of the'Sierra Leone Pay and Performance Project', a World Bank-supported initiative to reform the civil service. It analyzes the functional problems characterizing the civil service and discusses what factors account for the observed dysfunctions. The central argument is that the current dysfunctions might be difficult to reverse as they define a sub-optimal equilibrium which serves political purposes (dysfunctions by design). However, politics is not all that matters. This equilibrium is further reinforced by systemic dysfunctions that may not be the consequence of any strategic design or the outcome of elite preferences (dysfunctions by default). This is where there is scope for change, even in the short run. The authors conclude that the chances of successful civil service reforms are likely to be maximized if reform initiatives support modest and incremental changes that ‘work with the grain’ of existing incentives and are consistent with government preferences. The Sierra Leone Pay and Performance Project aims to do so by adopting a limited and targeted focus on pay reform, performance management and recruitment and staffing. In addition, the use of the results-based lending instrument is expected to help mitigate the current dysfunctions by aligning the incentives of the various players and, in this way, create the conditions for greater coordination across government agencies. Although the suggested approach is not without risks, recent dynamics suggest that the chances of success are greater today than in the past.
    Keywords: Public Sector Expenditure Policy,Public Sector Corruption&Anticorruption Measures,Government Diagnostic Capacity Building,Banks&Banking Reform,Governance Indicators
    Date: 2012–07–01

This nep-ppm issue is ©2012 by Arvi Kuura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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