nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2013‒08‒05
eight papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Optimal Project Selection Mechanisms By Tania Bar; Sidartha Gordon
  2. Search, Project Adoption and the Fear of Commitment By Sidartha Gordon; Talia Bar; Vidya Atal
  3. Endogeneous matching in university-industry collaboration: Theory and empirical evidence from the UK By Albert Banal-Estañol; Inés Macho-Stadler; David Pérez-Castrillo
  4. Leadership, Information, and Risk Attitude: A Game Theoretic Approach By John T. Kulas; Mana Komai; Saint Cloud State University; Philip J. Grossman
  5. Challenges of Critical and Emancipatory Design Science Research: The Design of ‘Possible Worlds’ as Response By Heusinger, Marcel
  6. Approche relationnelle de la coopération d'innovation inter-entreprises : proposition de modèle conceptuel By Romaric Servajean-Hilst
  7. Exploring the Forestry Carbon Finance Potential for an Indigenous Cultural Community in the Philippines By Margaret M Calderon; Nathaniel T. Bantayan
  8. A Cooperação Triangular e as Transformações da Cooperação Internacional para o Desenvolvimento By Bruno Ayllón Pino

  1. By: Tania Bar (University of Connecticut); Sidartha Gordon (Département d'économie)
    Abstract: We study mechanisms for selecting up to m out of n projects. Project managers’ private information on quality is elicited through transfers. Under limited liability, the optimal mechanism selects projects that maximize some function of the project’s observable and reported characteristics. When all reported qualities exceed their own project-specific thresholds, the selected set only depends on observable characteristics, not reported qualities. Each threshold is related to (i) the outside option level at which the cost and benefit of eliciting information on the project cancel out and (ii) the optimal value of selecting one among infinitely many ex ante identical projects.
    Keywords: adverse selection, information acquisition, mechanism design, project selection, limited liability, R&D.
    JEL: D82 O32
    Date: 2013–07
  2. By: Sidartha Gordon (Département d'économie); Talia Bar (University of Connecticut); Vidya Atal (Montclair State University)
    Abstract: We examine project adoption decisions of firms constrained in the number of projects they can handle at once. Adoption requires a commitment for a period of uncertain duration, restricting the firm in subsequent periods. Capacity constraints create a “fear of commitment” — some positive return projects are not adopted. In the sequential move dynamic game, the second mover sometimes adopts projects that were rejected by the first, even when both firms are symmetric and equally informed. We study the e§ects of competition on the fear of commitment, and compare the jointly optimal adoption decision to the behavior of strategic non-cooperative firms.
    Keywords: adoption, project selection, commitment, Markov perfect equilibrium
    JEL: L10 L13 D21
    Date: 2013–07
  3. By: Albert Banal-Estañol; Inés Macho-Stadler; David Pérez-Castrillo
    Abstract: We develop a two-sided matching model to analyze collaboration between heterogeneous academics and firms. We predict a positive assortative matching in terms of both scientific ability and affinity for type of research, but negative assortative in terms of ability on one side and affinity in the other. In addition, the most able and most applied academics and the most able and most basic firms shall collaborate rather than stay independent. Our predictions receive strong support from the analysis of the teams of academics and firms that propose research projects to the UK's Engineering and Physical Sciences Research Council.
    Keywords: matching, industry-science links, research collaborations, basic versus applied research, complementarity
    JEL: O32 I23
    Date: 2013–07
  4. By: John T. Kulas; Mana Komai; Saint Cloud State University; Philip J. Grossman
    Abstract: This paper experimentally investigates how risk attitudes mitigate leadership effectiveness in a collective setting with projects that exhibit both free riding and coordination problems. We take two novel approaches: 1) the introduction of economic game theory to psychological studies of leadership, and 2) the application of the leadership ontology of Drath et al. (2008) as a crossdisciplinary integrative framework. Leadership here is focused on the presence or absence of direction, alignment, and commitment as well as antecedent beliefs and practices that are held within a collective (for us, our experimental participants). Our leadership context is stripped down to very minimal conditions: three group members, an investment decision, and the introduction of information regarding group members' attitudes toward risk. We find that the mere mention of risk attitude (whether risky or risk averse) undermines leadership effectiveness in mitigating free riding for our 420 experimental participants. Our study’s primary implications lie in the application of game theory methodology to the psychological study of leadership, the introduction of relevant individual difference constructs to economic studies of leadership, and the advocation of the Drath et al. (2008) framework as a helpful integrative mechanism for interdisciplinary leadership research.
    Keywords: game theory; risk attitude; interdisciplinary research; group dynamics
    Date: 2013–07
  5. By: Heusinger, Marcel
    Abstract: Popper’s (1967) ’piecemeal social change’ is an approach manifesting itself in science as critical and emancipatory (C&E) research. It is concerned with incrementally removing manifested inequalities to achieve a ’better’ world. Although design science research in information systems seems to be a prime candidate for such endeavors, respective projects are clearly underrepresented. This position paper argues that this is due to the demand of justifying research ex post by an evaluation in practical settings. From the perspective of C&E research it is questionable if powerful actors grant access to their organization and support projects which ultimately challenge their position. It is suggested that theory development based on a synthesis of justificatory knowledge is a complementary approach that allows designing realizable responses to C&E issues–the design of ’possible worlds’ (Lewis, 1986) as basis for C&E design science research.
    Keywords: Critical and Emancipatory Research, Design Science, Possible Worlds, Design Theory, Information Systems Research,
    JEL: O33 Q51 Q55 Q56
    Date: 2013
  6. By: Romaric Servajean-Hilst (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS : UMR7176)
    Abstract: Les coopérations d'innovation se sont multipliées depuis une trentaine d'année, et avec elles les travaux de recherche s'y rapportant. Dans notre communication, nous développons un modèle conceptuel pour nous intéresser à ces coopérations sous l'angle de la relation entre deux entreprises, au-delà des projets et programmes d'innovation qu'elles sont amenées à réaliser ensemble. Afin de comprendre comment ces entreprises peuvent maximiser la performance de leur relation, nous formulons des propositions sur les interactions entre les différents éléments de ce modèle qui sont (I) la gouvernance de la relation, (II) sa performance, (III) son niveau de développement et (IV) le degré d'innovation des projets ou programmes menés en collaboration. Cette communication s'appuie sur un travail de recherche mené de manière abductive. 35 entretiens ont été réalisés, auprès de praticiens travaillant sur le développement des relations inter-entreprises, en parallèle avec une revue de littérature portant sur les relations interentreprises et sur l'innovation ouverte. Pour cela, nous avons constamment navigué entre les données issues de ces entretiens et la recherche de nouvelles théories pour construire le modèle proposé dans cette communication. Ainsi, nous nous sommes appuyés sur le modèle relationnel proposé par l'IMP group (Håkansson & IMP Project Group 1982 ; Paliwoda 2011) pour décrire les éléments constitutifs de la coopération d'innovation. Et, nous avons choisi un cadre théorique fondé sur la théorie des coûts de transaction et sur la resource based-view (RBV), en particulier la knowledge based view (Grant 1996), pour saisir la nature des interactions entre les différents éléments de notre modèle. Selon nos propositions, la performance d'une relation de coopération d'innovation est impactée par les mécanismes de gouvernance mis en œuvre au sein des entreprises et entre elles (P1). Et, pour ne pas la réduire, les mécanismes de gouvernance de chaque entreprise doivent être alignés (P3) tout en étant ajustés mutuellement au cours du temps (P2). Par ailleurs, nous proposons que chaque niveau de développement d'une telle relation corresponde à un niveau croissant de performance (P4) ainsi qu'à une configuration caractéristique de ses mécanismes de gouvernance (P5). Et, comme le type d'innovation ciblé dans chaque projet d'innovation mené en commun impacte la configuration de la gouvernance (P6), cela nous permet de suggérer aux praticiens de porter une attention particulière à la cohérence des mécanismes de gouvernance de leurs coopérations d'innovation pour en maximiser les retombées pour leurs entreprises. Les résultats de notre travail doivent être confirmées et enrichies par des recherches supplémentaires que nous proposons dans cette communication. Quoiqu'il en soit, nous suggérons que le cadre conceptuel présenté ici participe au développement de la recherche portant sur l'innovation ouverte en proposant d'envisager de la sorte les coopérations d'innovation avec une unité d'analyse dyadique, et non pas du point de vue d'une seule organisation. Par ailleurs, notre appel à une approche relationnelle de la coopération d'innovation inter-entreprises permet d'envisager la place de la rente relationnelle comme facteur clef de réussite des coopérations d'innovation, du fait de la construction d'une capacité d'innovation et de collaboration spécifique à la dyade.
    Keywords: coopération d'innovation inter-entreprises ; gouvernance ; relation
    Date: 2013–06–10
  7. By: Margaret M Calderon (College of Forestry and Natural Resources, University of The Philippines, Los Banos); Nathaniel T. Bantayan (College of Forestry and Natural Resources, University of The Philippines, Los Banos; College of Forestry and Natural Resources, University of The Philippines, Los Banos; College of Forestry and Natural Resources, University of The Philippines, Los Banos)
    Abstract: The project explored the potentials of a forestry carbon project for an indigenous cultural community in the Philippines. Specifically, it assessed the global potential of forestry carbon finance; reviewed the legal and policy environments of forestry carbon projects in the Philippines; and evaluated the feasibility of a forestry carbon project in an Ayta community. The literature indicates the great potential of forestry carbon projects in both the global and local markets. In the Philippines, two such projects have passed the voluntary carbon market standard, and there are efforts to develop projects under the National REDD+ Strategy. The Philippines is committed to addressing climate change, as evidenced by its signing the ratification of the United Nations Framework Convention on Climate Change and the Kyoto Protocol, and the enactment of Republic Act 9729, otherwise known as the Climate Change Act of 2009. The results of the feasibility analysis reveal that developing a forestry carbon project for the Magbukún Ayta of Kanawan, Morong, Bataan is technically and financially feasible. The projected carbon loss in the ancestral domain due to possible deforestation in the old growth forest is a lot higher than expanding second growth forests and brushlands, thus creating an excellent opportunity for the community to be engaged in a forestry carbon project. The net present value (NPV) and internal rate of return (IRR) at the most conservative conditions (i.e., high scenario, price of USD 5/ton CO2, and 20% discount rate) are PhP 170.271 million and 40 %, respectively, which show that the forestry carbon project is financially viable. The Magbukún Ayta have also expressed in a resolution that they are amenable to the possibility of being involved in a payment for ecosystem services (PES) project, specifically on the carbon sequestration potential of their forests, making the forestry carbon project socially acceptable. It is therefore recommended that the potential of developing a forestry carbon project for the Magbukún Ayta be pursued.
    Keywords: forest, Philippines
    Date: 2013–01
  8. By: Bruno Ayllón Pino
    Abstract: Nas últimas décadas, a Cooperação Internacional para o Desenvolvimento (CID) tem experimentado modalidades alternativas de execução, integrando países desenvolvidos, países em desenvolvimento e organismos multilaterais em formatos triangulares. Em um contexto de crise econômica, as limitações da CID para promover o desenvolvimento, somadas às dúvidas sobre o cumprimento dos compromissos financeiros dos doadores da Organização para a Cooperação e Desenvolvimento Econômico (OCDE), propiciaram o surgimento de novos papéis e responsabilidades para os países emergentes, nas tarefas do desenvolvimento internacional, apostando em formas de cooperação mais horizontais, com enfoques e práticas a priori distintas da tradicional Cooperação Norte-Sul (CNS). Para os países emergentes, como Brasil, a Cooperação Triangular (CTR) é um instrumento de apoio à Cooperação Sul-Sul (CSS), que permite aumentar a escala de seus projetos, aprofundar seu impacto e explorar complementaridades com outros países e organizações internacionais. In recent decades, the International Cooperation for Development (ICD) has experienced alternative ways of implementation, integrating developed countries, developing countries and multilateral organizations in triangular arrangements. In a context of economic crisis, the limitations of ICD to promote development and the doubts on the fulfillment of the financial commitments of OECD donors, led to new roles and responsibilities for emerging economies in the international development tasks. They bet on more horizontal forms of cooperation, with approaches and practices a priori distinct from the traditional North-South Cooperation (NSC). For emerging countries such as Brazil, but also for other developing countries, Triangular Cooperation (TRC) is an instrument of support to South-South Cooperation (SSC) which allows to increase the scale of their projects, deepen their impact and explore complementarities with other countries and international organizations.
    Date: 2013–06

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