nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2013‒10‒02
ten papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Stage of development, governance and performance of inter-firm innovation cooperation: a conceptual model and propositions By Romaric Servajean-Hilst
  2. Do Expiring Budgets Lead to Wasteful Year-End Spending? Evidence from Federal Procurement By Jeffrey B. Liebman; Neale Mahoney
  3. Moving from Concept to Implementation: The Emergence of the Northern Everglades Payment for Environmental Services Program By Shabman, Leonard; Lynch, Sarah
  4. Improving horizontal logistic co-operation through different concessions By Vanovermeire, Christine; Carlier, Lukas; Sörensen, Kenneth
  5. Social aspects of Total's Lacq CCS pilot project By Minh Ha-Duong; Michèle Gaultier; Benoît De Guillebon; Gilles Mardon
  6. Those Outsiders: How Downstream Externalities Affect Public Good Provision By Sarah Jacobson; Jason Delaney
  7. Procurement Auctions with Renegotiation and Wealth Constraints By Chang, Wei-Shiun; Salmon, Timothy C.; Saral, Krista Jabs
  8. The golden quadrilateral highway project and urban/rural manufacturing in India By Ghani, Ejaz; Goswami, Arti Grover; Kerr, William R.
  9. Institutional Barriers to Innovation Development of the Russian Economy By Vladimir Komarov; Pavel Pavlov; V. Kotsubinskiy
  10. Analysis of the Quality of Budgetary Target Programs and Other Software Tools (Including Projects Implementation of the Core Activities Government of the Russian Federation for the Period up to 2012 Years) to Determine the Extent of Use Project Management Methods in the Activity Government of the Russian Federation By Anastasia Kireeva; Ilya Sokolov; Tatiana Tischenko

  1. By: Romaric Servajean-Hilst (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS : UMR7176)
    Abstract: This paper presents a framework for the dyadic study of inter-firm innovation cooperation, beyond the boundaries of collaborative innovation projects. In order to understand how two firms can maximize the performance of their relationship, we performed a literature review combined with interviews with practitioners. The result of this study is a model associated with propositions on the interactions between its different elements, which are (i) the governance of the relationship, (ii) its performance, (iii) its level of development and (iv) the degree of innovation of the collaborative projects. This paper concludes by suggesting future researches and stating implications for managers.
    Keywords: inter-firm innovation cooperation; governance; cooperation relationship development and performance
    Date: 2013–03–22
  2. By: Jeffrey B. Liebman; Neale Mahoney
    Abstract: Many organizations have budgets that expire at the end of the fiscal year. Faced with uncertainty over future spending demands, these organizations have an incentive to build up a rainy day fund over the first part of the year. If demand does not materialize, they must rush to spend these resources on low quality projects at the end of the year. We test these predictions using data on procurement spending by the U.S. federal government. Using contract-level data on a near-universe of federal contracts, we document that spending in the last week of the year is 4.9 times higher than the rest-of-the-year weekly average. Using a newly available dataset that tracks the quality of $130 billion in information technology (I.T.) projects, we show that quality scores for year-end projects are 2.2 to 5.6 times more likely to be below the central value. Allowing agencies to roll over unused funding into the subsequent year can improve efficiency. We calibrate a dynamic model of spending and show that allowing rollover leads to welfare gains of up to 13 percent, and that intermediate policies can achieve a large portion of these gains. We document that the one federal agency that has the ability to roll over unused funding for I.T. projects does not exhibit a year-end spike in spending or drop-off in quality in this category of spending.
    JEL: H0 H5 H56 H57 H61 L0 L2 L24
    Date: 2013–09
  3. By: Shabman, Leonard (Resources for the Future); Lynch, Sarah
    Abstract: The Northern Everglades Payment for Environmental Services (NE-PES) program was launched in 2011 by the state of Florida. The NE-PES program was developed through the Florida Ranchlands Environmental Services Project (FRESP), a six-year collaborative effort (2005–2011) that engaged ranchers, government agencies, and environmental NGOs. Through FRESP, eight pilot water management projects were implemented on cattle ranches. The projects demonstrated how ranchland owners, as service sellers, could enter into contracts with a state agency buyer to provide the buyer-desired services of water retention (acre-feet) and/or nutrient load retention (lbs. of phosphorus or nitrogen). Innovative contract elements, based on the experience of implementing the pilot projects, developed by FRESP collaboration partners made the now operating NE-PES possible.
    Keywords: environmental services, payment for environmental services, environmental markets, Everglades
    Date: 2013–08–27
  4. By: Vanovermeire, Christine; Carlier, Lukas; Sörensen, Kenneth
    Abstract: Purpose: When collaborating, partners inevitably suffer changes in the way of working, costs or service aspects. However, some changes are easier to implement than others, and can be (easily) compensated by the positive effects of collaboration. This paper aims to give an overview of the concessions that early collaborators in Belgium have made or are willing to make in order for the collaboration to succeed. Design/methodology/approach: In-depth interviews with six managers of forwarding companies in Belgium have been conducted. Five of these managers are already involved in logistics collaboration projects, a sixth does not believe in horizontal collaboration. Findings: Our research shows that companies are not unwilling to execute changes when entering a logistics collaboration project. Cost increases are the most difficult to accept, while changes in the organization of processes and the supply chain are often the preferred kind of concession. Service level aspects can also be changed, however, which kind of aspects is highly dependent on the characteristics of the partner. Moreover, negative impact on one aspect of the service has to be compensated by an improvement in service level on another aspect. Originality/value: This research offers new case studies regarding horizontal logistics collaboration projects. The focus of this research is –in contrast to the main literature focusing on the adoption and start of horizontal cooperation– the actual execution phase. The insights of this research can act as a guideline when discussing the execution of horizontal logistics cooperation.
    Date: 2013–09
  5. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech); Michèle Gaultier (APESA - Association Pour l'Environnement et la Sécurité en Aquitaine - APESA); Benoît De Guillebon (APESA - Association Pour l'Environnement et la Sécurité en Aquitaine - APESA); Gilles Mardon (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales [EHESS] - École des Ponts ParisTech (ENPC) - AgroParisTech)
    Abstract: This case study describes the social aspects of Total's CO2 integrated capture, transport and storage pilot project in Frontsouthwestern France, from the initial press conference February 8th, 2007 to the announce of its end in 2013. The economic and social context was favorable. The company proactively conducted an outreach campaign relatively large for a 50 m€ investment. It was followed by an effective involvement of stakeholders, if not of the general public, through a formal continuous deliberation process led by the public authorities. Some neighbors used their rights to protest and challenge legally the project. It did not become an issue at the national level.
    Keywords: CCS; pilot project; outreach; communication; France; case study
    Date: 2013–02–12
  6. By: Sarah Jacobson (Williams College); Jason Delaney (School of Business Administration, Georgia Gwinnett College)
    Abstract: Some policy problems pit the interests of one group against those of another group. One group may, for example, determine the provision of a project (such as a power plant or a dam) that benefits group members but has downstream externalities that hurt people outside the group. We introduce a model of projects with such asymmetries. In-group members may contribute to a common fund that benefits them as a public good. In the model, benefits from the project may or may not vary within the group. Project provision has negative downstream externalities: common fund contributions hurt agents outside the in-group (“Outsiders”) rendering common fund contributions anti-social overall. Many models of social preferences predict that such externalities should reduce or eliminate project provision, although conditional cooperation or a preference for in-group members may counteract this effect. We test this model with a lab experiment. With homogeneous in-group benefits, the presence of negative downstream externalities reduces contribution levels by nearly half. We introduce a rotating high-return position that allows subjects to trade favors. Contributions diminish only slightly with the introduction of the negative externality and reciprocal giving occurs whether or not Outsiders are present.
    Keywords: public bad, public good, social preferences, reciprocity, externalities, in-group-out-group, parochial altruism
    JEL: C91 D01 D62 D71 H41 Q50
    Date: 2013–09
  7. By: Chang, Wei-Shiun; Salmon, Timothy C.; Saral, Krista Jabs
    Abstract: Renegotiation is a common practice in procurement auctions which allows for post-auction price adjustments and is nominally intended to deal with the problem that sellers might underestimate the eventual costs of a project during the auction. Using a combination of theory and experiments, we examine the effectiveness of renegotiation at solving this problem. Our findings demonstrate that renegotiation is rarely successful at solving the problem of sellers misestimating costs. The primary effect of allowing renegotiation is that it advantages sellers who possess a credible commitment of default should they have underbid the project. Renegotiation allows these weaker types of sellers to win more often and it also allows them to leverage their commitment of default into higher prices in renegotiation from a buyer.
    Keywords: Procurement auctions, renegotiation, bankruptcy, default, economic experiments
    JEL: C9 C91 D44 D82
    Date: 2013–08
  8. By: Ghani, Ejaz; Goswami, Arti Grover; Kerr, William R.
    Abstract: This study investigates the impact of the Golden Quadrilateral highway project on the urban and rural growth of Indian manufacturing. The Golden Quadrilateral project upgraded the quality and width of 5,846 km of roads in India. The study uses a difference-in-difference estimation strategy to compare non-nodal districts based on their distance from the highway system. For the organized portion of the manufacturing sector, the Golden Quadrilateral project led to improvements in both urban and rural areas of non-nodal districts located 0-10 km from the Golden Quadrilateral. These higher entry rates and increases in plant productivity are not present in districts 10-50 km away. The entry effects are stronger in rural areas of districts, but the differences between urban and rural areas are modest relative to the overall effect. The productivity consequences are similar in both locations. The most important difference appears to be the greater activation of urban areas near the nodal cities and rural areas in remote locations along the Golden Quadrilateral network. For the unorganized sector, no material effects are found from the Golden Quadrilateral upgrades in either setting. These findings suggest that in the time frames that we can consider -- the first five to seven years during and after upgrades -- the economic effects of major highway projects contribute modestly to the migration of the organized sector out of Indian cities, but are unrelated to the increased urbanization of the unorganized sector.
    Keywords: Transport Economics Policy&Planning,Housing&Human Habitats,E-Business,Anthropology,Labor Policies
    Date: 2013–09–01
  9. By: Vladimir Komarov (Russian Presidential Academy of National Economy and Public Administration); Pavel Pavlov (Russian Presidential Academy of National Economy and Public Administration); V. Kotsubinskiy (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper presents a comprehensive analysis of the institutional barriers innovative development of Russia's economy. We consider the role of institutions in innovative development from the standpoint of modern theories of innovation, analyzed the impact of informal institutions on innovation dynamics explored the possibility of implementing institutional changes as a mechanism removal of institutional barriers. Finally, conclusions are offered for Russian innovation policy in the medium term.
    Keywords: institutional barriers to innovative development of Russian economy
    Date: 2013–04
  10. By: Anastasia Kireeva (Russian Presidential Academy of National Economy and Public Administration); Ilya Sokolov (Russian Presidential Academy of National Economy and Public Administration); Tatiana Tischenko (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: This paper presents the analysis used at the federal level software tools expenditure management - federal and departmental target programs, priority national projects, maps of projects to implement the Guidelines of the Government The Russian Federation for the period up to 2012, the state of the program. According to the results of the legal and implementarnogo analysis of the quality of budgetary target programs and other software tools The degree of utilization of project management practices in the activities of the Government of the Russian Federation.
    Keywords: budgetary targets of the program
    Date: 2013–05

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