nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒01‒24
nine papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Stepping out of the zone of territorial protection enables open innovation collaboration. By Susanne Ollila; Anna Yström; Marine Agogué
  2. Budgeting and Reporting for Public-Private Partnerships By Katja Funke; Tim Irwin; Isabel Rial
  3. Projets de changement organisationnel et pratique de la pharmacie hospitalière au Québec: des espaces techniques à l’espace stratégique By Jacques-Bernard Gauthier; Ronan Hério; Johanne Paradis
  4. Information Transmission and Ownership Consolidation in Aid Programs By Axel Dreher; Silvia Marchesi
  5. The Portuguese Experience with Public-Private Partnerships By Miranda Sarmento, J.; Renneboog, L.D.R.
  6. Volunteerism as a tool for Entrepreneurship and Education through a socio-economical activity in the context of the International Township Project of Auroville By Michael Marco; Florence Rodhain; Angélique Rodhain
  7. Considerações sobre a Alocação de Riscos na Concessão do Trem de Alta Velocidade entre Rio de Janeiro, São Paulo e Campinas By Maria Martha M. C. Cassiolato; Ronaldo Coutinho Garcia
  8. Oportunidades e Desafios para a Engenharia Consultiva no Brasil: Infraestrutura de Transporte By João Luiz Kuperman Garcia
  9. Optimal Incentives in a Principal-Agent Model with Endogenous Technology By Marco A. Marini; Paolo Polidori; Desiree Teobaldelli; Davide Ticchi

  1. By: Susanne Ollila (Chalmers - Chalmers University of Technology - Chalmers University of Technology); Anna Yström (Management of Organizational Renewal and Entrepreneurship - Chalmers University of Technology); Marine Agogué (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: This paper explores the challenges organizations face in practice as they engage in open innovation projects with multiple partners. Open innovation as a way to increase competitiveness has become popular among many organizations, but its success is not guaranteed. It appears to sometimes be challenging to reap the benefits of bringing multiple, diverse partners together, as it is difficult to turn the differences into something constructive. Using empirical findings from a project in the field of vehicle- and traffic safety, this paper contributes with a proposal for a refined methodology, iKCP, to enable and facilitate open innovation collaboration. Inspiration has been sought in methods used for managing innovative design processes. The strength of the iKCP methodology is that it supports, encourages and even forces the participants to leave the zone of territorial protection and be at ease in the zone of expansive exploration.
    Date: 2013–06
  2. By: Katja Funke; Tim Irwin; Isabel Rial
    Abstract: Public-private partnerships (PPPs) can appeal to governments because they offer a new way of providing public services that is possibly more efficient than traditional public finance. But they can also appeal to governments because they allow new investments to be undertaken without any immediate increase in reported government spending or debt. This second motive for using PPPs rests largely on an illusion, because in the absence of efficiency gains (which are probably small relative to the total cost of the project), PPPs and publicly financed projects have a similar long-run effect on public finances. In some PPPs, the government defers payment, but ultimately must still pay the full cost of the project. In others, it concedes the right to collect user fees, and thus loses revenue it would have collected if the project had been financed traditionally.
    Date: 2013–04–01
  3. By: Jacques-Bernard Gauthier (Université du Québec (Outaouais)); Ronan Hério (Université du Québec en Outaouais); Johanne Paradis (Centre de santé et de services sociaux de Gatineau)
    Abstract: Dans les systèmes de santé contemporains, le changement organisationnel repose surtout sur des modèles de gestion à la mode ciblant la performance, mais méconnaissant les pratiques qui ont cours dans les organisations qu’ils visent. Ainsi, si le travail des médecins et personnels infirmiers est par exemple relativement connu, ce n’est pas le cas de celui de la pharmacie d’établissement qui connaît pourtant d’importants changements. Parce qu’elle permet de mettre en évidence la relation réciproque entre action et structures organisationnelles et institutionnelles, nous avons choisi d’explorer cette pratique de la pharmacie hospitalière à partir de la théorie de la structuration. Le matériel empirique a été recueilli par observations et entrevues au sein d’un département de pharmacie d’un hôpital québécois. L’analyse des interactions entre ses agents met en évidence deux espaces de structuration des pratiques : technique et stratégique. Après les avoirs définis et illustrés par des exemples, nous relevons les implications managériales de ce résultat. Change management in contemporary healthcare systems usually relies on trendy tools aimed at increasing performance without consideration for the practices actually going on within healthcare organisations. Some of these practices are well documented, like those pertaining to the medical profession or to nursing, but others are mostly ignored. This is particularly the case of hospital pharmacy practice, which is undergoing major changes mostly unnoticed to healthcare organisations researchers. In order to address this issue we used a structuration theory framework to better understand how actual practices and change projects are affecting each other. Qualitative data collected through observations and interviews in a regional hospital from Quebec show how pharmacy hospital practice is structured through two complementary spaces: the technical space and the strategic space. We discuss how our findings might challenge the way change projects are managed within the context of hospital pharmacy practice.
    Keywords: Pratique de la pharmacie hospitalière; management des projets de changement Organisationnel; structuration de l’espace; Hospital pharmacy practice; Organizational change project management; Space structuration.
    JEL: M10
    Date: 2014–01–01
  4. By: Axel Dreher (Heidelberg University); Silvia Marchesi (University of Milan Bicocca and Centro Studi Luca d’Agliano)
    Abstract: This paper explores the role of information transmission in explaining donors\' choice between project aid and budget support. Budget support increases the involvement of recipient governments in the decision-making process and can thus be an example of a “delegation-scheme\". Conversely, project aid represents a more “centralized\" type of aid. According to the theory, when countries\' local knowledge is more important than donors\'information, recipient countries\' discretion in the choice of policies should be increased (delegation). Conversely, there should be less freedom in designing policies when donors\' information is more relevant (centralization). The empirical analysis confirms that the importance of donors\' private information influences the amount of project aid, while recipients\' local knowledge is positively correlated with the amount of budget support.
    Keywords: Delegation, communication, ownership, foreign aid
    JEL: C23 D82 F33 O1
    Date: 2013–10–11
  5. By: Miranda Sarmento, J.; Renneboog, L.D.R. (Tilburg University, Center for Economic Research)
    Abstract: Abstract: This paper documents the Portuguese experience in Public-Private Partnerships (PPPs). Since 1993, Portugal has been using PPPs intensively, mainly for highway construction and in the health sector. This has enabled the country to close the infrastructure gap and avoid the budget constraints at the moment of the investment. Doubts about whether PPPs represent value-for-money have emerged. There are several reasons why PPP were unsuccessful: (i) the concentration PPP projects was very high over a limited time span and the public sector was not prepared nor had the ability to manage and control the contracts, (ii) the incentive to resort to PPPs was mainly to avoid budget constraints, but not to use of public resources better by taking advantage of private sector efficiency, (iii) the risk allocation between the private and public sector was flawed because the private sector bore too little risk and payments from the public to the private sector were considerably above the investment cost. The current and future annual payments from the state to the private sector are a substantial burden in the current times of austerity and budget consolidation. As the country had to ask the troika (IMF, ECB, and European Commission) for a financial rescue from, PPP renegotiations are ongoing to reduce public payments.
    Keywords: Public-Private Partnerships;Procurement;Project finance;Road construction;Portugal
    JEL: H54 H57
    Date: 2014
  6. By: Michael Marco (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Florence Rodhain (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Angélique Rodhain (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School)
    Abstract: This project consists in studying the activity of volunteerism in Auroville, its impact in the development of the township. The goal is to demonstrate how it can be improved with a better organization, coordination and communication within Auroville for the benefits of everybody. And finally it is hoped that this research may find a way to explain why it should be considered as a real form of education, and how it can be applied in the world. Volunteerism as a new way of defining the term 'work' is a growing phenomena in Auroville and in the world. More and more people from all ages and socio-cultural backgrounds are making the decision to leave the studies/occupation they were pursuing to dedicate their energy as a volunteer working for free somewhere, usually in another country. In Auroville many different units are using volunteerism for their creation, their current activity and their development. According to the statistics done based on the registration form that the foreigners have to fill in when they come to Auroville, we know that among 10,000 visitors, 2,500 are volunteers. With a population of 2,300 people, the volunteers are objectively taking an important part of the development of the township. For the entrepreneurs in Auroville the volunteers represent a real added-value. On one hand the volunteers are enthusiastic people who decide to dedicate their energy for projects in which they believe and for which they are not even asking for a salary. This gives then to the managers real motivated workers for no cost and with a great sense of initiatives. On the other hand the fact of being a volunteer give them the freedom of taking initiatives, of not being bound by the liabilities or the limit of a labor system. This fact can make them be more self-confident that is the first quality of an entrepreneur. In that way, volunteerism can become an entrepreneur incubator. In fact in Auroville, several managers can witness that it is thanks to the volunteers that they got their success and the development they wished for their enterprises.
    Keywords: Meaning of Work / Indian Philosophy & Tradition / Theory of organizations / Education / Self Development / Human Resources / Sustainable Management / Entrepreneurship
    Date: 2013–02–20
  7. By: Maria Martha M. C. Cassiolato; Ronaldo Coutinho Garcia
    Abstract: Este trabalho avalia a alocação de riscos entre o governo e o concessionário operador no projeto do trem de alta velocidade (TAV) entre Rio de Janeiro, São Paulo e Campinas. O modelo de concessão proposto em 2010 pelo governo federal para transferir a operação do TAV à iniciativa privada foi revisto em 2012, sendo a principal diferença entre eles a alocação de riscos de demanda e de construção entre governo e concessionário. O trabalho examina as duas propostas, considerando os procedimentos recomendados na literatura. Também discute quantitativamente como os potenciais custos destes riscos afetam a lucratividade do concessionário, além de apresentar algumas propostas de melhorias para o modelo vigente, na tentativa de disseminar boas práticas de alocação de riscos para os projetos de infraestrutura no Brasil. This work analyses the risk allocation between government and concessionaire in the High Speed Train (HST) Project from Rio de Janeiro to São Paulo and Campinas. The concession model proposed by the government to transfer the HST operation to private firms in 2010 was revised in 2012, with the main difference between them been on the risk allocation between government and concessionaire related to demand and construction costs. This work assess these two context of HST proposal considering the best practices recommended in the literature, discusses quantitatively how the potential costs of these risks affect the concessionaire’s profits and presents some improvements to the current concession model, in an attempt to disseminate good risk allocation practices for infrastructure projects in Brazil.
    Date: 2014–01
  8. By: João Luiz Kuperman Garcia
    Abstract: Este texto apresenta as principais análises e conclusões do estudo conduzido pelo Ipea cujo objetivo é retratar a situação do segmento de engenharia de projetos associados à infraestrutura de transporte no Brasil. O estudo faz parte do programa de pesquisa Diagnóstico, Perspectiva e Alternativas para o Desenvolvimento do Brasil, do Ipea, em parceria com o Banco Interamericano de Desenvolvimento (BID). Para atingir este objetivo, foram conduzidas entrevistas com executivos em posições-chave em organizações públicas e privadas atuantes no segmento de engenharia de projetos ligados à infraestrutura de transporte – contratantes dos serviços e fornecedores (ofertantes). O trabalho também apresenta as propostas de políticas públicas e ações governamentais que poderiam ser implementadas para alavancar o desenvolvimento do setor de serviços de engenharia com foco em infraestrutura de transportes. This report presents the main findings and conclusions of the study conducted by the Institute of Applied Economic Research (Ipea), whose main goal is to portray the situation in the segment of projects engineering manly associated with Brazilian transportation infrastructure. This study is part of Ipea´s research program “Diagnosis, Perspective and Alternative Development in Brazil”, in partnership with the Inter-American Development Bank. To achieve its goal, interviews were conducted with executives in key positions in public and private organizations active in the sector of projects engineering related to transportation infrastructure, whether contractors or service suppliers. This paper also presents some proposals of public policies and government actions that could be implemented in order to leverage the development of the engineering services market (with focus on transportation infrastructure).
    Date: 2014–01
  9. By: Marco A. Marini (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"); Paolo Polidori (University of Urbino); Desiree Teobaldelli (University of Urbino); Davide Ticchi (IMT Institute for Advanced Studies Lucca)
    Abstract: One of the standard predictions of the agency theory is that more incentives can be given to agents with lower risk aversion. In this paper we show that this relationship may be absent or reversed when the technology is endogenous and projects with a higher efficiency are also riskier. Using a modified version of the Holmstrom and Milgrom's (1987) framework, we obtain that lower agent's risk aversion unambiguously leads to higher incentives when the technology function linking efficiency and riskiness is elastic, while the risk aversion-incentive relationship can be positive when this function is rigid
    Keywords: principal-agent; incentives; risk aversion; endogenous technology
    Date: 2014

This nep-ppm issue is ©2014 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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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.