nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒04‒18
six papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Reframing outsourcing through social networks: evidence from Infocert's case study By Giovanni Vaia; Anna Moretti
  2. Fear of being left alone drives inefficient exit from partnerships. An experiment By Alexia Gaudeul; Paolo Crosetto; Gerhard Riener
  3. Sociomaterial regulation in organizations: The case of information technology By de Vaujany, François-Xavier; Fomin, Vladislav; Lyytinen, Kalle; Haefliger, Stefan
  4. Does better governance and commitment to development attract general budget support? By Nordtveit, Ingvild
  5. Optimal Investment in Ecological Rehabilitation under Climate Change By Anke D Leroux; Stuart M Whitten
  6. Development of Innovation Infrastructure: foreign experience and its application in Russia By Vera Barinova; Vladimir Eremkin; Viacheslav Rybalkin

  1. By: Giovanni Vaia (Dept. of Management, Università Ca' Foscari Venice); Anna Moretti (Dept. of Management, Università Ca' Foscari Venice)
    Abstract: In an over-connected world where ICTs dominate firms' development and evolution, outsourcing is an increasingly adopted practice by IT firms facing a third-generation of inter-firm interactions: after the IT and business processes' outsourcing, and then the offshore outsourcing, now we face a sourcing ecosystem tagged as human cloud, where the online work and virtual workers are the center of the new system. Notwithstanding some relevant contributions to the literature about IT outsourcing, still few is known about how coordination between client and supplier can achieve superior outcomes through the development of collaborative practices. In particular, the use of IT tools devoted to sociality as a coordination mechanism has been under-investigated. This research provides insights about how a company can change attitudes and behaviors of client and supplier thanks to an IT tool deputed to collaboration: the social collaboration system. Through an explorative case study, our paper provides two main contributions to the literature about IT outsourcing: i) we show how the adoption of a social collaboration system improves ITO governance and performance, providing further empirical evidence on the role of social mechanisms in ITO relationships; ii) we show how the introduction of a social collaboration system in outsourcing management can influence and change the building blocks of its life-cycle.
    Keywords: IT outsourcing, governance, social collaboration, relational view, outsourcing lifecycle
    JEL: L24 M55
    Date: 2014–04
  2. By: Alexia Gaudeul (DFG RTG 1411, Friedrich-Schiller-Universität Jena); Paolo Crosetto (UMR GAEL INRA, Universite Pierre Mendes France, Grenoble); Gerhard Riener (DICE, Heinrich-Heine-Universität Düsseldorf)
    Abstract: We explore in an experiment what leads to the breakdown of partnerships. Subjects are assigned a partner and participate in a repeated public good game with stochastic outcomes. They can choose each period between staying in the public project or working on their own. There is excessive exit as subjects overestimate the likelihood their partner will leave. High barriers to exit thus improve welfare. We observe that exit is driven by failure within the common project but also by pay-off comparisons across options and beliefs about being exploited. Those considerations increasingly matter as we lower exit costs across treatments.
    Keywords: breakup, collaboration, cooperation, exit, imperfect public monitoring, moral hazard, partnerships, punishment, public good, repeated game, social risk, teams
    JEL: C23 C92 H41
    Date: 2014–04–08
  3. By: de Vaujany, François-Xavier; Fomin, Vladislav; Lyytinen, Kalle; Haefliger, Stefan
    Abstract: Information technology (IT) is used to regulate organizational processes both to allow and to prevent specific behavior. Recent scandals in the financial industry exposed overconfidence in IT based regulation and, as scholars of regulation have long known, the games people play increase with the number of rules in place. To explore the practices in organizations with a broad perspective we define sociomaterial regulation as the relationships between the rules, the IT artifacts, and the practices. A new theoretical terminology around the three relationships (materialization of rules in IT artifacts, interdependency between IT artifacts and practices, and coupling in time between rules and practices) helps to explore a large case study of the implementation of an e-learning system in a French university over a five years period. The study reveals five modalities of sociomaterial regulation which can be understood using the three relationships: functionality-, tool-, role-, procedure-, and social process-orientation play out very differently for the organization in terms of the change in practices, the sources of control (hierarchical versus emergent), and innovation activity. We discuss implications for management and policy.
    Keywords: Information Technology; rules; regulation; practices; sociomaterial regulation; sociomaterial coupling;
    JEL: G38 M15
    Date: 2013
  4. By: Nordtveit, Ingvild (Department of Economics)
    Abstract: General budget support (GBS) is funding which is not earmarked for a specific sector or project, but is provided as direct financial support to the public sector in the recipient country. This type of aid is argued to have a positive effect on aid efficiency if it is targeted at countries with good governance and a strong commitment to development. In this study, data on commitments of official development assistance (ODA) from 23 DAC donors to 115 recipient countries in the period from 1995 to 2009 is used to estimate the probability of receiving GBS. The results show that the DAC donors are selective with respect to the quality of governance, and there is some support for the notion that the recipient governments’ commitment to development is a significant determinant for the allocation of GBS. Empirical evidence showing that DAC donors are more selective when allocating GBS than with program aid in total is also presented, underlining the importance of using disaggregated data when analyzing aid allocation.
    Keywords: aid allocation; general budget support; good governance; commitment to development
    JEL: F35
    Date: 2014–04–10
  5. By: Anke D Leroux; Stuart M Whitten
    Abstract: Ecological rehabilitation is subject to a variety of risks affecting the likely return on investment. We propose a real options approach to valuing and ranking individual rehabilitation projects, accounting for irreversible investment and the effects of climate change on species loss, future rehabilitation benefits and frequency of catastrophic events. The allocation of voluntary rehabilitation contracts on the basis of option pricing results in significantly greater value for money for the Government as compared with the conventional cost-effectiveness criterion as is illustrated for the case of Box Gum Grassy Woodland rehabilitation in Australia.
    Keywords: real options; biodiversity; irreversibility; risk; extinction debt, Box Gum Grassy Woodlands
    Date: 2014–04
  6. By: Vera Barinova (Gaidar Institute for Economic Policy); Vladimir Eremkin (RANEPA); Viacheslav Rybalkin (RANEPA)
    Abstract: The article deals with the key issues of creating innovation infrastructure in Russia and abroad. The authors focus on the “innovation brokers” as an intermediary institute for innovative agents. According to them, innovation brokers are able to fill in the gaps of the innovation infrastructure system, created by the governmental administrative measures. International practices of the countries, that are world economic and innovation development leaders (the USA, the Netherlands etc.), indicate the fact that innovation brokers can be rather effective in solving many problems of providing the infrastructural support to innovation companies. The paper provides guidance on the possible ways of involving innovation brokers in the Russian national innovation system as one of the main tools of providing the effective infrastructural support to innovation processes by greater “soft infrastructure” involvement (ICT-facilities, social, professional and organizational networks).
    Keywords: innovation brokers, national innovation system, regional development, high technology.
    Date: 2014

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