nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒08‒02
seven papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Emerging Strategy in Large Urban Development Projects: Real Estate Development in the Mainport and the Brainport of the Netherlands By Verheul, Wouter Jan; Daamen, Tom
  2. Practice of Public and Private Development in Mixed-used ProjectsPartnership Models for Public-private development: an international comparison By Haran, Martin; Adair, Alastair; Berry, Jim; Kotin, Allan; Peiser, Richard; Wang, Bing
  3. Quantifying External Benefits of Private Property-Led Urban and Real Estate Development Projects through Event Studies By Thiel, Stefan; Nadler, Michael
  4. Urban Renewal Projects: Set in Stone or Flexible? By Esen, Bugra Kagan
  5. Management of Complex, Dynamic, Open Systems By Wiegand, Dietmar
  6. Organisational Capabilities and their Influence on Strategic Performance in Real Estate Development By Sreckovic, Marijana
  7. Technological Development of Energy-Efficient Construction and Effect on Project Profitability By Zalejska-Jonsson, Agnieszka; Lind, Hans

  1. By: Verheul, Wouter Jan; Daamen, Tom
    Abstract: Within planning theory a new paradigm has been introduced: discursive planning. In this paper we want to elaborate how this concept can be applied to urban development projects. A discursive perspective on real estate development implies that there is a continuous debate about the content of specific real estate development projects, its meaning, its resources and its connections with urban policies. Especially the way connections are made between abstract urban policy programmes on the one hand and specific urban development projects on the other hand, is the central focus of our paper. We have selected two case studies in the Netherlands in our empirical data set: the case of 'Brainport Eindhoven' in relation to the 'High Tech Campus' and the case of 'Mainport Rotterdam' in relation to the 'Stadshavens project' (waterfront developments at former port areas). This study focused on the connections and disconnections between the development of strategic urban area development projects (so-called micro-narratives) and the cities' and regions' larger social, cultural and spatial development policies (so-called master narratives). In addition to Minzberg, Ahlstrand & Lampel (1998) we will introduce a model for 'emerging strategy'. Urban development projects are a combination of strategy and emerging developments (even coincidence) as chance events that occur within the context of the project. In the first paragraph of our paper we will introduce our research topic and outline. In the second paragraph we will describe theoretically the shift from traditional planning to deliberative and collaborative planning and we will introduce our ideas about an emerging strategy for urban development and real estate projects. In paragraph three we will explain which cases are selected and why. Based on desk research (vision documents, planning reports, notes of meetings, et cetera) and in-depth interviews with key players, we've collected al lot of empirical data which we will present in paragraph four (Brainport case) and five (Mainport case).In paragraph six we will make a comparison between the two in-depth cases studies and we will show how an emerging strategy model can be implied in the practice of urban development. In the final paragraph seven we will present our conclusions in general for theory building as well as some application for development practices in a highly complex and interdependent world of urban development projects.
    Date: 2013
  2. By: Haran, Martin; Adair, Alastair; Berry, Jim; Kotin, Allan; Peiser, Richard; Wang, Bing
    Abstract: Joint ventures between the public and private sectors for large-scale mixed-use development projects stem from a widely used model conceived in the United States in the 1970s, with a specific focus on downtown redevelopment. Beginning in the 1990s, as more cities in the world experienced post-industrial transformation and public resources were dwindling, collaborative efforts by public and private partnerships offered significant and mutually-beneficial advantages in terms of efficiency, flexibility, and risk sharing principles for project delivery. This paper establishes a framework of key criteria for use in evaluating the effectiveness of public and private development as a vehicle for constructing and delivering the dual purposes of regeneration and sustainability for the mixed-use development in various urban fabrics. Two development projects are selected and examined as case studies: one from the European/British context and one from the United States. They are the Liverpool ONE scheme in Liverpool City Centre and the California Plaza development in Los Angeles. Although the projects and public and private joint ventures are site-specific and context-bound, a conceptual framework is important for both the public and private sectors to identify opportunities and avoid potential pitfalls. In this paper, through the comparative examination and analyses of institutional structures, financing arrangements, delivery mechanisms, channels of public participation, and the key milestones represented by physical characteristics identified within the development processes, the dynamics of public and private developments are examined. The paper compares the partnership models under the different regulatory regimes in the United States and Europe and evaluates the success of the two case studies both from the private sector and the public sector perspectives. It also summarizes the possible evaluative parameters including costs and benefits of each project relative to regeneration and sustainability, some of which promise value for universal application.
    Date: 2014
  3. By: Thiel, Stefan; Nadler, Michael
    Abstract: Purpose - The main objective of this paper is to illustrate the prospects but also the limits of quantifying external benefits of urban and real estate development projects using the method event study. Another objective is the comprehensible derivation of an appropriate controlling system in step with actual practice.Design/methodology/approach - We first provide a general theoretical background by determining the factors for urban and real estate projects and by highlighting the increasing importance of cooperative models. The presentation of the event study builds the methodological framework for the quantification of external benefits. Further, we develop a systemization of external benefits using a set of four dimensions: targets, stakeholder, space and time. Based on this, the project example Le Quartier Central (Duesseldorf) then serves both, clarifying the achieved systematization and applying the method event study.Findings - Existing measurement and controlling instruments are only of limited use for the striven extensive analysis of external benefits in a management and controlling process. A combination or enlargement of the existing instruments (e.g. CBA or event study) towards an integrated controlling approach seems to be necessary at this stage. Research Implications - Further research should focus on the application of suitable methods to measure or pricing external benefits within a controlling framework. Practical implication - The intended outcome of this paper is an increasing awareness of the importance of analysing respectively measuring external benefits of urban development projects followed by an increasing application of controlling methods in the field of urban planning.Originality/value - The results of this paper are of high value for practitioners in several fields of urban planning, e.g. municipal planners receive methodological support in all stages of a project life cycle to assure sustainable urban development.
    Date: 2013
  4. By: Esen, Bugra Kagan
    Abstract: In the last couple of years, urban renewal practices in Turkey, has become a more interesting topic for researchers than ever. One reason is that, the evidences of these decade-lasting projects have now become physically tangible and thus, subject to a spectrum of concerns. The other reason, however, relates more to the top-down style that these projects are implemented. Most of the time, it is argued that, the decision making process heavily depends on the local or central governmental authorities, which lack the participation of the people as well as the academic or civil parties. In light of these facts, this paper questions in what extend it is possible to modify –or flex- urban renewal projects according to changing times and conditions, which represent a timeline of administrative, legal, technical, social, political and financial aspects. On one hand, from the authorities viewpoint, it is seen crucial to make solid decisions and comply with these projects without hesitation. On the other hand, it is not always possible to foresee what time would bring and make decisions to cover this fourth dimension. In this paper, one real-life example from the capital city, the New Mamak Urban Renewal Project including 18.000 dwellings, has been analyzed to show how things may get out of hand due to changing conditions in time and how modifications may be needed in the half way. This paper aims to contribute to the real estate sciences in the sense that; complicated and long lasting urban renewal projects can be better accomplished if some flexibility techniques, as suggested in the paper, can be taken into consideration in a well established way.
    Date: 2013
  5. By: Wiegand, Dietmar
    Abstract: Project organisations are complex, dynamic, open socio-technical systems, in the domain of building construction designed to complete another, in many cases very complex system – a building. Two research projects in Austria dealt in these two senses with the 'management of complexity': Within the project 'Cost-Benefits of the Integrated Planning' (co-be) sequential and integrated planning processes of a complex building have been compared. A planning experiment with 200 probands showed, that the early integration of experts for building services e.g. increases the job satisfaction and reduces the period needed for the project development, but the quality of results and necessary manpower needed remains more or less identical. 'Interdisziplinäre Forschung zur Energieoptimierung in Fertigungsbetrieben' aims at the integrated optimization of building, machinery and building services. Three strategies dealing with the increasing complexity of integrated optimization have been developed and will be presented.
    Date: 2013
  6. By: Sreckovic, Marijana
    Abstract: In today's dynamic and uncertain environments organisations are facing constant challenges in terms of achieving and maintaining their competitive advantage. These new circumstances are compelling organizations to analyse, integrate, build and reconfigure their resources and organisational capabilities in order to sustain and improve their strategic performance. The purpose of this paper is to investigate the role of organisational capabilities (OC) for the strategic performance of real estate development companies, which are mainly project-based organisations operating in dynamic and uncertain environments. Before empirically exploring the relationship between organisational capabilities and firm performance, a conceptual model for organisational capabilities based on the resource-based-view (RBW) is developed and applied in Real Estate. Based on the developed OC-model it is hypothesised that those certain organisational capabilities, which are embedded in the organization itself and developed through projects and people capabilities, influence the strategic performance of real estate development companies and thus lead to competitive advantage and higher firm performance. As real estate developers operate in highly dynamic and uncertain markets, our empirical model also introduces the control variable environmental uncertainty which, depending on the target market, influences further the choice of strategy. The model is empirically evaluated by using data from real estate development companies in Austria, Germany and Switzerland and tested by applying hierarchical regression analysis.
    Date: 2013
  7. By: Zalejska-Jonsson, Agnieszka; Lind, Hans
    Abstract: Energy-efficiency has received much attention from policy makers and the issue of reducing energy consumption in buildings has faced a true challenge in balancing incitements, restrictions and cost-effectiveness for required changes. The literature shows that technological change and technology diffusion is an important factor in overcoming cost barriers. On the other hand, before adaptation process begins the new technology must show possibility for profit and return on costs. This paper aims at discussing technological change in building construction in context of diffusion and adaptation of very low-energy technological solutions. We are tracing technological development in three aspects: wall construction, windows energy-efficiency improvement and mechanical ventilation, solutions used preliminary in construction of passive houses. We examine how those technological changes influenced cost-effectiveness and profitability of low-energy building projects. The investigation is approached by analysis of market and policy incentives and the role those factors had on diffusion of new energy-efficient technologies.
    Date: 2013

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