nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2015‒09‒26
eleven papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Virtual Design and Construction in Bidding Process By Hasnanywati Hassan
  2. Financing social ventures by crowdfunding: The influence of entrepreneurs’ personality traits By Susana Bernardino; J. Freitas Santos
  3. Managing radical innovation as an innovative design process: generative constraints and cumulative sets of rules By Pierre-Antoine Arrighi; Pascal Le Masson; Benoit Weil
  4. Title: Strategic Intelligence Monitor on Personal Health Systems Phase 3 (SIMPHS 3) – Renewing Health Carinthia (Austria) Case Study Report By Ignacio Peinado; Elena Villalba; Francisco José Mansoa; Alberto Sánchez
  5. The national solidarity program : assessing the effects of community-driven development in Afghanistan By Beath,Andrew; Christia,Fotini; Enikolopov,Ruben
  6. A theoretical framework on CSR and urban development By Tsavdaridou, Maria; Metaxas, Theodore
  8. Knowledge Management and e-Learning in Organisations By Zita Krajcso
  9. The free-rider problem and the optimal duration of research joint ventures: theory and evidence from the Eureka program By MIYAGIWA, Kaz; SISSOKO, Amy; SONG, Huasheng
  10. Cost of Crowdfunding as a Source of Capital for the Small Company By Anna Motylska - Kuzma
  11. Bogus Joint Liability Groups in Microfinance -- Theory and Evidence from China By Yi Xue; Xiaochuan Xing; Alexander Karaivanov

  1. By: Hasnanywati Hassan (Universiti Sains Malaysia)
    Abstract: Construction projects involve a high degree of complex procurement processes. One essential stage is the bidding process, during which the amount of profit level is critically determined. Within this context, not only the profit is important but technical, human and conceptual skills are critical for bidders. The bidding process in the construction industry is characterized by the involvement of many different parties including the client, architectural and engineering firms, general contractors, specialized contractors, material suppliers, manufacturers, etc. Faced with the challenge of global competition, business leaders serious about running ethical and responsible businesses often have to be strategic and creative in the way they address bid responses and with a clear destination in mind for their organisation. This is especially the case for construction companies that aspire to be competitive and well-regarded players in the global economy beyond their own borders. These companies have to understand and effectively manage not just business risk, but need to demonstrate the willingness to advance industry innovation, aid in nation-building and deliver greater community capacity. Virtual Design and Construction (VDC) which is a visual representation of data, is increasingly being used to more effectively communicate complex or technical information to busy readers in a clear and concise way. Many benefits have been identified in implementing VDC and its uses of virtual models of product, organization and process to simulate the complexities of the construction project delivery. VDC understands the pitfalls the project teams are likely to encounter, to analyze these pitfalls and address them in a virtual world before any of the construction work ever takes place in the real world. The implementation of VDC in bidding process is expected to reduce these demands by improving the efficiency, speed and accuracy. It uses to integrate product, process and resource models of construction projects to support the construction planning in virtual environment. This paper explores strengths of VDC based on its usage in many countries, its execution through during bidding as well as suggestions on how VDC be able to act as an imperative tool in bidding practice in Malaysian construction industry’s stakeholders.
    Keywords: Virtual Design and Construction, construction industry, bidding
    JEL: O31
  2. By: Susana Bernardino (Politécnico do Porto/ISCAP/CECEJ, Porto); J. Freitas Santos (Politécnico do Porto/ISCAP/CECEJ e Universidade do Minho/NIPE)
    Abstract: Purpose – This research aims to understand the role played by social entrepreneurs’ personality traits on the choice between the traditional donation model and social crowdfunding (CF) to finance social projects. Design/methodology/approach – Social CF is examined as an instrument to capture funds for social projects, and the particular case of the Portuguese Social Stock Exchange (PSSE) is presented. The approach is quantitative in nature and the data were collected through a questionnaire that was emailed to non-governmental organizations in Portugal and founders of the projects listed on PSSE. Logistic regression was employed to predict the probability that a social entrepreneur would use PSSE rather than traditional financing. The predictor variables were based on the big five personality traits. Findings – Our investigation reveals that the agreeableness and neuroticism factors were not even considered in the results of the factorial analysis, which indicates the minor importance of these personality traits in the funding decisions of the Portuguese social entrepreneurs. The same applies to the factors of openness to new experiences and extraversion, which, although considered in the logistic analysis, showed no statistical significance. Finally, the conscientiousness personality trait seems to be the only factor that might explain the use of the PSSE platform. Originality/value – Studies on the profile of the social entrepreneurs that use CF for financing social projects are relatively rare, specifically in the context of Social Stock Exchange platforms. Additionally, there is a need to carry out more empirical evidence about the effect of social entrepreneurs’ personality traits on the decision to finance social projects through social CF platforms vis-a-vis the traditional donation model.
    Keywords: Social Entrepreneurship, Social Crowdfunding, Social Entrepreneur’s Personality traits, Social Ventures, Portuguese Social Stock Exchange.
    Date: 2015
  3. By: Pierre-Antoine Arrighi (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Pascal Le Masson (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Benoit Weil (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: This paper focuses on the organization of design processes and the difficulty of simultaneously achieving control and exploration while aiming to achieve radical innovation. After a first generation of works that tended to oppose NPD processes (with controlled convergence and very limited exploration) to Innovation processes (with poorly controlled convergence and random (uncontrolled) exploration, the new generation of works proposed ways to combine control and convergence either through concept shift or through stable architectures. Relying a generic analytical framework (design space / value management) it appears that each model makes restrictive hypotheses (respectively smart leadership or stable architecture) to address two critical questions: Q1. How can one increase the efficiency of exploration? Q2. How can one ensure forms of cumulative convergence? Relying on the ame analytical framework we analyze two cases that explore the unknown in a controlled way and still don't correspond two either of the two models. We show that these two anomalies and the two models actually have two critical features in common: a focus on generative constraint and a logic of cumulative design rules. As a consequence these two features might generic to several processes where teams have to explore the unknown and still have to keep a rigorous control of exploration and convergence.
    Keywords: concept shift,modular innovation,Radical innovation,design process,design theory
    Date: 2015–08–31
  4. By: Ignacio Peinado (Hospital Universitario de Getafe); Elena Villalba (Hospital Universitario de Getafe); Francisco José Mansoa (Hospital Universitario de Getafe); Alberto Sánchez (Hospital Universitario de Getafe)
    Abstract: Renewing Health is a European project (February 2010-December 2013), partly funded by the European Union under the ICT Policy Support Programme, part of the Competitiveness and Innovation framework Programme (CIP), with a total budget of €14 million and European co-financing of €7 million. The project aimed to implement health-related ICT services through large-scale real-life test beds for the validation and subsequent evaluation of innovative eHealth services, using a patient-centred approach and a rigorous common assessment methodology. This case study focuses on the Austrian Partner of the project: the Carinthia region and, more precisely, KABEG (Krankenanstalten Betriebsgesellschaft), the hospital management company in the region. In RENEWING HEALTH, KABEG integrated a set of telemonitoring solutions into their existing systems for two target groups - patients suffering from Diabetes Mellitus Type II and patients suffering from COPD – in order to carry out two pilots to test the effects of the resulting system.
    Keywords: SIMPHS, eHealth, Remote Monitoring, ageing, integrated care, independent living, case studies, facilitators, governance, impact, drivers, barriers, integration, organisation
    JEL: I11 I18 O33 O38
    Date: 2015–04
  5. By: Beath,Andrew; Christia,Fotini; Enikolopov,Ruben
    Abstract: Over the past two decades, community-based approaches to project delivery have become a popular means for governments and development agencies to improve the alignment of projects with the needs of rural communities and increase the participation of villagers in project design and implementation. This paper briefly summarizes the results of an impact evaluation of the National Solidarity Program, a community-driven development program in Afghanistan that created democratically elected community development councils and funded small-scale development projects. Using a randomized controlled trial across 500 villages, the evaluation finds that the National Solidarity Program had a positive effect on access to drinking water and electricity, acceptance of democratic processes, perceptions of economic wellbeing, and attitudes toward women. Effects on perceptions of local and national government performance and material economic outcomes were, however, more limited or short-lived.
    Keywords: Housing&Human Habitats,Poverty Monitoring&Analysis,Banks&Banking Reform,ICT Policy and Strategies,Governance Indicators
    Date: 2015–09–18
  6. By: Tsavdaridou, Maria; Metaxas, Theodore
    Abstract: The role of enterprises in society is without doubt controversial nowadays due to the economic crisis. Although enterprises offer infrastructures, jobs, innovative solutions to local communities their primary goal is profit in order to be competitive and sustainable. This article examines the implementation of urban development projects under the CSR strategy and provides case studies of European enterprises that offered successful urban development projects in their local communities. There are certain elements that influence how an enterprise sets their CSR strategy and when it comes to urban development projects the characteristics of the city they operate play an important role along with the core CSR strategy of the company. In order to elaborate on the link between CSR and urban development and enhance the limited bibliography on this issue a theoretical framework is set with the elements needed for the enterprise to develop a successful project of urban development and a successful CSR activity and how finally the city absorbs this kind of CSR practices. There are many limitations also that enterprises face when try to develop such challenging projects. This article aims to designate on the importance of partnership and ethics and how CSR is a multi dimensional tool for cities to use for their benefit.
    Keywords: urban development, enterprises, local communities, case studies
    JEL: M10 M14
    Date: 2015
  7. By: Morgane Le Breton (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Franck Aggeri (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: Afin d'intégrer de nouvelles problématiques sociétales et environnementales dans l'activité des organisations et rendre compte de dimensions jusque-là invisibles, de nouvelles formes de comptabilité sont expérimentées, comme l'illustre l'exemple de la comptabilité carbone. Pourtant, la complexité technique de ce sujet tend à dissimuler les enjeux managériaux et économiques sous-jacents. Que fait une entreprise lorsqu'elle cherche à comptabiliser le carbone ? Pour répondre à cette question, nous adoptons une posture réflexive en déconstruisant la notion de comptabilité carbone, à savoir ses fondements, ses usages dans les entreprises ainsi que les apprentissages et obstacles identifiés dans l'élaboration de conventions de calcul. Cette recherche interroge notamment les effets structurants de la comptabilité et de façon plus inédite, du processus de construction de cette comptabilité pour tâcher de comprendre « ce que comptabiliser le carbone veut dire », à la fois en termes d'action collective que de responsabilité des entreprises. Abstract : To take into account environmental issues, new accounting projects are created such as carbon accounting. However, the technical complexity of this project tends to hide the issues at stake. In fact, what does it mean for a corporation to account for carbon ? In this study, we adopt a reflexive position to answer this question. To do that, we deconstruct the « carbon accounting » concept, both its foundations and uses. Hence we study the structuring effects of a specific form of accounting and of the his creation process in a previously unseen way.
    Keywords: RSE Key words : carbon accounting,performativity,management instruments,CSR,comptabilité carbone,performativité,instrument de gestion
    Date: 2015–05–19
  8. By: Zita Krajcso (Centre for Translation Studies / University of Vienna)
    Abstract: Challenged by growing competition, organisations are seeking to find efficient ways and methods to allow for shared access to their key resources: knowledge, experiences and expertise of their members and staff. The purpose of this article is to present a practical example that capitalizes on the combination of Knowledge Management and e-Learning as a response to this challenge. The paper first introduces the project Open Discovery Space, a practical example of Knowledge Management and e-Learning being combined. Secondly it gives a brief overview of both domains’ theoretical background and a framework of quality standards for their effective combination. Finally the paper draws conclusions and offers practical recommendations for implementation in practice.
    Keywords: Knowledge Management, e-Learning, Quality Assurance, Organisation
  9. By: MIYAGIWA, Kaz; SISSOKO, Amy; SONG, Huasheng
    Abstract: In a research joint venture (RJV), members' contributions consist mostly of personnel and proprietary technical know-how. Since the quantity and quality of such contributions are difficult to verify, each member has the temptation to free-ride on others' contributions. In this paper we show that a RJV can resolve this free-rider problem by pre-committing to its duration. Our model predicts, among others, that a RJV chasing a higher-cost innovation tends to have a shorter duration. We then utilize data from the European Eureka program to investigate the factors determining the durations of Eureka RJVs. We find the Eureka data consonant with the prediction of our model.
    Keywords: Research joint venture (RJV), Free-rider problem, Unobservable R&D, Collusion, Stability of RJVs
    JEL: D82 L1 L2
    Date: 2015–05
  10. By: Anna Motylska - Kuzma (Wroclaw School of Banking)
    Abstract: The main object of this paper is to analyse advantages and disadvantages of capital deriving from crowdfunding compared to other sources of capital used in a company, especially in the SMEs. As the main factor used for comparison I take the cost of capital, because it is crucial in the decision process of choosing the source of financing. The explored data is mainly obtained from the Polish economy, but I use the European and World context, too. To contrast the capital from crowdfunding I have chosen debt funds (i.e. bank loans, commercial papers and leasing or hire-purchase) and equity funds (i.e. issue of shares, venture capital or private equity funds, business angels) as the more traditional sources used to finance innovative projects in the company. Although the conventional sources of capital could be cheaper or easier to raise, they have many limitation to use, especially for SMEs and earlystage enterprises. Additionally, they are not able to ensure and provide demand for the new ideas offered by firms. This fact definitely changes the cost of used capital, especially when it should finance an innovative project
    Keywords: crowdfunding, cost of capital, innovative project, SME, financial strategy
    JEL: G24 G30 G32
  11. By: Yi Xue (University of International Business and Economics); Xiaochuan Xing (Tsinghua University); Alexander Karaivanov (Simon Fraser University)
    Abstract: Survey data from CFPAM, the leading joint-liability microfinance lender in China, indicate that nearly 70% of all borrower groups in the sample are `bogus' -- that is, one person uses all loans given to group members in a single investment project while all other group members act as unproductive cosigners. This practice not only violates CFPAM rules but is also inconsistent with the majority of the theoretical literature on group lending, a basic tenet of which is that each borrower uses their own loan to implement their own investment project (what we call `standard' group). We therefore extend the classic model of group lending under joint liability by explicitly allowing for both standard and bogus groups in a setting with the possibility of strategic default due to limited enforcement. The optimal choice between standard and bogus groups is endogenous and depends on the borrowers' characteristics (project productivity and probability of success). We analyze the optimal group loan contract (or menu of contracts) and show that bogus groups optimally arise when either the productivity differential between the projects in a group is high (in heterogeneous groups), or when the absolute level of project productivity is high (in homogeneous groups). Explicitly allowing for the possibility of bogus groups not only helps the lender avoid losses which would occur if their presence is ignored, but also enhances productive efficiency and borrower welfare in the economy. We test the model predictions with data from rural China and evaluate the welfare gains from implementing the optimal contract (or menu) relative to the benchmarks of: (a) lenders operating unaware of bogus groups or (b) lenders using a contract that endogenously rules out bogus group formation.
    Date: 2015

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