nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2021‒02‒08
seven papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Combining Agile and Traditional Project Management as a Better Approach to Project Implementation By Ivana Marinovic Matovic
  2. From a New Workplace to a New Way of Working: Legitimizing Organizational Change By Grégory Jemine; Christophe Dubois; François Pichault
  3. Competitive Procurement With Ex Post Moral Hazard By Indranil Chakraborty; Fahad Khalil; Jacques Lawarree
  4. Railway line capacity utilisation and its impact on renewal costs By Odolinski, Kristofer; Lidén, Tomas
  5. SHAPING THE UNKNOWN WITH VIRTUAL UNIVERSES-THE NEW FUEL FOR INNOVATION By Pascal Daloz; Patrick Johnson; Sébastien Massart; Pascal Le Masson; Benoit Weil
  6. An Optimal Islamic Investment Decision in Two-region Economy: The Case of Indonesia and Malaysia By Syarifuddin, Ferry
  7. From Digital Innovation to "Smart Tourism Destination": Stakeholders' reflections in times of a Pandemic By MARQUES SANTOS Anabela; EDWARDS John; LARANJA Manuel

  1. By: Ivana Marinovic Matovic (PhD, Glenfield, Belgrade, Serbia)
    Abstract: The project management concept has changed significantly since its initial emergence, and is still evolving. With constant process of changes in the characteristics of projects, standardization, and software and application development, new project management approaches have also developed. Combining an agile and traditional methodology became the best way of management for many projects. PMI2 methodology has significantly contributed to this, as example of project management best practice. The paper deals with the analysis of success in project management based on the application of different project methodologies.
    Keywords: Project management, traditional methodology, agile methodology, PMI2 methodology
    Date: 2020–12
  2. By: Grégory Jemine (HEC École de Gestion de l'Université de Liège); Christophe Dubois (Université de Liège); François Pichault (HEC École de Gestion de l'Université de Liège)
    Abstract: Several studies have recently documented projects of organizational transformation and modernization which, commonly clustered under the umbrella term "New Ways of Working" (NWoW), simultaneously entail material, technological, cultural and managerial dimensions. Academic contributions, however, have paid little attention to the mechanisms allowing such projects to progressively become legitimized in organizational discourses and practices. The paper aims to investigate the distinctive features of the legitimation process underlying the implementation of NWoW projects. The paper relies on a longitudinal, three-year analysis of a large insurance company. Data were collected through qualitative methods including semi-structured interviews (48), periods of observation (3 months), and document analysis (78). The paper develops a grounded and integrative framework of legitimation processes underlying "NWoW" change projects. The framework emphasizes four decisive operations of translation in "NWoW" design and implementation: translating material constraints into strategic opportunities; translating strategic opportunities into a quantitative business plan supported by the top management; translating compelling discourses around "NWoW" into an organizational machinery; translating a transformation project into discourses of unequivocal success, conveyed by legitimate spokespeople within and beyond the organization. Besides contributing to the understanding of a managerial fashion which has received little academic attention so far, the paper also offers an original integrative framework to account for legitimation processes that combines two theoretical approaches-the sociology of translation and research on institutionalist work.
    Keywords: Legitimation process,new ways of working,organizational change,sociology of translation,institutional work,nwow,nww
    Date: 2019–07–26
  3. By: Indranil Chakraborty; Fahad Khalil; Jacques Lawarree
    Abstract: Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient allocation rules that award the project to a less efficient firm with positive probability. Procurement projects often involve ex post moral hazard after the competitive process is over. A procurement mechanism must combine an incentive scheme with the auction to guard against firms bidding low to win the contract and then cutting back on effort. While competition helps reduce the rent of efficient firms, it exacerbates the problem due to moral hazard. If allocative efficiency is a requirement, limiting the number of participants may be optimal. Alternatively, the same incentives can be optimally provided using inefficient allocation rules.
    Keywords: competitive procurement, auctions, moral hazard
    Date: 2021
  4. By: Odolinski, Kristofer (Swedish National Road & Transport Research Institute (VTI)); Lidén, Tomas (Swedish National Road & Transport Research Institute (VTI))
    Abstract: In this paper we estimate the impact of line capacity utilisation on the marginal cost of rail infrastructure renewals. Previous studies are mainly concerned with deterioration costs caused by traffic. This paper contributes to the literature, showing that increased line capacity utilisation can – in addition to higher deterioration costs – generate increased costs for carrying out a renewal project and/or more frequent renewals, where the latter can be motivated by efforts to curb expected delays. A top-down econometric approach is used on a Swedish dataset comprising information on renewal costs for track, electric installations, signalling, telecommunication, and other installations such as barriers, fencing and lubrication equipment. The results are relevant for rail infrastructure managers, especially in Europe where directives by the EU stipulate that track access charges are to be based on direct costs in order to contribute to an efficient use of the infrastructure.
    Keywords: Marginal cost; Capacity utilisation; Renewal; Rail infrastructure; Access charging
    JEL: H54 L92 R48
    Date: 2021–01–26
  5. By: Pascal Daloz (Dassault Systèmes); Patrick Johnson (Dassault Systemes [Cambridge]); Sébastien Massart (Dassault Systèmes); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - CNRS - Centre National de la Recherche Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres); Benoit Weil (CGS i3 - Centre de Gestion Scientifique i3 - CNRS - Centre National de la Recherche Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres)
    Abstract: The new logic of financing innovation: from uncertainty reduction to shaping the unknown Handbooks in finance, as well as literature reviews, recall that financing innovation and financing productivity investment differ in their level of uncertainty. 1 Students learn that financing production investment requires a positive net present value (NPV), whereas financing innovation requires taking into account multiple uncertainties by computing expected NPV. Models of decision-making in uncertainty helped to compute the value of reducing uncertainty. 2 This approach is considered the best way to value investment in research and development (R&D)-R&D being considered an activity to reduce uncertainty. 3 In this time of "disruptive innovation" in the context of multiple socioeconomic and technological changes-such as energy transition, aging, and digitalization-it is tempting to consider that innovation dynamics tend to be characterized by an increase in uncertainty. Investments would, therefore, become much riskier, and financing might seem almost impossible. Fortunately, this "wisdom" misses a critical feature of contemporary innovation: it is not mainly about uncertainty but much more about "the unknown". In contemporary innovation, one has to deal not only with uncertain events, such as unstable markets and technological advances, but also partially unknown chimeras, such as inclusive mobility, smart cities, and sustainable energy. Therefore, it is critical for innovation success to deal with these initially unknown situations and shape them in a beneficial direction. 4 This distinction between uncertain and unknown has major consequences on innovation investment: the financing approach must not only consist of reducing uncertainty but also of shaping the unknown, i.e., through a capacity to design new alternatives, worlds, opportunities, markets, and usages.
    Date: 2020
  6. By: Syarifuddin, Ferry
    Abstract: In this work, the possibility of cross-border activities between two regions in the framework of the investment contract is viewed as optimal allocation problems. The problems of determining the optimal proportion of funds to be invested in liquidity and technology are analyzed in two different environments. In the first case, we consider a two-region and two-technology economy in which both regions possess the same productive technology or project, but a different stream of return. While in the second case, we examine an economy where two regions (Indonesia and Malaysia) hold different Islamic productive projects with identical returns. Allocation models are formulated in terms of investors’ expected utility maximization problem under budget constraints with respect to regional and sectoral shocks. It is revealed that optimal parameters for liquidity ratio, technological investment profile, and bank repayment are analytically characterized by the return of a more productive project and the proportion of impatient and patient investors in the region. Even though both cases employ different assumptions, they provide the same expressions of optimal parameters. The model suggests that cross-border Islamic investment activities between two regions might be realized, provided both regions hold productive projects with an identical stream of return. This paper also shows that by increasing the lower return of the project approaching the higher return, a room for inter-region investment can be created. An analytical framework of an investment contract in terms of optimal allocation model is provided.
    Keywords: Investment contract; Optimal allocation model; Two-region economy.
    JEL: C61 F36 G11
    Date: 2020
  7. By: MARQUES SANTOS Anabela (European Commission - JRC); EDWARDS John; LARANJA Manuel
    Abstract: This JRC policy insight presents the main findings of an online event that took place on 30th September and 8th October 2020, organised by the Regional Coordination and Development Commission (CCDR) of Algarve, Portugal, and the JRC Territorial Development unit, as part of the project "Targeted Support to RIS3 Implementation in Lagging Regions". The workshop aimed to support the Entrepreneurial Discovery Process (EDP), a key feature of Smart Specialisation (BOX 1), with a focus on the digitalisation of tourism. The main objective was to stimulate entrepreneurs to share experience, identify obstacles, and suggest solutions to strengthen the innovative capacity of the region in this specific S3 priority. It brought together a range of actors in the territory, from business, research, and public administration to discuss issues relevant to the Algarve region.
    Keywords: Smart Specialisation Strategy, COVID-19, Tourism, Digitalisation
    Date: 2021–01

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