nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2023‒01‒02
nine papers chosen by
Arvi Kuura
Tartu Ülikool

  1. The Importance of implementing Energy Justice and Energy Democracy Principles in Energy Projects in Mexico By Medina-Cabrera, Arturo; Ortiz-Arango, Francisco; Venegas-Martínez, Francisco
  2. Hidden inefficiency: Strategic inflation of project schedules By Matej Lorko; Maros Servatka; Le Zhang
  4. When can lotteries improve public procurement processes? By Antonio Estache; Renaud Foucart; Tomas Serebrisky
  5. Digital Technologies for Digital Innovation: Unlocking Data and Knowledge to Drive Organizational Value Creation By Koppe, Timo
  6. Organizational dynamics: culture, design, and performance By Besley, Timothy; Persson, Torsten
  7. Does project-level aid for water and sanitation improve child health outcomes?: Evidence from household panel data in Uganda By Lynda Pickbourn; Raymond Caraher; Léonce Ndikumana
  8. Uganda: Technical Report - Public Investment Management Assessment By International Monetary Fund
  9. Developing a Sustainable and Circular Bio-Based Economy in EU: By Partnering Across Sectors, Upscaling and Using New Knowledge Faster, and For the Benefit of Climate, Environment & Biodiversity, and People & Business By Lene Lange; Kevin O Connor; Sigurjon Arason; Uffe Bundgård-Jørgensen; Antonella Canalis; Dirk Carrez; Joe Gallagher; Niels Gøtke; Christian Huyghe; Bruno Jarry; Pilar Llorente; Mariya Marinova; Ligia O Martins; Philippe Mengal; Paola Paiano; Calliope Panoutsou; Ligia Rodrigues; Dagmar B Stengel; Yvonne van der Meer; Helena Vieira

  1. By: Medina-Cabrera, Arturo; Ortiz-Arango, Francisco; Venegas-Martínez, Francisco
    Abstract: This papers aims at examining the importance of adopting energy democracy and energy justice principles in carrying out energy projects in Mexico. These concepts have gained international relevance in recent years due to the climate change and the energy transition; however, they have not been adopted to evaluate the feasibility of Mexico’s energy projects. In this context, this research analyzes the Eurus wind farm in the state of Oaxaca, which was recognized for complying with Mexican regulations and paying particular attention to environmental and social impacts, as well as governance issues; even it has gained international recognition. Nonetheless, from its construction to its current operation it has had conflicts with the communities. The main findings are that when analyzing this project under the crucible of energy democracy and energy justice, we found several negative impacts and deficiencies in its development, the reason being the absence of these principles when evaluating this energy project.
    Keywords: Energy democracy, energy justice, energy regulation, energy projects, social impact.
    JEL: K23
    Date: 2022–11–25
  2. By: Matej Lorko (Macquarie Business School); Maros Servatka (Macquarie Business School, University of Alaska Anchorage); Le Zhang (Macquarie Business School)
    JEL: C91 D82 D83 O21 O22
    Date: 2022–11
  3. By: David Oluwatofun Akinwamide; Jonas Hahn; Partson Paradza; David Suru Aweh
    Abstract: In as much as there is a wealth of research on smart housing, there is limited literature based on empirical findings from Africa. The aim of this paper is to examine barriers to the adoption of smart housing concept in Africa using a case study of Akwa Millennium City Project in Nigeria. The case study was chosen because is a premium multi-nucleic smart city project that is slated to redefine the concept of urban living in Nigeria and Africa at large. Structured questionnaires were purposively administered to all the staff of Akwa Millennium City project while all retrieved questionnaires were found suitable for analysis. Descriptive statistics was employed to analyse the data collected from the respondents. Findings depicted that the major barriers could be classified as socio-economic, technical and policy hindrances. It is noteworthy that smart housing concept could be unaffordable due to the most perceived barriers (such as limited consumer demand, retrofitting of existing homes and buildings, lack of financial and financing incentives, high cost of development, and smart technology as divisive, exclusive or irrelevant). This study therefore recommends that developers should focus on socio-economic attributes in the adoption of smart housing concept to achieve an effective planning of smart city projects in Nigeria and Africa at large.
    Keywords: Akwa Millennium City; SDGs11; Smart Housing; Africa; smart city; Social Housing
    JEL: R3
    Date: 2022–01–01
  4. By: Antonio Estache; Renaud Foucart; Tomas Serebrisky
    Abstract: We study the feasibility, challenges, and potential benefits of adding a lottery component to standard negotiated and rule-based procurement procedures. For negotiated procedures, we introduce a “discrete lottery†in which local bureaucrats negotiate with a small number of selected bidders and a lottery decides who is awarded the contract. We show that the discrete lottery performs better than a standard negotiated procedure when the pool of firms to choose from is large and corruption is high. For rule-based auction procedures, we introduce a “third-price lottery†in which the two highest bidders are selected with equal probability and the project is contracted at a price corresponding to the third highest bid. We show that the third-price lottery reduces the risks from limited liability and renegotiation. It performs better than a standard second-price or ascending auction when the suppliers’ pool size, the risk of cost overrun, delays and non-delivery of the project are high. The choice between a second-price auction, a third price lottery and a lottery amongst all bidders also depends on the weight placed on producer surplus, including for instance the desire to increase the participation of local SMEs in public sector services markets.
    Keywords: rules, discretion, procurement, lotteries, corruption, auctions
    JEL: D44 D73 H57
    Date: 2022
  5. By: Koppe, Timo
    Abstract: The rise of digitization has radically transformed innovation processes of today's companies and is increasingly challenging existing theories and practices. Digital innovation can describe both the use of digital technologies during the innovation process and the outcome of innovation. This thesis aims to improve the understanding of digital innovation in today's digitized world by contributing to the theoretical and practical knowledge along the four organizational activities of the digital innovation process: initiation, development, implementation, and exploitation. In doing so, the thesis pays special attention to the use of digital technologies and tools (e.g., machine learning, online crowdsourcing platforms, etc.) that unlock knowledge and data to facilitate new products, services, and other value streams. When initiating digital innovations, organizations seek to identify, assimilate, and apply valuable knowledge from within and outside the organization. This activity is crucial for organizations as it determines how they address the increasing pressure to innovate in their industries and markets while innovation processes themselves are changing and becoming more distributed and open. Papers A and B of this thesis address this phase by examining how digital technologies are changing knowledge gathering, e.g., through new ways of crowdsourcing ideas and facilitating cooperation and collaboration among users and innovation collectives. Paper A focuses on organizational culture as a critical backdrop of digital innovations and explores whether it influences the implementation of idea platforms and, in this way, facilitates the discovery of innovations. The paper reveals that the implementation of idea platforms is facilitated by a culture that emphasizes policies, procedures, and information management. Additionally, the paper highlights the importance of taking organizational culture into account when introducing a new technology or process that may be incompatible with the existing culture. Paper B examines newly formed innovation collectives and initiatives for developing ventilators to address shortages during the rise of the COVID-19 pandemic. The paper focuses on digital technologies enabling a transformation in the way innovation collectives form, communicate, and collaborate - all during a period of shutdown and social distancing. The paper underlines the role of digital technologies and collaboration platforms through networking, communication, and decentralized development. The results show that through the effective use of digital technologies, even complex innovations are no longer developed only in large enterprises but also by innovation collectives that can involve dynamic sets of actors with diverse goals and capabilities. In addition, established organizations are increasingly confronted with community innovations that offer complex solutions based on a modular architecture characteristic of digital innovations. Such modular layered architectures are a critical concept in the development of digital innovations. This phase of the digital innovation process encompasses the design, development, and adoption of technological artifacts, which are explored in Sections C and D of this paper. Paper C focuses on the latter, the adoption of digital services artifacts in the plant and mechanical engineering industry. The paper presents an integrative model based on the Technology-Organization-Environment (TOE) framework that examines different contextual factors as important components of the introduction, adoption, and routinization of digital service innovations. The results provide a basis for studying the assimilation of digital service innovations and can serve as a reference model for informing managerial decisions. Paper D, in turn, focuses on the design and development of a technology artifact. The paper focuses on applying cloud-based machine learning services to implement a visual inspection system in the manufacturing industry. The results show, for one, the value of standardization and vendor-supplied IS architecture concepts in digital innovation and, for another, how such innovations can facilitate further innovations in manufacturing. The implementation of digital innovations marks the third phase of the digital innovation process, which is addressed in Paper E. It encompasses organizational changes that occur during digital innovation initiatives. This phase emphasizes change through digital innovation initiatives within the organization (e.g., strategy, structure, people, and technology) and across the organizational environment. Paper E investigates how digital service innovations impact industrial firms, relationships between firms and their customers, and product/service offerings. The paper uses work systems theory as a theoretical foundation to structure the results and analyze them through the lens of service systems. While this analysis helps to identify the organizational changes that result from the implementation of digital innovations, the paper also provides a basis for further research and supports practitioners with systematic analyses of organizational change. The last phase of the digital innovation process is about exploiting existing systems/data for new purposes and innovations. In this regard, it is important to better understand the improvements and effects in the domains beyond the sheer outcome of digital innovation, such as organizational learning or organizational change capabilities. Paper F of this thesis investigates the exploitation of digital innovations in the context of organizational learning. One aspect of this addresses how individuals within the organization leverage innovation to explore and exploit knowledge. Paper F utilizes the organizational learning perspective and examines the dynamics of human learning and machine learning to understand how organizations can benefit from their respective idiosyncrasies in enabling bilateral learning. The paper demonstrates how bilateral human-machine learning can improve the overall performance using a case study from the trading sector. Drawing on these findings, the paper offers new insights into the coordination of human learning and machine learning, and moreover, the collaboration between human and artificial intelligence in organizational routines.
    Date: 2022
  6. By: Besley, Timothy; Persson, Torsten
    Abstract: We examine the two-way interplay between organizational cultures and organizational design, where culture is modeled as the prevailing social identities among workplace groups that can affect project choices. In a setting where cultural dynamics depend on the expected relative payoffs of holding different identities, we investigate how tribalism and charismatic leadership shape organizational dynamics and steady-state cultures. We show how a strong culture can be a virtue when it permits greater delegated authority, but a vice when the culture is poorly aligned with organizational objectives. We apply our analysis to concrete debates about the interaction of design, performance, and culture.
    Keywords: project ECOSOCPOL
    JEL: L23 M14
    Date: 2022–10–28
  7. By: Lynda Pickbourn; Raymond Caraher; Léonce Ndikumana
    Abstract: Empirical studies on the effectiveness of aid to the water, sanitation, and hygiene sector (WASH aid) have focused primarily on access to these services as the benchmark for evaluating the effectiveness of aid in this sector. Given the importance of WASH services for public health outcomes, the effectiveness of WASH aid should also be evaluated in terms of its impact on health outcomes. This is especially important in low- and middle-income countries where achieving sustained improvements in child health outcomes remains a challenge.
    Keywords: Aid effectiveness, Public health, Water, Sanitation, Stunting, Difference-in-differences, Uganda
    Date: 2022
  8. By: International Monetary Fund
    Abstract: Uganda has achieved significant improvements in public investment management over the last few years. The new IMF Public Investment Management Assessment (PIMA) report shows that Uganda is well ahead of its comparators in many aspects of public investment management, in particular in institutional design. A number of important measures have been undertaken, including giving the Development Committee a strong role as a gatekeeper for new investment proposals, the establishment of the Projects Analysis and Public Investment Department, and development of guidelines and manuals to improve the quality of project preparation and appraisal. Many reforms are fairly recent and are not fully institutionalized, so there is a clear need to continue and to further strengthen public investment management in Uganda. The IMF and other development partners are active partners to the government in pursuing these reforms.
    Date: 2022–11–23
  9. By: Lene Lange (Bioeconomy, Research and Advisory); Kevin O Connor (UCD - University College Dublin [Dublin]); Sigurjon Arason (University of Iceland [Reykjavik]); Uffe Bundgård-Jørgensen (Gate2Growth); Antonella Canalis (BBI - Bio-based Industries Joint Undertaking); Dirk Carrez (BIC - Bio-based Industries Consortium); Joe Gallagher (IBERS - Institute of Biological, Environmental and Rural Sciences - BBSRC - Biotechnology and Biological Sciences Research Council - Aberystwyth University); Niels Gøtke (Ministry of Science, Innovation and Higher Education of Denmark); Christian Huyghe (CODIR - Collège de Direction - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Bruno Jarry (Académie des Technologies); Pilar Llorente (BBI - Bio-based Industries Joint Undertaking); Mariya Marinova (Royal Military College of Canada); Ligia O Martins (NOVA - Universidade Nova de Lisboa = NOVA University Lisbon); Philippe Mengal (BBI - Bio-based Industries Joint Undertaking); Paola Paiano (BBI - Bio-based Industries Joint Undertaking); Calliope Panoutsou (Imperial College London); Ligia Rodrigues (University of Minho [Braga]); Dagmar B Stengel (NUI Galway - National University of Ireland [Galway]); Yvonne van der Meer (Maastricht University [Maastricht]); Helena Vieira (ULISBOA - Universidade de Lisboa = University of Lisbon)
    Abstract: This paper gives an overview of development of the EU-bioeconomy, 2014–2020. The Vision of the new Circular Bio-based Economy, CBE is presented: Unlocking the full potential of all types of sustainably sourced biomass, crop residues, industrial side-streams, and wastes by transforming it into value-added products. The resulting product portfolio consists of a wide spectrum of value-added products, addressing societal and consumer needs. Food and feed, bio-based chemicals, materials, health-promoting products; and bio-based fuels. The pillars of CBE are described, including biotechnology, microbial production, enzyme technology, green chemistry, integrated physical/chemical processing, policies, conducive framework conditions and public private partnerships. Drivers of CBE are analyzed: Biomass supply, biorefineries, value chain clusters, rural development, farmers, foresters and mariners; urgent need for climate change mitigation and adaptation, and stopping biodiversity loss. Improved framework conditions can be drivers but also obstacles if not updated to the era of circularity. Key figures, across the entire BBI-JU project portfolio (2014–2020) are provided, including expansion into biomass feedstocks, terrestrial and aquatic, and an impressive broadening of bio-based product portfolio, including higher-value, health-promoting products for man, animal, plants and soil. Parallel to this, diversification of industrial segments and types of funding instruments developed, reflecting industrial needs and academic research involvement. Impact assessment is highlighted. A number of specific recommendations are given; e.g., including international win/win CBE-collaborations, as e.g., expanding African EU collaboration into CBE. In contrast to fossil resources biological resources are found worldwide. In its outset, circular bio-based economy, can be implemented all over, in a just manner, not the least stimulating rural development.
    Keywords: biorefinery technologies,bio-based products,microbial production,upgrading,side-streams & wastes,Bio-Based Industries Joint Undertaking (BBI-JU),Biobased Industries Consortium (BIC),Circular Bio-based Economy (CBE)
    Date: 2021–01–21

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