nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2023‒10‒16
eight papers chosen by
Arvi Kuura, Tartu Ülikool

  1. Variation in collaboration across time, phases, and sectors : Analyzing collaborative curves in project teams By Caroline Coulombe; Jonathan Harvey
  2. Ensuring Good Governance in Implementation of Public Infrastructure Projects (PIPs) By Mustafizur Rahman; Muhammad Nafis Shahriar Farabi
  3. Auctioning Long-Term Projects under Financial Constraints By Martimort, David; Arve, Malin
  4. Green Energy Transition in Bangladesh Examining Support Measures and Estimating Investment Requirements By Fahmida Khatun; Estiaque Bari; Foqoruddin Al Kabir
  5. Procurement and Infrastructure Costs By Zachary Liscow; Will Nober; Cailin Slattery
  7. The moonshot phenomenon in the business world By Dimitrov, Kiril
  8. Self-service kits to scale knowledge to autonomous teams - concept, application and limitations By Alexander Poth; Mario Kottke; Andreas Riel

  1. By: Caroline Coulombe (UQAM - Université du Québec à Montréal = University of Québec in Montréal); Jonathan Harvey (UQAM - Université du Québec à Montréal = University of Québec in Montréal)
    Abstract: This study analyzes the evolution of collaboration in the construction industry managed by "Société Québécoise des Infrastructures" (SQI), a public organization managing major infrastructure projects funded by the Government of Quebec. Using a collaboration indicator questionnaire (CIMQ) within an action-research methodology, mixed data was collected. SQI enlarged project teams used this new CIMQ to guide their collective efforts toward the success of their respective project. A set of extended stakeholders make up this project ecosystem meeting on a regular basis throughout each project phase (IDP). This paper focuses on collaborative momentum. This study offers perspectives for improving project management and stimulating innovation by emphasizing stakeholder collaboration.
    Abstract: Cette étude analyse l'évolution de la collaboration dans les projets de construction de la Société Québécoise d'Infrastructure (SQI), un organisme public gérant les projets d'infrastructures majeurs financés par le Gouvernement du Québec. Grâce au sondage de la collaboration (IC) et d'une approche de recherche-action, des données mixtes ont été collectées. Les équipes de projet élargies de la SQI utilisent l'IC pour guider leurs efforts collectifs vers le succès de leurs projets. Un ensemble de parties prenantes élargies composent ces écosystèmes projet qui se rencontrent sur une base régulière à chaque phase projet (PCI). Ce papier se penche sur le momentum de la collaboration et offre des perspectives pour améliorer la gestion de projets en mettant l'accent sur la collaboration des parties prenantes.
    Keywords: Collaborative momentum, Collaboration indicator, Performance, Major projects, IPD, Momentum de la collaboration, Indicateur de collaboration, Projets majeurs, PCI
    Date: 2023
  2. By: Mustafizur Rahman; Muhammad Nafis Shahriar Farabi
    Abstract: Economic and social infrastructure is one of the key foundations that drive the development of any country. Broadly speaking, infrastructure is defined as the basic systems and structures and facilities and services which are required for smooth operation of an economy, at various levels. It will not be an exaggeration to state that an economy’s growth and sustainability of growth hinge critically on the state of its infrastructure
    Keywords: Good Governance, Public Infrastructure Projects, PIPs, Social infrastructure, Economic infrastructure, Bangladesh
    Date: 2022–06
  3. By: Martimort, David; Arve, Malin
    Abstract: We consider a procurement auction for the provision of a basic service to which an add-on must later be appended. Potential providers are symmetric, have private information on their cost for the basic service and the winning firm must also implement the add-on. To finance cost-reducing activities related to the add-on, this firm may need extra funding by outside financiers. Non-verifiable effort in reducing these costs creates a moral hazard problem which makes the firm’s payoff function for the second period concave in returns over the relevant range. This concavity has two effects: It makes it more attractive to backload payments to facilitate information revelation and uncertainty on the cost of the add-on introduces a background risk which requires a risk premium. In this context, we characterize the optimal intertemporal structure of payments to the winning firm, equilibrium bidding behavior and reserve prices in the first-price auction with bidders.
    Keywords: Auctions; procurement; financial constraints; dynamic mechanism design, asymmetric information; uncertainty; endogenous risk aversion.
    Date: 2023–09–18
  4. By: Fahmida Khatun; Estiaque Bari; Foqoruddin Al Kabir
    Abstract: The key objective of the study is to identify opportunities and challenges of green investment in Bangladesh by—(i) reviewing existing support measures (including incentives) and policies for making investment in green projects, (ii) identifying opportunities and implementation challenges for investing in green projects, and (iii) making an estimate of the green investment required for electricity generation from renewable energy sources. In the policy discourse, it is hoped that the findings of the study will narrow the knowledge gap and contribute towards holistic measures by the government for leveraging green investment through the private sector’s (including the financial sector) engagement. The study findings are also expected to support development partners including the European Union in taking focused and strategic decisions on ‘green growth’ in Bangladesh.
    Keywords: Green Energy, Green Transition, Green investment, Green projects, Green growth, Bangladesh
    Date: 2022–11
  5. By: Zachary Liscow; Will Nober; Cailin Slattery
    Abstract: Infrastructure costs in the United States are high and rising. The procurement process is one potential cost driver. In this paper we conduct a survey of procurement practices across the 50 states. We survey both employees at each state department of transportation (DOT) and the road builders that win contracts to build and maintain roads. With this survey we are able to create a new dataset of procurement rules and practices across the U.S. and understand what actors on the ground think drive costs. We then assemble a new dataset of project-level infrastructure costs. We correlate the survey practices with our new, detailed data on costs. We find that two important inputs in the procurement process appear to particularly drive costs: (1) the capacity of the DOT procuring the project and (2) the lack of competition in the market for government construction contracts.
    JEL: D44 H54 H57 H83 K40 L38 L91 O18 R42
    Date: 2023–09
  6. By: Laura Molinari
    Abstract: Infrastructure is one of the most important cornerstones of our society. It enables international trade and thereby contributes to the overall economic growth of a country or region. Yet the contribution of infrastructure is not just limited to the economic aspect of society. At the social level, it brings value by providing education and care and facilitating the movement of people. Infrastructure, in its horizontal and vertical forms, has in fact become an integral part of the daily lives of both families and businesses. To achieve the defined goals and satisfy the needs of users, the management of the infrastructure network must be carried out in a sound manner. Despite the importance of the network, there exists a mismatch between the demand for infrastructure and its supply. Expectations from users have changed and increased under influence of several macroeconomic factors. An example of this is a change in the demographic composition of a country, such as an ageing population. This will cause the pressure on healthcare to increase, creating more demand for healthcare infrastructure. A second example is climate change. Climate change requires resilience of our infrastructure network so that it can adapt to changing conditions and cope with extreme natural phenomena. For example, coastlines will need to be strengthened to withstand rising water levels. Fulfilling demand is complicated by constraints on the supply side. Government budgets for public infrastructure are limited and the current infrastructure network is nearing the end of its service life. Investments in both new infrastructure and maintenance are falling short, while significant investments are required. This dissertation investigates where potential efficiencies are located in the current management of public infrastructure, with the aim of better responding to the demands without needing to allocate additional resources. For this purpose, the initiation phase, the planning phase, the development phase and the realization phase were analyzed and a proposal for optimization was made for each phase. With the aim of optimizing the overall management of infrastructure and setting clear goals, eight critical success factors required to create and implement a sound strategic infrastructuremanagement plan (SIAM) were identified. Next, a decision tool called SEMI (for social economic monitoring instrument) was developed that can help public organizations in making the right investment decisions at the right time. As a third option for increased efficiency, project costs were examined. Cost overruns in project realization must be kept below 5% so that the public administration can realize its full investment plan within the same budget. Finally, recommendations are made on how to reduce these cost overruns, namely by focusing on relational problems during the development phase, and not just technical problems. For instance, good collaboration and stakeholder management with the parties involved can reduce cost overruns. Applying these four recommendations allows public organizations, responsible for providing public infrastructure in a country, to manage their infrastructure portfolio in a more efficient way. This enables them to better meet the increasing and changing demands of society without having to allocate additional financial resources.
    Keywords: Transport; Infrastructure; Management; Strategy; Public management
    Date: 2023–09–25
  7. By: Dimitrov, Kiril
    Abstract: This paper reviews basic and emerging research trends on the moonshot phenomenon in the business world. It traces the emergence and development of the nuances for this construct, its relationships with the proclaimed corporate culture and some new attributes of management by objectives. Nevertheless the numerous realizations that the moonshot phenomenon has acquired – as goals, projects, tasks, specific leadership, skill and others, it seems subordinated to certain principles and approaches, constituting the so called moonshot thinking that is also succinctly described.
    Keywords: moonshot, corporate culture, proclaimed corporate culture, strategic management, exponential organizations
    JEL: M14 L1 L2
    Date: 2023
  8. By: Alexander Poth (Volkswagen AG); Mario Kottke (Volkswagen AG); Andreas Riel (G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, G-SCOP_COSYS - Conception Systémique: Homme, Environnement, Technologies - G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: In large organizations, it is not trivial to spread knowledge to all teams. Often, individual teams need to handle similar topics and re-invent the wheel. Another scenario is that a group of people with a common role (for example "guild" in Spotify model) has to distill their practices to make them shareable. Trainings should have empower participants so to apply the learnings easily in their daily businesses. To realize this, the proposed Self-Service Kit (SSK) approach can be used in the context of a holistic methodology that fosters team autonomy while leveraging knowledge spread and sharing throughout a large organization. Such a methodology is presented and instantiated in an enterprise context in facing the mentioned challenges.
    Keywords: computer science information systems agile learning organization efiS® framework, computer science, information systems, agile, learning organization, efiS® framework
    Date: 2023

This nep-ppm issue is ©2023 by Arvi Kuura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.