Search results
1 – 10 of 55Klara Granheimer, Tina Karrbom Gustavsson and Per Erik Eriksson
Prior research has emphasised the importance of the early phases of construction projects, as well as the difficulties of procuring engineering services – especially due to the…
Abstract
Purpose
Prior research has emphasised the importance of the early phases of construction projects, as well as the difficulties of procuring engineering services – especially due to the uncertainties. Despite that, studies on the public procurement of engineering services are scarce. Although scholars have shown that uncertainty may affect the choice of control modes, the level of uncertainty that characterises services is not addressed by the two task characteristics: knowledge of the transformation process and output measurability. The purpose is to investigate organisational control in public procurement of engineering services.
Design/methodology/approach
The existing control model was adjusted in this study by conceptually adding uncertainty as a third aspect to the two task characteristics. A single case study of the Swedish Transport Administration was used. The empirical data, comprising 14 interviews with managers from the client and engineering consulting companies, were analysed using flexible pattern matching and visual mapping approaches and then illustrated using the model.
Findings
The public client did not base its choice of control modes on uncertainty, but rather on the other two task characteristics. Consequently, the service providers argued that the chosen control modes reduced their creativity, increased their financial risks and caused unclear responsibilities. This study therefore shows that uncertainty is an important factor to consider in the choice of control modes, both from a theoretical perspective and from the service providers' point of view. The developed model may therefore be useful for researchers as well as practitioners.
Originality/value
This study is the first attempt to add uncertainty as a task characteristic when choosing control modes. The results contribute to the scarce control literature regarding the procurement of engineering services for construction projects and the procurement of other services with high uncertainty.
Details
Keywords
The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.
Abstract
Purpose
The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.
Design/methodology/approach
This paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.
Findings
The theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.
Research limitations/implications
This paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.
Practical implications
From a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.
Originality/value
The explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.
Details
Keywords
Anna-Therése Järvenpää, Johan Larsson and Per Erik Eriksson
This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.
Abstract
Purpose
This paper aims to identify how a public client’s use of control systems (process, output and social control) affect innovation possibilities in construction projects.
Design/methodology/approach
Semi-structured interviews about six infrastructure projects were conducted to identify respondents’ views on innovation possibilities. These possibilities were then analyzed from an organizational control perspective within principal–agent relationships between the Swedish Transport Administration (STA) and their contractors.
Findings
How the client uses control systems affects innovation possibilities. Relying on process control could negatively affect innovation opportunities, whereas output control could have a positive influence. In addition, social control seems to have a weak effect, as the STA appears not to use social control to facilitate joint innovation. Public clients must comply with the Public Procurement Act and, therefore, retain the requirements specified in the tendering documents. Much of the steering of the execution is connected to the ex ante phase (before signing the contract), which affects innovation possibilities in the design and execution phases for the contractor.
Research limitations/implications
This study was conducted with only one client, thus limiting its generalizability. However, the findings provide an important stepping stone to further investigation into balancing control systems and creating innovation possibilities in a principal–agent relationship.
Originality/value
Although public procurement has increasingly been emphasized as a major potential source of innovation, studying how a public client’s use of organizational control systems affects innovation possibilities in the construction sector has received scant attention.
Details
Keywords
This paper aims to examine how different contextual contingency factors and organizational goals influence construction clients’ decision-making when procuring contractors in the…
Abstract
Purpose
This paper aims to examine how different contextual contingency factors and organizational goals influence construction clients’ decision-making when procuring contractors in the housing sector. More specifically, it investigates how clients’ choice of procurement strategies and organizational control systems is contingent upon various contextual factors and organizational goals.
Design/methodology/approach
It is based on an explorative interview study of clients and contractors in the Swedish housing sector underpinned by a review of organizational control literature.
Findings
The client's knowledge and resources, as well as project complexity and uncertainty, are the most important contextual contingency factors, while property management and sustainable development are the most important organizational goals that housing clients consider when designing procurement strategies.
Research limitations/implications
The paper contributes to the understanding of how construction clients choose procurement strategies, by providing new insights into effects of the mentioned contextual contingency factors and organizational goals on clients’ choice of control systems through their procurement strategies.
Practical implications
Property owners who continuously procure housing projects with sustainability requirements and high degrees of complexity and uncertainty should develop knowledge and resources related to their client role, to enable the design and implementation of appropriate procurement strategies.
Originality/value
Novel aspects of the paper are the demonstration of the value of a holistic approach, considering both contextual contingency factors and organizational goals, when selecting control systems and explicit discussion of how the client's knowledge and resources influence possibilities to implement different control systems.
Details
Keywords
Per Erik Eriksson and Henrik Szentes
Prior studies highlight the importance of building ambidextrous capabilities to achieve both exploitation of current knowledge and technologies to make profits today, and…
Abstract
Purpose
Prior studies highlight the importance of building ambidextrous capabilities to achieve both exploitation of current knowledge and technologies to make profits today, and exploration of new knowledge and technologies to adapt to and prepare for tomorrow’s demands. In spite of its theoretical and practical importance, research on organizational ambidexterity in project-based organizations is scarce. Thus, the purpose of the paper is to study how ambidexterity may be managed and how exploration and exploitation may be achieved in construction projects. The research identifies some drivers and barriers to exploration and exploitation and also sheds light on how various management approaches interact and affect exploration and exploitation activities.
Design/methodology/approach
The empirical material is drawn from 40 semi-structured interviews with managers representing the client, the contractor and the designer involved in each of the seven large construction projects in the sample.
Findings
In contrast to prior literature in high-tech industries where exploitation focuses on continuous development, exploitation in construction projects often involves adopting conventional methods and solutions based on existing knowledge without any development efforts at all. This may enhance short-term efficiency and lower risk at the project level but increase risk at the firm level. Tight time schedules hinder both radical innovations and incremental developments, and the findings also reveal that to invest in efforts on explorative solutions, it must be possible to exploit the solutions in the same project.
Research limitations/implications
In this empirical context, the traditional structural and sequential ambidexterity solutions are not sufficient. In construction projects, contextual ambidexterity solutions in which key project actors collaborate in developing systemic innovations and fine-tuning solutions across projects are more effective.
Practical implications
Sufficient project size and/or long-term contracts over a series of projects enhance both investments in explorative activities and exploitation through continuous developments from project to project. In design–bid–build contracts, the client and consultant often miss opportunities to explore new technical solutions that rely on contractor competencies. Early procurement of contractors (e.g. in collaborative design–build contracts) thereby enables the achievement of both exploration and exploitation.
Originality/value
This study provides important input to the authors’ understanding of how exploration and exploitation may be managed in project-based industries, which has been scarcely studied in previous ambidexterity literature.
Details
Keywords
Susanna Hedborg Bengtsson, Tina Karrbom Gustavsson and Per Erik Eriksson
Innovation is constantly present in the construction industry, however, mainly on a single project level. Initiating and implementing inter-organizational innovation in a…
Abstract
Purpose
Innovation is constantly present in the construction industry, however, mainly on a single project level. Initiating and implementing inter-organizational innovation in a multi-project context such as in urban development entails large complexity, for example, because of the many interdependent projects and users of innovation. The users’ influence on inter-organizational innovation in a multi-project context has not been fully explored. Accordingly, the purpose of this paper is to discuss how users influence inter-organizational innovation in multi-project contexts by mapping the receptiveness for change.
Design/methodology/approach
A single case study approach was used, where empirical material including semi-structured interviews in combination with meeting observations, document studies and participative workshops were gathered. The rich empirical material, studying inter-organizational innovation in an urban development context, was mapped based on the receptive context for change framework.
Findings
A receptive context for change was not present in the studied multi-project context. Communication to develop and implement inter-organizational innovation was not sufficient and the clients’ procurement strategies were to a large extent not developed to facilitate inter-organizational innovation. Findings show differences in users’ possibility and aim to implement inter-organizational innovation.
Originality/value
The mapping of the receptive context to influence inter-organizational innovation widens the knowledge base and provides valuable insights on how inter-organizational innovation may be implemented in the loosely coupled construction industry. Furthermore, the findings broaden the discussion on clients as innovation supporters, and contribute to the debate on clients as innovation supporters, by highlighting the importance of distinguishing between different types of clients.
Details
Keywords
Johan Larsson, Per Erik Eriksson and Ossi Pesämaa
Hard project management practices, based on strict planning and control, are traditionally applied in construction projects, although research frequently promotes the importance…
Abstract
Purpose
Hard project management practices, based on strict planning and control, are traditionally applied in construction projects, although research frequently promotes the importance of teams for various project outcomes. Thus, the purpose of this paper is to examine the importance of hard project management and team motivation for process performance in construction projects. A hypothesis tested is that hard project management can impair process performance if team motivation is not promoted.
Design/methodology/approach
The paper presents and empirically tests a structural equation model, with and without a mediating link between hard project management and process performance, based on data from a survey of 2,175 respondents, representing contractors and clients involved in 109 Swedish construction projects.
Findings
The results confirm that hard project management is best conveyed through teams to enhance process performance. “Path analysis,” using the model with the mediating link, confirms that neglecting team motivation can significantly impair process performance.
Research limitations/implications
The data set provides unusually high representation of views of contractors and clients involved in diverse Swedish construction projects. Thus, the results have likely relevance in other project-based industries and/or national settings, but this possibility requires further investigation.
Originality/value
The findings show that team motivation is a key process performance factor; hard project management may indeed be important, but its effects will be enhanced by (and partially mediated through) team motivation. Thus, the findings have important theoretical and practical implications for the development of project management practices.
Details
Keywords
Emilia Nilsson Vestola, Per Erik Eriksson, Johan Larsson and Tina Karrbom Gustavsson
The purpose of this paper is to explore the interdependencies between temporary and permanent aspects of project organizing and how they affect the management of public…
Abstract
Purpose
The purpose of this paper is to explore the interdependencies between temporary and permanent aspects of project organizing and how they affect the management of public infrastructure operation and maintenance (O&M) activities.
Design/methodology/approach
The paper applies a case study approach and uses Lundin and Söderholm's (1995) framework of the temporary organization (with the themes of time, task, team and transition) to distinguish between temporary and permanent aspects of organizing two infrastructure O&M projects.
Findings
This paper adds to the literature on temporary organizations by recognizing a mixture of temporary and permanent aspects of project organizing in an empirical project-level example. In line with previous research, the themes of time, task, team and transition were shown to be interdependent. Furthermore, the paper broadens the theory of temporary organizations by presenting a project organization with significant permanent aspects.
Practical implications
Project managers of public sector projects need to be aware of the possible mixture of temporary and permanent aspects of project organizing. Management of projects that are found to have a mixture of temporary and permanent aspects should combine the perspectives and management practices of both temporary and permanent organizing. Not acknowledging permanent aspects could lead to management that is not adapted to the prerequisites of project organizing in this context.
Originality/value
The findings further develop the literature on temporary organizations by recognizing that there is not only a mixture of temporary and permanent aspects between the temporary organization and its permanent environment but there is also a mixture of temporary and permanent aspects of organizing within project organizations.
Details
Keywords
Per Erik Eriksson, Brian Atkin and TorBjörn Nilsson
The purpose of this paper is to report on research into investigating ways in which construction clients can overcome barriers to partnering through the adoption of purposeful…
Abstract
Purpose
The purpose of this paper is to report on research into investigating ways in which construction clients can overcome barriers to partnering through the adoption of purposeful procurement procedures within an overall project management context.
Design/methodology/approach
Data were collected through interviews, document analysis, surveys and workshops as part of a longitudinal case study using an action‐research approach.
Findings
Analysis reveals how the early involvement of partners, selected for their long‐term perspective and willingness to use collaborative working arrangements, can help to overcome cultural and organizational barriers.
Research limitations/implications
The research results are based on empirical study for which reasonable generalisations could be made, albeit cautiously. Clients' implementation of partnering requires an appropriate use of a broad range of suitable procurement procedures that are quite different from more commonly used procedures. Hence, clients need to reassess their procurement procedures and tailor them to different project situations. Additionally, a long‐term perspective is crucial in order to facilitate continual improvement over time.
Originality/value
The case study data support the analysis of how utilised procurement procedures affect project results.
Details
Keywords
Per Erik Eriksson and Albertus Laan
This paper aims to investigate how construction clients currently deal with procurement and to analyse how the choices made during the buying process stages affect the combination…
Abstract
Purpose
This paper aims to investigate how construction clients currently deal with procurement and to analyse how the choices made during the buying process stages affect the combination of governance mechanisms and control types in client‐contractor relationships.
Design/methodology/approach
Empirical data were collected through a survey of 87 Swedish construction clients.
Findings
Current procurement procedures establish governance forms facilitating a focus on price, through output control, and authority, through process control. Since construction transactions are mostly characterized by high complexity and customisation and long duration, the theoretical framework prescribes a focus on trust and a somewhat lower focus on price and authority. Hence, from a transaction cost perspective, construction clients focus too much on price and authority and too little on trust. Since current procedures may cause problems in all stages of the buying process, the result suggests that partnering arrangements, entailing completely different choices during the buying process, may be a suitable way to facilitate trust and cooperation through informal social control.
Research limitations/implications
Since the empirical results are based on data collected from only Swedish clients, international generalizations should be made cautiously.
Practical implications
Clients wishing to implement trust‐based collaborative relationships need to reconsider their procurement procedures entirely; joint objectives, teambuilding and other “fuzzy” techniques are not enough to transform adversarial relationships into cooperative ones.
Originality/value
Earlier research has focused on one or a few aspects of procurement and governance, while this paper adopts an overall process perspective, taking into account clients' procurement procedures in their entirety.
Details