André G. Dorée

Innovation and interorganizational cooperation: a synthesis of literature

Purpose – In construction, literature interorganizational cooperation is argued to be an important naspect of construction innovation. From this perspective, several distinct bodies of literature provide nrelevant insights. In literature on complex product systems (CoPS), it is argued that construction nindustry is a CoPS industry and that in CoPS industries systems integrators set-up and coordinate ninterorganizational innovation. Furthermore, various bodies of literature provide information about nfactors that affect the success of innovation and interorganizational cooperation. The purpose of this npaper is to integrate the findings from these bodies of literature. nDesign/methodology/approach – To uncover the present state of knowledge about systems nintegrators, a comprehensive literature review is conducted. Furthermore, the paper analyzes various nfields of literature to derive an overview of factors which have been empirically related to the success nof innovation and interorganizational cooperation. nFindings – First, this paper structures the current knowledge on the role and characteristics of nsystems integrators. Subsequently, the paper translates this knowledge to the context of construction nindustry and discusses the basis for classifying a firm as a systems integrator in construction nindustry. Furthermore, the paper presents a list of relevant success factors derived from literature on nnew product development, strategic networks and alliances, open innovation, and construction ninnovation. nOriginality/value – By integrating various bodies of literature, this paper provides a solid base for nfuture theory development on how firms achieve interorganizational innovation in construction nindustry.

Exploring the value of a novel decision‐making theory in understanding R&D progress decisions

Purpose – The purpose of this article is to explore the ability of a novel psychological theory of how people make decisions, narrative-based decision theory, to help explain peoples decisions about whether to continue investment in a research and development (R&D) project (R&D progress decisions). nnDesign/methodology/approach – The paper applies the new theory to an empirical finding of existing research on RD the finding that instruction in the sunk cost principle seems to mitigate the sunk cost effect in R&D progress decision-making. nnFindings – By interpreting the empirical finding in terms of narrative-based decision theory, the paper is able to clarify and extend an earlier explanation for the empirical finding. More specifically, by drawing on narrative-based decision theory the paper is able to provide a more detailed explanation of how the predictor variable (sunk cost) and the moderator variable (instruction in the sunk cost principle) may exert an influence. nnResearch limitations/implications – Based on the result of the exploration, the authors call for further investigations into narrative-based decision theorys value in explaining R&D progress decisions, and other management decisions. nnPractical implications – Furthermore, the authors call for investigations into how narrative-based decision theory may help decision-makers in improving the quality of R&D progress decisions. nnOriginality/value – Narrative-based decision theory is a recent theory from the field of naturalistic decision-making. To the authors knowledge, this is the first article that, by using an example, illustrates how the theory may help in explaining the findings of empirical research on management decisions

Procurement strategy formation: (re-)designing rail infrastructure project alliances

Purpose – The purpose of this paper is to provide insights into the reasoning behind the development of new procurement approaches by public sector clients. Design/methodology/approach – A case study approach focuses on a procurement development process by a public sector client. It investigates the reasoning behind various applications of the project alliancing concept in rail infrastructure projects over a period of 15 years. Alliancing applications are singled out and mapped against a number of criteria derived from literature on alliancing. The reasoning behind these applications and their differences are reconstructed from contextual documentation. Theories and concepts from the fields of strategic management and knowledge management literature are used to analyse the results. Findings – The development process seems to be evolutionary rather than deliberately planned. The uncovered variations in alliancing applications can only to a very limited extent be explained by the reconstructed reasoning. Th...

Impact of government and corporate strategy on the performance of technology projects in road construction

In this study, we focus on road construction and analyze technology development projects. Based on the business strategy literature and literature on technology policy, we test the relative importance of a firms strategies and government as a buyer and champion. Our empirical findings stress the value of government championing behavior. Our results show that in road construction, championing behavior is more important than public technology procurement for project performance. The results even suggest that government championship is more important than a firms strategic orientation.

Perceptions of success in performance-based procurement: Differences between clients and contractors

Purposen – The purpose of this study is to analyse, from the perspective of agency theory, differences between client and contractor in their perceptions of changes in uncertainty and in inclination to opportunistic behaviour while using a performance-based procurement procedure. In agency theory, dealing appropriately with the uncertainty and opportunism that results from information asymmetry is an essential precondition for successful procurement. nnDesign/methodology/approachn – The procurement procedure analysed is the Performance Information Procurement System (PiPS). PiPS is a performance-based procurement method that uses historic performance information to select the expected best performing contractor. In a theoretical model, a PiPS is interpreted as a set of contractual and organisational safeguards. Through a survey, based on this model, the perceived effects of the PiPS safeguards for both clients and contractors are investigated. nnFindingsn – Both clients and contractors believe that applying PiPS introduces safeguards that reduce transaction uncertainty. The perceived changes in the discouragement to use opportunistic behaviour when using PiPS differ between client and contractor. Clients do not know and contractors are sceptical as to whether applying PiPS discourages opportunistic behaviour. This difference in perceptions can be explained by the often-traditional background of the two parties’ project teams and the existence of information asymmetry. nnOriginality/valuen – This is one of the first studies to show that changes in the transaction environment in a performance-based procurement process are perceived differently by the client and the contractor. It is necessary to align the roles of both parties to avoid problems related to opportunistic behaviour

Method-based learning: a case in the asphalt construction industry

Traditional working practices in the construction industry rely heavily on the onsite experience and craftsmanship (the tacit knowledge) of operators and teams. This results in implicit learning and lengthy learning cycles. The aims of the research are to develop a deeper insight into construction processes and to instigate a change from current implicit learning to explicit method-based learning. To change to explicit method-based learning, Kolb’s experiential learning model was introduced into current practices and ‘explicating the process’ was added to this learning cycle. Further ‘reflective observation’ and ‘abstract conceptualization’ were incorporated explicitly during an actual road construction project using feedback sessions with an asphalting team. The adopted learning framework was found to be applicable and useful in the quest for enhanced learning capabilities and improved process control. Fusing Kolb’s learning model with onsite collected data was vital in explicating tacit knowledge and implicit processes. The approach enabled a meaningful discussion with operators to unravel their intentions and reasoning behind the chosen strategies. Explicit method-based learning, as here, leads to improved quality awareness, better understanding of the processes and their interdependencies, and improved communication with and within the asphalting team.

Network level bridges maintenance planning using Multi-Attribute Utility Theory

Abstract Bridge infrastructure managers are facing multiple challenges to improve the availability and serviceability of ageing infrastructure, while the maintenance planning is constrained by budget restrictions. Many research efforts are ongoing, for the last few decades, ranging from development of bridge management system, decision support tools, optimisation models, life cycle cost analysis, etc. Since transport infrastructures are deeply embedded in society, they are not only subject to technical requirements, but are required to meet the requirements of societal and economic developments. Therefore, bridge maintenance planning should accommodate multiple performance goals which need to be quantified by various performance indicators. In this paper, an application of Multi-Attribute Utility Theory (MAUT) for bridge maintenance planning is illustrated with a case study of bridges from the Netherlands road network. MAUT seeks to optimise multiple objectives by suggesting a trade-off among them and finally assigns a ranking to the considered bridges. Moreover, utility functions of MAUT appropriately account for the involved uncertainty and risk attitude of infrastructure managers. The main contribution of this study is in presenting a proof-of-concept on how MAUT provides a systematic approach to improve the decision-making of maintenance planning by making use of available data, accommodating multiple performance goals, their uncertainty, and preferences of infrastructure managers.

Increased cooperation through immediate post contractual negotiation

Traditional contracting often leads to claims during construction by contractors, increasing transaction costs for both parties in the form of policing and enforcement costs. Partnering is widely advocated as a governance form to more cooperative relationships between client and contractor. However, partnering requires a significant investment in elaborating a specific procurement approach, and is regarded as inappropriate for small, one-off, less complex projects. Dutch municipal governments are searching for alternative solutions to increase cooperation with contractors and reduce transaction costs by applying immediate post contractual negotiations in traditionally procured projects. We studied four such municipal projects which have shown that immediate post contractual negotiations achieve the effects of partnering despite the initial traditional procurement procedures. These negotiations seem to reduce the transaction costs of traditional procurement making them particularly applicable in smaller projects where high set up costs would not be justifiable due to their limited size, complexity, or cost.

Characterizing coordination in both loose and very tightly coupled utility reconstruction processes

Privatization of the utilities sector created a fragmented multi-client, multi-contractor system in which reconstruction works are, in fact, a constellation of multiple smaller projects. During planning stages, these projects are loosely coupled, since stakeholders limitedly align construction plans. Consequently, coordination of unresolved issues moves toward construction stages, creating very tight on-site couplings. This paper focuses on the coordination activities that balance these loose and very tight couplings in the planning and execution stages of utility reconstruction. To this end, we identified seven well-performing utility coordinators and conducted ethnographic interviews to explore their work practices. To better characterize these different practices, we introduce level of involvement and moment of involvement as two dimensions for coordination within loose and tightly coupled systems. Based on this, we distinguish two dominant approaches for coordination in utility coordination practice: pro-active involvement in early planning stages, and reactive approaches during execution stages. Findings complement to literature by providing dimensions for coordination of loosely coupled systems. Consecutive research efforts should aim at validating these findings and at identifying contextual factors that drive various distinctive coordination approaches.

Together on the path to construction innovation: yet another example of escalation of commitment?

Collaborative innovation projects are projects in which firms join forces to cooperate in the development and commercialization of a new building product, system, or service. They represent an example of the type of inter-firm relationships that are said to enhance construction innovation. Organizational behaviour research, however, suggests that firms participating in such innovation projects run the risk of escalating commitment and may continue to invest for irrational reasons. It is therefore relevant to examine whether Dutch firms that invest, in collaboration with other firms, in the development and commercialization of a new building product, system, or service are susceptible to this escalation. Two escalation effects were investigated: the effect of expected loss of sunk costs, and the effect of perceived project stage. A survey was undertaken of 154 firms participating in 25 collaborative innovation projects. The results suggest that firms in the population under study are unlikely to fall victim to either of the two escalation effects. Rather, the negative association found between the expected loss of sunk costs and likelihood of continuing investment raises the question as to whether firms become more cautious when they have spent a lot.