Lena E. Bygballe

Interdependence in supply chains and projects in construction

Purpose – The aim of this paper is to inquire into the management of construction supply chains by directing attention toward the different types of interdependencies that exist in such chains and in construction projects.Design/methodology/approach – The paper is developed as part of two ongoing research projects on supply chain management (SCM) in construction. A case study approach is used for illustrating the production and subsequent delivery and installation of plasterboards to a specific construction project. This description reveals extensive coordination among a number of companies and features interesting examples of the consequences of the interdependencies identified.Findings – The paper concludes that the strong emphasis on coordination of sequential interdependence within individual supply chains does not fit with the complex interdependencies present in and among supply chains and projects in construction. In addition to sequential interdependence it describes and illustrates pooled interde...

Balancing value creating logics in construction

Construction companies apply different logics to create value. Some companies are organized according to one primary logic, while others are based on multiple logics. Different value creating logics have different cost and value drivers according to the type of activities involved and the interdependencies between them. Where multiple logics coexist, the different cost and value drivers may generate tensions. The purpose of the paper is to study how construction companies maintain a balance between multiple logics and how they handle tensions between them through a case study from the Norwegian construction industry. Both project management and supply chain management perspectives have been used to explain construction practice. By applying a ‘value configuration analysis’, it is clear how value creation is achieved in construction practice by balancing the needs of both the project and the supply chain. Both intra‐ and inter‐organizational interactions are vital in creating value across different logics. The contribution of the study lies in applying this framework to the construction area by adding knowledge about the underlying principles of different logics, including the tensions between them. Furthermore, the case study illustrates how these may be handled in order to create value in construction.

A critical discussion of models for conceptualizing the economic logic of construction

The construction industry has developed a certain economic logic that reflects the way in which tasks, parts, and units are organized and related to each other in order to create economic benefits in the construction process. Four different models in the literature portray this logic. We examine how they complement and constitute alternatives to understandings of the economic logic of the construction industry. Along with transaction cost economics, we have identified three more empirically based models: a project-oriented model, a supply-chain-oriented model, and a network-oriented model. Associated with different streams of research, these models are discussed in terms of the typical problems and key interdependencies in the construction process they address, and the type of solutions they suggest, including organizing principles for how construction parties should relate to each other. The findings show how examining different models provides a comprehensive, albeit non-exhaustive overview and an explanation of why the construction process is organized in the way it is. There is a need for increased awareness of the utilization of models (or combinations of models) and the models must also be seen as arguments in a broader discussion of how the construction process could or should function.

The interplay between formal and informal contracting in integrated project delivery

This research examines the interplay between formal and informal contracting in integrated project delivery (IPD). It investigates how the interplay enables parties in health-care construction projects to cope with uncertainty and complexities, due to, among others, changing demands. New delivery models based on collaborative interaction, such as IPD models, often rely on relational contracting principles, defined as the simultaneous use of formal contracts and informal relational mechanisms to govern relationships between partners. Five case studies of IPD health-care construction projects in the USA and Norway are presented and analysed. The results show that the projects rely heavily on the formal contracts and structures to stimulate collaboration between the project team members and to enhance problem-solving. However, informal mechanisms play just as an important role. While formal mechanisms facilitate the building of trust and personal relationships between the partners, the formal mechanisms are in turn created and recreated through informal practices, illustrating a mutual constitutive relationship between the two types of mechanisms. The findings also indicate that previous experiences reinforce informal mechanisms in the project. The paper concludes that IPD models involve a complex interplay between formal and informal mechanisms, which engenders commitment resulting in joint problem-solving and responsibility throughout the construction process. The findings also indicate that even if the dynamic context and future uncertainties in health care are taken into account, dealing with such flexibility issues is not at the core of the current IPD model.

Developing supply base strategies

Purpose – The purpose of this paper is to examine and discuss the responses and strategies firms use in relation to their supply base when dealing with current trends in the business landscape, and the different options that they have. Design/methodology/approach – The paper draws on case study research of a company within the international health care sector to illustrate the relationship between trends, supply base characteristics and supply base strategies. Findings – The paper presents a framework for a systematic approach that companies can use to develop supply base strategies. The framework illustrates that developing supply base strategies is a dynamic process that not only involves individual actions by the buying company, but also requires close interaction with suppliers. Originality/value – Previous literature has not specified how different trends affect a company’s supply base in terms of increased complexity and (inter)dependence, and which supply base strategies companies use and the optio...

Toward a conceptualization of supplier-switching processes in business relationships

Abstract This paper employs a practice perspective to study and conceptualize supplier-switching processes in business relationships. It is based on case study research of a company in the international marine industry, which intended to switch one of its key suppliers for a new one as a result of cost-cutting strategies and dissatisfaction with the old supplier. The case study describes the process, which ended with the old supplier being only partially switched. The findings show how (partial) switching from one supplier to another happened via three key sub-processes and associated practices, which the involved actors in the case drew upon in the switching process: (1) initiation – a process enabled by legitimizing and search practices; (2) substitution – a process enabled by transfer, translation, and transformation practices; and (3a) stabilization – a process enabled by institutionalizing practices; and (3b) restoration – a process whereby the old supplier is retained as a result of new conditions, this retention being enabled by certain repair practices. By identifying the processes and practices that enable switching to happen, the findings offer an initial conceptualization of supplier-switching processes, which comprises an important and heretofore underexplored aspect of supplier switching. The research highlights the importance of recognizing how relationships embedded in interorganizational routines are produced and reproduced in the switching process through the actions and interactions of the actors involved.

Editorial for the special issue on social networks in construction

For some time, traditional conceptualizations, analyses and design of project organizations have been criticized for being inappropriate to capture the complexity of current construction and engineering projects (Blomquist et al. 2010). These projects are increasingly complex, not only in a technical sense, but even more so in terms of the organizational systems needed to design and execute them. Previous project management models and existing ways of understanding, organizing and managing projects seem to have reached their limit of application, showing diminishing results (Winter et al. 2006, Chinowsky et al. 2008). Accordingly, there have been calls for new models and analytical tools that capture the social dimensions of project organizing, and the essence of the inter-firm relationships that comprise the construction project coalition (Pryke 2012). It is argued that the relationships associated with the dynamic, transient and “time-defined” temporary organization require further research (Burger and Sydow 2014). As a response to this call, recent perspectives within construction project literature have come to focus on the social, relational and “self-organizing” dimensions of projects to capture their technical and social complexities. For example, studies on megaprojects show a need for relying on the ability of self-organizing rather than the traditional project management techniques such as planning, scheduling and risk analysis (Pryke 2012, 2017; Pryke et al. 2017). It is argued that to deliver successful projects, there is a need to focus upon “actors and their behaviors” in projects (Blomquist and Lundin 2010:7) and find out “what project managers do” (Geertz 1973) rather than “what is being done” (Blomquist and Lundin 2010:13). In accordance with such a perspective and combined with the increased attention given to the relationships between project actors, a stream of research has emerged within the construction literature focusing on the understanding of construction and engineering projects as social networks (Zheng et al. 2016). Wasserman and Faust (1994) define a social network as a set of actors connected through clearly defined relations. These relations can be directed, that is, they flow from one actor to the other, in terms of information, trust and affection perhaps, or undirected, for example, sharing an office. Relations can also differ in terms of their strength ranging on a quantifiable continuum from weak to strong ties (Granovetter 1973), and their effect in terms of positive or negative affective content (Labianca 2014). The social network concept provides a framework for testing theories about structured social relationships (Wasserman and Faust 1994). As such, it constitutes an alternative to the assumption of independent social actors, often found in traditional project management theory. The rapid growth of social network theory and the associated social network analysis (SNA) in construction research has mainly been driven by the fledgling conceptualization of a construction project as a temporary network embedded in a permanent network (Dubois and Gadde 2000, 2002), with a limited-time cycle and specific objectives delivered by groups of actors engaging in complex problem-solving processes and interacting through formal and informal relationships (Li et al. 2011, Chowdhury et al. 2011). While some network scholars have been concerned with the network characteristics of the construction industry as such, analysing interdependencies between contractual parties (e.g. Bygballe et al. 2013, Dubois and Gadde 2000, 2002, Håkansson and Ingemansson 2013), social network scholars are more often concerned with overcoming the task versus social structure paradigm. Inspired by Nohria and Eccles (1992), our basic premise for this special issue is that the reasons why the application of (social) network theory and the analysis of network data facilitate an understanding of construction project

Practices in institutional projects as mobilizers of change: A case of adaptation to climate change

This paper explores the role of institutional projects in mobilizing change in fields characterized by institutional complexity. Our starting point is the empirical observation of how organizations in the field of natural hazards in Norway collaborate through a series of projects as a response to needs for change. Natural hazards, such as flooding and landslides/avalanches are a major societal concern in Norway, and prevailing practice to deal with these has proved ineffective. The reason being lack of coordination between the organizations and divergent prescriptions of what are appropriate solutions. Our study shows that the organizations use projects as arenas for joint sensemaking, improvisation and experimentation. Institutional projects result in the development of new practices that allow the organizations to respond more effectively to the needs for dealing with the natural hazard events. We identify three sets of practices, i.e. information gathering, mobilizing, and educational practices that he...