Project Sponsors Research Articles

Project Sponsor Effectiveness and Project Success

The project sponsor’s interactions and relationships with the client, project manager, and other stakeholders impact the project’s performance. This study examines the world of projects inside businesses to determine the correlation between project success and sponsor effectiveness. I employed a quantitative approach that comprised factor and regression analysis to investigate the relationship between project success and the effectiveness of the project sponsor. Two unique characteristics, one for sponsor awareness and another for sponsor dedication, are highly connected with project performance, according to data from 173 replies collected globally. These findings shed light on senior managers’ perceptions of sponsors’ effectiveness inside companies and their role in ensuring project success. It has implications for practitioners to be aware of the many forms and benefits of the project sponsorship position. By establishing sponsorship as a crucial component of project success, the findings help theory development.

Influence of External Stakeholder Involvement and Risk Perception on Affordable Housing: A Survey on the Implementation of Affordable Housing Project in Anderson-Ofafa Estate, Kisumu City (Kenya)

The significance of stakeholder involvement and risk forecasting in project management has been documented in literature and in studies all over the World. One such study was carried out in Anderson-Ofafa estate, Kisumu City. The main goal of the study was to assess the influence of external stakeholder involvement and risk perception on the implementation of the project. The stakeholders showed resistance to the housing project.The study aimed to establish the risks the project is exposed to based on stakeholder attitude and their influence on project performance, and whether the stakeholders were involved so as to provide solutions to problems bedeviling the project and to generate new knowledge. A survey of general respondents/ intelligent laypersons of age 18 years and above totaling 384 and key informants numbering 16 proportionately sampled from a population of 174,145 people found out that there was a significant correlation between stakeholder involvement, risk perception and project performance. In addition, the study established the occurrence of socio-political,regulatory and financial risk factors which had a perceived high influence of 50% and above, moderate influence of 39% and a very high influence of above 50% respectively.Updated risk register had a perceived high influence of 50% and above. Socio-political risk factors significantly influenced the project performance as was hypothesized by the alternative hypothesis of this study.Financial risk factors had the greatest impact.The stakeholders were involved in the project but were still not satisfied with its implementation.The results are expected to assist the project stakeholders align their goals with that of the project to foster sustainability.The practical or managerial implications is explained as follows- there are documented potential consequences and outcomes of stakeholder actions that have contributed to risk factors that will have extended effect on all stakeholders; including project beneficiaries, project providers, project influencers, and the project governance team. Interventions recommended include; Project sponsors to focus on strategies that manages risk perception and returns expectations, Project manager to reduce project scope, public sector to put measures that guarantee stability in laws and regulations and, the project should be infused into the new affordable housing program by the Kenya Kwanza government to benefit from the new government initiated housing levy fund.

Exploring prescriptive and agile management of university-based living labs

ABSTRACT University-based living labs serve as open innovation platforms that foster collaborative research and experimentation across various disciplines. These labs bring together academics, citizens, community organisations, companies, and other entities to collectively address complex contemporary issues. The labs’ managers are expected to adopt flexible, agile management approaches to support the openness of their lab to stakeholders. Flexible management approaches create various challenges, as the labs are often expected also to comply with traditional project management principles of deadlines, project deliverables, budget restrictions, and quality conditions as set by their project sponsors and host organisation. The combination of prescriptive and agile project management approaches in such open innovation settings has been relatively underexplored in higher education research. Drawing on the theoretical literature on boundary work and project management, we analyse how the managers of a Dutch university-based living lab execute flexible project management styles in a setting that is dominated by prescriptive project management traditions. Based on information from 20 interviews and document analysis we identify five areas of tension between agile and prescriptive project management. Living lab managers, supported by researchers, buffer these tensions through boundary work that shapes the openness of the projects in rather unexpected ways.

Temporal and social distances of the estimated duration of R&D projects in the biopharma industry

Biopharmaceutical firms' opportunities depend on the accurate estimation of highly acclaimed clinical trial projects duration. To understand how forecasts of the duration differ from the actual duration, this study uses Construal Level Theory (CLT), which places the future estimates on the different levels of distance in estimation errors. This article explores (a) whether the estimated project duration is indeed longer than the actual duration of the project, and (b) how it differs when considering foreign versus domestic projects. A dataset of 24,953 technology projects in two locations make two discoveries. First, the actual duration of completed projects (past) is likely to be 0.26 times longer than the estimated duration of future projects, implying that project sponsors tend to underestimate the project duration. Second, the foreign versus domestic projects likely to be 0.26 times longer than the domestic sponsors projects. Third, foreign and past project further increases the duration by 0.40 times compared to the domestic and past project. The study resolves the duration issue, contributes to the CLT framework by supporting the psychic distance principle and construal levels. It reveals potential errors in the estimation of the unknown future based on the known past.

Pharmaceutical company funding of cancer patient advocacy organizations in the Netherlands

BackgroundFinancial conflicts of interest (FCOI) of medical professionals and associated organizations with pharmaceutical companies (pharma) might contribute to the use of low value oncological treatments. Value criteria for oncological drug approvals in the Netherlands have recently become more stringent leading to objections by cancer patient advocacy organizations (cPAOs). Considering the importance of cPAOs input in cancer patient care we analyzed whether pharma funding of cPAOs occurs in the Netherlands. MethodsThe cPAO websites and available annual reports were evaluated for disclosure of pharma funding for the years 2021 and 2022. Also, data from the Dutch Healthcare Transparency Registry (DHTR) were extracted. ResultsTwenty-one of 34 (61.8 %) cPAOs received pharma funding (with 20 registered in the DHTR), and for 13 (29.4 %) cPAOs no reporting of pharma funding could be found. Three of the cPAOs disclosed pharma funding directly on their main website. Online educational material was available from 22 cPAOs on their websites with pharma funding disclosed on the educational material in 5. The total registered amount of pharmaceutical funding was €667,232.00 in 2021 and €536,098.00 in 2022. The median (and interquartile ranges) DHTR registered amount of support per cPAO that received funding in the studied period was €23,799.50 (14,823.75–84,663.30). The most common funding category as defined in the DHTR was project sponsorship. ConclusionsFinancial support by the pharmaceutical industry is common for Dutch cPAOs. Given the importance of cPAOs and their objective input in the societal debate on the availability of cancer drugs, the potential influence of pharma sponsoring should be critically evaluated.

Market Risk in Project Finance: Approaches to Review and Minimisation

Relevance. Development of an investment project is commonly associated with many risks, and one of the most significant risks is a market risk i.e. is a possible failure to achieve prices, volumes and sales projected in total compared to those planned in the business plan and financial model of a project. Modern literature pays not enough attention to many relevant and practical issues of the market risk (i.e. is a possible failure to achieve prices, volumes and sales projected) review and reduction in the project finance and investment review, as well as to issues of work with independent marketing consultants, possible areas and ways for risk reduction and quality improvement.Purpose. The previous article considered approaches to understanding significance of the market risk and measures to deal with the risk in the review of price forecasts for an investment project. This article is supposed to consider the issues of risk reduction by organising optimal work with an independent consultant on these issues.Objectives. It is supposed to consider the possibility of engaging an independent marketing consultant, the requirements to the consultant by the financing organisation or investor, to provide an example of detailed scope of work for the independent analysis, give examples of comments to the marketing report and proposed measures to adjust the analysis in the report. It is also necessary to consider approaches to the use of the financial model in order to reduce market risk effects in project financing.Methodology. Methods of analysis and synthesis, induction and deduction as well as modelling are used in the article.Results. The article considers two major issues related to the accounting for or reduction of the market risks in the development of investment projects and providing project finance: the range of questions regarding working with a marketing consultant in order to decrease market risk effects is discussed, examples of requirements to the consultant and potential scope of work as well as some possible errors examples are given; author discusses instruments for considering these risks in financial model, including increased required levels for liquidity and debt service ratios in case of high risks and uncertainties.Conclusion. The market risk is one of the key risks in the development of an investment project and project review in project finance. A set of measures is needed to reduce and account for the risk. Proper application of these and other reasonable measures should enable project initiators and sponsors to ensure their successful development and compliance with the debt service schedule to third-party lenders.

The Power(lessness) of Flexibility in Public–Private Partnerships: Two Capital Projects From the National Capital Region

This article draws on the new stakeholder theory to examine the role of flexibility in the decision process within capital-intensive public–private partnerships (PPPs). It highlights that successful PPPs rely on the project sponsor’s ability to effectively utilize market stakeholders’ critical resources (i.e., information and expertise) to maximize economic value creation, and to gain nonmarket stakeholders’ critical resources (i.e., support) through equitable social value identification and distribution. Drawing on two case studies in the national capital region of the United States, this article proposes a theoretical view to understand flexibility and stakeholder management for capital-intensive PPPs.

Understanding clients’ role in community stakeholder participation and influence on infrastructure sustainability—a stakeholder theory lens

The nature of project clients and implementing agents is crucial to Local community stakeholder (LCS) participation in infrastructure development. However, few studies have explored this relationship. The questions regarding clients’ and implementing agents’ nature remain under-explored. Therefore, this article uses stakeholder theory to investigate the clients’ values and stakeholder participation in infrastructure development. A qualitative method used interviews with professionals from clients, consulting organisations and stakeholders to collect data in South Africa. The study revealed that LCS participation was related to client organisation’s values and nature. Equally, the stakeholder participation level influenced delivery of sustainable infrastructure. The significance of the study is that it reveals the gap in stakeholder management, an area extensively studied. Moreover, the study compels project sponsors and researchers to consider factors in clients’ and implementing agents’ organisations to improve stakeholder participation. The study redirects attention to client organisations’ nature and demonstrates the need for the right organisational attitude if stakeholder participation and sustainable infrastructure delivery are to be realised. This study may have important implications for policy and practice regarding stakeholder participation and sustainable infrastructure. However, limitations should be noted regarding the sample size.

Multidisciplinary Capstone Senior Design Projects: A Comparative Analysis of Industry–Sponsored and Faculty–Sponsored Projects Using Comprehensive Performance Metrics

Engineering education has continually evolved to embrace Project–Based Learning (PBL), a dynamic classroom approach emphasizing learning through engagement in real–world projects. The study conducts a comparative analysis of multidisciplinary Capstone Senior Design Projects across Electrical Engineering, Mechanical Engineering, and Computer Science at Texas A&M University at Texarkana. The research emphasizes understanding the dynamics of student collaboration within these disciplines and scrutinizes the impact of industry and faculty sponsorship on these projects. The methodology involves a comprehensive comparative analysis, employing diverse performance metrics to evaluate the effectiveness of different sponsorship models. This approach aims to uncover the influence of these models on project outcomes and students’ educational experiences. The results reveal notable differences between industry–sponsored and faculty–sponsored projects. Industry sponsorship leads to higher performance in overall project execution and professional skills development. In contrast, faculty–sponsored projects are more effective in nurturing teamwork and communication abilities among students. The findings suggest that each sponsorship type presents unique benefits and challenges. Industry–sponsored projects provide valuable hands–on problem–solving experience, though they may suffer from inconsistencies in mentorship and varying expectations. Faculty–sponsored projects offer a more stable and consistent educational environment but might lag slightly in performance metrics. Integrating elements from both sponsorship models could provide students with a more balanced and enriching learning experience.

Типология власти Макса Вебера в контексте проектного управления

The article is devoted to the relations of power that develop in the conditions of the project form of organization of activities. The main purpose of the article is to analyze the impact of project characteristics on the need for a certain type of authority to effectively manage a team. The article uses Max Weber's typology of authority, and provides a comparative description of each type of authority in relation to the the existing conditions in the project. The need for a traditional type of authority arises in circumstances of strict compliance with the institutional context of the project and with powerful stakeholders. The means of expressing the traditional type of authority in the project is contextual competence in the content as defined by the IPMA standards. The charismatic type of authority is relevant in projects with high uncertainty, requiring creative, unique solutions. This type of authority ensures team cohesion in the confident pursuit of project success. Finally, the bureaucratic type of authority is relevant in standard projects with open regulated interaction of team members. And this type of authority is expressed through the application of professional standards and corporate project management techniques, which is most noticeable in companies with high organizational maturity. The final part of the article presents a semantic differential of types of authority according to the characteristics of the project. As a result of the work, a conclusion was made about the possible combination of all three types of authority in a project in the form of a triad of managerial roles «project sponsor - project manager - head of the project office (or functional manager)».

УПРАВЛІННЯ КОМУНІКАЦІЯМИ ТА ЗНАННЯМИ В ПРОЄКТАХ ТРАНСПОРТНИХ ПІДПРИЄМСТВ

The article is devoted to the needs of the development of transport enterprises in accordance with the requirements of numerous economic agents, state regulators regarding the provision of transport services and maintaining competitive positions in the transportation market. Insufficient investment activity of transport enterprises and the need to update fixed assets, the introduction of innovative technologies requires the implementation of projects of transport enterprises on new approaches and a change of emphasis from mainly technical and financial and economic to communication and knowledge management. The purpose of the article is to study the theoretical foundations of communication and knowledge management in the projects of transport enterprises in accordance with the needs of the sustainable development of the transport industry in Ukraine. The management of communications and knowledge in projects of transport enterprises should be considered from the position of managerial activity, where the main focus is on achieving the final results of the project through established communications and information flows based on scientific, reliable and unbiased information and timeliness of information flows between various stakeholders. The adaptation of the requirements of ISO 21502 Project management to the activities of transport enterprises takes into account the peculiarities of the provision of transportation services, therefore the main customers and sponsors of projects are transport enterprises of various forms of ownership and specialization, the controlling bodies are the Ministry of Community Development, Territories and Infrastructure of Ukraine, State Aviation Service of Ukraine, State Special Service of Transport, Administration of Sea Ports of Ukraine, State Service of Sea and Inland Water Transport and Shipping of Ukraine and other executive authorities. The synergy of communication management and knowledge management is recommended to be implemented through the inclusion of knowledge in the general information flows of transport enterprise projects, to which different groups of project participants will have access.

Process competences to incorporate in higher education curricula

This study reports on a survey on project managers' priorities. The survey used ISO 21500 as a scaffold to ask various respondents, like junior, experienced, and senior project managers, project sponsors, and students, to share their perceptions on the priorities for junior project managers. The respondent groups shared similar perceptions. Furthermore, project type and sector had little effect on junior project managers' priorities. Experienced and senior project managers shared their own priorities as well. The perceptions of priorities for junior, experienced, and senior project managers were mostly alike. However, experienced and senior project managers' priorities seemed slightly more affected by project type and sector. A session with experts in project management and teaching project management highlighted that the results for junior project managers could provide accents for introducing project management to students in higher education, provided the entire playing field of project management is also introduced.

Role of Domestic Banking and Financial Institutions in Project Finance: Insights from Hydropower Sector in Nepal

Hydropower is a low carbon renewable energy alternative for replacing carbon emission energy sources. In Nepal, this infrastructure sector is being developed for fulfilling the internal demand of electricity. Previous studies emphasized public-private partnership (PPP) utilizing project finance (PF) model in infrastructure sector. Recognizing the importance of domestic banking and financial institutions (BFIs) in project finance this study delves into factors significantly affecting the role of BFIs in project finance. Cross-sectional survey utilizing questionnaires was conducted among respondents representing the independent power producers (IPPs) and BFIs in Nepal. Regression analysis showed predictor variables like economic environment, guidelines of the central bank and low default rate have significant impact on project finance. issues related to adequate legal provision for non-recourse financingrole of BFIs for project finance arrangement. Credibility of hydropower project sponsors is an important determinant in financing hydropower project. The availability of comparatively more bankable projects in other investment sectors against the investible fund constraints resulted in limited complete project finance arrangement of hydropower projects. Detail investigation on guarantees to the lenders against the project loan and improvements needed in legal frameworks to accommodate the non-recourse finance and making economic and legal environment friendlier to private sector is the limitation of this study left for future researches.

Over a century of small hydropower projects in Indonesia: a historical review

BackgroundHydropower is a mature energy technology and one that could play a more important role in providing clean and reliable energy. In small-scale contexts, hydropower is useful for providing electricity access, balancing intermittent resources, and as a potential source of energy storage. This paper provides a comprehensive exploration of the development of the small hydropower (SHP) sector in Indonesia, the world’s fourth most populous country.MethodsTwo research methods were employed: secondary data analysis through a desk review of relevant literature and primary data collection through site visits and expert and stakeholder interviews. Two case studies of micro-hydro applications in community-based rural electrification were analyzed. The paper explores how SHP projects were initiated, lessons learned, and policy recommendations of relevance to further development of distributed small-scale renewable energy in Indonesia.ResultsThe sector commenced during the Dutch Era and now centers on both community-based rural electrification projects and commercial schemes under the independent power producer (IPP) approach. Since the late 1980s, initiatives to implement SHP for rural electrification have flourished through various programs. Key regulatory, economic, and technical barriers include inconsistent and unclear supporting regulations, especially regarding electricity prices; artificially low retail electricity prices; capital and borrowing constraints; advantages provided to fossil fuels; limited technical experience and capabilities of project developers and project sponsors; risks from floods, earthquakes, and landslides; constraints on supporting infrastructure; and limited grid links. The most successful and sustainable SHP projects are ones that provide local economic benefits and for which local communities are empowered with ownership and have responsibility for maintenance.ConclusionsSHP will remain small from a macro perspective but could still play a key role in further improving energy access and equity in remote areas. Key initiatives to facilitate this development could include local-level capacity building and project participation and the adequate pricing of negative externalities from fossil fuel projects. Indonesia’s long experience with SHP carries lessons for other developing countries.

Controversy in wind energy construction projects: How social systems impact project performance

The energy industry strives to address a number of challenges—satisfy increasing energy demands, fulfill renewable energy policy requirements, and update aging infrastructure. Complicating energy projects are the controversies they can stir among stakeholders, sparking disagreements about environmental, economic, and aesthetic outcomes. Conflicts such as protests, petitions, or lawsuits can lead to schedule delays and cost overruns, which are difficult for project sponsors to predict. Using literature and news media, this study aims to identify trends in project controversies across energy projects. The study uses a mixed deductive and inductive content analysis to determine which actions, project phases, and stakeholders are discussed most frequently within both academic literature and news media. Using code cooccurrences, the study evaluates which stakeholders take specific actions at different project phases. Results show that the most active opposing stakeholders to energy development projects are community members, and actions opposing a project most frequently occur in the proposal phase. These results highlight the importance of engaging with communities early in project lifecycles. Opposition typically includes dissemination of information within communities, including letters to editors, internet newsletters, and public meetings. From this analysis, policy recommendations are provided for energy project sponsors to better anticipate and mitigate conflict.

Evaluating the Stakeholders’ Satisfaction with Design and Construction of Resilient Houses in Vietnam

At the end of the year 2021, all 4000 resilient houses that are under the project “Improving the resilience of vulnerable coastal communities to climate change-related impacts in Vietnam” were completed. However, the project sponsor and implementor need to be aware of the level of satisfaction of the stakeholders of these resilient houses, especially for local beneficiaries. This study is carried out to answer several practical questions such as what are the strengths and weaknesses of the project house designs, focusing on the basic needs of beneficiaries. Or, are the beneficiaries satisfied with the house constructed with support from the project, and what are their suggestions to improve either the relevant procedures and processes or future houses to be built by the project or other stakeholders. The findings show several aspects of design and construction of resilient houses such as utilization effectiveness, satisfaction of beneficiaries, and participation of local communities. However, several practical limitations of this phase have been identified, namely, the approved designs do not fully reflect the needs of beneficiaries, the designs lack some essential and basic functionalities, some technical shortcomings exist in design drawings, and support funding is limited. On the basis of that, the authors recommended several valuable measures for effective and sustainable designing and constructing resilient houses.

Proposal of Hierarchical Organization Structure for Negotiation Consensus in Multinational Joint-Client Megaprojects: Case of US Force Relocation Program in Korea

During negotiations in the initial stage of multinational megaprojects, technical issues are underemphasized compared to diplomatic or political perspectives despite varying relevant standards of participating countries. If the organization structures are established soundly while overcoming heterogeneous aspects of involved countries, decision making among countries satisfying both could be made timely and properly. With the aim of positive multilateral relationships and negotiations concerning engineering factors collectively, a framework is presented for identifying the roles and responsibilities of multinational joint clients with a hierarchical organization structure composed of a decision maker, senior responsible owner, project sponsor, and project manager. US forces relocation program in the Republic of Korea, a $1.4 billion megaproject, was analyzed where political and cultural aspects were attempted to melt down in a hierarchical organization. Results from interviewing high-level decision makers from both countries show that upper-level participants focus on political issues, while lower-level practitioners aim to achieve satisfactory technical quality. The involvement of engineers in earlier negotiation stages with upper-level counterparts is essential in establishing realistic goals. The uniqueness of the framework compared to previous factor-driven perspectives between different joint-client structures are as follows: Identical hierarchy of level from the countries supports defining roles with integrated scope management, and neutral consultative body for arbitrating conflict between countries and in-house departments within a country is required.

Hydrogen market development: lessons from the LNG sector

Abstract The evolution of the liquefied natural gas (LNG) market, and LNG sale and purchase arrangements, can provide insights to how sale contracts required to underpin the development of regional hydrogen markets around the world may develop. This article explores how LNG markets have developed and considers the lessons which may be learned for project sponsors looking to develop the first wave of low-carbon hydrogen production projects.

THE ROLES THAT PROJECT SPONSORS PLAY AT STAGE GATES OF A PROJECT LIFE CYCLE MODEL: A CASE STUDY OF A WATER UTILITY IN SOUTH AFRICA

Project sponsors play significant roles at the stage gates of project life cycle models (PLCMs). However, research on the roles that sponsors play at stage gates, and the attributes required of the sponsor, are sparse. This study investigated the roles played by government and municipal sponsors at the PLCM stage gates of a water utility, and identified the attributes that the sponsor should have as well as the challenges they face. A case study approach was employed, and semi-structured interviews were conducted with relevant stakeholders. The findings could assist the senior management of water utilities, national government departments, and municipalities when appointing suitable project sponsors.

Assessing the Impact of the COVID-19 Pandemic on Healthcare Project Management: A Shift in Standards?

Abstract Background The COVID-19 pandemic was a shock event for many sectors, with the healthcare sector undoubtedly being the one most affected. Aim The study sought to examine the impact of the COVID-19 pandemic on project management within the healthcare industry, as this is the sector with the potential to implement innovations that mitigate such shocks in the foreseeable future. Methods The study was conducted between March and July 2023 by surveying professionally active individuals employed in hospitals who had experience in project implementation within the last five years. To discern the potential impact of the pandemic on project management practices in healthcare systems, we designed a specific survey questionnaire. Using a five-point Likert scale, participants assessed the importance of each criterion for their specific project. Of the total 389 respondents, there were 144 men and 245 women. The participants reported their involvement in 808 projects in total. Results Results show that after the pandemic, the importance of project efficiency and stakeholder satisfaction as factors for project success has increased. Moreover, the study revealed a stronger emphasis on the projects’ impact on the future. Conclusion The pandemic has reshaped healthcare project management priorities, with project managers and sponsors collectively striving for recovery and improvement.