Value Creation In Projects Research Articles

Research on the Collaborative Mechanism of Value Creation in Public–Private Partnership Projects Under Dynamic Trust

ABSTRACTPublic–private partnership (PPP) is now focused on project value creation, with trust playing a crucial role. This study models trust evolution among stakeholders using evolutionary game theory and simulations, revealing that higher initial and sustained trust boosts project value. However, overreliance on trust can lead to deregulation and neglect of contracts, harming outcomes. Spillover effects and speculative behavior also threaten value creation. The study identifies an optimal incentive range for reputation gains, highlighting the need for balanced trust mechanisms, effective incentives, and penalties to ensure collaboration and project success.

How do engineering suppliers create project value for buyers? A micro-foundational perspective

PurposeValue creation in engineering projects has received considerable research attention. However, buyers’ expectations regarding project value do not always translate into the actions of project team members (actors). Drawing upon resource orchestration theory to explore the micro-foundations of project value creation (PVC), we investigate how suppliers organize project team members to create project value that meets buyers’ expectations.Design/methodology/approachWe adopted two instructive engineering projects as comparative cases to analyze patterns in actor interactions in PVC.FindingsThe results reveal “social interaction-based value creation” and “structural interaction-based value creation,” which explain the PVC process from the collective-level buyer’s expectations and supplier’s value orientation, to individual-level actor interactions (mobilizing, connecting, and networking), knowledge orchestration activities (structuring, bundling, and leveraging), and finally the value creation process (identifying, configuring, and generating) in project teams to generate collective-level project benefits and values.Originality/valueWe propose a macro-approach to micro-foundations, with a focus on the buyer-expected PVC process on the supplier side. Furthermore, we explain how suppliers organize individual actions and orchestrate the individual knowledge through two patterns of individual-level actor interactions for collective-level PVC.

Benefits classification to enhance project value creation

Projects create greater value when they realize their expected benefits. However, project benefits are often not fully realized, partly because managers find benefits an unclear concept that is difficult to identify, measure, and manage. As a result, various project benefits classification frameworks have been proposed to support managers from the project owner organization in setting the expected benefits before project commencement, managing the project, and evaluating benefits realization following project completion. However, the few existing frameworks include inconsistent, incomplete, and overlapping benefits groups. The objective of this paper is to develop a comprehensive project benefits classification framework to clarify the diverse benefits types and support their management. In an exploratory study, 30 interviews were conducted with senior executives, and in a second study, 173 real-life project benefits were analyzed. Findings from these two empirical studies suggest that project benefits can be classified into 10 groups based on their ultimate beneficiary (the final level of the beneficiary hierarchy): the project owner organization itself or the general public. More specifically, these benefits groups include seven groups of organizational benefits (revenue generation, cost savings, productivity enhancement, quality improvement, risk reduction, compliance, and learning) and three groups of public benefits (economic, social, and environmental). This classification enhances the setting, management, and evaluation of project benefits and advances our understanding of project value creation.

VALUE-ORIENTED MANAGEMENT OF DIGITALIZATION IN HIGH-TECH PROJECTS

As organizations increasingly embrace digitalization to enhance their operations and competitiveness, high-tech projects play a pivotal role in driving innovation and technological advancements. This paper explores the significance of value-oriented management in the context of digitalization within high-tech projects. The research focuses on understanding how organizations can effectively leverage digital technologies to create value, mitigate risks, and optimize project outcomes. The study employs a multidisciplinary approach, drawing on principles from project management, technology management, and strategic management. It investigates the integration of digital technologies, such as artificial intelligence, Internet of Things, and data analytics, into high-tech projects and assesses their impact on project value creation. Through a comprehensive review of literature, case studies, and interviews with industry experts, the paper identifies key success factors and challenges associated with managing digitalization in high-tech projects. The concept of value-oriented management is examined in depth, emphasizing the need for a holistic framework that aligns project goals with organizational objectives. The paper introduces a model for value assessment, encompassing both tangible and intangible aspects, to guide decisionmakers in evaluating the effectiveness of digitalization efforts in high-tech projects. Furthermore, the research explores the role of leadership, organizational culture, and stakeholder engagement in fostering a value-oriented approach to digitalization. It highlights the importance of creating a conducive environment that encourages collaboration, innovation, and adaptability to navigate the dynamic landscape of hightech projects. The findings of this study contribute to the theoretical understanding of value-oriented management in the context of digitalization within high-tech projects. Practical implications and recommendations are provided for project managers, executives, and policymakers seeking to enhance the success of digital initiatives in the high-tech sector. Ultimately, the paper aims to provide insights that can guide organizations in maximizing the value derived from their digitalization efforts in the rapidly evolving landscape of high-tech projects.

Relationship management for recurrent project value creation

Relationship management for recurrent project value creation

The effects of joint-contract functions on PPP project value creation: a mediation model

PurposeWith the continuous improvement of public–private partnership (PPP) projects, the participants' value creation goals are not only limited to achieving the basic performance objectives but also to realising value added. However, the effect of traditional contract management on realising the value creation objectives of PPP projects is limited. According to the view of multifunctional contract, joint-contract functions that integrate contract control and flexibility are likely to be effective in enhancing the value creation of PPP projects. This study aims to explore the effects of joint-contract functions on PPP project value creation and relevant influencing mechanism by investigating the mediating effect of in-role behaviour and extra-role behaviour.Design/methodology/approachAfter collecting 258 valid questionnaires from PPP professionals in China, this study used structural equation modelling to validate the hypotheses.FindingsContract control and flexibility can improve PPP project value creation. Specifically, contract control improves the achievement of the basic contract objectives of PPP projects, whereas contract flexibility enhances the achievement of the value-added of PPP projects. Moreover, only in-role behaviour mediates the effect of contract control on value creation. In addition, the mediating effect of extra-role behaviour on the impact of contract flexibility on value creation is stronger than that of in-role behaviour. The mediating effect of in- and extra-role behaviour is mainly reflected in the realisation of basic and value-added performance, respectively.Research implicationsThe findings of this study can help realise value creation in three ways. Firstly, new perspectives for PPP project value creation should be proposed by combining the improvement of contract objectives and the realisation of the participants' implicit demands. Secondly, the effects of different contract functions on value creation should be analysed instead of a single dimension of contractual governance. Thirdly, the mediating effects of different types of cooperation behaviour that may influence the relationship between contractual governance and value creation should be evaluated.Originality/valueThis study verifies the impacts of different contract functions on PPP project value creation. In addition, cooperative behaviour is embedded as a mediating variable, and the mediated transmission path from contract function to cooperative behaviour and further to PPP project value creation is systematically analysed.

Improving The Organizational Culture of Key Stakeholders Involved in Value Management Process to Achieve Optimum Value in Malaysian Construction

Value Management (VM) is necessary for all construction projects to achieve value for money. There is a need to improve the organizational culture of key stakeholders involved in VM process to achieve optimum value in Malaysian construction projects. This paper is part of a larger study aiming to develop a culture-based organizational model for key stakeholders involved in VM process for achieving optimum value in Malaysian construction projects. This study utilizes a systematic literature review synthesis method to evaluate the trend, identify the gaps and recommend future approach in order to improve the organizational culture of key stakeholders involved in VM process that focuses on achieving optimum value in VM. The results include analyzing current VM status quo in Malaysian construction industry, determining the challenges faced in the VM process of generating innovative ideas, and exploring the project value creation to achieve optimum value. Upon introducing the background problem, the paper deliberates the synthesized literature reviews on VM, key stakeholders, VM process and project performance with VM. A cross-analyses discussion contributes towards formulating the culture-based organizational model for VM practice in Malaysia. The results are expected to improve the integrated project delivery performance of Malaysian construction industry stakeholders by understanding critical VM success factors and weaknesses of VM key stakeholders’ team in generating innovation ideas for optimum project delivery value.

Invariable Features of a Firm and Value Creation in Agency Banking Projects: A Case of Retail Banking in Kenya

To maintain their competitiveness in the face of constantly changing technologies, the majority of banking institutions are forming non-equity financing strategic collaborations. The traditional financial banking systems have been put to the test by the rise in the use of mobile financial services. The objective of the study was to ascertain how invariable features of a firm influenced agency banking project value creation. According to a pragmatic paradigm philosophy, the study accepted both descriptive and inferential statistics. 400 personnel of strategic alliances who were involved in agency banking programs in Kenyan counties were the population’s intended audience. A total sample of 200 people, including 50 agency bank supervisors and 150 agency employees, was drawn using simple random and deliberate sampling. An open-ended, closed-ended, and interviewing guide was used to get the data. The following models were used to analyse the data: Pearson Correlation, Simple Regression, Multiple Regression, and the Mean, Composite Mean, Standard Deviation, and composite standard deviation. The study found that there is no significant association between invariable aspects of a firm and value creation in agency banking projects, leading to the adoption of the null hypothesis. It was recommended that future researchers to examine the influence of company characteristics on corporate governance in agency banking projects

The ethics of care and wellbeing in project business: from instrumentality to relationality

Critical scholars have increasingly problematised the mainstream wellbeing management approach for being overly instrumental and normative. To address wellbeing issues requires reconstructing value in project business, which may involve challenging the dominant ethical theories and the transactional business model to include wellbeing as a legitimate objective of value creation in projects. In this essay, we advocate the ethics of care as an alternative ethical theory in project studies. The aim is to introduce its key tenets and discuss the implications for managing wellbeing in project businesses. From a care perspective, a relational belief system can be fostered through a dialogic process supported by relationship management, leadership and a transformational business model. In doing so, caring as an attitude and process is introduced and from a scholarly and practitioner standpoint, we begin to develop capabilities to support the individual wellbeing in project business.

Moderating Effects of Requirements Uncertainty and Project Complexity on Value Creation Processes and Project Value: A Multigroup Analysis via Partial Least Squares Structural Equation Modeling

Prior literature recognizes two schools of thought on value creation in projects: one based on transaction cost economics and the other on relational-based theories. There is little empirical research on the impacts of these approaches within different project contexts. This study aims at analyzing the effect of value creation processes on the project value moderated by requirements uncertainty and project complexity, two critical contextual variables. We used a cross-sectional survey to collect data from 168 project managers in Chile. Three groups were distinguished from a cluster analysis considering the requirements uncertainty and project complexity. A proposed conceptual framework is validated globally and for each group through a multigroup analysis via partial least squares structural equation modeling (PLS-SEM). The global model results indicate an R2 of 0.37, and for the groups, the R2 ranges from 0.33 to 0.85, and the path coefficients range from 0.57 to 0.92. Additionally, the PLS-SEM multigroup analysis shows significant statistical differences. Group 3 (low complexity and low uncertainty) is different from Group 1 (high complexity and high uncertainty) and Group 2 (high complexity and low uncertainty), with p values of 0.027 and 0.023, respectively. Therefore, these empirical findings contribute to the literature demonstrating that value creation processes impact the project value. In particular, these effects are moderated by the current level of project requirements uncertainty and complexity in different contexts.

Value implication of digital transformation: the impact of the commodification of information

The transforming construction agenda argues that digitalization enables better value by addressing coordination challenges. However, this claim poorly articulates how value is constituted, and ignores the problems with digitalization in real-life practices. The paper presents a finer-grained analysis of the value implications of digitalization in a critical discourse, organized in two parts, using the two value creation logics in construction as proposed by Bygballe and Jahre and the concept of “commodification” as proposed by Prudham. Through a critical literature review, the first part argues that digitalization mainly supports “production value creation logic” focussing on the integration of business processes at an organizational level, while creating challenges for “project value creation logic” by hampering mutual adjustment in situated practices. The second part conceives of digitalization as “commodification of information” to expose the complex set of processes causing digitalization to impact differently on the two value creation logics. It reveals that digitalization elevates the digital exchange value of information above its situated use value, and so, it systematically shifts the social and business contexts of coordination. Thus, digitalization shifts what, how, by whom and to whose advantage, value is created and captured, making it a politicized change with implications for management and policy.

Relationship Management for Recurrent Project Value Creation

Relationship Management for Recurrent Project Value Creation

Geological probability of success assessment for amplitude-driven Prospects:A Nile Delta case study

Effective quantification and management of exploration risks and associated uncertainties remains a key challenge for the Oil and Gas industry. Geological probability of success evaluation is one of the key steps of the exploration process, which will lead - if properly managed - to enhanced project's value creation, as well as improved portfolio management and exploration decisions. This paper reviews and discusses a consistent, uniform and reproducible approach for evaluating seismic amplitude-supported prospects, weighted by the input data quality and availability. The method and workflows are further illustrated with an offshore Nile Delta case study. This approach enhances the confidence in the appropriate risk and associated resource estimate for less biased and more consistent probability estimation.

Enhancing value co-creation in professional service projects: The roles of professionals, clients and their effective interactions

Projects are value creation mechanisms for organizations. In this paper, we build on service-dominant logic theory to theorize how value is perceived and co-created by service providers and clients in professional service projects. From two studies, we found that for service providers to create their value, particularly non-monetary value (e.g., enhanced reputation), client values (e.g., solving a business problem) must first be generated. The results further highlight the importance of reciprocal interactions between service providers and their clients in co-creating value for both parties. Service providers' professional knowledge and competence and their clients' levels of professional knowledge and motivation to interact are critical to enable effective interactions. However, the influence of service providers' professional ethics and clients' trust in professionals on project value co-creation is more complex than theoretically predicted. This paper advances the project value creation literature by providing a more holistic view of what value means for different stakeholders, how it is created, and by whom.

Value creation in projects: Towards a narrative perspective

It is contended that value is a social construct, and that the processes of social construction are rooted in language. On this basis we argue that value creation is a process which lends itself to interpretation from a narrative perspective. Previous attempts at value creation have been promoted under the label of ‘value management’. There are two approaches which are identifiable in the literature. The first is based on the traditional narrative of value engineering (aka Hard VM) and is primarily directed towards cost reduction. The second more recent variant is labelled ‘soft’ value management (Soft VM) and is primarily directed towards the achievement of a shared understanding of the value criteria relating to an individual project. The two approaches are critiqued in terms of their underlying assumptions and it is suggested that they are best understood as different forms of narrative. The emerging literature on value creation is similarly critiqued in accordance with the adopted narrative perspective. The distinction is made between formalised narratives of value on the level of the organisations involved in the project coalition and the anecdotal stories which individuals use to make sense of their own lived experiences. Emphasis is given to the ways in which different narratives interact, and to the way in which they remain contestable over time. Particular attention is given to the confluence between storytelling and identity work.

Value-oriented stakeholder influence on infrastructure projects

Project stakeholder management deals with managing and fulfilling stakeholder expectations and has tended to focus on the viewpoint of the focal firm or the project rather than that of the project stakeholders. The stakeholders' perspective is important because they can significantly influence projects, particularly infrastructure delivery involving both public and private actors. This study focuses on the ways that stakeholders pursue influence on projects through their expectation of project value. The goal is to identify the value-oriented reasons for stakeholders to utilize specific influence strategies. A multiple case study was implemented in three transport infrastructure projects. The study argues that stakeholders' expectations of project value creation explain the stakeholder influence strategies utilized. The findings link project value with stakeholder influence strategies and reveal four influence strategies in transport infrastructure projects, differentiated according to their different value priorities. The unique value-influence combinations of public infrastructure projects are revealed and discussed.

Socializers, achievers or both? Value-based roles of children in technology design projects

Abstract We have examined value creation in projects aiming at teaching children design related skills. Our results show that in addition to the roles defined by adults for children in the technology design process children adopt various roles in situ by themselves. We utilized in our analysis a value creation lens, Schwartz’s model of universal values, and Self-Determination Theory. We did this to see in what roles the children were successful in value creation and how this is related to children’s motivation. We propose a five-step method for Role-based Value Creation Analysis (R-VCA). While our participants were 9–14-year-old children, we argue that the value creation approach and the R-VCA method are applicable to other age or user groups as well since the value creation lens is not in any way specific to children. We argue that value creation analysis can be an important tool in finding out what empowers and motivates design process participants. This knowledge can further help in planning new projects as well as offering new perspectives on existing research data.

Best Value Approach (BVA): Enhancing Value Creation in Construction Projects

Abstract Background: Research has revealed an inadequate understanding of the owners’ and users’ strategic objectives and a lack of methodology for translating these objectives into functional buildings. Fulfilment of owners’ and users’ objectives is fundamental in creating value through a project. Management and design processes can be decisive in achieving the desired objectives. Hence, knowledge about what creates value applied into a management framework will enable higher value creation. Objectives: Providing a framework to enhance value creation in projects by addressing: i) what means and principles should be considered in the front end of a project to secure value creation?; and ii) how can these principles be structured in a framework to maximize the project’s value creation? Methods/Approach: A literature study, two questionnaires, a focus group workshop, 8 interviews, and two case studies. Results: Fulfilment and alignment of users’ needs and owners’ strategies combined with innovative thinking is required for value creation. Challenges and obstacles for value creation are identified, and a framework is suggested. Conclusions: The framework suggests principles that contribute to value creation in each phase of a project. Implementing this methodology will help decision makers towards a better understanding of the objectives and translating them to functional solutions.

Taking stock of project value creation: A structured literature review with future directions for research and practice

This paper aims to take stock of what we know about project value creation and to present future directions for research and practice. We performed an explorative and unstructured literature review, which was subsequently paired with a structured literature review. We join several research areas by adopting the project value creation perspective on literature relating to benefits, value, performance, and success in projects. Our review includes 111 contributions analyzed through both an inductive and deductive approach. We find that relevant literature dates back to the early 1980s, and the still developing value-centric view has been the subject of many publications in recent years. We contribute to research on project value creation through four directions for future research: rejuvenating value management through combining value, benefits, and costs; supplementing value creation with value capture; applying a holistic approach to project, portfolio, and strategic management; and theorizing by applying independent models and frameworks.

Early Stakeholder Involvement in the Project Definition Phase: Case Renovation

Relational project delivery methods (RPDMs) have been widely offered as a solution to increasing holistic project value creation. Furthermore, early stakeholder involvement has been emphasized as one of the cornerstones of RPDM. The purpose of this paper is to examine who the stakeholders are that should be involved early in the project definition phase. This paper discusses the process and nature of the project definition phase in RPDM, with the main focus on early stakeholder involvement. The results are derived from the analysis of the literature and an empirical study (interviews). The stakeholders, their roles in the renovation project, and at which stage they should each be involved in the project definition process are determined. The findings show that projects cover different levels of stakeholders, whose requirements and purposes must be considered and managed. Early involvement allows room for creative solutions and the intensive exchange of ideas. Thus, it leads to procedures that run in phases, which in turn change the project’s value creation to holistic value cocreation. This article facilitates and contributes to early stakeholder involvement and the creation of integrated teams by identifying and consolidating the different levels, roles, responsibilities, and objectives of the stakeholders.