The Megaproject-based Firm: Building programme management capability to deliver megaprojects

The rapid growth in demand for large-scale infrastructure around the world calls for a new type of organisation, which we label the Megaproject-based Firm (MBF). We conceptualise the MBF as a core permanent entity that delivers multiple megaprojects with partners in project networks, in several large temporary organisations crossing the boundaries of the firm. We use 78 interviews to identify how the learning within and between these megaprojects has enabled the firm to build programme management capabilities over time. Our results show that adaptability, flexibility, and the design of the roles and responsibilities between clients and delivery partners are critical ingredients of programme management. Megaprojects should be delivered through a collaborative relationship with clients, not for clients. The involvement in a series of megaprojects in parallel and sequentially offers a new type of project capability building challenge for firms, adding to the literature on project-based firms and project capabilities.     

Closing capability gaps for procuring infrastructure public-private partnerships: A case study in China

This paper explores how public sector owners (PSOs) close capability gaps between existing capabilities and required capabilities when first entering into infrastructure Public-Private Partnerships (PPPs). Drawing on the dynamic capabilities view and research on owner project capabilities, the paper presents an exploratory in-depth case study of a state-owned enterprise in China, as it was in the process of initiating PPP metro line projects for the first time. The findings show that PSOs closed capability gaps by obtaining owner strategic, commercial and governance capabilities at the initial phase of PPP procurement. This process was undertaken through a combination of acquiring capabilities externally and developing capabilities internally. The study contributes to the literesture on capability development and sheds light on the conditions when and where internal capability development and external capability acquisition are integrated to close capability gaps for procuring infrastructure PPPs.     

How organizational boundary choices impact capability development

Abstract

As construction-oriented public sector agencies have outsourced more and more of their construction-related activities, they have often suffered from an inability to provide appropriate oversight due to degraded capabilities. This had led to calls for these agencies to rebuild capabilities across different technical areas. A firm’s boundary choices—make, buy, ally and dual modes (make and buy simultaneously)—may impact the ability of a firm to maintain and even build new capabilities, and in this article, we seek to investigate the impact that boundary choices have upon rebuilding capabilities and the extent to which organizations may make sub-optimal choices economically to potentially create opportunities for learning and knowledge sharing. Using qualitative data from three project-based public sector organizations managing large construction projects, we observed that neither pure make nor buy decisions assisted significantly in capability building. Dual modes provided firms with some opportunities to build capabilities, but the most successful decisions seemed to occur in respect of using intermediate governance modes such as alliances. We also observed that the boundary choice was just one dimension of the capability building process and suggest organizations require a multi-pronged strategy to rebuild capabilities over time.     

Myopic spatial competition: Boundary effects and network solutions

Recent findings suggest that spatial competition studies should focus more on markets having numerous firms and realistic topologies. Eventually clarification is needed of the existence conditions and properties of multi-firm equilibria in network markets. This paper uses a traditional conjectures approach to examine long-run equilibria in a variety of one-dimensional markets. In all cases consumer demand is perfectly inelastic, price conjectures are exogenous, and (interior) firms show maximum locational differentiation. The attitude of firms is always myopic and never strategic, however. In a linear market the analysis discloses that firm price depends upon price in the counterpart circular market, a boundary effect, the spatial aggression of exterior firms, and the location of the firm. In a network market the analysis discloses that multiple equilibria occur and that the existence conditions for these equilibria depend upon both the geometric properties of the network and the price conjectures of the firms.     

The role of reflexive capability in relation to intellectual capital on multi international partnerships

The case study results of five Malaysian firms who have worked successfully on multi international partnerships on megaprojects is presented. The firms' barriers and successful strategies in decision making in various international markets are analysed. A reflexive capability model developed from social sciences theory explains the way in which firms can develop awareness, responsiveness and adaptability for long-term success in diverse international markets. Results indicate that the model of reflexivity capability is a useful way to interpret practices that are undertaken in multi-partner relationships on large complex projects. A common firm characteristic was the ability to self-reflect and adapt their practices to different international conditions despite numerous differences between countries including cultural, social, project governance structures, regulatory, terminology and codes. The reflexive capability model is explained in terms of the common themes identified in relation to the management of intellectual capital in successful multi international partnerships and megaprojects.     

Clients’ needs,wants and expectations from contractors and approach to the concept of repetitive works in the Northern Cyprus construction market

Intense competition existing in the construction market creates an industry that is dominated by the client groups. This paper provides insights into private clients’ needs, wants and expectations from contractor firms in the Northern Cyprus building construction market, by presenting survey findings of 91 clients regarding this issue. Moreover, it presents their perspective related to doing repetitive works with the same contractors in possible future works. The study has clearly confirmed the fact that the clients in the specified market place high emphasis on a wide variety of factors. The importance assigned to these factors varies according to the categories or characteristics of the clients within the private building construction sector. Another striking finding was the responding clients’ willingness to do possible repetitive works with the same contractors assuming that they are fully satisfied with the existing or past projects. This opportunity, if used properly by the contractor firms in this market, may be the key to beating the competition and lead to the easy path to increase a contractor firm's market share. Furthermore, it was found that the responding clients expect much more than quality, finishing on time and within budget for full satisfaction and continuing to do repetitive works. The importance and hence the contribution of a set of criteria related to achieving full client satisfaction, and leading to possible repetitive works is presented. Although it would not be reasonable to determine general strategies on just a single study, the contractor firms in the Northern Cyprus construction market will benefit from the framework given within this paper by recognizing what is important and essential to private building construction clients in particular situations and hence present the capabilities of the contracting or potential contracting organizations in ways that meet this to best advantage. Although the results given are based on input from the Northern Cyprus construction market, we believe that the contractor firms in other countries, who specialize in building works for private sector may also benefit from the findings or at least the approach of this research as well.     

Supplier capabilities in large shipbuilding projects

Project-based firms concentrate on their core capabilities outsourcing non-core activities. As project contractors increasingly use external suppliers to complement their own capability base, the importance of supplier selection is emphasized. Supplier choices should rely on accurate knowledge of the suppliers' capabilities. We examine the literature related TO supplier capabilities in collaborative, discontinuous project business. We use a qualitative, embedded single-case strategy in shipbuilding industry to explore the importance of supplier capabilities in one shipyard and examine how consistently the shipyard and its 20 suppliers assess the capabilities of the suppliers. Our results show that the buyer prioritizes technical, operational and business capabilities over relational and developmental capabilities, and that the buyer and its suppliers diverge in their assessments of the suppliers' capabilities, creating potential misunderstandings and false expectations in the buyer–supplier relationships. We complement prior research by adding a new dimension of business capabilities into the supplier's capability base in the field of project business.     

Use of services to support the business of a project-based firm

Project-based firms that have traditionally focused on product-centric project deliveries as their core business are increasingly complementing their deliveries with different types of service offerings to create customer specific solutions. Such deliveries frequently encompass the design and delivery of a fully operational system with additional components such as maintenance and optimization of system during its life cycle. From the perspective of customer value, solution deliveries can be divided in to three elements: core project delivery, facilitating service products that are mandatory for use of the core project delivery and supporting service products that create additional value for the customer. In this paper we aim to increase the understanding on the impact of the addition of different types of services such as consultation, conceptual design, feasibility studies, training, maintenance, operation support, and production optimization may have on the business of a project-based firm. We analyze their contribution from five distinct perspectives: strategic, marketing and sales, project implementation, learning and innovation and financial. We carried out an empirical multi-case study within three large-sized project-based firms representing different industries. The results indicate that services play a versatile role in supporting the business of project-based firms — a role which goes beyond simply ensuring the short term profitability of the firm. Furthermore, delivering a specific service, such as consultation or process optimization, may often contribute favorably to more than one of the five perspectives analyzed in this study.     

基于熵权值的建筑企业技术创新能力模糊综合评价

企业技术能力的根本是技术创新能力,建筑企业为增强核心竞争力的市场需求,需要强化“企业为创新主体”的观念,开发具有自身特点的核心技术。通过文献分析和问卷调查得出6 项建筑企业技术创新能力的组成要素,并对这6 项要素进行熵权值计算确定其对建筑企业技术创新能力评价的必要性。在此基础上,建立建筑企业技术创新能力评价指标体系、运用多层的模糊综合评价,确定评价建筑企业技术创新能力的各项指标,以求实现对建筑企业技术创新能力进行评价的管理突破,促进建筑企业充分发挥企业在技术创新的决策主体、投入主体、利益主体和风险承担主体的作用,为企业技术进步、创造新的生产力、打造企业核心竞争力提供坚实的技术创新管理平台。     

Technological invention to product innovation: A project management approach

The optimal allocation of resources at the firm level to transform emergent technological invention into commercially successful products depends on the effective assessment and selection of projects. This study develops a multidisciplinary model for differentiating, prioritizing, and selecting investment in technological projects within an organization’s portfolio. Approaches from project portfolio and strategic technology management are integrated to explore how a particular product within a diverse project portfolio may be prioritized and developed. Our results suggest that the application of the suggested model to a portfolio of biotechnology projects may enhance the assessment of internal capabilities and external competitiveness, thereby providing a basis for firms to prioritize and preferentially allocate scarce resources within a portfolio of heterogeneous technologies.     

Specific commodity taxes,output and location decision under free entry oligopoly

This paper examines the impact of a specific commodity tax as a policy device on output per firm, the number of firms, total output and the location decision of undifferentiated oligopolistic firms in the Weber–Moses triangle. It shows that when the distance between the plant location and the output market is held constant, the impact of an increase in the specific commodity tax on output per firm, the number of firms and total output is consistent with the well-known Besley propositions in the non-spatial setting. Furthermore, when the distance between the plant location and the output market is a decision variable, the impact of a specific commodity tax on the output per firm will be consistent with the well-known Besley proposition. However, the impact of a specific commodity tax on the number of firms and total output is significantly different from the Besley propositions. This indicates that distance and firm’s location decision have important influence on the effects of a change in the specific commodity tax on output and location of oligopolistic firms.     

Variety in knowledge sourcing,geography and innovation: Evidence from the ICT sector in Austria

It has been argued that innovation increasingly depends on external knowledge sources. It is still unclear if relations to particular knowledge sources or to a broad variety of sources matter for innovation. Also, there is a debate on the issue which spatial levels are most relevant. In this context, we investigate the importance for ICT firms in Austria of variety in knowledge sourcing for their innovativeness and the relevance of geography in this respect. The results show that more innovative firms tend to exploit a larger variety of regional and international sources. We also find that R&D co-operations and in-house knowledge capabilities are highly important, while firm location only shows a weak association with their innovativeness.     

Pricing strategy in the US construction industry

This paper presents several issues related to pricing in construction. First, problems with current pricing strategy in construction are explored. Second, pricing strategies based on a market-based approach are proposed. Third, survey findings of the top 400 US contractors are presented regarding their current pricing practices and the applicability of the proposed pricing strategies. In conclusion, the belief that current pricing strategy in construction is predominantly cost-based is confirmed by the survey findings; indeed, in setting the markup, most contractors rely on their intuition after subjectively assessing the competition. The three internal pricing variables that have the largest statistically significant contingency coefficients with pricing strategy are ‘marketing intelligence capabilities’, ‘annual contract value’, and ‘the type of client in most projects’. ‘Owner's characteristics’, ‘competitors'characteristics’, and ‘market demand’ are statistically significant external variables in making pricing strategy decisions. A change of bidding procedure is proposed so that all parties in construction can maximize the benefits of market-based pricing strategies.     

Shrinkage stress analysis of concrete slabs in a multi‐storey building considering internal and external restraints

Shrinkage strains of concrete slabs in a multi‐storey building are restrained internally by reinforcement bars as well as externally by supporting members such as columns or walls. These strains may induce tensile stresses in concrete members and lead to cracks due to excessive shrinkage stress. In this study, a practical shrinkage stress analysis method for application to concrete slabs in a multi‐storey building is proposed. The proposed approach considers both internal restraint of reinforcement bars and external restraint variations resulting from construction sequence. The shrinkage stress due to external restraint is obtained by multiplying the relaxation coefficient by the elastic shrinkage stress. The additional shrinkage stress due to internal restraint is obtained by the residual strain calculated via a linear elastic analysis for external restraints. A verification example was comparatively analysed using the proposed method and a commercially available analysis program that is capable of time‐dependent analysis of concrete. The results of a 10‐storey sample building suggest that the internal restraint due to reinforcement considerably increases the shrinkage stress at slabs under loose external restraint. Copyright © 2008 John Wiley & Son, Ltd.     

Numerical simulation of passive and active solar strategies in buildings with complex topology

In this paper a numerical software, that simulates the building thermal behaviour with complex topology in transient conditions, was developed and used in the study of kindergarten thermal response and the occupants’ thermal comfort and air quality in Mediterranean conditions. In this numerical model a new building three-dimensional grid generation philosophy, closer to the reality, that considers the building and the surrounding buildings used in the long and short-wave calculus, the external and internal shading devices, the energy and mass balance integral equations philosophy generated by the building geometry, the equation system resolution done by the Runge-Kutta-Felberg with error control and the human thermal comfort level evaluated through human thermo-physiology, are developed. In the simulation, with a real occupation cycle, the compartments, the building opaque bodies, the building transparent bodies, and the external shading devices were considered. In passive strategies the kindergarten is equipped with multiple inclined aluminium shading devices placed above the transparent windows level and in front to the transparent door facing south, removable inclined tissue shading devices placed in front to the transparent windows facing east, and horizontal fabrics shading devices placed above the transparent panel levels facing south, south-west and west. In this study, made with natural and forced ventilation, the summer and winter conditions were used. In summer conditions, the forced ventilation active strategies in all spaces with cold air from the external environment during the night, and in occupied spaces with stored cold air from the underground space were used. In winter conditions forced ventilation from an internal greenhouse, to heat the internal occupied cold spaces, was used.     

Analysis of energy demand in residential buildings for different climates by means of dynamic simulation

The aim of the present paper is to propose an analysis of energy consumption of a standard building in different climates. The analysis is developed by simulating the dynamic behaviour of the building subjected to different climatic conditions according to the considered location. Simulations are performed by means of an in-house developed code, validated by comparison with the outcomes from leading software, particularly TRNSYS and EnergyPlus. The use of a self-developed code guarantees a high flexibility and allows the implementation of new capabilities if necessary. The impact on the energy consumption of various parameters, namely internal and external wall insulation, window surface areas, thermal capacity and orientation, is investigated. Results show that the insulation of external walls has a fundamental role in reducing energy consumption, because it allows to exploit the thermal capacity of the walls. This is particularly useful for buildings which necessitate to keep the internal temperature constant.     

Development and application of an updated whole-building coupled thermal,airflow and contaminant transport simulation program (TRNSYS/CONTAM)

The TRNSYS energy analysis tool has been capable of simulating whole-building coupled heat transfer and building airflow for about 10 years. The most recent implementation was based on two TRNSYS modules, Type 56 and Type 97. Type 97 is based on a subset of the airflow calculation capabilities of the CONTAM multizone airflow and contaminant transport program developed by the National Institute of Standards and Technology. This paper describes the development of new CONTAM capabilities in support of an updated combined, multizone building heat transfer, airflow and contaminant transport simulation approach using TRNSYS. It presents an illustrative case that highlights the new coupling capability and also presents the application of this coupled simulation approach to a practical design problem of the energy use related to airflow through entry doors in non-residential buildings.     

论提高建筑装饰企业的核心竞争力

核心竞争力是指某一组织内部一系列互补的技能和知识的结合,它具有使一项或多项业务达到竞争领域一流水平、具有明显优势的能力.核心竞争力主要包括核心技术能力、组织协调能力、对外影响能力和应变能力,其本质内涵是让消费者得到真正好于、高于竞争对手的不可替代的价值、产品、服务和文化.笔者通过对上述核心竞争力的阐述和分析,以及目前装饰行业和市场的现状分析,同时结合案例讲解,提出通过内部和外部途径打造装饰企业的核心竞争力.     

Organisation, ‘anchoring’ of knowledge,and innovative activity in construction

The construction industry is characterised by the widespread use of project organisation. It has been suggested that the relatively low level of innovative activity in the industry can be explained by the temporary nature of firm boundary‐crossing projects. Survey data from the Danish construction industry is used to investigate the importance of learning and ‘anchoring’ of project‐specific knowledge at the firm level for participation in innovative activities. The data cover both the overall Danish construction industry and a specific region, North Jutland, which has a relatively high specialisation of construction workers. Latent class and regression analyses reveal that firms that make extensive use of partnering, together with internal product and process evaluation and knowledge diffusion (labelled ‘knowledge‐anchoring mechanisms’), are more likely to participate in innovative activities than firms which make less use of these mechanisms. This indicates that construction firms are able to compensate for the problems that temporary interorganisational projects may cause in relation to continuous learning at the firm level.     

国际工程承包商与竞争者协同进化 NKC 模型研究

动态能力是企业为应对复杂多变的环境,整合、建立和重构内外部竞争力以保持持续竞争优势的能力,国际工程承包商需通过提升动态能力以应对挑战并取得绩效。以研究国际工程承包商动态能力与竞争者协同进化的关系为目标,在建立国际工程承包商动态能力 NKC 模型基础上,应用系统动力学方法分析国际工程承包商动态能力路径变化趋势,并对国际工程承包商的适应度在有无竞争者影响两种情况下进行对比分析。基于动态能力、协同竞争和适应度景观理论分析国际承包商动态能力路径演化过程。研究发现国际工程承包商与竞争者协同进化对企业的适应度水平即绩效的正面影响效用,归纳提升国际工程承包商在国际市场中适应水平度的机制,通过这些机制有助于提高国际承包商在国际工程市场中的竞争力,帮助国际工程承包商获取更好的绩效回报。