Global Dimension of Robust Project Network Design

Managing the increased complexity, emerging uncertainties, and diversity of cultures on global projects is creating significant challenges for architecture, engineering, and construction firms. In global projects, differences in “institutions”—including language, beliefs, values, group norms, work practices, professional roles, industry organizations, and legal frameworks—among team members from different national backgrounds can lead to misunderstanding and conflicts that cause delays, increase costs, and reduce quality. Previous research has examined risk factors associated with international project execution. However, little research to date has explored whether reconfiguring project networks might mitigate such risks. Project organizational simulation tools have been combined with “robust design” experimental techniques to design robust project networks that can perform reliably in uncertain conditions. This paper extends project network design research to examine whether robust designs for given project networks differ between “domestic” and “global” projects, given differing organizational uncertainties. The results demonstrate that robust project network designs may differ for global project networks. This finding has significant implications for the design of project networks in an industry where firm participation in global project networks is increasing, both domestically and abroad.     

The Advice and Influence Networks of Transformational Leaders.

Existing transformational leadership research has focused primarily on the behaviors of leaders and their effects on followers. The authors extended this research by examining the social networks of managers who exhibit transformational leadership behaviors. Their focus was on the network of relationships that managers develop and whether they hold key positions in the organization's informal social networks. In a field study using data from 39 managers and 130 nonmanagement employees of 6 organizations, the authors found that managers who score higher on transformational leadership tend to hold more central positions in organizational advice and influence networks. Furthermore, the direct reports of these leaders were also more central in informal organizational networks. These results illuminate one of the ways that managers who exhibit transformational leadership behaviors may exert influence in organizations. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Optimal Project Organizational Structure for Construction Management

This study relies on the trend model to investigate various modes of coordination among team members of construction projects. According to the project network developed based on the characteristics of a project, the trend model establishes an activity relationship matrix (ARM) to identify the activity relationships within the construction process. ARM is used to construct an organizational structure for project management and a communication resistance matrix that shows the efficiency of communication and coordination among the members of the project team. To evaluate various organizational structures and their coordination efficiencies, this study utilizes the analytical hierarchy process to quantify the strength of an organizational structure and identify the optimal structure for project management. Through quantitative modeling of communication efficiency among organizational team members, an objective function for calculating the total resistance index is used to determine the optimal organizational structure available to execute the project. This study demonstrates how the trend model may be applied in the future for evaluating the coordination efficiencies of various organizational structures.     

Modeling Interfirm Dependency: Game Theoretic Simulation to Examine the Holdup Problem in Project Networks

Subcontractor selection strategies used by contractors can significantly affect short-term project and long-term organizational success. Existing research on subcontractor selection strategy implicitly assumes that the evaluation of subcontractors depends on current conditions. We extend this perspective by integrating an agent-based simulation model with game theory to examine whether precontract partner selection strategies that do not consider subcontractor selection as a repeated game may lead to a version of the holdup problem. The holdup problem we investigate focuses on relationship-specific investments in learning after the introduction of an innovation or organizational change across a project network. A minimum total cost strategy may decelerate the rate of adaptation to an innovation or organizational change, thereby proving that the holdup problem can exist in project networks. The findings contribute to subcontractor selection strategy literature by simulating the impact of the holdup problem in project networks, distinguishing task interdependence as a moderating variable, and identifying that the minimum total cost strategy can be a suboptimal strategy for project networks adapting to systemic changes.     

Removal of Redundant Relationships in an AON Project Network for Evaluating Schedule Complexity

Since redundant relationships in an activity-on-node (AON) project network indicate that the schedule is more complex than it actually is, they should not be considered when evaluating the schedule complexity. However, identifying the relationships that can be removed while maintaining the project logic is not an easy task. For this purpose, this paper proposes a methodology, adapted from interpretive structural modeling, that basically transforms an AON project network into a network called minimum-edge diagraph which contains no redundant relationships. The methodology steps are explained through a demonstrative example of a simple hypothetical project. The application of the methodology to the AON network of a real construction project shows that it is easy to use yet effective in removing redundant relationships.     

Learning Organizations in Construction

The transformation of organizations from production-oriented entities to proactive learning entities that continuously leverage the knowledge of the workforce is a primary objective of management researchers. This focus has significant relevance to the construction industry where production-related research has predominantly overshadowed organizational development research. As one effort to change this emphasis, the writers present a research effort designed to study current organization learning techniques and technologies fielded by organizations both inside and outside of the construction industry. Through a series of exploratory case studies, the writers developed a maturity model together with the Construction Industry Institute that provides construction organizations with a framework for developing a learning organization culture. The maturity model focuses on learning organization characteristics of leadership, processes and infrastructure, communication/collaboration, education, and culture at the organization, community, and individual levels. This paper introduces the results of that effort including a presentation of the learning organization maturity model, framework application, and the overall characteristics of a learning organization.     

Social Network Analysis of Collaborative Ventures for Overseas Construction Projects

As the world construction market becomes more globalized, an increasing number of construction companies, including both large companies (LCs) and small and medium-sized companies (SMCs), have extended their business to the global market. During this process, the number of collaborative ventures to mitigate the burden of entry risks has greatly increased. This study aims to investigate the formation of construction firms’ collaborative networks for performing international projects from both the LC and SMC network perspectives. To this end, 389 real cases of overseas projects executed by Korean firms over the last two decades that involved collaboration were analyzed using social network analysis (SNA) approach. The result showed that LCs and SMCs have different perspectives when pursuing collaborative ventures for overseas construction projects; LCs have a tendency to form large and dense networks, whereas SMCs prefer to maintain long-term and targeted relationships. Moreover, this study showed a series of apparent tendencies in the development of collaboration networks to realize better profit performance under risky project conditions. Through analysis based on real cases, this study validated the applicability of SNA in analyzing the collaboration in the construction domain. More importantly, this study is useful as an aid for developing collaboration strategies to achieve better outcomes while considering the relevant network patterns and their different levels of performance under the assorted network attributes.     

Project Management in the Chinese Construction Industry: Six-Case Study

Originating from the West, project management was introduced into China after the country’s economic reforms in the 1980’s and has since spread quickly throughout the whole country, particularly in the construction industry. However, despite the wide adoption of project management practices by construction organizations and the growing recognition of the importance of project management as an enabler of organizational success, empirical studies on project management in the context of the Chinese construction industry have been inadequate. This paper presents the results of an empirical study of six Chinese construction organizations in order to come to a more comprehensive and sophisticated understanding of project management practices in the Chinese construction industry. The findings revealed: (1) a good appreciation of the role of projects and project management and satisfaction with current project management practices; (2) 11 key aspects of project management implementation; (3) 12 resultant value and benefits; and (4) five aspects of the main challenges facing the organizations. Meanwhile, variations in project management practices and the resultant organizational value were identified, first between the three owner- and the three contractor-case study organizations, then between the two construction contractor organizations and the one design contractor organization.     

Effects of Organizational Supports on the Stress of Construction Estimation Participants

Forecasting the likely cost of construction work before tendering is known as to be a hazardous task. Both underestimates and overestimates may present problems to clients and contractors. Not surprisingly, cost-engineering activities can be stressful for those responsible. Coping with the stresses requires action on the part of the individuals affected and the organizations to which they belong. This paper examines the effect of organizational supports in the process of project estimation through a survey of construction estimation participants in Hong Kong. Using correlation analysis and regression analysis, it is found that: (1) the stressors of autonomy and feedback are directly related to the stress experienced by cost engineers; (2) informal organizational supports (particularly concerning relationship conflict, Type A behavior, work underload, lack of autonomy, and unfair rewards and treatment) are far more effective than formal supports in reducing stress; and (3) lack of autonomy and lack of feedback are predictable variables affecting stress. Cost-engineering managers and supervisors need to carefully distinguish between those who prefer hands-on support and those who prefer hands-off support. A good communication and team decision-making process and a fair reward and treatment system may help establish close relationships among cost engineers in a company and ensure sufficient autonomy to cost engineers and the participants in the estimation process.     

Simulating Learning Dynamics in Project Networks

In this paper we develop a multiagent simulation model to explore the impact of learning dynamics on the productive implementation of innovations in project networks comprised of designers and contractors. Though researchers generally agree that when firms form into networks they will gain access to new knowledge, the question of learning beyond the firm at the boundaries between firms or at the level of the project network itself remain less explored. We simulate the impact of task interdependence and relational instability on learning in project networks comprised of multiple specialist firms. We find that relational instability in project networks slows learning and task interdependence moderates the impact of increasing relational instability on network productivity rates. The findings have significant implications for interorganizational learning theory. The simulation results provide insights into appropriate firm-level and project network-level strategies for change.     

Antecedents of Successful Three-Dimensional Computer-Aided Design Implementation in Design and Construction Networks

Researchers find that the successful implementation of information systems that span organizational boundaries enhances competitive advantage. However, the process by which networks of design and construction firms implement boundary-spanning technological changes remains poorly understood. In this paper I explore the implementation of three-dimensional computer-aided design tools in 26 design and construction organizations. I analyze empirical data collected over a 7-month period to induce a set of antecedent constructs that enable the evolution from “printed sets of plans” to “virtual model” boundary objects. The findings highlight the importance of addressing regulative, technological, work, and organizational issues at the interfaces between design and construction firms when implementing boundary-spanning technological changes.     

Project Organizations as Social Networks

High-performance teams achieve outcomes that exceed the expectations of the project and often demonstrate unique or innovative approaches within a final solution. The foundation of this high performance is the ability to focus on the success of the team over individual objectives. However, the recognition of this emphasis is based on the establishment of professional trust and strong communications between the team members. The social network model of construction introduced a dual-focused approach to enhancing these elements and creating high-performance project teams. The approach emphasizes balancing both a traditional project management emphasis on efficiency of communications with a focus on the social factors that move the project team from efficient to effective. In this paper, the model is extended to present the results of four studies of organizations that are full-service engineering companies that also provide construction oversight services. The paper presents the results of these studies in terms of the social network model and the achievement of high performance in the project teams. Analytical and graphical results are presented based on social network analysis techniques to provide a multiperspective analysis of the project teams.     

Activity Awareness as an Enabler for Communication and Network Building in Construction Design Teams

The paper reports on ongoing research into the facilitation of communication in distributed design teams of the type typically encountered in the construction sector. Ideas around social aspects in such design teams are discussed followed by our previous research efforts as an evolutionary process that has led us to develop in this direction. It is argued that facilitating timely and contextually grounded communication in a distributed environment can help to build the social networks and associated social capital common in collocated design teams but often absent in distributed ones. We describe our framework for providing such facilitation through monitoring and awareness of the information “space” of a construction project. We believe that by leveraging the relationships in the information space, we can go some way to identifying those individuals who would benefit from developing interpersonal relations in their work and further by exploiting those relationships in real time we can accelerate the formation of personal social networks and social capital between those individuals.     

Organizational Culture and Knowledge Management Success at Project and Organizational Levels in Contracting Firms

This research focuses on contracting firms within the construction sector. It characterizes and evaluates the composition of organizational culture using four culture types (clan, adhocracy, market, and hierarchy), the strategic approach for knowledge flow, and the success of knowledge management (KM) systems at different hierarchical levels of contracting organizations (project and parent organization level). Responses from managers of local or overseas contracting firms operating in Hong Kong were collected using a carefully constructed questionnaire survey that was distributed through electronic mail. The organizational value is analyzed in terms of the four cultural models. Clan culture is found to be the most popular at both project and organization levels, which means that the culture of contracting firms very much depends on honest communication, respect for people, trust, and cohesive relationships. On the other hand, hierarchy culture, which focuses on stability and continuity, and analysis and control, seems to be the least favored at both levels. Another significant finding was that the two main KM strategies for knowledge flow, codification and personalization, were employed at both project and organization levels in equal proportion. This indicates that successful KM efforts at both enterprise levels utilize a hybrid and balanced approach for their knowledge flow, and that they complement each other. The findings also revealed that knowledge management system success factors emphasize the support of the management level. The results show that KM is critical and beneficial as indicated by 64% at the project and 74% at the organization level. The expectation is higher for organizations as they are the organizational memories in which experiences of past projects are archived and connected. Understanding these factors and the relationships among them has been demonstrated to be critical in order to increase the chances of success or to help with making decisions when applying KM.     

Examining the Relationship between Organizational Learning Styles and Project Performance

A review of literature on organizational learning suggested that organizations mainly exhibit three types of learning styles: single-loop learning (SLL), double-loop learning (DLL), and deutero learning (DeuL). SLL refers to the detection and correction of errors without adjusting one’s underpinning assumptions about performance requirements. DLL refers to improvement actions which are undertaken in response to the change of one’s underpinning assumptions. DeuL refers to the establishment of a system which propels continuous learning. It has been advocated that effectuating these learning styles are critical for attaining continuous project performance improvement. This paper reports a study that aimed to examine the relationship between organizational learning styles and performance improvement in construction projects. A conceptual model for the same was first developed. Data about the contracting organizations’ practice of learning styles and project performance were collected through a questionnaire survey. Structural equation modeling was used to examine the significance of the relationship between organizational learning styles and project performance improvement. It was found that the attainment of project performance improvement was positively related to the practice of DLL. Further, DeuL was found essential for facilitating the practice of SLL and DLL.     

Facility Management Value-Adding Functional Analysis Model

Project management functions in facility management groups include design, construction, and renovation of facilities. The organizational structure and processes of such project management group affect the cost, quality, and duration of any project. The group's functions directly add to the overhead of the parent organization and therefore only value-adding functions are needed. The focus of this paper is to describe a value-adding functional analysis model and its application to develop a strategic direction for a parent organization. The paper presents the foundation for the analysis model, describes its application process to define and support the value-adding functions, and concludes with recommendations for organizational improvement strategy. The paper shows that value-adding functions are usually related to working closely with customer needs while considering the parent organization's requirements in project planning and control. In addition, it was found that any form of closed-market reliance on the internal resources in design and construction constrained the various processes and induced a high level of process uncertainty, which reflected negatively on project delivery time and cost.     

Direct and indirect effects of third-party relationships on interpersonal trust.

Past studies of the determinants of interpersonal trust have focused primarily on how trust forms in isolated dyads. Yet within organizations, trust typically develops between individuals who are embedded in a complex web of existing and potential relationships. In this article, the authors identify 3 alternative ways in which a trustor and trustee may be linked to each other via third parties: network closure (linked via social interactions with third parties), trust transferability (linked via trusted third parties), and structural equivalence (linked via the similarity of their relationships with all potential third parties within the organization). Each of these is argued to influence interpersonal trust via a distinct social mechanism. The authors hypothesized that network closure and structural equivalence would predict interpersonal trust indirectly via their impact on interpersonal organizational citizenship behaviors performed within the interpersonal relationship, whereas trust transferability would predict trust directly. Social network analyses of data gathered from a medium-sized work organization provide substantial support for the hypotheses and also suggest important directions for future research. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Organizing Large Projects: How Managers Decide

Now tools will help managers design organization structures for large engineering and construction projects. An improved understanding of how managers decide in structuring project organizations is necessary to develop these tools and to assist managers in the systematic design of organizations tailored to meet project goals under unique situations. This paper reports a portion of results from research conducted to determine current practices in project organization design. The conclusion that adaptation dominates this process leads to several implications for industry professionals and researchers wishing to improve project performance. Recognizing the role of adaptation in current practices of organizational structuring will allow managers to avoid inertia and systematically design organizations. Researchers can assist by expanding variables in organization theory to better capture project situation and structure and by developing new tools to assist in systematic organization design.     

Affect Networks: A Structural Analysis of the Relationship Between Work Ties and Job-Related Affect.

The relationship between organizational networks and employees' affect was examined in 2 organizations. In Study 1, social network analysis of work ties and job-related affect for 259 employees showed that affect converged within work interaction groups. Similarity of affect between employees depended on the presence of work ties and structural equivalence. Affect was also related to the size and density of employees' work networks. Study 2 used a 10-week diary study of 31 employees to examine a merger of 2 organizational divisions and found that negative changes in employees' affect were related to having fewer cross-divisional ties and to experiencing greater reductions in network density. The findings suggest that affect permeates through and is shaped by organizational networks. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Individual goals in evolving organizations.

Comments on S. M. Colarelli's (see record 1998-10886-003) discussion of the social-evolutionary perspective of psychological interventions in organizations. The authors clarify and elaborate on Colarelli's argument that the nature of organizational goals makes the relationships between interventions and organizational outcomes problematic and that what may work on one level of hierarchy may not be functional at others. The authors argue that this is true, but it fails to specify a social-evolutionary insight that has profound consequences: Inventions intended to promote organizational goals will be successful only when these interventions also promote the goals of the individuals working within the organization. (PsycINFO Database Record (c) 2010 APA, all rights reserved)