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Summary Fang et al., - Down the drain
- Vak
- 325232-M-6
- Instelling
- Tilburg University (UVT)
Summary of the paper: Fang et al., - Down the drain
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Voorbeeld van de inhoud
The analysis revealed that these CSFs were interrelated, influencing each other either positively ornegatively. Interdepartmental communication and collaboration were highlighted as core processes
for project progress. The presence and attitudes of stakeholders like top management, project
management, project champion, and software vendor were identified as root causes affecting
project performance.
During a crisis, simultaneous positive changes in these stakeholders' presence and attitudes led to a
transition from a downward spiral to an upward spiral of project performance. This successful
turnaround in the specific case studied offers hope for struggling ERP implementations in other
companies.
(2024) Fang et al., - Down the drain
Introduction
The paper highlights the importance of balancing contractual and relational governance adjustments
in public-private collaborations to effectively address project setbacks. It emphasizes that
governance changes should be carefully managed to avoid unintended consequences, such as
triggering resource investments while hindering communication. Public-private collaborations
involve subcontracting private contractors for government projects, which are essential but often
face challenges like delays, cost overruns, or failure to meet performance targets. The literature
shows mixed results in terms of time and budget performance, making it crucial to address setbacks
promptly.
Contractual and relational governance mechanisms play a vital role in planning and executing
projects, helping to address contingencies like project setbacks. The text mentions that adjustments
to governance over time are necessary to manage setbacks triggered by relation-specific events
within the collaboration. It also discusses the interplay between contractual and relational
governance, highlighting the need to understand how these mechanisms evolve over time and
influence project outcomes. The research aims to explore how adjustments to both types of
governance can effectively minimize the impact of setbacks in large government projects involving
public-private collaborations.
The aim of the research is to investigate how contractual and relational governance mechanisms
evolve and interact in response to setbacks in large public-private projects.
Project setbacks and governance adjustment interplay
Large government projects are increasingly common as public sector activities are contracted out to
private parties for long-term infrastructure projects. These projects involve substantial expenses and
public value creation, with time and cost overruns being common setbacks. Public-private
relationships are crucial for achieving project objectives related to quality, time, and cost. Major
setbacks trigger organizational change and may lead to risk-averse or risk-taking responses to
overcome challenges. Adjustments to contractual and relational governance are essential to address
setbacks effectively and achieve project outcomes.
Contractual Governance: Contractual governance involves managing interorganizational
relationships through formal contracts, which include schedules with milestones and deadlines to
ensure coordination. When milestones are not met, organizations may adjust contract terms either
rigidly or flexibly to address performance issues.
Relational Governance: Relational governance focuses on self-enforcement through trust, shared
norms, and relational norms. Trust plays a crucial role in reducing risk and encouraging cooperation,
while relational norms guide attitudes and behaviors for achieving mutual goals.
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