Performance of project alliancing in Australasia: a digest of infrastructure development from 2008 to 2013

Project and program alliances have been an accepted form of project procurement for public infrastructure engineering projects in Australia and New Zealand (Australasia). Alliancing often provides best value and superior value for money when compared to traditional approaches such as Design and Construct, however considerable debate continues about its success and applicability. This paper reports on three studies of completed construction project alliance performance in 2008, 2010 and 2012. Consolidated findings are presented on 61 project alliances, data is analysed and emerging trends discussed. Recent government policy changes in Australia at Federal and State level have led to a decline in the number of project alliances, however, while the volume of alliance activity is declining it still represents billions of dollars of infrastructure construction work being undertaken. Results also revealed that communication and trust between the executive leadership and operational management teams was a major factor contributing to the functioning of the alliance. Furthermore, the research identifies several key factors that were necessary preconditions for successful alliances.

The economic performance of transportation infrastructure: an empirical study on the recent development of China

It has been widely recognised that infrastructure systems highly affect the economic development of a country or region. In particular, the quality and quantity of transportation infrastructure have a direct bearing on economic growth in developing countries. Therefore, it is challenging to allocate the infrastructure construction budget across a country so that economic growth as a whole will not be hampered by the lack of infrastructure construction in any local area. In this research, the authors focus on simulating the correlations between economic growth, capital investment and transportation infrastructure construction in China historically and comparing the production and investment indicators at the cross-region based on the statistical data reported from government agencies in China. These computed correlations and indicators are crucial for making financial decisions and investment policies on transportation infrastructure construction at a national level.

Challenges of negotiating obesity-related findings with African migrants in Australia : lessons learnt from the African migrant capacity building and performance appraisal project

Aim: To document sub-Saharan African migrants' and teachers' reaction to and acceptance of findings from African Migrant Capacity Building and Performance Appraisal initiative, and to examine the implications for any community-based obesity prevention program.

Methods: Two community forums were organised to discuss the research findings: one with 45 African community leaders from various African communities in Melbourne; and the other with 17 primary and secondary teachers from English Language Schools and Centres across Victoria. The dissemination focused on highlighting the rapid weight gain and obesity risks observed among African migrant children.

Results: Sub-Saharan African migrants' reaction to the findings was that of pride and satisfaction with large body size, seeing it as a job well done, reflecting their perceptions that obesity is not a disease. In addition, they highlighted the intergenerational conflict related to body size ideals between parents and teenage offspring, with the latter preferring model-like Australian body sizes.

Conclusion: Further research is required to examine the association between shifting preferences in body ideals and obesity among traditional communities, such as sub-Saharan African migrants. The understanding of how changes in body image perceptions may influence eating and exercise behaviours among sub-Saharan African migrants would assist in the development of obesity-related preventive interventional programs for this at-risk population.

Decision making to support an integrated infrastructure supply chain industrial ecological approach within public private partnerships

Supply chains are complex adaptive systems for which final performance depends upon numerous interdependent decisions made by numerous firms which synthesise inputs from various resources systems.  The dynamic interdependent behaviour of social, economic, material and informational resource systems within eco-industrial settings that support the built environment life cycle supply chains can be studied at the supply chain level.  The impact of megaprojects is significant and holds promise to explore the impact of decisions on various systems as it combines project and system boundaries.  Megaoprojects considered as major events within systems can produce critical revolutionary impacts on the systems within which they are embedded.  The decisions that are made on megaprojects are central to risk management.  typically major infrastructure projects are procured through a form of public private partnership (PPP).  The core principle of PPP is value for money which refers to the best available outcome attempting to take account of all benefits, costs and risks over the whole life of the procurement.  In this paper the focus is on Australia where there has been considerable acitivity in the use of PPPs.  With recent national infrastucture packages proposed to stimulate the economy due to the global financial crisis, decision modelling on risks is a revelant and critical matter not only in practice but also in the research community.  PPPs encourage the whole-of-lifecycle approach in the procurement and management of public sector assets by transparently recognising the costs and risks associated with the whole life of the required service or facility, thus integrated whole of life supply chains can be considered.  By creating a single point of responsibility for an entire project from inception through operation, a strong incentive is created for thinking about the effects that a design or construction decision will have on the effectiveness and efficiency of managing and maintaining a facility during its operational life.  The decision to procure holistic supply chains becomes a much more viable commercial reality in the PPP environment than previously considered in the usual commercial construction spot transactional approach.  These types of decisions tend to be imprecise, approximate and complex requireing justification and reasoning logic rather than the classical 'truth' logic.  The purpose of this paper is to develop a theoretical decision framework which combines interdependency and multi-values logic for supply chain procurement modelling.

Neurofuzzy decision support system for efficient risk allocation in public-private partnership infrastructure projects

The performance of public-private partnership (PPP) infrastructure projects is largely contingent on whether the adopted risk allocation (RA) strategy is efficient. Theoretical frameworks drawing on the transaction cost economics and the resource-based view of organizational capability are able to explain the underlying mechanism but unable to accurately forecast efficient RA strategies. In this paper, a neurofuzzy decision support system (NFDSS) was developed to assist in the RA decision-making process in PPP projects. By combining fuzzy and neural network techniques, a synthesized fuzzy inference system was established and taken as the core component of the NFDSS. Evaluation results show that the NFDSS can forecast efficient RA strategies for PPP infrastructure projects at a highly accurate and effective level. A real PPP infrastructure project is used to demonstrate the NFDSS and its practical significance.

Infrastructure development using alliances : lessons and observations

This research provides a deeper insight into the performance of Alliances for the construction of road, rail and water projects. The results review 18 public infrastructure projects across Australia that utilized the Alliance form of procurement. The results were based on interviews which addressed the most important management issues impacting on the performance of Alliances. The respondents were selected from a sample of members of the Alliance Leadership Teams (ALT) and the Alliance Management Teams (AMT) that had recently completed a range of infrastructure projects. Results revealed that communication and trust between the ALT and AMT teams was a major issue that impacted on the effectiveness of the Alliance. Further, the research identified several factors that are necessary preconditions for the Alliance to be successful. The study reported on the perceived performance of Alliances to deliver in the key areas that was identified by the client organizations prior to commencement of the project. There are an increasing number of international organizations contemplating construction projects using “Alliancing”. The results of this paper will assist clients in making more informed decisions about the possibility that this form of procurement will be effective in meeting the needs of the project and its stakeholders.

A social network analysis model for analysing stakeholder-associated safety risks in infrastructure projects

An important strategy in the long-term blueprint for making Australia's 18 capital and major regional cities more productive, sustainable and liveable is to develop high quality public infrastructure systems to improve civic quality of life. Because of the unique features of construction activities, such as long period, complicated processes, and dynamic organizational structures, infrastructure projects normally involve multiple stakeholders and are subject to various risks, especially safety issues. Any negligence or mismanagement of critical safety risks will have huge impact on achieving project objectives and success. Although many previous studies have identified and assessed various safety risks in construction industry, a main research gap is that these studies ignored a fact that most risks are interrelated and associated with internal and external stakeholders of the projects. The lack of a theoretical foundation and appropriate methods for analysing stakeholder-associated safety risks and their interdependencies in infrastructure projects hinders effective risk management processes and the formulations of decision strategies. This research aims at enabling higher performance in strategic safety risk management in infrastructure projects through the development of a holistic risk analysis model using Stakeholder and Social Network Theories. The outcomes can broaden project managers' awareness of emerging influential safety risks and enhance their ability to perceive, understand, assess, and mitigate safety risks in an effective and efficient way; thereby higher performance in strategic risk management could be achieved in infrastructure projects.

Developing infrastructure projects using alliances

This research provides a deeper insight into the performance of alliances for the construction of road, rail and water projects. The principle objective of alliances is to align team member expectations so that they work together for the benefit of the project. To date, this has been a challenge, and as such this makes alliances an innovative approach to procurement of infrastructure. The paper reports on a survey of 18 public infrastructure projects across Australia that utilized the alliance form of procurement. The results were based on alliance team interviews, which addressed the most critical management issues impacting on the performance of process. The research identified a sample of stakeholders form alliance leadership teams (ALT) and the alliance management teams (AMT) that had recently completed a major infrastructure projects. Results revealed that communication and trust between the ALT and AMT teams was a major issue that impacted on the effectiveness of the alliance. Furthermore, the research identifies several key factors that were necessary preconditions for successful alliances.

Identifying attributes contributing to environmental sustainability of public-private partnership infrastructure projects

Due to increasing demands for new infrastructure and an aim to reduce initial public investment, Australian government agencies are increasingly using public-private partnerships (PPPs) as a form of delivery for infrastructure projects. Environmentally, there is growing pressure for the building industry in general to become more sustainable. Moreover, as the built environment continues to grow each year, the performance of buildings as a whole will need to continually improve purely for national energy consumption to remain stable. Based on a systematic and extensive review on relevant literature, this paper has identified the key attributes that will influence the environmental sustainability of infrastructure completed through a PPP. The key attributes are grouped into five groups defined by whom or what has the majority of control over the attribute. Meanwhile, the key attributes are explored and their influence on environmental sustainability justified. This paper was able to not only identify significant factors involved in creating environmental sustainability in infrastructure PPPs, but also trends of the key attributes. It has been found that (1) the longevity of the contract in a PPP project allows greater innovation into environmental sustainability than traditional methods of procurement, (2) innovation is a requirement for the improving upon environmental performance in the built environment, (3) improvements to environmental sustainability relies upon a positive relationship between economic and environmental benefits, and (4) the key attributes for PPP projects are decided upon relatively early in the contract. Due to space limit, detailed discussion on each of the identified attributes is not provided in this paper. Nonetheless, further research direction is discussed.

Analysis of a large-scale IT outsourcing "failure": what lessons can we learn?

Much of the research that has been carried out into outsourcing is based on relatively successful case studies. Yet drawing inferences from case studies when those with largely negative outcomes rarely see the light of day represents a significant problem. When negative cases are systematically unrepresented, there is less opportunity to subject theory to scrutiny. This chapter goes some way towards redressing this trend, by reporting on a large scale “selective” outsourcing arrangement that has been publicly described as a failure — the Australian Federal Government’s “whole of government” IT infrastructure outsourcing initiative. This initiative, originally promoted as likely to lead to a billion dollar saving, was abandoned early in 2001, after a damning public report by the Australian Auditor General. However, a detailed study of the initiative suggests that the “failure” occurred despite the project adhering to many of the recommended guidelines for successful outsourcing that had been derived from earlier case analysis. The findings have important implications for decision makers confronted with outsourcing choices. The study suggests that the risks of outsourcing are often downplayed, or ignored in the rush to reap the expected benefits. The study also suggests that expectations of savings from outsourcing IT are often substantially higher than those that have been empirically confirmed in the field. Decision makers are advised that key assumptions about costs, savings, managerial effort, and the effects of outsourcing on operational performance might be incorrect, and to plan for their outsourcing activity accordingly. They should pay particular attention to coordination and transaction costs, as these tend to be overlooked in the business case. These costs will be magnified if “best in breed” multiple-vendor outsourcing is chosen, and if contracts are kept short. Decision-makers are also warned of the difficulties they are likely to have at the end of an outsourcing contract if there is not a large and robust pool of alternative vendors willing to bid against the incumbent.

Marketing research performance and strategy

Purpose - To investigate whether strategic orientation affects the evaluation of specific market research projects in for-profit firms.
Design/methodology/approach - A small-scale follow-up survey was conducted, building on qualitative and quantitative research among a sample of the top-1,000 marketing managers in Australia. The study used an existing market research evaluation tool, the USER scale and items generated from the qualitative research, to investigate the firm's most recent market research project.
Findings - Four market research performance factors were identified - market research as a knowledge enhancing (KE) function, the internal political use of market research, the misuse of market research and the generation of market understanding. The Miles and Snow strategy types were related to these factors, with Prospector types more likely to use market research rationally and less likely to use it for internal political purposes. Tactical projects were more likely to be misused than were those with a strategic orientation. Prospectors were far less likely and analysers far more likely to misuse tactical research projects. Prospectors were more often satisfied with the performance of their most recent market research. The Porter typology was less successful in predicting market research performance.
Research limitations/implications - The study was based on a small sample of market research projects in Australian for-profit firms. Future studies need to study these phenomena more intensively using ethnographic methods and more extensively using larger multi-country samples.
Practical implications - Market research suppliers should learn the nature of their client's strategic intent to improve their effectiveness. Defender firms should carefully monitor the use of market research, especially that of a tactical nature, which may be wasted or misused.
Originality/value - Contributes to an understanding of how strategic orientation relates to the ways market research information is used within the firm.

Internal social performance motivators

The growth in research and writing on social reporting over recent years has seen an overwhelming focus on the external reporting of social performance measures. A remaining gap in our knowledge relates to what motivates managers to make socially aware decisions. This project identified relevant factors that guide decision-making in a firm that publishes audited social responsibility reports.