Interpreting risk allocation mechanism in public-private partnership projects : an empirical study in a transaction cost economics perspective

Risk allocation in public-private partnership (PPP) projects is currently claimed as capability driven. While lacking theoretical support, the claim is often 'violated' by current industrial practice. There is thus a need for formal mechanisms to interpret why a particular risk is retained by government in one project while transferred to private partners in another. From the viewpoint of transaction cost economics (TCE), integrated with the resource-based view (RBV) of organizational capabilities, this paper proposed a theoretical framework for understanding risk allocation practice in PPP projects. The theories underlying the major constructs and their links were articulated. Data gathered from an industry-wide survey were used to test the framework. The results of multiple linear regression (MLR) generally support the proposed framework. It has been found that partners' risk management routine, mechanism, commitment, cooperation history, and uncertainties associated with project risk management could serve to determine the risk allocation strategies adopted in a PPP project. This theoretical framework thus provides both government and private agencies with a logical and complete understanding of the process of selecting the allocation strategy for a particular risk in PPP projects. Moreover, it could be utilized to steer the risk allocation strategy by controlling certain critical determinants identified in the study. Study limitations and future research directions have also been set out.

Internationalisation process for construction design service SMES on multi national projects

The internationalisation process has four key factors including market selection, decision to enter, entry modes and factors affecting entry modes. Small and medium sizes enterprises (SMEs) in the architectural engineering construction design services sector have demonstrated an increasing involvement in international markets. Consequently, activities and processes involved in internationalisation of these SME types present important issues for understanding from entrepreneurial, managerial and research perspectives. A research gap exists, however, through emphasis in past research having been given to large firms, and in particular those within manufacturing. This investigation identified similarities and differences between two construction design service SMEs who have been exporting to various localities including Eastern Europe, Africa, Middle East, UK, Asia and South America for typically more than two decades. Similarities and differences were identified within eight major constructs including: purpose, firm type, market image and design philosophy, entry mode strategy, institutional arrangement, factors affecting mode of entry, marketing selection and firm strategy in relation to project selection. The primary reasons for firms in both cases working in international markets were associated with the firms' motivations related to growth and enhancement of financial viability. Both firms were categorized as client following. This paper discusses the various internationalization processes and explains the reasons intrinsic to each case study. The two firms have been highly successful in the internationalization processes on multi-national projects die to a reflexive capability philosophy which incorporates continuous analysis and alignment between firm and locality characteristic to transform traditional barriers into enablers of success.

Collaborative inquiry using 'learning' projects

In this paper we describe a collaborative inquiry process underway within the business faculty of an Australian university. This process involves both Human Resource Management (HRM) and Management academics and was commenced in October 2007 with the broad aim of developing and sustaining an ongoing conversation within these disciplines to enhance our teaching and the learning of our students. A key vehicle for facilitating the inquiry process is a network of learning projects. In this paper we provide a brief outline of these projects and use social learning theory to discuss and evaluate the role of projects in sustaining the inquiry process.

Action research in cooperative education projects : developing lifelong capabilities for improving practice

There are natural synergies between action research as a method of inquiry and the practice of cooperative education. In the search to integrate theory and practice, action research is underpinned by a philosophy of experiential learning. Similarly, cooperative education is underpinned by the belief that in order to learn, there also needs to be action. The work of cooperative education students is also founded on data-based reflection is highly context based and usually collaborative; important characteristics of action research (Cardno, 2003). These similarities between action research and cooperative education provide a starting point in conceptualizing the adoption of action research for sport cooperative education projects. How can action research be integrated within cooperative education projects? This paper will discuss the theoretical basis of action research and illustrate through the use of case studies why and how action research has been utilized in cooperative education projects in sport and recreation. Sport students undertake a range of activities in the cooperative education setting. Some complete basic day to day tasks in recreation centers and with sports teams and others act as volunteers in major events. While these types of roles can fulfill desired outcomes for cooperative education program (for student, industry organization and institution), the adoption of action research can add a further dimension because it aims to create change within the setting under investigation. Through the use of cooperative education projects, students are in a unique position to frame a problem, integrate theory, determine action, and implement and evaluate that action. This paper explores how action research is used in cooperative education projects to help develop capabilities for improving practice.

The development of a typology for remote construction projects

Remotely located sites have become more accessible and therefore more valuable and profitable to investors and entrepreneurs. Typically these sites are environmentally sensitive. For the designer, these sites offer a unique challenge conceptually, in terms of the physical and cultural constraints. The built environment research community has yet to seriously take up the challenge of developing theoretical models for the management of the design and construction processes for remotely located projects. Such models would explore efficiency and efficacy management for projects in remote and often hostile areas, in an integrated and sustainable manner. There are varying degrees of remoteness experienced in nearly all construction projects and therefore a clearer definition of the characteristics of remote sites is required. Towards this definition, a typology is initiated for the concept of remotely located construction projects related to environmental sustainability and the management of the design process. The characteristics of the typology are drawn from a selected literature review of the fields of design management and environmental sustainability, and from an exploratory investigation of two case studies.

Habitus shock : a model for architect-client relationships on house projects based on sociological and psychological perspectives

The widening gap between architects and clients and the associated problems in the management of their relationship have long been recognised by practitioners and researchers alike. An emerging trend in recent studies is to develop descriptive models to describe behavioural characteristics of relationships based on observations of ' real world' practice, indicating the significance of understanding the complexities of the social environment in which the architect-client relationship is within. This research built upon the work of past descriptive models by exploring the architect-client relationship on house projects with a focus on the client's voice. It is an interdisciplinary study drawing theory from sociology to further understand this built environment industry problem. Sixty-nine percent of architects in Australia spend some of their work time on house projects and therefore improvements in this area can have significant impact on a considerably large portion of the profession. Habitus theory borrowed from sociology explains that the nature of architecture as a specialised activity places architects within an architectural habitus, distinguishing them from clients who are .not trained in the field. An underlying premise of thi s study is that a mismatch between the architect and client's habituses occurs as they enter into a relationship on the house project. This phenomenon is termed habitus shock, referring to the client 's experience of disorientation as they are confronted with an unfamiliar architectural habitus on the project. Culture shock theory is examined for its contribution to explain the process to which the client adjusts to the unfamiliar environment during habitus shock. The habitus shock model proposed in this paper suggests that the client may achieve learning during habitus shock and it is this client learning that can lead to successful relationships.

Client managment on house projects : faciliating client learning for successful architect-client relationships

This paper reports the findings of a study which examined architect-client relationships on house projects with a focus on the supportive role of architects in helping clients deal with project issues. Habitus theory explains that the nature of architecture as a specialised activity places architects within an architectural habitus, distinguishing them from clients who are not trained in the field, which is at the heart of the problematic architect-client relationship. An underlying premise was that habitus shock, that is, a mismatch between the architect and client's habituses Occurs as they enter into a relationship on the house project. Using the qualitative approach underpinned by the constructivist perspective for data collection and analysis, eight in-depth interviews were conducted across five case studies of successful architect-client relationships. The narrative inquiry approach was used to establish the extent to which habitus shock occurred and to describe the stages involved in the client's adjustment process during habitus shock. The findings indicate that habitus shock occurred on all five case studies, which resulted in client learning, enabling clients to function with competency in the unfamiliar environment. Client learning achieved during habitus shock was directly linked to the amount of difficulty experienced. This study has refined our understanding of the architect-client relationship on house projects by exploring more deeply client behaviour and the ways in which clients successfully deal with difficulties on house projects rather than simply identifying the uncertainties and conflicts that occur on projects. The findings demonstrate that client learning during habitus shock is a characteristic of successful relationships. One of the most significant outcomes of thi s study is that it demonstrated the potential to facilitate client learning during habitus shock to contribute to the development of successful architect-client relationships.

Knowledge sharing by organisations in sustainable development projects

There are an increasing number of organisations seeing the benefits of implementing sustainable development practices within their processes and product design. However, there are a number of barriers that are preventing organisations from taking up this challenge. Some of these barriers could be reduced through the application of better external knowledge sharing. This paper explores the potential for sharing knowledge about sustainable development practices in academic and industry journals. Using content analysis, the types of projects that are discussed and the level of detail provided in the reporting of sustainable development initiatives by organisations are examined to identify what is being communicated and more importantly to identify what is not being shared. The results show that there is a lack of detail in reporting with a focus on reporting only certain types of sustainable development projects that may prevent knowledge sharing from occurring.

Constructing a framework for building relationships and trust in project organisations : two case studies of building projects in China

A framework is constructed that can be used to foster trust and build relationships in construction project organizations in China. The research method was based on in-depth study of two building projects in China and data were collected via face-to-face interviews. The results show that as the project progresses, the dominant relationship within each stage deepens. The deepening relationship gives rise to different types of inherent risks such as a partner's self-interest seeking behaviour and opportunistic actions. To counterbalance these risks, trust fostering tools must be employed such as careful selection and effective management of partners. The framework for fostering trust and building relationship developed in the study suggests that (1) relationship deepens from shallow dependence to deep interdependence as the project progresses; (2) different relationships bring about distinct inherent risks; and (3) different trust-fostering tools counterbalance specific inherent risks. This framework could aid in reducing adversarial relationships by suggesting ways to foster trustworthy relationships.