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No History and an Uncertain Future: The Governance Challenges and Implications of Projects

Elham Ghazimatin from the University of Melbourne will present her paper titled: No History and an Uncertain Future: The Governance Challenges and Implications of Projects as part of the seminar series at the UiS Business School.

Welcome to the UiS Business School Wednesday Seminar June 20  at The Elise Ottesen-Jensens hus, room EOJ 276/277 at 12:15-13:15.

Elham Ghazimatin from the University of Melbourne will present her paper titled: No History and an Uncertain Future: The Governance Challenges and Implications of Projects


Abstract:
Many transactions between buyers and suppliers are executed through one-off projects. Projects have considerable value-creation potential, but they also face unique challenges, as evidenced by their mixed performance records. One challenge involves governance, and in this respect projects represent a paradox: On the one hand, projects pose significant governance problems, due to the need to coordinate and monitor independent specialists. At the same time, projects lack the inherent governance properties of formal organizations and long-term relationships, and must rely on unique mechanisms that can be deployed within a discrete time frame. We study 429 business-to-business (B2B) projects where firms rely on particular partner selection strategies and pricing terms. Specifically, we explore 1) how certain project attributes influence the choice of selection and pricing, and 2) how the joint alignment between selection and pricing and their theoretically specified attributes (called plural discriminating alignment) impacts project performance in the form of cost overruns. Managerially, we generate insights into the specific strategies used to manage projects. Theoretically, we add nuance to transaction cost economics’ “discriminating alignment” thesis.