Impact assessment of inter-organizational dynamics on the performance metrics of capital- intensive projects
Abstract
An understanding of inter-organizational dynamics is essential for ensuring the efficient performance of construction projects. This is especially true in the area of infrastructure development, which often involves complex capital-intensive projects that demand the collaboration of a large variety of organizations with varied dynamic roles and sometimes conflicting or opposing objectives. This dissertation discusses and demonstrates a framework for measuring the risk created by organizations and individual stakeholders involved in capital-intensive infrastructure projects. The framework considers the impacts of (i) organizational typology, (ii) organizational interactions (probability and severity of interactions), (iii) process characteristics and (iv) project characteristics on the duration of civil infrastructure. The pre-construction and construction phases of nuclear power plant projects, with a history of doubling in cost during construction, are used as a test bed to validate the research framework. The study uses network theory to measure the inter-organizational risk, to address the correlation between organizational typology (e.g., private vs. public, level of involvement, etc.), and to identify key stakeholders based on its potential effect on a project's performance. A risk analysis is then performed, using a Monte Carlo simulation, to identify the significant interactions affecting the project performance (duration). The effect of a project's characteristics upon the probability of its facing public opposition is then quantified using an econometric analysis. Finally, the effect of this opposition, combined with the project and process characteristics upon project performance is analyzed using a discrete event simulation model. This study identified stakeholder typologies that can increase the risk of inter-organizational issues, such as their level of involvement and whether they are private stakeholders, internal stakeholders, or formal institutions. Furthermore, it was found that the most significant stakeholder interactions were those having an impact on project financing, applicant financing position, litigation processes, and requests for additional information. The characteristics that were found to increase public opposition were the size of nuclear reactor, the utility company's prior experience with nuclear power, and the presence of governmental financial support. The results of this doctoral research can assist decision-makers in managing highly complex projects that require major capital investments and that involve the interactions of multiple organizations, with the objective of reducing the risk of conflict that can emerge between these organizations. The outputs from the models in the framework are valuable to implement risk management strategies related to the project inter-organizational dynamics and facilitate identification of the variables with the most impact on project duration. In addition, the research framework provides insight to determine how to improve the acceptability of nuclear power plant projects based on a set of project characteristics.
Degree
Ph.D.
Advisors
Abraham, Purdue University.
Subject Area
Civil engineering
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