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on Project, Program and Portfolio Management |
| By: | Josep Maria Vegara-Carrió |
| Abstract: | Large projects evaluation rises well known difficulties because -by definition- they modify the current price system; their public evaluation presents additional difficulties because they modify too existing shadow prices without the project. This paper analyzes -first- the basic methodologies applied until late 80s., based on the integration of projects in optimization models or, alternatively, based on iterative procedures with information exchange between two organizational levels. New methodologies applied afterwards are based on variational inequalities, bilevel programming and linear or nonlinear complementarity. Their foundations and different applications related with project evaluation are explored. As a matter of fact, these new tools are closely related among them and can treat more complex cases involving -for example- the reaction of agents to policies or the existence of multiple agents in an environment characterized by common functions representing demands or constraints on polluting emissions. |
| Date: | 2012–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:aub:autbar:909.12&r=ppm |
| By: | Färnstrand Damsgaard, Erika (National Institute of Economic Research); Norbäck, Pehr-Johan (Research Institute of Industrial Economics (IFN)); Persson, Lars (Research Institute of Industrial Economics (IFN)); Vasconcelos, Helder (Faculdade de Economia, Universidade do Porto) |
| Abstract: | Entrepreneurs face higher commercialization costs than incumbents. We show that this implies that entrepreneurs will choose more risky projects than incumbents, aiming to reduce their high expected marginal commercialization cost. However, entrepreneurs may select too safe projects from a social point of view, since they do not internalize the business stealing effect. We also show that commercialization support induces entrepreneurship but may lead to mediocre entrepreneurship by inducing entrepreneurs to choose less risky projects, whereas R&D support encourages entrepreneurship without affecting the type of entrepreneurship. Using Swedish patent citation data, we find empirical support for predictions of the model. |
| Keywords: | Entrepreneurship; Innovation; Start-ups; Ownership; Breakthrough; Quality |
| JEL: | G24 L10 L20 M13 O30 |
| Date: | 2012–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0926&r=ppm |
| By: | Iván Arribas (ERI-CES); Penélope Hernández (ERI-CES); Jose E. Vila (ERI-CES) |
| Abstract: | This paper analyzes the role played by two dimensions of entrepreneurs’ private social capital in the survival, growth and innovativeness of entrepreneurial service ventures: local size and preferential attachment degree. We build a bi-dimensional measure of social capital based on network models and a methodology to estimate this measure for any group of entrepreneurs. Based on a survey of service entrepreneurs who launched their business in the city of Shanghai, we show that roles played by each dimension are quite different. A large local size of the network increases the chances of survival of the new venture. However, the chance to become a dynamic venture is only related to entrepreneurs’ preferential attachment degree. This finding has relevant political and managerial implications. |
| Keywords: | social capital, networks, innovation, entrepreneurship |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:dbe:wpaper:0612&r=ppm |
| By: | Iván Arribas (ERI-CES); Mariel Fornoni (Universidad Nacional de Mar del Plata); Jose E. Vila (ERI-CES) |
| Abstract: | Abstract: Purpose – The aim of this paper is to analyze the impact of an entrepreneur’s social capital on their access to information, and how such access improves the performance of their entrepreneurial project. Design/methodology/approach – A Structural Equations Model (SEM) is estimated and validated from a database including information from 282 Argentinean entrepreneurs who answered a questionnaire specifically designed for this research. The analysis of this model allowed us to determine the impact of dependent latent variables on the performance of the start-up. Findings – The performance of an entrepreneurial project depends on an entrepreneur’s access to finance, markets and information. Specific dimensions of social capital facilitate access to these resources: the relational dimension facilitates access to information; the resources dimension makes access to finance easier; the structural dimension helps the entrepreneur to access markets. Research limitations/implications – The sample is not large enough to analyze differences among specific types of entrepreneurial projects: for instance, the role of social capital in industrial and service entrepreneurship (activity sector), the differences between the federal capital, Buenos Aires, and the rest of the country (location), and between female and male entrepreneurs (gender). Originality/value - Our results help to understand which dimensions of an entrepreneur’s social capital facilitate access to information and how these specific dimensions enhance the performance of their project. Hence, this paper has managerial and policy implications for generation of dynamic entrepreneurial projects capable of becoming development drivers. |
| Keywords: | Entrepreneur, Social Capital, Information resources, Republic of Argentina |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:dbe:wpaper:0712&r=ppm |
| By: | Andrews, Matt (Harvard University); Pritchett, Lant (Center for Global Development, Washington, DC and Harvard University); Woolcock, Michael (World Bank) |
| Abstract: | Many reform initiatives in developing countries fail to achieve sustained improvements in performance because they are merely isomorphic mimicry--that is, governments and organizations pretend to reform by changing what policies or organizations look like rather than what they actually do. In addition, the flow of development resources and legitimacy without demonstrated improvements in performance undermines the impetus for effective action to build state capability or improve performance. This dynamic facilitates "capability traps" in which state capability stagnates, or even deteriorates, over long periods of time even though governments remain engaged in developmental rhetoric and continue to receive development resources. How can countries escape capability traps? We propose an approach, Problem-Driven Iterative Adaptation (PDIA), based on four core principles, each of which stands in sharp contrast with the standard approaches. First, PDIA focuses on solving locally nominated and defined problems in performance (as opposed to transplanting preconceived and packaged "best practice" solutions). Second, it seeks to create an authorizing environment for decision-making that encourages positive deviance and experimentation (as opposed to designing projects and programs and then requiring agents to implement them exactly as designed). Third, it embeds this experimentation in tight feedback loops that facilitate rapid experiential learning (as opposed to enduring long lag times in learning from ex post "evaluation"). Fourth, it actively engages broad sets of agents to ensure that reforms are viable, legitimate, relevant, and supportable (as opposed to a narrow set of external experts promoting the top-down diffusion of innovation). |
| JEL: | O10 O31 O33 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp12-036&r=ppm |
| By: | Olga Kokshagina (CGS - Centre de Gestion Scientifique - Mines ParisTech, ST-CROLLES - STMicroelectronics (Crolles) - STMicroelectronics); Pascal Le Masson (CGS - Centre de Gestion Scientifique - Mines ParisTech); Benoit Weil (CGS - Centre de Gestion Scientifique - Mines ParisTech); Patrick Cogez (ST-CROLLES - STMicroelectronics (Crolles) - STMicroelectronics) |
| Abstract: | The proposed paper deals with platform emergence in double unknown situations when technology and markets are highly uncertain. The interest in technological platform development to enable creation of products and processes that support present and future development of multiple options is widely recognized by practitioners and academics The existing literature considers already existing platforms and the development is based on exploiting this common platform core to build future markets and technological derivatives. However, when we are in double unknown situations, markets and technologies are highly uncertain and neither options, nor platform core are known. Thus, how can one ensure platform emergence in double unknown?The history of innovation promotes mostly singular challenge strategy to guide innovative development. But in certain sectors, like semiconductors, telecommunications, pharmaceuticals, the success of common challenge strategy applicable to several markets is more important than singular project success. Thus, which strategy to choose for innovative technological platform emergence? Why common challenge strategy appears to be so challenging and risky? The objective of the paper is to define what are the precise market and technological conditions that in certain situations lead to 1) develop common building block (common core) that facilitate all the others projects but don't provide access directly to the market 2) launch singular project exploration to emerge future platform core consequently. We attempt to address our research questions by formally describing each strategy and fabricating simple economical model to compare them. For simulation the data was created by taking into account specifics of real management situations and parameters were chosen based on the literature review. Then we illustrate the insights of the model through a case study of innovative technology development in semiconductor industry. The in-depth empirical case study was conducted in STMicroelectronics, one of the leaders in the semiconductor industry. The data for case study was gathered from advanced technology platform with several interdependent modules developed by company and introduced to the several markets after all. This paper contributes to existing work on platform emergence by introducing the strategy of platform core construction in double unknown based on future common challenge investigation. |
| Keywords: | Risk management, uncertainty, platform emergence |
| Date: | 2012–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00734111&r=ppm |
| By: | Olga Kokshagina (CGS - Centre de Gestion Scientifique - Mines ParisTech, ST-CROLLES - STMicroelectronics (Crolles) - STMicroelectronics); Pascal Le Masson (CGS - Centre de Gestion Scientifique - Mines ParisTech); Benoit Weil (CGS - Centre de Gestion Scientifique - Mines ParisTech); Patrick Cogez (ST-CROLLES - STMicroelectronics (Crolles) - STMicroelectronics) |
| Abstract: | This work deals with strategies of risk management techniques in projects and portfolios in the situation of radical innovation. Existing literature suggests different methods of risk management at the level of 1) projects (S1) (unknown reduction by selecting a priori the less uncertain projects, depending on the identified market and technological risk) 2) portfolio (S2) (consists in using an existing platform core to construct several options. This strategy increases chances to succeed by increasing the size of the sample, maximizing the total economic value of the portfolio of derivatives). These methods consider different level of uncertainties and are independent from each other. We will show that there exists another strategy (S3) of working on "common unknown" of multiple options but its managerial implementation is not obvious. By testing the proposed framework in two cases of Advanced R&D (explorative phase of new technologies development for unknown markets with fixed budget) in semiconductor industry, we compare identified S3 strategy with existing S1' lead by S2'. The paper demonstrates that management of "common unknown" is possible and could be implemented in the context of largely unknown exploration. The proposed strategy of working on common unknown opens a new way to portfolio risk management in the context of radical innovation. Using S3 framework of knowledge gap identification to construct common unknown core, company can build its innovative capabilities through knowledge management and better position to innovate in emerging fields. |
| Keywords: | Risk management, uncertainty, common unknown, project portfolio, platform core, platform derivatives |
| Date: | 2012–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00734100&r=ppm |
| By: | Debra Mountford; Greg Clark; Peter Dupej; Mateu Hernández; Joe Huxley |
| Abstract: | This project aims to support the Slovak Republic as it seeks to create a clear rationale for the Regional Development Agencies Integrated Network which currently comprises 38 agencies. The project considers the efficiency of the network and evaluates the appropriateness of the agencies’ functions, competencies and remit for delivery of effective local economic development. The project is part of series of reforms which have been taking place in the Slovak Republic to realise the aims and objectives of The Act No. 539/2008 coll. on regional development (539 Act) on the Support of Regional Development which provides the a general framework for regional development policy and delivery in accordance with the 2004 Ministerial Guidelines on PHSR – Economic and Social Development Programme of Higher Territorial Unit. |
| Date: | 2012–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaaa:2012/16-en&r=ppm |