Project Networks as Constellations for Value Creation

Abstract

Through an empirical study of two inter-organizational project networks in a cultural setting, this article explores how value is created in project networks. The article discusses recent theoretical developments that suggest linking value constellations and project networks. The findings focus on how value is created; this is done through identifying four key value creation activities: developing infrastructure, creating knowledge, changing minds, and managing for value capture. In light of this, two value constellations are suggested, and the service-dominant logic is applied for developing a conceptual model of value creation in project networks, including theoretical and practical implications.

The Management of Values in Project Business: Adjusting Beliefs to Transform Project Practices and Outcomes

“…The management of values as worth deals with the question of how managers, project personnel, and other stakeholders can guarantee that the expected values will be achieved. As such, it is closely linked with project control (Kivilä et al, 2017), risk and uncertainty management (Laine et al, 2016; Olsson, 2007; Willumsen et al, 2019), and stakeholder influence (Vuorinen & Martinsuo, 2019), and it requires anticipation of the operations phase already during project implementation (Artto et al, 2016; Laursen, 2018; Smyth, 2018). One stream of research has explored value engineering and value management over the project life cycle, in and across its different phases (e.g., Artto et al, 2016).…”

“…Stakeholders influence the delivery of value through their own priorities and involvement (Vuorinen & Martinsuo, 2019). Project implementation is often seen as a phase where value is jointly co-created by the partners involved in the project delivery (Fuentes et al, 2019; Laursen, 2018; Lehtinen et al, 2019), the project is linked through appropriate mechanisms to the parent organization (Riis et al, 2019), and the responsibility for the project outcome is transferred to the customer. During project implementation, however, the created value is primarily visible to the contractor because the deliverable has not yet been transferred to the owner.…”

“…Recent research has been increasingly active regarding post-project phases, where the owner of the project deliverable and possible stakeholders expect to create use value and capture the value promoted by the project in the post-project operations (Artto et al, 2016; Laursen, 2018; Smyth, 2018). Typically, stakeholders do not see the full value of the project until long after its completion (Eskerod & Ang, 2017).…”

Programming for holistic value creation: collaboration, coordination and perception

“…Outside the project management (PM) field value creation is being addressed in ways that might also inform PM research. In PM research related mainly to the for-profit sector value has been defined as a representation of benefit/cost (Laursen andSvejvig, 2016, Morris, 2013), where benefit may be regarded as 'an outcome of a change that is perceived as positive by a stakeholder' (Bradley, 2010), and cost as 'the outlay or expenditure (as of effort or sacrifice) made to achieve an object' (Merriam-Webster, 2016). Thus, the definition of value encompasses both benefits and costs.…”

“…Some of the employees had worked up to ten years with the ECoC, longer than any other area in their careers, and they had brought back experiences and capabilities for hosting cultural programs and major events, as well as facilitating cultural development and EU collaboration. In this way the region's overall capability has increased as a result of the process itself (Laursen, 2018). Value in collaboration is not only in the intended and unanticipated establishment of new networks among people and organizations, but also in the value of boosting organizational capabilities.…”