Governing value creation in construction project: a new model
International Journal of Managing Projects in Business
ISSN: 1753-8378
Article publication date: 4 January 2017
Abstract
Purpose
The purpose of this paper is to describe how the concepts of business models and project governance can enhance value creation in building projects.
Design/methodology/approach
Based on theory derived from management literature, the authors outline a framework combining a project’s business case and governance functions with the business model of the design team. This was tested in two major projects and evaluated in three expert workshops.
Findings
The research reveals that the business model of the design team focus on efficiency rather than on the client’s strategic objectives. This entails a need for project governance functions. The framework presented shows promising capability of aligning the project with client strategy. The authors believe there is significant value in transferring these ideas and knowledge across national boundaries.
Practical implications
The research identifies a gap between business objectives and outcome. The value creation approach in the client organisation diminishes into the way project governance is implemented in some projects. The conceptual framework provides the industry with a new tool for improving its knowledge and practice.
Originality/value
First governance model derived from strategy theory that combines strategy and governance in one holistic model.
Keywords
Citation
Hjelmbrekke, H., Klakegg, O.J. and Lohne, J. (2017), "Governing value creation in construction project: a new model", International Journal of Managing Projects in Business, Vol. 10 No. 1, pp. 60-83. https://doi.org/10.1108/IJMPB-12-2015-0116
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited