Formation of strategic networks under high uncertainty of a megaproject

Abstract

Purpose

The purpose of this paper is to examine the formation of strategic networks between second-tier actors in the context of a construction megaproject. The research question addressed is: How do second-tier strategic networks form in high uncertainty projects?

Design/methodology/approach

This is a qualitative single-case study, which examines strategic network formation in the context of a nuclear power plant construction project. Focused interviews with parties involved or having an interest in the megaproject were used as the primary data collection method.

Findings

The conditions for network formation in a megaproject context are specified with a focus on the determinants of uncertainty. A total of six second-tier network types with different formation conditions and potential roles in the project are characterized.

Research limitations/implications

Analyzing the prerequisites of strategic network formation and examining the characteristics of various networks (that are either planned, taking shape or existing between the companies) in this specific context creates a basis for further study of network formation over network levels.

Practical implications

The formation of strategic networks is critical for many actors in the construction and related industries who are willing to participate in large projects. With the help of our findings, managers are able to define opportunities to orchestrate early phase network formation processes in uncertain circumstances, such as megaprojects.

Originality/value

The contribution of this paper lies in the close examination of strategic network formation from the second-tier actor perspective under circumstances of high uncertainty related to the early phases of megaprojects. Likewise, the illustration of different types of evolving nets in different phases of uncertain projects offers a contribution to the present discussion on strategic nets.

Citation

Jussila, A., Mainela, T. and Nätti, S. (2016), "Formation of strategic networks under high uncertainty of a megaproject", Journal of Business & Industrial Marketing, Vol. 31 No. 5, pp. 575-586. https://doi.org/10.1108/JBIM-03-2014-0055