Abstract
We analyze governance in two contemporary nuclear power plant projects: Olkiluoto 3 (Finland) and Flamanville 3 (France). We suggest that in the governance of large multi-firm projects, any of the prevalent governance approaches that rely on market, hierarchy, or hybrid forms, is not adequate as such. This paper opens up avenues towards a novel theory of governance in large projects by adopting a project network view with multiple networked firms within a single project, and by simultaneously going beyond organizational forms that cut across the traditional firm-market dichotomy. Our analysis suggests four changes in the prevailing perspective towards the governance of large projects. First, there should be a shift from viewing multi-firm projects as hierarchical contract organizations to viewing them as supply networks characterized by a complex and networked organizational structure. Second, there should be a shift in the emphasis of the predominant modes of governance, market and hierarchy towards novel governance approaches that emphasize network-level mechanisms such as self-regulation within the project. Third, there should be a shift from viewing projects as temporary endeavors to viewing projects as short-term events or episodes embedded in the long-term sphere of shared history and expected future activities among the involved actors. Fourth, there should be a shift from the prevailing narrow view of a hierarchical project management system towards an open system view of managing in complex and challenging institutional environments.
Original language | English |
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Pages (from-to) | 647-660 |
Number of pages | 14 |
Journal | International Journal of Project Management |
Volume | 29 |
Issue number | 6 |
DOIs | |
Publication status | Published - Aug 2011 |
Publication type | A1 Journal article-refereed |
Keywords
- Flamanville 3
- Governance
- Large project
- Multi-firm project
- Nuclear power plant project
- Olkiluoto 3
- Project network
ASJC Scopus subject areas
- Business and International Management
- Management, Monitoring, Policy and Law
- Management of Technology and Innovation