Decision making on strategic value at the front end of system delivery projects

Projects can be considered as value-creating processes. The definition of strategic value is important in the front end of system delivery projects, but also uncertain and susceptible to stakeholders’ interpretations. This study explores project-based firms’ decision-making on strategic value in system delivery projects. A case study with a system provider in process industry reveals external and internal sources of strategic value, and a collaborative approach to decision making. Decision making on strategic value requires customers and suppliers to engage in jointly understanding needs, evaluating joint benefits from collaboration, and understanding of both parties’ value creation capacities in the long term.