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  • 1.
    Aldenlöv, Jens
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Bergquist, Bjarne
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Söderholm, Peter
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Gustavsson Kärrbom, Tina
    KTH, Depteartment of Real Estate & Construction Management.
    Public procurement of railway infrastructure maintenance: a literature review2017In: Proceedings of the 9th Nordic Conference on Construction Economics and Organization / [ed] Buser, M; Lindahl, G; Raisanen, C, Lyngby: Polyteknisk Boghandel og Forlag, 2017, p. 10-21Conference paper (Refereed)
    Abstract [en]

    The maintenance of railway infrastructure has in several instances been changed from government-based to being based on public procurement, with varying degrees of flexibility for the contractor to design their maintenance work. The purpose of-giving contractors a larger freedom of choice of how to perform maintenance is to stimulate them to innovate and develop their maintenance processes. Since the contracts differ in between and there are changes in government policies over time that affects both existing and new contracts, a comparison between different contracts becomes challenging. A literature review has been conducted to understand the change in procurement strategy and how to encourage contractors to innovate. The research questions include: What procurement strategies are there? How is maintenance evaluated? How does procurement affect the innovation opportunities for entrepreneurs? The literature review focuses on railway maintenance and contract design between client and contractor. In total, 17 articles matched the search criteria and were selected for the review. To have successful maintenance service, five articles suggested partnering as a strategy with common goals in combination with good communication during the entirety of the contract. When selecting incentive plan, four articles mentions that a focus on performance-based incentives in combination with risk management is better rather than actual payment schemes. The reason being that payment is often the main cause of conflicts between client and contractor. The scientific literature suggests that improvement in incentives improves quality of maintenance, decreases delays and technical failures. The conclusion from the literature review is that partnering in railway maintenance is considered successful. With accurate knowledge about railway assets the incentive plan becomes accurate which reduces costs. The literature review is a part of a research project with an overall goal to develop a model to guide the selection of appropriate type of procurement strategy, contract and control of maintenance for a more sustainable railway system.

  • 2.
    Aldenlöv, Jens
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Bergquist, Bjarne
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Söderholm, Peter
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Karrbom Gustavsson, Tina
    KTH Royal Institute of Technology, Real Estate and Construction Management .
    Public procurement of railway infrastructuremaintenance: a literature review2017Conference paper (Refereed)
    Abstract [en]

    The maintenance of railway infrastructure has in several instances been changed from government-based to being based on public procurement, with varying degrees of flexibility for the contractor to design their maintenance work. The purpose of-giving contractors a larger freedom of choice of how to perform maintenance is to stimulate them to innovate and develop their maintenance processes. Since the contracts differ in between and there are changes in government policies over time that affects both existing and new contracts, a comparison between different contracts becomes challenging. A literature review has been conducted to understand the change in procurement strategy and how to encourage contractors to innovate. The research questions include: What procurement strategies are there? How is maintenance evaluated? How does procurement affect the innovation opportunities for entrepreneurs?

    The literature review focuses on railway maintenance and contract design between client and contractor. In total, 17 articles matched the search criteria and were selected for the review. To have successful maintenance service, five articles suggested partnering as a strategy with common goals in combination with good communication during the entirety of the contract. When selecting incentive plan, four articles mentions that a focus on performance-based incentives in combination with riskmanagement is better rather than actual payment schemes. The reason being that payment is often themain cause of conflicts between client and contractor. The scientific literature suggests that improvement in incentives improves quality of maintenance, decreases delays and technical failures. The conclusion from the literature review is that partnering in railway maintenance is considered successful. With accurate knowledge about railway assets the incentive plan becomes accurate which reduces costs.

    The literature review is a part of a research project with an overall goal to develop a model to guide the selection of appropriate type of procurement strategy, contract and control of maintenance for a moresustainable railway system.

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  • 3.
    Bengtsson Hedborg, Susanna
    et al.
    KTH, Depteartment of Real Estate & Construction Management.
    Gustavsson Kärrbom, Tina
    KTH, Depteartment of Real Estate & Construction Management.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    The influence of construction project actors' motivation on externally initiated systemic innovation2017In: Proceedings of the 9th Nordic Conference on Construction Economics and Organization / [ed] Buser, M; Lindahl, G; Raisanen, C, Lyngby: Polyteknisk Boghandel og Forlag, 2017, p. 208-219Conference paper (Refereed)
    Abstract [en]

    Urbanization and climate change are central challenges for urban development today, why a need for substantial innovation, e.g. systemic innovation, can be identified. The large amount of interdependent actors and their fragmented processes are among the key factors that hamper innovation in the construction industry. Two key actors in the industry, property developers and contractors, can be identified as important when developing innovation, due to their central roles in the construction project process. Therefore, it should be important to make them dedicated towards innovation, i.e. create motivation. This is in line with research on successful innovation development highlighting the importance of commitment and collaboration. A need seems to be present to create motivation towards innovation for key actors in the industry. Based on this, the purpose of this paper is to explore how motivation of key actors can influence development for systemic innovation in the construction industry. To explore this, a case study of the urban development project Stockholm Royal Seaport and its developed building logistic center was analyzed, adopting a model for receptive change context. Tentative findings suggest that actors' motivation for innovation is important for the development. Developers' possibility to influence through procurement strategies, to increase awareness and collaboration, can be used to create motivation for contractors.

  • 4.
    Bergquist, Bjarne
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Söderholm, Peter
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Karrbom Gustavsson, Tina
    Arkitektur och samhällsbyggnad, KTH, Sverige.
    Projekt: Offentlig upphandling av järnvägsunderhåll2015Other (Other (popular science, discussion, etc.))
  • 5.
    Candel, Melissa
    et al.
    Department of Real Estate and Construction Management, School of Architecture and the Built Environment, KTH Royal Institute of Technology, Teknikringen 10B, SE-100 44 Stockholm, Sweden.
    Karrbom Gustavsson, Tina
    Department of Real Estate and Construction Management, School of Architecture and the Built Environment, KTH Royal Institute of Technology, Teknikringen 10B, SE-100 44 Stockholm, Sweden.
    Eriksson, Per Erik
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction. Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Beyond National Building Regulations: Exploring Public-Private Negotiations Over Sustainability Requirements2019In: Proceedings 35th Annual ARCOM Conference / [ed] C. Gorse; C. J. Neilson, Association of Researchers in Construction Management , 2019, p. 740-749Conference paper (Refereed)
    Abstract [en]

    Municipalities in Sweden govern construction projects on municipal land through requirements that sometimes go beyond national building regulations in order to advance sustainable building practices. The purpose of this paper is to explore the process of negotiating such project specific requirements for construction projects built by private housing developers on municipal land. The paper builds on a case study of an innovative urban development programme in Stockholm where interviews with private housing developers and municipal representatives and observations of meetings, seminars and forums were conducted. Emerging negotiations between the municipality and private housing developers over project specific requirements set by the municipality were explored and analysed using the concepts of product and process innovation. Findings reveal that housing developers try to remove or change those requirements that are considered to increase costs, increase risks and decrease the value of their final product. This paper illustrates how project requirements for construction projects on municipal land are dependent upon early phase negotiations between the municipality and housing developer.

  • 6.
    Dehlin, Stefan
    et al.
    NCC.
    Heikkilä, Katarina
    NCC.
    Olofsson, Thomas
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Schade, Jutta
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Racz, Tamas
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Effektive projektering av lågenergihus2011Report (Other academic)
    Abstract [sv]

    Byggbranschen står inför stora miljö- som affärsmässiga utmaningar med krav på att reducera energiförbrukning och miljöpåverkan. Detta projekt syftar till att bidra medkunskap hur energiprojektering kan effektiviseras vid nyproduktion avlågenergibyggnader där det övergripande målet är att stödja ett långsiktigt hållbart och lönsamt byggande. Studien har genomförts i samverkan mellan byggbransch och akademi genom fallstudier och enkätundersökningen.Resultatet visar på behovet och nyttan av att redan i tidigt planeringsskede utreda konsekvensen av olika alternativ av exempelvis byggnadsutformning ochklimatskärmens tekniska prestanda. Det spelar mindre roll vilket energiberäkningsverktyg man använder om resultatet används för att jämföra olika alternativ med varandra.Skillnaderna i krav och institutionella ramverk vad gäller energiprestanda påverkar också projektering av energieffektiva byggnader. En jämförande studie av hur man hanterar energifrågor från krav till färdig lösning mellan Tyskland och Sverige visar på ett behov av vidareutbildning i energifrågor för arkitekter och ingenjörer i Sverige som kommer in tidigt i byggprocessen. Undersökningen och jämförelsen pekar också mot ett behov av en sammanlänkande funktion, här kallad energisamordnare.Energisamordnarens roll är att föra in energikompetens in i projektet, säkerställa att krav och mål formuleras och hanteras samt aktivt delta i projekteringen för att guida utformningen av byggnaden mot en effektiv och låg energiförbrukning.Vi kan konstatera att det är marknadskrafter och engagemang från byggare, beställare och lokala myndigheter snarare än nationella krav som driverenergieffektivisering framåt i Sverige idag. Det kan emellertid leda till en situation där krav på energieffektivitet blir lokalt satta vilket kan leda till svårigheter för utvecklare av olika typer av byggnadssystem för bostäder och lokaler. Därför är det önskvärt att utvecklingen av byggnadstekniken som skett de senaste åren också följs upp av Boverket i form av krav som ligger i framkant snarare än minimikrav för att förhindra att en flora av lokala krav uppstår som kan verka som "handelshinder" för den fortsatta utvecklingen av det industriella byggandet i Sverige.Vi ser också ett tydligt behov för ökad samverkan och integration för att kunna driva energieffektiviseringen framåt men samtidigt också ett tydligt behov av att utveckla upphandlings- och samverkansformer för att möjliggöra detta. Upphandlingen, till exempel, bör utformas så att lämpliga aktörer väljs utifrån mjuka parametrar och involveras tidigt under projekteringsskedet samt ges ekonomiska incitamentkopplade till projektets mål, ekonomi och tidplan.Projektet har också undersökt hur man skall åstadkomma en mer integreradprojekteringsprocess genom att: Skapa en struktur för att samla, uttrycka och klargöra mål och krav ochutveckla dessa mot funktionskrav och tekniska lösningar. Genomföra en modellbaserad projektering som detaljerar tekniska lösningarallteftersom de utvecklas.Införa beslutsstöd för energifrågor i projektutveckling där produktensprestanda successivt jämförs mot funktionskrav med hjälp av alltmerdetaljerade prestandaanalyser.I projektet har också ett nyutvecklat formellt beslutsstöd exemplifierats där fleraalternativa lösningar kan utvärderas mot olika kriterier (MADM) vilka kanorganiseras och viktas hierarkiskt utifrån projektets mål och krav.I projektets har en prototyp, en så kallad energikonfigurator, utvecklats för atteffektivisera produkt och projektutveckling av s.k. konceptbyggande. Användandet har demonstrerats på NCC:s koncept P303 där man optimerat konfigureringen i produkt och projektutveckling efter både subjektiva och objektiva kriterier som tänkas efterlikna ett visst kundsegment. Hundratals alternativa utformningar kan utvärderas på några minuter i jämförelse med dagar och veckor om samma analyser skulle göras för hand med hjälp av energiberäkningsprogram med manuell inmatning av indata.För att effektivisera projekteringen mot ett energieffektivt byggande rekommenderar projektet att:Man tidigt upphandlar och involverar de viktigaste aktörerna så att man tidigtkan inkludera energiaspekter i utformning av koncept. Beställaren aktivt deltar i kravformuleringen och i analys- ochbeslutsprocessen. Dels för att säkerställa val mot uppställda krav och behovoch dels för att tillgodose de praktiska behov som uppstår i och med enintegrerad och modellbaserad projekteringsprocess. Utse en energisamordnare som skall säkerställa att formulerade energikravoch mål hanteras optimalt för att guida utformningen av byggnaden mot eneffektiv och låg energiförbrukning. Använda en modellbaserad projekteringsprocess för utformning, simuleringoch analys av konceptlösningar gentemot energirelaterade aspekter. Energianalyser som görs i tidigt skede används för att jämföra olikaalternativa utformningar. När detaljeringsnivån ökar bör man användadynamiska verktyg och för att beräkna energiförbrukning och inneklimat pårumsnivå. Man bör tidigt inkludera utformning av t ex ventilation ocheventuella maskinrum då de kan ha stor inverkan på energiförbrukningen. Man utför prestandaanalyser av energi och inneklimat innan man fryserdesign av klimatskärm och VVS så att resultatet kan guida konstruktörer ochinstallatörer i den slutliga utformningen av systemhandlingarna. Man i driftfasen utför en mer automatisk och kontinuerlig jämförelse mellansimulerad och verklig energiförbrukning för att bekräfta att byggnadenuppfyller initiala krav samt för att inhämta data och erfarenheter för vidareoptimering eller andra framtida projektFörändring sker i och med att beställaren möjliggör en miljö som initierar ochstödjer en hög grad av samverkan och integration mellan inblandade aktörer, därtyngden på beslutsfattandet flyttas till ett tidigare skede, där rätt kompetenserkan komma in vid rätt tillfälle och där fokus är på slutprodukten och desslivscykel och inte på avskilda åtaganden

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  • 7.
    Ekeskär, Andreas
    et al.
    Department of Real Estate and Construction Management, KTH Royal Institute of Technology, Stockholm, Sweden.
    Havenvid, Malena I.
    Department of Real Estate and Construction Management, KTH Royal Institute of Technology, Stockholm, Sweden.
    Karrbom Gustavsson, Tina
    Department of Real Estate and Construction Management, KTH Royal Institute of Technology, Stockholm, Sweden.
    Eriksson, Per Erik
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction. Department of Real Estate and Construction Management, KTH Royal Institute of Technology, Stockholm, Sweden.
    Construction logistics in a multi-project context: coopetition among main contractors and the role of third-party logistics providers2022In: Construction Management and Economics, ISSN 0144-6193, E-ISSN 1466-433X, Vol. 40, no 1, p. 25-40Article in journal (Refereed)
    Abstract [en]

    As a part of supply chain management (SCM) initiatives to improve performance and productivity in construction projects, the use of construction logistics setups (CLSs) operated by third-party logistics (TPL) providers have increased. CLSs are often used in complex multi-project contexts, such as urban development districts, where extensive coordination of actors, resources, and activities is needed. The purpose of this paper is twofold: to investigate how main contractors engage in horizontal relationships with each other when coordinating activities and resources within and across projects in a multi-project context, and to investigate what role a TPL provider assumes when engaging in relationships with main contractors in a multi-project context. The findings are based on a case study of an urban development district with a mandatory TPL-operated CLS, and we apply the industrial network approach. In this multi-project context, the main contractors engage in coopetitive relationships, coordinating activities and resources within and across projects. The TPL provider coordinates actors, resources, and activities, facilitating smoother production by managing logistics and mediating coopetitive relationships. This can be understood as a multi-project coordination role and extends the role SCM can play in construction. In that role, a TPL provider can minimise tensions between coopetitive actors across a multitude of horizontal relationships and projects.

  • 8.
    Eriksson, Per Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Nilsson, Torbjörn
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Partnering the construction of a Swedish pharmaceutical plant: case study2008In: Journal of Management in Engineering, ISSN 0742-597X, E-ISSN 1943-5479, Vol. 24, no 4, p. 227-233Article in journal (Refereed)
    Abstract [en]

    In recent years increased interest in cooperative arrangements, such as partnering, has been noticeable in the construction industry in many countries. To facilitate cooperative relationships many aspects of the traditional procurement procedures need to be changed. The research presented in this paper offers an analysis that compares empirically observed partnering procurement procedures with conceptual prescriptions provided by a transaction cost economics framework. The empirical illustration shows that the case client has reduced the focus on price and authority and instead facilitated a relationship based on trust and cooperation, through procurement procedures involving joint specification, limited bid invitation, bid evaluation based on soft parameters, joint selection of subcontractors, standard contracts coupled with relational norms, usage of collaborative tools, and contractor self-control. The procurement procedures chosen result in a governance form rather similar to the one prescribed by the conceptual model. Furthermore, the project participants are satisfied with the project result and also consider the procurement procedures performed suitable. Hence, the results provide both theoretical and empirical support to the implementation of partnering procurement procedures in construction projects characterized by high complexity and uncertainty

  • 9.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    A case study of partnering in lean construction2009In: Proceedings of 5th Nordic Conference on Construction Economics and Organisation: Reykjavík University, Iceland 10-12 June 2009, Reykjavik: University of Reykjavik , 2009, Vol. 1Conference paper (Refereed)
    Abstract [en]

    Lean construction is a relatively immature literature field in need of unbiased theoretical reasoning and case studies in order to investigate how lean thinking can be applied in a construction project context. The purpose of this paper is to increase the understanding of how various measures of lean thinking can be implemented in a construction project and how these measures work. In order to enhance unbiased theoretical reasoning a frame of reference is first developed through a literature review of peer-reviewed journal articles. The empirical part of the research utilises a lean construction pilot project as a case study. Empirical data was mainly collected through a series of three questionnaire surveys, responded to by project participants who were involved in the lean implementation effort (approximately 30 responses) and three follow-up workshops in which the key individuals from all partner companies participated (15-20 individuals). The author functioned as a facilitator and action researcher, responsible for the design and analysis of the surveys and for planning and facilitating the workshops. Document studies and interviews of 12 project participants were also conducted in order to increase the richness of the case study data. The empirical results show that many of the lean related measures identified in the literature review have been utilised, either implicitly or explicitly, in the pilot project. These measures have mostly focused on increasing the cooperation among project actors, for which reason the pilot project is very similar to a partnering project. Much work remains in order to obtain a full-fledged lean construction approach. The pilot project, however, has the potential to serve as a well-built starting point for long-term continuous improvements and development of lean construction in future projects.

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  • 10.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Achieving suitable coopetition in buyer-supplier relationships: the case of AstraZeneca2008In: Journal of Business-to-Business Marketing, ISSN 1051-712X, E-ISSN 1547-0628, Vol. 15, no 4, p. 425-454Article in journal (Refereed)
    Abstract [en]

    Purpose: The purpose of this research is to deal with the two crucial managerial challenges of first identifying and then achieving a suitable balance between cooperation and competition in buyer-supplier relationships.Methodology/Approach: First, a purchasing framework is developed by utilizing principal-agent theory to bridge the literature on transaction cost economics and industrial buying behavior. The practical use of this framework is then empirically illustrated by a case study description of how a construction client's purchasing procedures affect coopetition in a partnering project.Findings: The developed purchasing framework shows how actions taken during the different stages of the buying process affect coopetition in buyer-supplier relationships. It highlights the deficiencies of both the neoclassical competitive focus and the cooperative focus found in the literature on interorganizational relationships. Instead it emphasizes the importance of balancing cooperation and competition.Research Implications: This research shows how the traditional analysis of governance structure can be transformed into an analysis of coopetition. Furthermore, it explores how purchasing procedures affect governance forms through different control mechanisms. It also shows how trust and social context can be integrated into a transaction cost framework through social control.Practical Implications: The developed framework can be used for guiding purchasing decisions. Managers planning to implement coopetitive (cooperative and competitive) relationships should recognize the importance of considering all stages of the buying process. Collaborative tools (e.g., teambuilding, joint objectives, and a shared project office) are useful but not enough to transform an otherwise competitive relationship into a cooperative one. Hence, technical aspects of the buying process need to be addressed as well (e.g., joint specification, bid evaluation, etc.).

  • 11.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Cooperation and partnering in facilities construction: empirical application of prisoner's dilemma2007In: Facilities, ISSN 0263-2772, E-ISSN 1758-7131, Vol. 25, no 1/2, p. 7-19Article in journal (Refereed)
    Abstract [en]

    Purpose - To investigate if game theoretic reasoning may be used to explain a lack of cooperation in buyer-supplier relationships within construction and facilities management. In order to make an empirical application of the Prisoner's dilemma game possible important variables are operationalized and empirically measured Methodology/approach - Empirical data concerning pay-offs and the variables in the discount parameter formula (created in this paper) have been obtained through interviews with clients and contractors in the Swedish construction sector. Findings - This paper suggests a way to operationalize pay-offs and the discount parameter, making empirical measurements possible. Due to differences in pay-offs and the discount parameter, different forms of contracts will affect cooperation. Cumulative values of cooperation are much higher in lasting relationships than in occasional transactions. Thus, the best way to facilitate cooperation between rational players is long-term contracts.Research limitations/implications - Since the values used are based on empirical data collected from a few respondents, they should be viewed as illustrative empirical examples, rather than statistical generalizations.Practical implications - From a game theoretic perspective the practice of project partnering may not solve problems regarding lack of cooperation. To increase the incentives for cooperation the actors should work together in long-term relationships instead of focusing on single projects. Long-term strategic partnering is therefore beneficial for the construction and management of facilities.Originality/value - This paper makes empirical application of the Prisoner's Dilemma game possible by operationalizing and empirically measuring game theoretic variables that previously have been given values set by the researcher rather than by the players in the game.

  • 12.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Cooperation in construction projects: a game theoretic reasoning based on Prisoner's dilemma2003In: Construction economics and organization: proceedings of the 3rd Nordic Conference on Construction Economics and Organization, 24-24 April 2003, Lund, Sweden / [ed] Bengt Hansson; Anne Landin, Lund: Lund Institute of Technology , 2003, p. 139-148Conference paper (Refereed)
  • 13.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Coopetition in Buyer-Supplier Relationships: An empirical investigation of Swedish construction clients' procurement procedures2006In: 2nd Workshop on Coopetiton Strategy: European Institute for Advanced Studies in Management (EIASM), 2006Conference paper (Refereed)
  • 14.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Coopetition in the supply chain: How Swedish construction sector clients' procurement of contractors affects competition and cooperation in client-contractor relationships2005In: NFF 2005: The 18th Scandinavian Academy of Management Meeting, Aarhus: Aarhus School of Business , 2005Conference paper (Refereed)
  • 15.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Coopetition: projektstyrningsformen som balanserar samarbete och konkurrens2008In: V-byggaren : väg- och vattenbyggaren, ISSN 0283-5363, no 3, p. 65-68Article in journal (Other academic)
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  • 16.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Efficient governance of construction projects through cooperative procurement procedures2007Doctoral thesis, comprehensive summary (Other academic)
    Abstract [en]

    The purpose of this research is to increase the understanding of how efficient governance of construction projects can be achieved through appropriate procurement procedures. In this PhD project, literature reviews, a pre-study, a longitudinal case study and a survey study have been conducted in order to investigate five research questions and thereby fulfil the research purpose. The main theoretical field in this thesis is transaction cost economics, which forms the basis of the developed conceptual procurement model. Other literature fields that have been reviewed are: game theory, innovation, partnering, industrial buying behaviour and principal-agent theory. All these different theories and fields of literature have one thing in common: they are all well suited to analysing different aspects of buyer-supplier relationships.The research presented in this thesis contributes to theory and practice in four main ways. 1) The developed conceptual procurement model adds knowledge to transaction cost economics through a broad process perspective that makes it possible to describe how governance prescriptions can be achieved by suitable procurement procedures. The model also contributes to procurement practice since it may be utilised as a useful framework, guiding procurement decisions in order to tailor procurement procedures to transaction characteristics. In this way it increases the understanding of how to procure different types of projects in order to facilitate efficient governance. 2) The survey study shows that the current procurement procedures used by Swedish construction clients are still of the traditional type, facilitating governance forms focusing on price and authority, which according to the conceptual model are unsuitable in construction transactions. This finding can hopefully serve as an alert to practitioners that their procurement procedures have become obsolete due to the increased complexity and uncertainty of construction projects. 3) The case illustrations and the structural equation model show that cooperative procurement procedures facilitate the establishment of cooperation and thereby efficient governance of complex, customised and lengthy construction projects with high uncertainty. These procedures are therefore more suitable and up to date than the most common ones. 4) A side effect of this research is a suggestion of how to look upon the concept of partnering. The research results suggest that different governance forms are facilitated through different procurement procedures. An indirect finding is therefore that partnering can be viewed as a cooperative governance form, which is facilitated through cooperative procurement procedures. The TCE-perspective of this definition makes sure that partnering is not used for its own sake, but only to achieve efficient governance, tailored to the characteristics of the transaction.

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  • 17.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Exploration and exploitation in project-based organizations: Development and diffusion of knowledge at different organizational levels in construction companies2013In: International Journal of Project Management, ISSN 0263-7863, E-ISSN 1873-4634, Vol. 31, no 3, p. 333-341Article in journal (Refereed)
    Abstract [en]

    Management studies highlight the importance of an organization's capability to both exploit existing knowledge and technologies for short-term profits and also explore new knowledge and technologies to enhance long-term innovation. Although this paradox recently has received escalating interest in management research, studies dealing with project-levels and project-based organizations (PBOs) are scarce. This conceptual paper discusses how PBOs in the construction industry can manage the exploration/exploitation paradox at different organizational levels. Short-term project focus and decentralization inhibits learning from one point in time and space to another, making it easier to reap the benefits of exploitation than of exploration. Current structural and sequential separation of exploration and exploitation activities at business unit, project portfolio, and project levels do not solve the paradox, due to lack of integrating mechanisms. Hence, PBOs in the construction industry may suffer from inadequate extent of exploration, while the extent of exploitation is not reaching its potential. Cooperative procurement procedures can serve as a basis for facilitating both exploration and exploitation of knowledge and technologies in construction projects.

  • 18.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Förslag till modell vid förändring av organisationskultur2003Report (Other academic)
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  • 19.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Improving construction supply chain collaboration and performance: a lean construction pilot project2010In: Supply chain management, ISSN 1359-8546, E-ISSN 1758-6852, Vol. 15, no 5, p. 394-403Article in journal (Refereed)
    Abstract [en]

    Improving construction supply chain collaboration and performance is central for achieving short-term business objectives as well as long-term competitive advantage. Lean thinking is an approach that has been adopted in many different industrial settings as a means for improving supply chain performance. In the project-based construction industry, lean thinking has however not yet been widely adopted. The purpose of this paper is to increase the understanding of how various aspects of lean thinking can be implemented in a construction project and how they affect supply chain actors and their performance. Action research was performed in a case study of a lean construction pilot project. Empirical data was collected through three surveys and follow-up workshops, document studies, and interviews of twelve project participants. The findings show that many of the lean related aspects identified in the literature review were utilized in the pilot project. These aspects have mostly focused on increasing the cooperation among supply chain actors, for which reason the pilot project is very similar to a partnering project. Hence, much work remains in order to obtain full-fledged lean construction, but the pilot project may serve as a starting point for continuous improvements and development of lean construction in future projects.

  • 20.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Långsiktig utveckling och kortsiktig effektivitet: organisatorisk tvåhänthet genom att utforska och utnyttja2012In: Bygginnovationers förutsättningar och effekter, Vinnova , 2012, p. 45-50Chapter in book (Other academic)
  • 21.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Organizational ambidexterity for sustainable construction project performance2011In: Management and Innovation for a Sustainable Built Environment: CIB International Conference of WO55, WO65, WO89, W112, TG76, TG78, TG81, Delft: Delft university of technology , 2011Conference paper (Refereed)
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  • 22.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Organizational ambidexterity in the Construction Industry2011In: Management and innovation for a sustainable built environment: CIB International Conference of WO55, WO65, WO89, W112, TG76, TG78, TG81, Delft: Delft university of technology , 2011Conference paper (Refereed)
  • 23.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Partnering and the four dimensions of collaboration2011In: Proceedings of the 6th Nordic Conference on Construction Economics and Organisation: Shaping the Construction/Society Nexus / [ed] Kim Haugbølle; Stefan Christoffer Gottlieb; Kalle E. Kähkönen; Ole Jonny Klakegg; Göran A. Lindahl; Kristian Widén, Hørsholm: Danish Building Research Institute, Aalborg University , 2011, Vol. 2 : Transforming Practices, p. 259-270Conference paper (Other academic)
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  • 24.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Partnering in engineering projects: Four dimensions of supply chain integration2015In: Journal of Purchasing and Supply Management, ISSN 1478-4092, E-ISSN 1873-6505, Vol. 21, no 1, p. 38-50Article in journal (Refereed)
    Abstract [en]

    Although the interest of partnering and supply chain integration (SCI) has increased in various industries, there is still a lack of comprehensive conceptual and practical frameworks that enable both a detailed and systemic understanding of integration in project-based supply chains. In this paper a theoretical framework is developed, based on general SCI literature, but adapted to a project-based context. Integration in project-based supply chains is a multi-dimensional construct, including the four dimensions strength, scope, duration, and depth of integration. Empirical findings from a multiple case study of four engineering projects indicate that these four dimensions are critical when conceptualizing and implementing partnering in engineering projects. The results show that there are strong interdependencies among the four dimensions, suggesting that it is crucial to manage them simultaneously and systemically rather than in isolation. Consequently, it is not enough to decide on the extent to which suitable integrative activities and technologies should be implemented to strengthen integration in project-based supply chains. The integrative activities and technologies must also be implemented together with the right companies (scope), at the right time (duration), and with the right people in the companies (depth).

  • 25.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Partnering: what is it, when should it be used, and how should it be implemented?2010In: Construction Management and Economics, ISSN 0144-6193, E-ISSN 1466-433X, Vol. 28, no 9, p. 905-917Article in journal (Refereed)
    Abstract [en]

    The interest in construction partnering has increased during the last decade. Much research have, however, found that cooperation and its benefits are not easily obtained, partly due to a lack of understanding of the partnering concept and when and how to implement it. The aim is therefore to increase this understanding by investigating three research questions: 1) What is partnering? 2) When should partnering be used and to what extent? 3) How should partnering be implemented? A thorough literature review and four case studies are utilized to develop a definition of partnering and discuss when and how partnering should be implemented through cooperative procurement procedures. Partnering is defined as a cooperative governance form that is based on core and optional cooperative procurement procedures to such an extent that cooperation-based coopetition is facilitated. Mandatory core procedures are: soft parameters in bid evaluation, compensation form based on open books, and usage of the core collaborative tools start-up workshop, joint objectives, follow-up workshops, teambuilding, and conflict resolution techniques. Complementary optional procedures are: early involvement of contractors in concurrent engineering, limited bid invitation, joint selection and involvement of subcontractors in broad partnering teams, collaborative contractual clauses, incentives based on group performance, usage of complementary collaborative tools (e.g. partnering questionnaire, facilitator, joint risk management, joint project office, and joint IT-tools), and increased focus on contractors' self-control.

  • 26.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Procurement and governance management: development of a conceptual procurement model based on different types of control2006In: Management Revue, ISSN 0935-9915, E-ISSN 1861-9908, Vol. 17, p. 30-49Article in journal (Refereed)
  • 27.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Procurement effects on coopetition in client-contractor relationships2008In: Journal of construction engineering and management, ISSN 0733-9364, E-ISSN 1943-7862, Vol. 134, no 2, p. 103-111Article in journal (Refereed)
    Abstract [en]

    Client-contractor relationships are often criticized for being competitive and adversarial, rather than cooperative. The main purpose of this paper is to examine how construction clients' procurement procedures affect the balance between cooperation and competition (i.e., coopetition) in client-contractor relationships. The empirical results, based on a survey to 87 Swedish construction clients, show that clients' procurement procedures facilitate a focus on competition. It was also found that clients' earlier experience of a certain procedure heavily affects their procurement choices, thereby preserving old behaviors. Although two-thirds of the clients wish to increase cooperation with contractors, this does not affect their procurement decisions. This study therefore concludes that the theoretical framework, based on transaction cost economics, is correct in prescribing more cooperation than is empirically observed in the construction sector. The theoretical framework can increase clients' awareness of how procurement affects cooperation and competition, thereby serving as a basis for more unbiased and systematic procurement decisions, facilitating cooperation-based coopetition

  • 28.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Procurement strategies for enhancing exploration and exploitation in construction projects2017In: Journal of Financial Management of Property and Construction, ISSN 1366-4387, E-ISSN 1759-8443, Vol. 22, no 2, p. 211-230Article in journal (Refereed)
    Abstract [en]

    Purpose

    The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.

    Design/methodology/approach

    This paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.

    Findings

    The theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.

    Research limitations/implications

    This paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.

    Practical implications

    From a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.

    Originality/value

    The explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.

  • 29.
    Eriksson, Per-Erik
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Så får Scania fokus på minskat slöseri i byggprocessen2009In: Byggindustrin, ISSN 1104-5981Article in journal (Other (popular science, discussion, etc.))
  • 30. Eriksson, Per-Erik
    et al.
    Atkin, Brian
    Department of Construction Management, Lund Institute of Technology.
    Nilsson, Torbjörn
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Overcoming barriers to partnering through cooperative procurement procedures2009In: Engineering Construction and Architectural Management, ISSN 0969-9988, E-ISSN 1365-232X, Vol. 16, no 6, p. 598-611Article in journal (Refereed)
    Abstract [en]

    Purpose - The purpose of this paper is to report on research into investigating ways in which construction clients can overcome barriers to partnering through the adoption of purposeful procurement procedures within an overall project management context. Design/methodology/approach - Data were collected through interviews, document analysis, surveys and workshops as part of a longitudinal case study using an action-research approach. Findings - Analysis reveals how the early involvement of partners, selected for their long-term perspective and willingness to use collaborative working arrangements, can help to overcome cultural and organizational barriers. Research limitations/implications - The research results are based on empirical study for which reasonable generalisations could be made, albeit cautiously. Clients' implementation of partnering requires an appropriate use of a broad range of suitable procurement procedures that are quite different from more commonly used procedures. Hence, clients need to reassess their procurement procedures and tailor them to different project situations. Additionally, a long-term perspective is crucial in order to facilitate continual improvement over time. Originality/value - The case study data support the analysis of how utilised procurement procedures affect project results.

  • 31.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Dickinson, Michael
    Khalfan, Malik M A
    Client-led subcontractor involvement: A way to increase value creation and innovation?2006In: Construction in the XXI Century: Local and Global Challenges / [ed] Roberto Pietroforte; Enrico De Angelis; Francesco Polverino, Edizione Scientifiche Italiane SpA , 2006Conference paper (Refereed)
  • 32.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Dickinson, Michael
    SCRI Research Centre, University of Salford, Manchester.
    Khalfan, Malik M.A.
    SCRI Research Centre, University of Salford, Manchester.
    The influence of partnering and procurement on subcontractor involvement and innovation2007In: Facilities, ISSN 0263-2772, E-ISSN 1758-7131, Vol. 25, no 5/6, p. 203-214Article in journal (Refereed)
    Abstract [en]

    Purpose - The aim of this paper is to investigate how a client's cooperative procurement procedures influence subcontractor involvement, value creation, and innovation in the construction of complex facilities. Design/methodology/approach - Empirical data were collected through interviews, surveys and participation in workshops during a longitudinal action research case study. The case project was located in Sweden and concerned the construction of plant facilities for manufacturing of pharmaceutical products. Findings - The case study findings reveal that the client's procurement procedures affect the level of subcontractor involvement and integration, but that this does not necessarily result in increased subcontractor value creation and innovation in the construction process. Research limitations/implications - Since the empirical results are based on data collected from only one case project, the possibilities for generalisations are limited. Practical implications - Clients' procurement procedures heavily affect subcontractor involvement, but in order to increase subcontractor contributions to innovation and value creation the actors should adopt a long-term perspective and actively work to establish an innovation-friendly climate. Originality/value - This paper focuses on the often-neglected importance of subcontractors and their contributions to innovation and value creation.

  • 33.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Laan, Albertus
    University of Twente.
    Procurement effects on trust and control in client-contractor relationships2007In: Engineering Construction and Architectural Management, ISSN 0969-9988, E-ISSN 1365-232X, Vol. 14, no 4, p. 387-399Article in journal (Refereed)
    Abstract [en]

    Purpose: To investigate how construction clients currently deal with procurement and analyze how the choices made during the buying process stages affect the combination of governance mechanisms and control types in client-contractor relationships.Methodology/approach: Empirical data was collected through a survey to 87 Swedish construction clients. Findings: Current procurement procedures establish governance forms facilitating a focus on price, through output control, and authority, through process control. Since construction transactions are mostly characterized by high complexity and customization and long duration, the theoretical framework prescribes a focus on trust and a somewhat lower focus on price and authority. Hence, from a transaction cost perspective, construction clients focus too much on price and authority and too little on trust. Since current procedures may cause problems in all stages of the buying process, the result suggests that partnering arrangements, entailing completely different choices during the buying process, may be a suitable way to facilitate trust and cooperation through informal social control.Research limitations/implications - Since the empirical results are based on data collected from only Swedish clients, international generalizations should be made cautiously.Practical implications - Clients wishing to implement trust-based collaborative relationships need to reconsider their procurement procedures entirely; joint objectives, teambuilding and other "fuzzy" techniques are not enough to transform adversarial relationships into cooperative ones.Originality/value - Earlier research has focused on one or a few aspects of procurement and governance, while this paper adopts an overall process perspective, taking into account clients' procurement procedures in their entirety.

  • 34.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Laan, Albertus
    Trust and control in buyer-supplier relationships: How construction clients' procurement procedures affect trust and control in client-contractor relationships2005Conference paper (Refereed)
  • 35.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Larsson, Johan
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
    Pesämaa, Ossi
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Managing complex projects in the infrastructure sector: A structural equation model for flexibility-focused project management2017In: International Journal of Project Management, ISSN 0263-7863, E-ISSN 1873-4634, Vol. 35, no 8, p. 1512-1523Article in journal (Refereed)
    Abstract [en]

    Complex construction projects in the infrastructure sector are often beset with delays, which cause benefit shortfalls and increased costs. Prior project management literature and practice have mostly adopted a traditional control-focused approach, but recent research suggests that complex projects need more flexible practices to manage inevitable project change. Thus, the objectives of this study were to develop and empirically test a model for flexibility-focused project management practices to improve time performance in complex projects in the infrastructure sector. Based on empirical data from 138 construction projects procured and managed by the Swedish Transport Administration, the structural equation model shows that complexity and collaboration drive explorative learning, which improves adaptation and thereby improves time performance. Hence, the empirical test verifies that flexibility-focused project management practices based on collaboration, explorative learning, and adaptation enhance time performance in complex projects in the infrastructure sector.

  • 36.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Larsson, Johan
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
    Szentes, Henrik
    Lund University.
    Reactive Problem Solving and Proactive Development in Infrastructure Projects2019In: Current Trends in Civil & Structural Engineering, ISSN 2643-6876, Vol. 3, no 2Article in journal (Refereed)
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  • 37.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Leiringer, Roine
    Hong Kong University.
    Explorative and exploitative learning in project-based organizations: improving knowledge governance through a project management office?2015In: Engineering Project Organisation Journal, ISSN 2157-3727, Vol. 5, no 4, p. 160-179Article in journal (Refereed)
    Abstract [en]

    Organizational learning, in terms of both explorative learning within projects and exploitative learning across projects, is of strategic importance for project-based organizations (PBOs) in industries involving production of complex product systems (CoPS). In this conceptual article, we discuss and reflect on how organizational learning may be addressed in PBOs by the establishment of formal knowledge governance mechanisms in a project management office (PMO). Prior literature on PMOs has discussed a broad and diverse range of PMO functions, without conceptually reflecting on their interdependencies. Here, we synthesize the literature into seven main functions. From an organizational learning perspective, we identify significant synergies among the functions of Developing and maintaining a lessons-learnt database, Developing and maintaining project management standards and methods, Consulting and education, and Strategic management. We reflect on how a PBO may establish a centralized PMO utilizing these four systemic learning-related functions as knowledge governance mechanisms, in order to facilitate explorative and exploitative learning through articulation and codification of knowledge. There are also synergies among the three remaining functions, project resource management, monitoring and control, and project portfolio management. These three functions are, however, control related and could be detrimental to place within a centralized PMO focusing on organizational learning

  • 38.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Leiringer, Roine
    Hong Kong University.
    Organizational learning in project-based organizations: Facilitating exploration and exploitation through project management offices?2013Conference paper (Refereed)
  • 39.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Leiringer, Roine
    University of Hong Kong, Department of Real Estate & Construction.
    Szentes, Henrik
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
    The Role of Co-creation in Enhancing Explorative and Exploitative Learning in Project-Based Settings2017In: Project Management Journal, ISSN 8756-9728, E-ISSN 1938-9507, Vol. 48, no 4, p. 22-38Article in journal (Refereed)
    Abstract [en]

    We study how co-creation practices influence explorative and exploitative learning in five collaborative construction projects with partnering arrangements. Drawing on a longitudinal case study, our findings reveal two different types of explorative learning processes (i.e., adaptation and radical development) and three different exploitative learning processes (i.e., incremental development, knowledge sharing, and innovation diffusion). Furthermore, co-creation practices enhance adaptation, radical development, and incremental development, which are typical intra-project learning processes. Co-creation practices do not, however, enhance knowledge sharing and innovation diffusion across projects. These findings concur with previous insights that the temporary and one-off nature of projects makes inter-project learning problematic.

  • 40.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Lind, Hans
    Kungliga tekniska högskolan, KTH.
    Strategies for Reducing Moral Hazard in Construction Procurement: A Conceptual Framework2016In: Journal of Self-Governance and Management Economics, ISSN 2329-4175, Vol. 4, no 1, p. 7-33Article in journal (Refereed)
    Abstract [en]

    Moral hazard and opportunism is an inherent part of contracting and procurement strategies, especially in complex transactions that require co-creation, which is often the case in the construction industry. This paper clarifies the meaning of moral hazard in the context of construction procurement. Typically there is a double moral hazard problem, as not only the supplier, but also the client can "misbehave" in a number of ways. It is also important to note that both internal moral hazard (within the client and contractor organizations) and external moral hazard (between client and contractor) must be handled. The aim of this conceptual paper is to give an overview of strategies to reduce the risk of moral hazard. Eight different strategies are identified: 1) "the shadow of the future," promises of future work if effort is high 2) selection mechanism for contractor/employee, 3) length of contract, length of warranties, 4) level of detail in the contract, 5) payment systems, 6) monitoring intensity, 7) social norms, and 8) relation specific investments. These can be grouped into two ideal types; hard/formal and soft/informal strategies, of which the first is most suitable in simple and standardized projects, whereas soft/informal strategies are better in complex and uncertain projects.

  • 41.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Nilsson, Torbjörn
    Atkin, Brian
    Department of Construction Management, Lund Institute of Technology.
    Client perceptions of barriers to partnering2008In: Engineering Construction and Architectural Management, ISSN 0969-9988, E-ISSN 1365-232X, Vol. 15, no 6, p. 527-539Article in journal (Refereed)
    Abstract [en]

    Purpose - The purpose of this paper is to identify critical barriers to partnering, as perceived by construction clients, and the specific measures that are taken to overcome them during implementation. Design/methodology/approach - Empirical data were collected through a survey study of 87 professional construction clients in Sweden. Findings - Clients regard the most critical barriers as those attributable to cultural and organisational aspects. The analysis also shows that clients' perceptions of these barriers do not, in fact, affect their procurement procedures. Two-thirds of clients in the survey wish to increase cooperation with actors in the belief that it will favour project success. Their intention does not have any bearing on their procurement and project management procedures, which are still aligned to competitive bidding. Two potential reasons for this inconsistency are discussed: clients may be unaware of how their procurement procedures affect cooperation, and/or the individual decision maker may not have strong enough incentives to start using new and less familiar procurement procedures even though they are potentially more suitable than traditional procedures. Research limitations/implications - The quantitative data are limited to clients' perceptions of barriers to partnering; a contractor perspective is not included in the survey. Practical implications - The research results can serve as an alert for construction clients that their procurement procedures need to be adapted if they want to achieve the move towards increased cooperation that they say they do. Originality/value - This paper offers a unique analysis of the correlations between desired outcome in the form of increased cooperation, and actual behaviour in the form of procurement procedures.

  • 42.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Olander, Stefan
    Department of Construction Management, Lund University.
    Szentes, Henrik
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Widén, Kristian
    Department of Construction Management, Lund University.
    Managing short-term efficiency and long-term development through industrialized construction2014In: Construction Management and Economics, ISSN 0144-6193, E-ISSN 1466-433X, Vol. 32, no 1-2, p. 97-108Article in journal (Refereed)
    Abstract [en]

    There is a strong need for a productive and innovative infrastructure sector because of its monetary value and importance for the development of a sustainable society. An increased level of industrialization is often proposed as a way to improve efficiency and productivity in construction projects. In prior literature on industrialized construction, there are however neither many studies addressing more long-term aspects of innovation and sustainability nor studies within the infrastructure context. Organizational theory suggests that firms need to be ambidextrous and focus on both long-term exploration of new knowledge and technologies and short-term exploitation of current knowledge and technologies, in order to achieve sustainable development. Therefore, an investigation of how both short-term exploitative performance objectives and long-term explorative development can be addressed when implementing industrialized construction in infrastructure projects was conducted. A case study consisting of four infrastructure projects shows that the main drivers for increased industrialization are of an exploitative nature, focusing on cost savings and increased productivity through more efficient processes. The main barriers to increased industrialization are however related to both explorative and exploitative activities. Hence, by managing the identified barriers and explicitly addressing both exploitation and exploration, industrialized construction can improve both short-term efficiency and long-term innovation and sustainability.

  • 43.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Patel, Pankaj C.
    Villanova University, Villanova School of Business.
    Rönnberg Sjödin, David
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Frishammar, Johan
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Parida, Vinit
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Managing Interorganizational Innovation Projects: Mitigating the Negative Effects of Equivocality Through Knowledge Search Strategies2016In: Long range planning, ISSN 0024-6301, E-ISSN 1873-1872, Vol. 49, no 6, p. 691-705Article in journal (Refereed)
    Abstract [en]

    Equivocality, or divergent interpretations and understandings of tasks and knowledge, has negative effects on performance because it increases conflicts and creates communication and coordination challenges in inter-organizational innovation projects. However, equivocality may also stimulate team members to discuss beliefs and interpretations in ways that provide improved understanding of knowledge and tasks. We theorize that mitigation of negative effects of equivocality on project performance is conditional on explorative or exploitative knowledge search mode. Exploitative search (increasing search depth) allows for rapid learning based on the partners' existing knowledge, but it also limits a team's ability to interpret and combine diverse knowledge. Explorative search (increasing search breadth), on the other hand, allows for novel combinations of diverse knowledge and thereby alleviates the negative effect of equivocality on performance. Based on quantitative data from 251 respondents in 52 heavy-engineering innovation projects in four multinational corporations based in Sweden and from their 29 collaborating partner firms worldwide, we find that equivocality reduces project performance, but that joint explorative search mitigates the negative effect of equivocality on project performance. However, we do not find support for the moderation effect of exploitative search on the relationship between equivocality and project performance. Theoretical and managerial contributions as well as limitations and suggestions for future research are presented

  • 44.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Pesämaa, Ossi
    Department of Entrepreneurship, Management and Organization, Hanken School of Economics, Vasa.
    Buyer-supplier integration in project-based industries2013In: Journal of business & industrial marketing, ISSN 0885-8624, E-ISSN 2052-1189, Vol. 28, no 1, p. 29-40Article in journal (Refereed)
    Abstract [en]

    Purpose - The purpose of the study is to propose and test a buyer-supplier integration model, based on clients’ collaborative purchasing practices, in a project-based industry.Design/methodology/approach - A two-stage survey study of client-contractor relationships in the Swedish construction industry was conducted. The survey rounds in 2006 and 2009 obtained 87 and 106 responses respectively. The proposed model was empirically tested using structural equation modeling techniques. Findings - The empirical results support our proposed model: incentive-based payment and partner selection based on multiple criteria enhance buyer-supplier integration, in terms of joint action. Furthermore, incentive-based payment increases the use of partner selection based on multiple criteria.Research limitations/implications - A useful theoretical contribution is that incentive-based payment is an important type of incentive structure that enhances buyer-supplier integration in project contexts.Practical implications - We also found that the occurrence of joint action has been increasing from 2006 to 2009. Especially, incentive-based payment plays a more important role for establishing joint action in 2009 than in 2006. The recent economic downturn and a recently completed training program targeting the survey population may explain some of the unexpected findings.Originality/value - The paper addresses an identified gap in the relationship marketing literature, that is, the lack of quantitative studies of relationship marketing aspects in project-based industries.

  • 45.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Pesämaa, Ossi
    Modelling procurement effects on cooperation2007In: Construction Management and Economics, ISSN 0144-6193, E-ISSN 1466-433X, Vol. 25, no 8, p. 893-901Article in journal (Refereed)
    Abstract [en]

    Cooperative arrangements, such as partnering, have received increased interest in recent years. Several studies show however that cooperative relationships are not easily achieved in construction. Implementation of cooperative relationships requires changes in several elements of the traditional procurement procedures. The purpose of this paper is therefore to propose and test a sequential model regarding clients' cooperative procurement procedures. We especially ask: what elements in clients' procurement procedures facilitate the establishment of cooperation and trust in their relationships with contractors? The model was tested through structural equation modelling. The empirical data required for the test were collected through a survey responded to by 87 Swedish professional construction clients. The empirical results show that cooperative procurement procedures are triggered by clients' wish to involve contractors early in specification, which has a simultaneous effect on procedures regarding bid invitation and compensation. Furthermore, these simultaneous effects breed a certain kind of partner selection based on task-related attributes, which also has a direct positive effect on trust and above all on cooperation in client-contractor relationships. Besides these implications from the model, the improvement of measurements for future modelling is discussed.

  • 46.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
    Pesämaa, Ossi
    Luleå University of Technology, Department of Social Sciences, Technology and Arts, Business Administration and Industrial Engineering.
    Larsson, Johan
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
    Governing technical and organizational complexity through supply chain integration: A dyadic perspective on performance in infrastructure projects2023In: International Journal of Project Management, ISSN 0263-7863, E-ISSN 1873-4634, Vol. 41, no 4, article id 102479Article in journal (Refereed)
    Abstract [en]

    Despite its declared importance for governing complexity in projects, few empirical studies have studied how different types of supply chain integration (SCI) activities (e.g., coordinative and collaborative integration) interplay and affect performance. To address this gap, the purpose of this paper is to study how complexity can be governed through coordinative and collaborative SCI, and how their interplay affects performance in project-based buyer-supplier relationships. We apply structural equation modeling, using dyadic empirical data from 102 infrastructure projects. The overall results verify our developed model and illuminate how the interplay between contractual and relational governance, in terms of coordinative and collaborative SCI, mediates the effect of technical and organizational complexity on project performance. This study contributes to theory and practice by distinguishing between contractual governance based on formal coordinative SCI and relational governance based on emerged collaborative SCI, as well as showing how their interplay affects performance in project-based supply chains.

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  • 47.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Sjödin, David Rönnberg
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Procurement procedures for supplier integration and open innovation in process development projects2012In: Perspectives on Supplier Innovation: Theories, Concepts and Empirical Insights on Open Innovation and the Integration of Suppliers, Imperial College Press, 2012, p. 405-442Chapter in book (Refereed)
  • 48.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Sjödin, David Rönnberg
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Frishammar, Johan
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Osäkerhet och tvetydighet: problem i investeringsprojekt2013In: Process Nordic, ISSN 1652-0114, p. 8-8Article in journal (Other (popular science, discussion, etc.))
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    fulltext
  • 49.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Szentes, Henrik
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Structural and Construction Engineering.
    Managing exploration and exploitation in construction projects2013In: Proceedings for 7th Nordic Conference on Construction Economics and Organisation / [ed] Ole Jonny Klakegg, Trondheim: Akademika forlag, 2013, p. 451-460Conference paper (Refereed)
    Abstract [en]

    Prior research has shown that companies in various industrial contexts need to achieve both exploitation of current knowledge and technologies to make profits today, and exploration of new knowledge and technologies to adapt to changing conditions and prepare for tomorrow’s demands. The capacity to achieve both exploration and exploitation is especially problematic in project based organizations due to projects’ discontinuous nature. In spite of its theoretical and practical importance, research on exploration and exploitation in projects and project-based organizations is scarce. The purpose of this study is to investigate how exploration and exploitation is managed in construction projects. Empirical data was collected through a multiple case study involving interviews with the client’s project manager, the contractor’s project manager, and the design manager in seven construction projects. Tentative findings show that the project actors often focus more on exploitation than on exploration although they acknowledge the importance of exploration too. However, exploitation often involves adopting conventional methods and solutions based on existing knowledge without any development efforts. Time constraints in tight schedules are hindering both radical innovations and continuous developments. The findings also reveal that explorative solutions must be possible to exploit in the same project. Sufficient project size and/or long-term contracts over a series of projects therefore enhance both investments in explorative activities and exploitation through continuous developments from project to project. Exploration activities are mostly performed in early stages while the focus on exploitation strengthens as the project proceeds. Exploration is often conducted by the contractor or by the client, consultant and contractor together. Hence, in design-bid-build contracts the client and consultant often miss opportunities to explore new technical solutions. Early contractor involvement, (e.g. in Design-build contracts) thereby enable the achievement of both exploration and exploitation

  • 50.
    Eriksson, Per-Erik
    et al.
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.
    Szentes, Henrik
    Luleå University of Technology, Department of Civil, Environmental and Natural Resources Engineering, Industrilized and sustainable construction.
    Managing the tensions between exploration and exploitation in large construction projects2017In: Construction Innovation, ISSN 1471-4175, E-ISSN 1477-0857, Vol. 17, no 4, p. 492-510Article in journal (Refereed)
    Abstract [en]

    Purpose – Prior studies highlight the importance of building ambidextrous capabilities to achieve both exploitation of current knowledge and technologies to make profits today, and exploration of new knowledge and technologies to adapt to and prepare for tomorrow's demands. In spite of its theoretical and practical importance, research on organizational ambidexterity in project-based organizations is scarce. Thus, the purpose of the paper is to study how ambidexterity may be managed and how exploration and exploitation may be achieved in construction projects. The research identifies some drivers and barriers to exploration and exploitation and also sheds light on how various management approaches interact and affect exploration and exploitation activities. Design/methodology/approach – The empirical material is drawn from 40 semi-structured interviews with managers representing the client, the contractor and the designer involved in each of the seven large construction projects in the sample. Findings – In contrast to prior literature in high-tech industries where exploitation focuses on continuous development, exploitation in construction projects often involves adopting conventional methods and solutions based on existing knowledge without any development efforts at all. This may enhance short-term efficiency and lower risk at the project level but increase risk at the firm level. Tight time schedules hinder both radical innovations and incremental developments, and the findings also reveal that to invest in efforts on explorative solutions, it must be possible to exploit the solutions in the same project. Research limitations/implications – In this empirical context, the traditional structural and sequential ambidexterity solutions are not sufficient. In construction projects, contextual ambidexterity solutions in which key project actors collaborate in developing systemic innovations and fine-tuning solutions across projects are more effective. Practical implications – Sufficient project size and/or long-term contracts over a series of projects enhance both investments in explorative activities and exploitation through continuous developments from project to project. In design-bid-build contracts, the client and consultant often miss opportunities to explore new technical solutions that rely on contractor competencies. Early procurement of contractors (e.g. in collaborative design-build contracts) thereby enables the achievement of both exploration and exploitation. Originality/value – This study provides important input to the authors' understanding of how exploration and exploitation may be managed in project-based industries, which has been scarcely studied in previous ambidexterity literature.

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