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John Wiley & Sons, Ltd.
Project Management Journal, Vol. 41, No. 4, 59â78
© 2010 by the Project Management Institute
Published online in Wiley Online Library
(wileyonlinelibrary.com). DOI: 10.1002/pmj.20194
PAPERS
The Dynamics of Collaboration in Multipartner Projects
Perttu Dietrich, Department of Environmental and Business Economics, University of Southern Denmark, Esbjerg, Denmark
Pernille Eskerod, Department of Environmental and Business Economics, University of Southern Denmark, Esbjerg, Denmark
Darren Dalcher, National Centre for Project Management, Middlesex University, London, United Kingdom
Birinder Sandhawalia, National Centre for Project Management, Middlesex University, London, United Kingdom
ABSTRACT
In many project-based industries, there has recently been an increased tendency for collaboration and cocreation of value with the customers. However, many existing studies report inherent challenges and complexities related to multipartner collaboration. This article presents a conceptual framework that explains the focal collaboration-related elements and their interdependencies in multipartner projects. The elements in the framework and relations between them are derived from the existing empirical studies and theoretical literature on collaboration, knowledge integration, and project success. Based on the conceptual analysis of the extant literature, we identify eight collaboration antecedents and three collaboration outcome elements. The conceptual framework explains how two collaboration mediators, project-collaboration quality and knowledge-integration capability, relate collaboration antecedents with collaboration outcomes. In addition, based on the literature analysis, we identify 15 mechanisms that enhance the project-collaboration quality in multipartner projects. The article provides novel insights on the dynamics of collaboration in multipartner projects by offering the concepts of project-collaboration quality and knowledge-integration capability and explaining their role in collaborative projects.
KEYWORDS: multipartner projects; collaboration; knowledge integration; high-performance teams; integration mechanisms
INTRODUCTION
In many industries, the key to success lies in the ability to attract and accomplish projects (Brady & Davies, 2004; Crawford, 2006; Söderlund, 2008; Turner, Ledwith, & Kelly, 2009). In some domains, attracting and accomplishing projects requires that a number of partners work together. A typical example is in the construction sector: GlĂŒckler and ArmbrĂŒster (2003) state that construction is characterized by significant coproduction of outputs. Furthermore, many organizations within the sector are reported to be reacting to the demand from clients for an integrated construction process that expands the value chain of the project, resulting in a whole life cycle of constructionâthat is, development, completion, and operations being taken into consideration (Van Sante, 2009).
The long-term, integrated construction process demanding multiple services in an increasingly global world has made it widely recognized that engineering consultancy companies as well as construction companies enter into various kinds of cooperation arrangements in order to create value together (Damgaard & Eskerod, 1998; Dyer & Nobeoka, 2000). Such cocreation of values enables companies to overcome a lack of competencies and resource scarcity in the bidding process, as well as in the project process. In other words, the conditions in the construction sector often require extensive interfirm collaboration.
Unfortunately a recent European industry review report concluded that the construction sector (when compared to other sectors) is characterized by high costs resulting from failure (Van Sante, 2009). The report suggests that âlower failure costs [can be obtained] by involving construction companies at an early stageâ (p. 22).
The construction sector is not unique. Demands for interfirm collaboration also exist in many other project-based industries, for example, in a high-technology industry such as the semiconductor industry, where the competition is intense and the work increasingly complex (Daniel & Davis, 2009). Indeed, a typical approach to reducing risk and uncertainty in complex environment is through the creation of collaborative ventures that share some of the risks while benefiting from the pooled expertise.
A project accomplished by multiple partners can be seen as a knowledge collective, which is characterized by cross-disciplinary, loosely coupled groups with a minimal common knowledge base (Lindkvist, 2005). Project-based collaboration, often spanning across national borders and between organizations, is challenging due to a multitude of reasons, including the fact that the actors belong to different communities of practice (Lave & Wenger, 1991) and the temporary nature of alliances that are formed to deliver new outputs together. Farris and Cordero (2002) further state that due to the increasing complexity and diversity of the technical workforce, workplace tensions for scientists and engineers are likely to increase in the future.
Even though both project management literature and team performance literature are rich in research and advice on how to create high-performing teams, there is very little work concerned with the factors behind high-performing collaborations between partners leading to knowledge integration in a project setting. A key aim of this article is to determine factors influencing collaboration in multipartner projects. By this we attempt to fill a gap in the literature on a phenomenon that seems to become increasingly more relevant in empirical settings.
In order to accomplish a multipartner project, the partners must be willing and able to share knowledge. Integration of knowledge possessed by the various partners is an essential part of the project work. We posit that knowledge-integration capability is an important element of high-performing collaboration in a project context. Therefore, literature on knowledge-integration practices will be examined and integrated into the proposed model.
In the next section of this article, we discuss relevant concepts from the existing literature. Thereafter, the research question and the research method are presented. In the following sections, we introduce the novel concepts of knowledge-integration capability and collaboration quality. Furthermore, we discuss elements related to collaboration outcomes. We also report on a literature study in which we have identified collaboration antecedents, meaning factors that have been proven in empirical studies to have a direct effect on the quality of collaboration. This section is followed by two discussion sections on relationships between the various elements. We subsequently synthesize the literature study and the discussions by offering a conceptual model for collaboration in multipartner projects. Hypotheses related to the model can be found in Appendix A. Further, we point to examples of mechanisms for improving knowledge-integration capability and project-collaboration quality. In addition, we indicate the limitations of the article and conclude by identifying propositions for further research.
Interorganizational Collaboration in Projects
Collaboration is a recursive process where people or organizations work together in an intersection of common goals by sharing knowledge, learning, and building consensus. In collaboration processes, individuals or organizations create relationships. The nature of a relationship may vary depending on its strength (Granovetter, 1973). Relationships in which organizations operate in truly collaborative mode to achieve a common goal or gain mutual benefits are also called embedded relations and are generally characterized by trust and commitment (Uzzi, 1997).
Recently, several studies have been conducted on interorganizational collaboration in project-based organizations (Ahola, 2009; Eloranta, 2007) in which the transactions between organizations are executed through projects. This type of organizing is characteristic of several industries, such as shipbuilding (Ahola, 2009), oil and gas (Olsen, Haugland, Karlsen, & HusÞy, 2005), construction (Bresnen, 2007), sports and events (Larson & Wikström, 2007), and consulting (Jang & Lee, 1998).
Collaboration between different actors in project-based industries is viewed as the key success factor in projects (Gransberg, Dillon, Reynolds, & Boyd, 1999; Vaaland, 2004). Existing research on collaboration between project actors often focuses on customer-supplier relations. For example, several studies have examined the role and process of partnering in construction projects (e.g., Bresnen, 2007; Errasti, Beach, Oyarbide, & Santos, 2007). Prevalent research indicates that collaboration between customer and supplier reduces the costs of controlling, decreases the probability of failure, and creates potential for innovations and learning (Ahola, 2009; Dubois & Gadde, 2000; Ingram & Baum, 2001). In addition, in-depth empirical studies have been executed to understand other essential relations between different project actors and their effect on the project performance (Ahola, 2009; Artto, Eloranta, & Kujala, 2008). For example, Ahola (2009) studied the role of interorganizational relationships in project implementation in the shipbuilding industry. The results of the study indicate that a high degree of trust and dependence in interorganizational relationships seems to moderate the negative effects of unforeseen critical incidents.
In addition to the numerous benefits related to collaborative relations, collaboration also has distinct cost effects, depending on the level and type of collaboration exercised. The costs of collaboration emanate from the activities pursued to enhance the exchange of information and resolve conflicts between interdependent actors (Rice, 1992). Moreover, the establishment of collaborative relationships between organizations in project-based industries involves several challenges emanating from the three special characteristics of project business: discontinuity of demand, uniqueness of project transactions, and complexity of the actor network (Skaates & Tikkanen, 2003). The discontinuity of demand is related to the temporally limited nature of projects that creates pressure for a supplying actor to enforce the continuation of the business. The temporal nature of project transactions inherently complicates the emergence of long-term collaborative relations between project actors. In addition, discontinuity of demand for projects is shown to lead to awkwardness in establishing trust and commitment between the actors (Eloranta, 2007). Moreover, due to the discontinuous nature of business transactions, the willingness of customer organizations to engage in a collaborative business relationship with the suppliers depends on the success of the singular project (Hadjikhani, 1996).
The uniqueness of the project transactions can inhibit learning from projects and, therefore, can be seen as a counterforce that prevents efficiency in project-based operations. The uniqueness of goals and the social structure in projects also creates a need for a knowledge-integrator role that ensures that the specialized and unique constellation of knowledge possessed by the collaborating actors will be integrated to achieve a common goal (Davies, 2004). Finally, the network of actors with divergent objectives and incentives in the multipartner project constitute challe...
