TY - JOUR
T1 - Overcoming the principal-agent problem
T2 - The need for alignment of tools and methods in collaborative project delivery
AU - Nwajei, Una Obiose Kriston
AU - Bølviken, Trond
AU - Hellström, Magnus Mikael
PY - 2022/10
Y1 - 2022/10
N2 - Despite the focus on collaborative project delivery models (CPDMs) in the construction industry, it remains unclear how it promises bases for delivering better value for money than many traditional models. In view of the importance of knowledge about CPDM delivery, this study aims to explore governance mechanisms that underline the relationship between principal and agent and how this relationship is impacted by the alignment of organisational tools and methods. We argue that there is an interrelationship between agency theory and stewardship theory that provides an important theoretical foundation for CPDMs; additionally, alignment of organisational tools and methods can contribute to overcoming the principal-agent problem in projects if aligned with the functions in CDPMs. An empirical analysis of an exploratory case study supports these assumptions and highlights how CPDM's success can occur through removing and reducing the fundamental principal-agent problem and illustrates the performance and dangers of CPDM tools. Our findings deepen the theoretical understanding of CPDM delivery and provide new insights into the strategic fit in CPDMs alignment in projects.
AB - Despite the focus on collaborative project delivery models (CPDMs) in the construction industry, it remains unclear how it promises bases for delivering better value for money than many traditional models. In view of the importance of knowledge about CPDM delivery, this study aims to explore governance mechanisms that underline the relationship between principal and agent and how this relationship is impacted by the alignment of organisational tools and methods. We argue that there is an interrelationship between agency theory and stewardship theory that provides an important theoretical foundation for CPDMs; additionally, alignment of organisational tools and methods can contribute to overcoming the principal-agent problem in projects if aligned with the functions in CDPMs. An empirical analysis of an exploratory case study supports these assumptions and highlights how CPDM's success can occur through removing and reducing the fundamental principal-agent problem and illustrates the performance and dangers of CPDM tools. Our findings deepen the theoretical understanding of CPDM delivery and provide new insights into the strategic fit in CPDMs alignment in projects.
KW - Agency theory
KW - Collaborative project delivery model
KW - Integrated project delivery
KW - Principal-agent
KW - Stewardship theory
KW - Tools
U2 - https://doi.org/10.1016/j.ijproman.2022.08.003
DO - https://doi.org/10.1016/j.ijproman.2022.08.003
M3 - Article
SN - 0263-7863
VL - 40
SP - 750
EP - 762
JO - International Journal of Project Management
JF - International Journal of Project Management
IS - 7
ER -