Beyond Project Closure: Why Some Business Relationships Recur in Subsequent Projects

While a project design provides several managerial advantages within the project life cycle, there are numerous challenges regarding its long-term effects. The aim of this article is to increase our knowledge on the continuity aspect of the project form of organizing, and especially the recurrence of project-based business relationships in subsequent projects. Focusing on the role of network relationships in leveraging between projects, we investigate the reasons for relationship recurrence. Based on a longitudinal case study of three construction projects, our results show that in addition to terminated and dormant relationships after project closure there are recurring relationships, which, unlike the others, do not need reactivation.

[1]  Jörg Sydow,et al.  Project Networks: Governance Choices and Paradoxical Tensions , 2016 .

[2]  K. Möller,et al.  How to build a strategic network: a practitioner-oriented process model for the ICT sector , 2012 .

[3]  Daniel Z. Levin,et al.  Dormant Ties: The Value of Reconnecting , 2011, Organ. Sci..

[4]  Andrew D. Pressey,et al.  Buyer‐supplier relationship dissolution: the Chinese context , 2007 .

[5]  Bart Cambré,et al.  Managing the project learning paradox : a set-theoretic approach toward project knowledge transfer , 2011 .

[6]  Rolf A. Lundin,et al.  Editorial : Temporary Organizations and Project Management , 1995 .

[7]  H. Håkansson,et al.  Learning in Networks , 1999 .

[8]  A. Davies,et al.  Organisational capabilities and learning in complex product systems: towards repeatable solutions , 2000 .

[9]  S. Helm,et al.  Suppliers' willingness to end unprofitable customer relationships: An exploratory investigation in the German mechanical engineering sector , 2006 .

[10]  Maria Holmlund,et al.  Seller‐initiated relationship ending , 2009 .

[11]  Mian M. Ajmal,et al.  Knowledge Transfer in Project-Based Organizations: An Organizational Culture Perspective , 2008 .

[12]  Gd Wood,et al.  Main contractor experiences of partnering relationships on UK construction projects , 2005 .

[13]  Udo Staber,et al.  The Institutional Embeddedness of Project Networks: The Case of Content Production in German Television , 2002 .

[14]  D. Ford,et al.  Interaction, relationships and networks in business markets: an evolving perspective , 1996 .

[15]  Thomas Ritter,et al.  Organizational relationship termination competence: A conceptualization and an empirical test , 2011 .

[16]  D. Harrison Is a Long-term Business Relationship an Implied Contract? Two Views of Relationship Disengagement , 2004 .

[17]  Stephan Manning,et al.  Projects, paths, and practices: sustaining and leveraging project-based relationships , 2011 .

[18]  R. Gulati Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances , 1995 .

[19]  Rick Delbridge,et al.  Overcoming Network Overload and Redundancy in Interorganizational Networks: The Roles of Potential and Latent Ties , 2012, Organ. Sci..

[20]  M. Houston,et al.  Distinguishing supplier reputation from trust in buyer–supplier relationships , 2010 .

[21]  Lynn Crawford,et al.  Fundamental uncertainties in projects and the scope of project management , 2006 .

[22]  Johann Packendorff,et al.  INQUIRING INTO THE TEMPORARY ORGANIZATION: NEW DIRECTIONS FOR PROJECT MANAGEMENT RESEARCH , 1995 .

[23]  Ian Wilkinson,et al.  The principle of the conservation of business relationship energy: or many kinds of new beginnings , 2002 .

[24]  Jack Steven Goulding,et al.  Construction innovation and process improvement , 2012 .

[25]  Henrik Linderoth,et al.  The influence of contextual elements, actors’ frames of reference, and technology on the adoption and use of ICT in construction projects: a Swedish case study , 2010 .

[26]  Andrew Davies,et al.  Building Project Capabilities: From Exploratory to Exploitative Learning , 2004 .

[27]  Anders Söderholm,et al.  Beyond Project Management: New Perspectives on the temporary – permanent dilemma , 2002 .

[28]  Hans Solli-Sæther,et al.  Strategic and Cultural Misalignment: Knowledge Sharing Barriers in Project Networks , 2015 .

[29]  M. Hyman,et al.  Inactivity and the dynamics of relationship development: a proposed model , 2010 .

[30]  O. Williamson,et al.  The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. , 1986, American Political Science Review.

[31]  Anders Söderholm,et al.  A theory of the temporary organization , 1995 .

[32]  Gernot Grabher Learning in Projects, Remembering in Networks? , 2004 .

[33]  Aino Halinen,et al.  A process theory of relationship ending , 2002 .

[34]  Lena E. Bygballe,et al.  Partnering relationships in construction: a literature review , 2010 .

[35]  S. Helm,et al.  Basking in reflected glory: Using customer reference relationships to build reputation in industrial markets , 2010 .

[36]  Bente R. Løwendahl Organizing the Lillehammer Olympic Winter games , 1995 .

[37]  H. Håkansson,et al.  Developing relationships in business networks , 1995 .

[38]  Lars-Erik Gadde,et al.  The construction industry as a loosely coupled system: implications for productivity and innovation , 2002 .

[39]  Timo Braun,et al.  Projects as temporary organizations: An agenda for further theorizing the interorganizational dimension , 2018 .

[40]  Jack R. Meredith,et al.  Project Management: A Managerial Approach , 1989 .

[41]  Kenneth H. Rose A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition , 2013 .

[42]  Carolina Camén,et al.  To trust or not to trust? Formal contracts and the building of long‐term relationships , 2011 .

[43]  Andreas Schwab,et al.  Learning in Hybrid-Project Systems: The Effects of Project Performance on Repeated Collaboration , 2008 .

[44]  Virpi Havila,et al.  Managing Project Ending , 2008 .

[45]  Torbjörn Stjernberg,et al.  Design and implementation in major investments -- A project network approach , 1995 .

[46]  M. Engwall No project is an island: linking projects to history and context , 2003 .

[47]  Annika Tidström,et al.  The process of ending inter‐organizational cooperation , 2006 .

[48]  Christopher J. Medlin,et al.  Project-ending competence in premature project closures , 2013 .

[49]  Jonas Söderlund,et al.  The Oxford Handbook of Project Management , 2011 .

[50]  Jaana Tähtinen,et al.  Business relationships facing the end: why restore them? , 2006 .

[51]  Rene M. Bakker,et al.  Temporary Organizing: Promises, Processes, Problems , 2016 .

[52]  Jack Steven Goulding,et al.  Construction Innovation and Process Improvement: Akintoye/Construction Innovation and Process Improvement , 2012 .

[53]  Stephen Emmitt,et al.  Construction Innovation: Addressing the Project-Product Gap in the Swedish Construction Sector , 2013 .

[54]  Paul Coughlan,et al.  Managing collaborative relationships in a period of discontinuity , 2003 .

[55]  Risto T. Salminen,et al.  Practices and functions of customer reference marketing — Leveraging customer references as marketing assets , 2010 .

[56]  Bernard Cova,et al.  Shaping Projects, Building Networks , 2011 .

[57]  Lars-Gunnar Mattsson,et al.  Discovering market networks , 2006 .

[58]  A. Holma,et al.  Conceptualizing inter-organizational triads , 2016 .

[59]  Geoff Easton,et al.  Industrial Networks: A New View of Reality , 1992 .

[60]  Gernot Grabher,et al.  Knowledge transfer across projects: Codification in creative, high-tech and engineering industries , 2012 .

[61]  Lars-Erik Gadde,et al.  Supply strategy and network effects — purchasing behaviour in the construction industry , 2000 .

[62]  H. Håkansson,et al.  No business is an island: The network concept of business strategy , 1989 .

[63]  Amjad Hadjikhani,et al.  The impact of discontinuity on firms' business relationship behaviour , 2012 .

[64]  H. Håkansson International Marketing and Purchasing of Industrial Goods: An Interaction Approach , 1982 .

[65]  Matti Vartiainen,et al.  Managing knowledge and knowledge competences in projects and project organisations , 2003 .

[66]  Reavis Cox,et al.  Marketing of Housebuilding Materials , 1956 .

[67]  S. Manning Embedding Projects in Multiple Contexts: A Structuration Perspective , 2010 .

[68]  Amjad Hadjikhani,et al.  Project marketing and the management of discontinuity , 1996 .