Developing a program organization framework for the success of construction megaprojects in China

Abstract

Over the past two decades, a growing number of construction megaprojects have emerged in China because of rapid urbanization and economic development. However, managing these megaprojects not only faces increasing internal complexities as a result of large size, dispensed executions, high technical complexity and numerous participants involved in the megaprojects, but also the external complexities caused by the transition of economic, political, social and cultural contexts in the country. Thus, program management is increasingly being supported as a pragmatic and contextual means of managing megaproject complexities and ensuring megaproject success. This study aims to develop a pragmatic and integrated framework of program organization for construction megaproject success from the client perspective based on the case study of Shanghai Expo construction. A mixed research methodology is adopted in this study, including literature review, interviews, Delphi survey, and fuzzy synthetic evaluation (FSE). To construct the theoretical background used in this study, the history, definitions, problems, perspectives, developments and directions of construction megaproject research are first presented. Reviewed literature reveals that megaproject organization is an essential subject and a key to megaproject success in megaproject research. The applicability of the program management approach in managing construction megaprojects from the viewpoints of academics and professionals is then examined. Developments and trends in program management research were also reviewed. The review results confirmed the usefulness of the program management approach for clients in constructing high-performing execution organizations and the achievement of megaproject success. An integrated conceptual framework was then formulated based on literature review, and was elaborated by interviewing experts on megaproject practices. The integrated conceptual framework consists of 24 program organizational factors (POFs). A two-round Delphi survey was also conducted to identify principal POFs in managing construction megaprojects. Eleven principal POFs were identified as (1) contextual understanding, (2) program strategy, (3) program leadership, (4) program governance, (5) matrix organizational structure, (6) program management office, (7) use of project breakdown structure/work breakdown structure, (8) partnership with key stakeholders, (9) technology management, (10) communication management, and (11) team building. The Principal POFs were grouped under three categories: environmental capability, core capacity, and motivational capability. A program organizational performance index (POPI) is also developed to assess the effect of a client program organization on its corresponding megaproject performance. The FSE model is considered as the most suitable technique for establishing the POPI model. Shanghai Expo construction illustrated the application of the POPI in a particular case study. Fuzzy membership function, a core component in fuzzy theory, assessed the effect of the 11 principal POFs against each of the four selected key performance indicators (KPIs). The four KPIs include time, cost, functionality and quality, and occupational health and safety. A quantitative method is derived from the four KPIs to assess the performance of the established client program organization in the management of a particular megaproject. Performance of the program organization consists of 11 principal POFs can be quantified objectively by the megaproject clients. An FSE model is finally developed using weighted mean method, which aggregates the measured overall performance of the 11 principal POFs against the selection criteria. FSE analysis results indicate that the client program organization contributed significantly to the accomplishment of the four key objectives. The POPI model not only enables clients to tailor the construction of their program organizations for managing a particular megaproject, but is also useful in optimizing the operation of principal POFs within the organizations with regard to megaproject KPIs. This study is the first attempt to develop an integrated and pragmatic framework of program organization for managing construction megaprojects in China. The framework is developed based on a single case study. However, the findings can provide a better understanding of program management and relevant guidelines in managing construction megaprojects. Findings can also pave the way for future research on construction megaprojects in other countries.