The Impact of Project Management Strategies on the Acquisition of international Contract - Term Paper Example

THE IMPACT OF PROJECT MANAGEMENT STRATEGIES ON THE ACQUISITION OF INTERNATIONAL CONTRACT Name: Institute: The Impact of Project Management Strategies on the Acquisition of international Contract Background Project management can be utilised as an instrument to make the most out of the project success and in due course the acquisition of international contracts (Adams, 2008). It is therefore meaningful to investigate the aspects that can improve competencies of project management. In this regard, the study will pursue the hypothesis that competencies of project management for acquisition of international contracts are affected by the company strengths/ weaknesses. Arguably, project management and Contract management are integrally connected; thus, the administration of projects classically entails preparation, awarding, and managing contracts for the functionality of the project-connected venture. Effectual contract management is essential to flourishing project management. What’s more, contract management has repeatedly been depicted as “placing the teeth in project control and monitoring”. Undeniably, the close connection flanked by contract management and project management is revealed in both the Annotated Guide to the Contract Management Body of Knowledge (CMBOK) formulated by National Contract Management Association and Guide to the Project Management Body of Knowledge (PMBOK Guide) formulated by Project Management Institute (Patanakul et al., 2012; Söhnchen & Albers, 2010). In essence, the PMBOK Guide comprises an explanation of the knowledge area of procurement while the CMBOK comprises an explanation of project management features of administering contracts. Research Aim The main goal of the study is to investigate the impact of project management strategies on the acquirement of international contracts. Objectives To determine the critical success factors in acquisition of international contracts To establish how international project are characterized and the reason why numerous international projects fail To review the contract as a unique communication instrument To highlight the Contract management organisation structure To outline various Project management standards and the relation with acquisition of international contracts Literature review Effectual project management is a solution for the flourishing achievement of complicated projects. According to Adams (2008), international contracts normally endure ambiguity due to scarcities in wherewithal and the nature of the contract. The aspects that are favourable to thriving project management will be profusely conferred in the literature review. For instance, Yeheskel et al. (2004) propose that the aspects of achievement in project management comprise dedication to finish the project, appropriate preparation of the project activities, employment of an accomplished project manager, sufficient description of the project, sufficient data flow, being open to modernisms, and room of recurrent alterations, rewarding the staff. The setting wherein the contract project occurs must be taken into consideration given that the application of the suitable administration methods adds to triumphant project management. Nearly all literature seems to stress on the project-related aspects at the expense of the corporate connected aspects like a corporation’s wherewithal and abilities, its premeditated resolutions, and the potency of its connection with other parties (Olsson, 2006). It is worth noting that a corporation is a business organisation that braces the numerous projects carried out by the corporation, usually in distinct geographical localities and managed by rather independent project managers, but depending profoundly on the head office assistance. From that context, every international contract is to some extent affected by the culture and policies of the core corporation organisation. Numerous international companies ought to be mindful of both their strengths and weaknesses so as to prevail over the challenges of ever increasing competition. Yet, the insubstantial nature of business level attributes makes it complex to allocate them as strengths and weaknesses (Meng & Gallagher, 2012). In the idiom of conventional tactical examination, a corporation’s resources and capabilities are the core pillars that organisations can employ to conjure up and enforce their strategies. An organisation’s resources and capabilities may possibly be described as its touchable and insubstantial resources. They comprise the organisation’s technological competencies, fiscal resources, management attributes, experience, as well as reflection on the production, development and research capabilities, and novelty propensities. According to Meng and Gallagher (2012) fiscal resources point out the corporation’s reliability and status in the midst of suppliers and customers in addition to its power in acquisition of international contracts based on its ability to complete projects. Wang et al. (2011) posit that having well-built fiscal resources may possibly facilitate an organisation to get into more precarious circumstances which sequentially have upper advantages. The economic power of an organisation is pointed out by productivity and earnings and in general by the proportion of the organisation’s liabilities to equities. Fundamentally, nearly all international projects are financed by the project owner who pays the service provider sporadically, who consecutively pays the suppliers, the subcontractors, and other project parties for services delivered. The achievement of this practice relies on the economic power of the contractor and project owner (Chen et al., 2013). Another project management strategy that affects acquisition of international contracts is technical competency. Which according to Patanakul et al. (2012) refer to the material assets of a corporation like mechanism and paraphernalia as well as the technological knowledge extent accessible that is essential to carry out detailed projects. According to Söhnchen and Albers (2010) project management theory, rewarding technical requirements is among the main aspects in the accomplishment of successful project. According to Meng and Gallagher (2012), an organisation’s technical capability can be examined by evaluating the corporation’s ideal operation techniques, the knowledge of its technological employees, the efficiency and tempo of its operation activities and the quality of the corporation’s production. In essence, management entails formulating and communicating undertaking, vision, and significances to the organisation members. A prosperous management is projected to generate a setting for modernism, empowerment, education, and support. Yeheskel et al. (2004) analyzed the connection amid management styles and functionality, whereby they stressed the value of a manager as a main determinant in achievement or failure in acquisition of international contract. Arguably, the unconstructive outcomes of external aspects in a project setting can be lessened by the training and furnishing of managers with diverse dexterities. Companies need management for all their actions and decisions; thus, knowledge can be attained just if the lessons attained from finished projects are reserved in the managerial memory and employed in upcoming projects. However, managerial education is complicated for many organisations due to the disjointed and project-established framework of the industry (Wang et al., 2011). Methodology The study will pursue a qualitative research, which will employ to survey and recognize individual’s viewpoint, practices, feelings, and views on the impact of project management strategies on the acquisition of international contract. In addition, qualitative research methods, such as comprehensive interviews and focus groups will be employed in rarity projects accredited by principle development groups will be performed to discern the knowledge on the impact of project management strategies on the acquisition of international contract. Furthermore, the research study will pursue semi-structural expert interviews, which are interview conducted with a moderately open framework that permits concentrated, informal, and mutual communication. In this regard, not all questions will be phrased and designed beforehand. Nearly all of the questions will be created during the interview, allowing both the respondent and the interviewer the suppleness to go into details when essential. To accomplish in performing a high-class semi-structured interview, the study will plan a thoughtful planning, which includes identifying respondents, deciding on the number of interviews to conduct and setting up interviews. Furthermore, computer-based SPSS version 14 software will be used to fortify the results accuracy, data from the survey. Tools and Constraints The required sources include academic libraries where existing literatures can be retrieved and computing, laboratory equipment that can run SPSS software will be used to fortify the results accuracy. Based on constraints, there exist few literatures that explain the impact of project management strategies on the acquisition of international contract. Projected Time-line  Research Plan and Timetable Activities From To Select topic August Literature review Preliminary field work Preliminary research Develop research question Field works Complete draft proposal Develop research methods  Revise proposal Approval of proposal August Data collection August September Data analysis September October  Finish first draft of paper October Submit revised draft November Thesis writing November December Publications December Thesis submission December Expected results Beyond the achievement criterion usually outlined in preceding study on project management, the substantial impact of company strengths/weaknesses to acquisition of international contracts is expected to be verified by the finding of this study. This finding will supplement a distinct viewpoint to achievement criterion in project management, which will be predominantly significant given that international contracts are largely project-based. Anchored in the study findings, it can be affirmed that organisations must change their enduring strategies, their resources and capabilities, and their relations with other parties in order to be in apposition of acquiring international contract. Without a doubt, in the vibrant setting of the international completion, companies have to act intuitively so as to continue to exist. Sufficient management qualities must be attained as well as being open to modernism and promoting research and its progress creates an extra advantage in acquisition of the international contract. References Adams, F. K. (2008). Risk perception and Bayesian analysis of international construction contract risks: The case of payment delays in a developing economy. International Journal of Project Management , 26 (2), 138-148. Chen, C.-Y., Chen, P.-C., & Lu, Y.-E. (2013). The coordination processes and dynamics within the inter-organisational context of contract-based outsourced engineering projects. Journal of Engineering and Technology Management , 30 (2), 113-135. Meng, X., & Gallagher, B. (2012). The impact of incentive mechanisms on project performance. International Journal of Project Management , 30 (3), 352-362. Olsson, N. O. (2006). Management of flexibility in projects. International Journal of Project Management , 24 (1), 66-74. Patanakul, P., Shenhar, A. J., & Milosevic, D. Z. (2012). How project strategy is used in project management: Cases of new product development and software development projects. Journal of Engineering and Technology Management , 29 (3), 391-414. Söhnchen, F., & Albers, S. (2010). Pipeline management for the acquisition of industrial projects. Industrial Marketing Management , 39 (8), 1356-1364. Wang, L., Yeung, J. H., & Zhang, M. (2011). The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty. International Journal of Production Economics , 134 (1), 114-122. Yeheskel, O., Newburry, W., & Zeira, Y. (2004). Significant differences in the pre- and post-incorporation stages of equity international joint ventures (IJVs) and international acquisitions (IAs), and their impacts on effectiveness. International Business Review , 13 (5), 613-636. Read More