A worked example is presented to illustrate how the IAD framework can work for this purpose. It does so through the dynamic formation of action situations that incentivise and nurture the desirable capabilities for collaborative practice. This Chapter explores the potential of Ostrom's Institutional Analysis and Development (IAD) framework as an actionable theory in guiding safety capability development for integrated project delivery (IPD). This study not only contributes to the literature on project governance and project value, but also provides practical guidance for emerging MIPs worldwide. Following the results, we establish a conceptual framework for the governance of value creation in a project client organization of MIPs. Based on an in-depth case analysis of the Beijing Daxing International Airport, we found that the project client adopted the three different governance arrangements of vertical blended integration, dynamic matrix integration, and continuous coupling to govern project activities, operational preparation activities, and their interplay, respectively likewise, the hybrid values of project management value, business value, and public value were created. Although research efforts have been devoted to understanding value creation in MIPs, scarce attention has been focused on the question of how a project client governs project activities, operational preparation activities, and their interplay to create value in MIPs. The sustainability of MIPs emphasizes the need to take the value creation view to scrutinize MIP practices, which calls for a deeper understanding of the value creation process of MIPs. Sustainability, therefore, has become a critical concern for MIPs. Major infrastructure projects (MIPs) are growing rapidly worldwide and have a “double-edged-sword” effect on the economy, society, and environment. We discuss and expand these findings by engaging with theoretical ideas from project studies, and mainstream strategy, organisation, and management research to induce a dynamic model that can be helpful to guide future research, policy and management practices relating to the client side management of project capabilities.
Through an inductive theory building approach drawing upon semi-structured interviews with client-side project leadership, internal documents, publicly available data and ongoing engagement with the field, we identified three key capability-enabling mechanisms that help explain the genesis of project capabilities in inter-organisational settings: (1) reconfiguring project capabilities, (2) adapting project capabilities and (3) maintaining project capabilities. The empirical enquiry takes place in the context of the delivery of London Heathrow Terminal 2. This study seeks to apply theoretical work on project capabilities to the domain of infrastructure project delivery in order to understand how the assembly of project capabilities in temporary inter-organisational settings contributes to the delivery of operational outcomes. Although work on project capabilities is a fast-growing line of inquiry, little is still known about how clients assemble project capabilities to achieve operational outcomes in inter-organisational settings. Project and strategic management scholarship recognises the importance of project capabilities that allow firms to deliver projects.
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