Impact of Institutional Pressures on External Program Manager Involvement: Evidence from Large Projects in China
Publication: Journal of Construction Engineering and Management
Volume 148, Issue 9
Abstract
External program manager involvement can provide professional and systematic management services to owners. It can help to manage and coordinate different subprojects and ensure the achievement of the overall strategic goals of large projects. The promotion of external program manager involvement is not only efficiency-driven, but the institutional environment also has a significant impact. This study developed a theoretical model to explain how external program manager involvement is influenced by external institutional forces (coercive, mimetic, and normative pressures) and internal top management support. Based on a questionnaire survey, this study tested the research model through partial least-squares structural equation modeling. The empirical results revealed that coercive pressures have no significant impact on external program manager involvement; owners’ top management support acts as a complete mediator between the mimetic pressures and external program manager involvement; normative pressures have the greatest impact on top management support and external program manager involvement, and top management support plays a key but partially mediating role. A direct contribution of this study is to reveal how different types of isomorphic pressures can be better exercised to facilitate the involvement of external program managers. Going further, by incorporating both external institutional pressures and internal top management support into the research model, this study provides insight into how organizations are influenced by external institutions to apply tools or approaches internally.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
Acknowledgments
The work described in this paper was funded by the National Natural Science Foundation of China (Grant Nos. 71971157 and 71871164), Shanghai Jiao Tong University Chinese Hospital Development Institute Key Project Grant (CHDI-2021-C-02), and the China Scholarship Council (Grant No. 202106260232).
References
Artto, K., M. Martinsuo, H. G. Gemünden, and J. Murtoaro. 2009. “Foundations of program management: A bibliometric view.” Int. J. Project Manage. 27 (1): 1–18. https://doi.org/10.1016/j.ijproman.2007.10.007.
Bagozzi, R. P., and Y. Yi. 1988. “On the evaluation of structural equation models.” J. Acad. Marketing Sci. 16 (1): 74–94. https://doi.org/10.1007/BF02723327.
Berrone, P., A. Fosfuri, L. Gelabert, and L. R. Gomez-Mejia. 2013. “Necessity as the mother of ‘green’ inventions: Institutional pressures and environmental innovations.” Strategies Manage. J. 34 (8): 891–909. https://doi.org/10.1002/smj.2041.
Bhakoo, V., and T. Choi. 2013. “The iron cage exposed: Institutional pressures and heterogeneity across the healthcare supply chain.” J. Oper. Manage. 31 (6): 432–449. https://doi.org/10.1016/j.jom.2013.07.016.
Branzei, O., T. J. Ursacki-Bryant, I. Vertinsky, and W. Zhang. 2004. “The formation of green strategies in Chinese firms: Matching corporate environmental responses and individual principles.” Strategies Manage. J. 25 (11): 1075–1095. https://doi.org/10.1002/smj.409.
Cai, S., M. Jun, and Z. Yang. 2010. “Implementing supply chain information integration in China: The role of institutional forces and trust.” J. Oper. Manage. 28 (3): 257–268. https://doi.org/10.1016/j.jom.2009.11.005.
Cao, D., H. Li, and G. Wang. 2014. “Impacts of isomorphic pressures on BIM adoption in construction projects.” J. Constr. Eng. Manage. 140 (12): 4014056. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000903.
Chi, C. S. F., I. Ruuska, and J. Xu. 2016. “Environmental impact assessment of infrastructure projects: A governance perspective.” J. Environ. Plann. Manage. 59 (3): 393–413. https://doi.org/10.1080/09640568.2015.1013623.
Cui, L., and F. Jiang. 2012. “State ownership effect on firms’ FDI ownership decisions under institutional pressure: A study of Chinese outward-investing firms.” J. Int. Bus. Stud. 43 (3): 264–284. https://doi.org/10.1057/jibs.2012.1.
Diandian, L., L. Weisheng, and N. Yuhan. 2018. “Extended technology-acceptance model to make smart construction systems successful.” J. Constr. Eng. Manage. 144 (6): 4018035. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001487.
DiMaggio, P., and W. W. Powell. 1983. “The iron cage revisited: Collective rationality and institutional isomorphism in organizational fields.” Am. Sociol. Rev. 48 (2): 147–160. https://doi.org/10.2307/2095101.
Flyvbjerg, B., N. Bruzelius, and W. Rothengatter. 2003. Megaprojects and risk: An anatomy of ambition. Cambridge, UK: Cambridge University Press.
Fornell, C., and D. F. Larcker. 1981. “Evaluating structural equation models with unobservable variables and measurement error.” J. Marketing Res. 18 (1): 39–50. https://doi.org/10.1177/002224378101800104.
Guo, H., R. Shen, and Z. Su. 2018. “The impact of organizational legitimacy on product innovation: A Comparison between New ventures and established firms.” IEEE Trans. Eng. Manage. 66 (1): 73–83. https://doi.org/10.1109/TEM.2018.2803061.
Hair, J. F., Jr., G. T. M. Hult, C. Ringle, and M. Sarstedt. 2016. A primer on partial least squares structural equation modeling (PLS-SEM). London: SAGE.
Haveman, H. A. 1993. “Follow the leader: Mimetic isomorphism and entry into new markets.” Administrative Sci. Q. 38 (4): 593–627. https://doi.org/10.2307/2393338.
He, Q., S. Dong, T. Rose, H. Li, Q. Yin, and D. Cao. 2016. “Systematic impact of institutional pressures on safety climate in the construction industry.” Accid. Anal. Prev. 93 (Aug): 230–239. https://doi.org/10.1016/j.aap.2015.11.034.
Hu, Q., P. Hart, and D. Cooke. 2007. “The role of external and internal influences on information systems security–a neo-institutional perspective.” J. Strategies Inf. Syst. 16 (2): 153–172. https://doi.org/10.1016/j.jsis.2007.05.004.
Hu, Y., A. P. C. Chan, and Y. Le. 2015. “Understanding the determinants of program organization for construction megaproject success: Case study of the Shanghai expo construction.” J. Manage. Eng. 31 (5): 05014019. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000310.
Jansen, J. J. P., G. George, F. A. J. Van Den Bosch, and H. W. Volberda. 2008. “Senior team attributes and organizational ambidexterity: The moderating role of transformational leadership.” J. Manage. Stud. 45 (5): 982–1007. https://doi.org/10.1111/j.1467-6486.2008.00775.x.
Jia, G., Y. Chen, X. Xue, J. Chen, J. Cao, and K. Tang. 2011. “Program management organization maturity integrated model for mega construction programs in China.” Int. J. Project Manage. 29 (7): 834–845. https://doi.org/10.1016/j.ijproman.2011.03.003.
Kanwal, N., M. S. Zafar, and S. Bashir. 2017. “The combined effects of managerial control, resource commitment, and top management support on the successful delivery of information systems projects.” Int. J. Project Manage. 35 (8): 1459–1465. https://doi.org/10.1016/j.ijproman.2017.08.007.
Kim, J.-H., J.-Y. Yoon, K.-H. Kim, and J.-J. Kim. 2009. “A Conceptual model of intelligent program management information systems (iPMIS) for urban renewal mega projects in Korea.” J. Asian Archit. Build. Eng. 8 (1): 57–64. https://doi.org/10.3130/jaabe.8.57.
King, A., and M. Lenox. 2002. “Exploring the locus of profitable pollution reduction.” Manage. Sci. 48 (2): 289–299. https://doi.org/10.1287/mnsc.48.2.289.258.
Koskela-Huotari, K., B. Edvardsson, J. M. Jonas, D. Sörhammar, and L. Witell. 2016. “Innovation in service ecosystems—Breaking, making, and maintaining institutionalized rules of resource integration.” J. Bus. Res. 69 (8): 2964–2971. https://doi.org/10.1016/j.jbusres.2016.02.029.
Levin, G. 2016. Program management: A life cycle approach. Boca Raton, FL: CRC Press.
Liang, H., N. Saraf, Q. Hu, and Y. Xue. 2007. “Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management.” MIS Q. 31 (1): 59–87. https://doi.org/10.2307/25148781.
Liu, H., W. Ke, K. K. Wei, J. Gu, and H. Chen. 2010. “The role of institutional pressures and organizational culture in the firm’s intention to adopt internet-enabled supply chain management systems.” J. Oper. Manage. 28 (5): 372–384. https://doi.org/10.1016/j.jom.2009.11.010.
Lycett, M., A. Rassau, and J. Danson. 2004. “Programme management: A critical review.” Int. J. Project Manage. 22 (4): 289–299. https://doi.org/10.1016/j.ijproman.2003.06.001.
Ma, H., S. Zeng, H. Lin, and R. Zeng. 2020. “Impact of public sector on sustainability of public-private partnership projects.” J. Constr. Eng. Manage. 146 (2): 1–10. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001750.
Martinsuo, M., and P. Hoverfält. 2018. “Change program management: Toward a capability for managing value-oriented, integrated multi-project change in its context.” Int. J. Project Manage. 36 (1): 134–146. https://doi.org/10.1016/j.ijproman.2017.04.018.
Meyer, J. W., and B. Rowan. 1977. “Institutionalized organizations: Formal structure as myth and ceremony.” Am. J. Sociol. 83 (2): 340–363. https://doi.org/10.1086/226550.
Näsholm, M. H., and T. Blomquist. 2015. “Co-creation as a strategy for program management.” Int. J. Manage. Project Bus. 8 (1): 58. https://doi.org/10.1108/IJMPB-10-2013-0063.
Nieminen, A., and M. Lehtonen. 2008. “Organisational control in programme teams: An empirical study in change programme context.” Int. J. Project Manage. 26 (1): 63–72. https://doi.org/10.1016/j.ijproman.2007.08.001.
OGC (Office of Government Commerce). 2006. Managing successful programmes: Delivering business change in multi-projects environments. London: OGC.
Partington, D., S. Pellegrinelli, and M. Young. 2005. “Attributes and levels of programme management competence: An interpretive study.” Int. J. Project Manage. 23 (2): 87–95. https://doi.org/10.1016/j.ijproman.2004.06.004.
Pellegrinelli, S., D. Partington, C. Hemingway, Z. Mohdzain, and M. Shah. 2007. “The importance of context in programme management: An empirical review of programme practices.” Int. J. Project Manage. 25 (1): 41–55. https://doi.org/10.1016/j.ijproman.2006.06.002.
PMI (Project Management Institute). 2017. The standard for program management. 4th ed. Newtown Square, PA: PMI.
Rasdorf, W., B. Grasso, and M. Bridgers. 2010. “Public versus private perceptions on hiring an external program manager.” J. Constr. Eng. Manage. 136 (2): 219–226. https://doi.org/10.1061/(ASCE)0733-9364(2010)136:2(219).
Reiss, G. 2006. Gower Handbook of programme management. Aldershot, UK: Gower Publishing.
Saldanha, J. P., J. E. Mello, A. M. Knemeyer, and T. A. S. Vijayaraghavan. 2015. “Implementing supply chain technologies in emerging markets: An institutional theory perspective.” J. Supply Chain Manage. 51 (1): 5–26. https://doi.org/10.1111/jscm.12065.
Sato, C. E., and A. Gnanaratnam. 2014. “The differences between an internal and external project manager.” Rev. Gestão e Project 5 (2): 1–23. https://doi.org/10.5585/gep.v5i2.264.
Scott, W. R. 2013. Institutions and organizations: Ideas, interests, and identities. Thousand Oaks, CA: SAGE.
Sha, K. 2004. “Construction business system in China: An institutional transformation perspective.” Build. Res. Inf. 32 (6): 529–537. https://doi.org/10.1080/0961321042000280778.
Shehu, Z., and A. Akintoye. 2009. “Construction programme management theory and practice: Contextual and pragmatic approach.” Int. J. Project Manage. 27 (7): 703–716. https://doi.org/10.1016/j.ijproman.2009.02.005.
Shi, Q., Y. Zhou, C. Xiao, R. Chen, and J. Zuo. 2014. “Delivery risk analysis within the context of program management using fuzzy logic and DEA: A China case study.” Int. J. Project Manage. 32 (2): 341–349. https://doi.org/10.1016/j.ijproman.2013.05.002.
Shi, Y., J. Du, C. R. Ahn, and E. Ragan. 2019. “Impact assessment of reinforced learning methods on construction workers’ fall risk behavior using virtual reality.” Autom. Constr. 104 (Aug): 197–214. https://doi.org/10.1016/j.autcon.2019.04.015.
Smith, K. G., S. J. Carroll, and S. J. Ashford. 1995. “Intra-and interorganizational cooperation: Toward a research agenda.” Acad. Manage. J. 38 (1): 7–23. https://doi.org/10.5465/256726.
Son, J.-Y., and I. Benbasat. 2007. “Organizational buyers’ adoption and use of B2B electronic marketplaces: Efficiency-and legitimacy-oriented perspectives.” J. Manage. Inf. Syst. 24 (1): 55–99. https://doi.org/10.2753/MIS0742-1222240102.
Song, J., G. C. Migliaccio, G. Wang, and H. Lu. 2017. “Exploring the influence of system quality, information quality, and external service on BIM user satisfaction.” J. Manage. Eng. 33 (6): 4017036. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000549.
Sun, P. Y. T., and M. H. Anderson. 2010. “An examination of the relationship between absorptive capacity and organizational learning, and a proposed integration.” Int. J. Manage. Rev. 12 (2): 130–150. https://doi.org/10.1111/j.1468-2370.2008.00256.x.
Teo, H.-H., K. K. Wei, and I. Benbasat. 2003. “Predicting intention to adopt interorganizational linkages: An institutional perspective.” MIS Q. 27 (1): 19–49. https://doi.org/10.2307/30036518.
Tolbert, P. S. 1985. “Institutional environments and resource dependence: Sources of administrative structure in institutions of higher education.” Admistrative Sci. Q 30 (1): 1–13. https://doi.org/10.2307/2392808.
van Buuren, A., J. M. Buijs, and G. Teisman. 2010. “Program management and the creative art of coopetition: Dealing with potential tensions and synergies between spatial development projects.” Int. J. Project Manage. 28 (7): 672–682. https://doi.org/10.1016/j.ijproman.2009.12.002.
Wang, G., Q. He, B. Xia, X. Meng, and P. Wu. 2018. “Impact of institutional pressures on organizational citizenship behaviors for the environment: Evidence from megaprojects.” J. Manage. Eng. 34 (5): 4018028. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000628.
William, R., G. Barton, and B. Mark. 2010. “Public versus private perceptions on hiring an external program manager.” J. Constr. Eng. Manage. 136 (2): 219–226. https://doi.org/10.1061/(ASCE)0733-9364(2010)136:2(219).
Williamson, O. E. 1988. “Technology and transaction cost economics: A reply.” J. Econ. Behav. Organ. 10 (3): 355–363. https://doi.org/10.1016/0167-2681(88)90055-8.
Yan, H., H. Elzarka, C. Gao, F. Zhang, and W. Tang. 2019. “Critical success criteria for programs in China: Construction companies’ perspectives.” J. Manage. Eng. 35 (1): 4018048. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000659.
Yang, D., A. X. Wang, K. Z. Zhou, and W. Jiang. 2019. “Environmental strategy, institutional force, and innovation capability: A managerial cognition perspective.” J. Bus. Ethics 159 (4): 1147–1161. https://doi.org/10.1007/s10551-018-3830-5.
Yi, H., L. Mingqiang, L. Yun, and S. Martin. 2022. “External consultant involvement for organizational capability building in complex construction projects: A perspective from interorganizational learning process.” J. Constr. Eng. Manage. 148 (1): 4021181. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002216.
Zhang, S., Y. Gao, Z. Feng, and W. Sun. 2015. “PPP application in infrastructure development in China: Institutional analysis and implications.” Int. J. Project Manage. 33 (3): 497–509. https://doi.org/10.1016/j.ijproman.2014.06.006.
Zhang, X., Y. Le, Y. Liu, and X. Chen. 2021a. “Fostering ambidextrous innovation strategies in large infrastructure projects: A team heterogeneity perspective.” IEEE Trans. Eng. Manage. (May): 1–11. https://doi.org/10.1109/TEM.2021.3074431.
Zhang, X., Y. Le, Y. Liu, and M. Liu. 2021b. “Fostering ambidextrous innovation in infrastructure projects: Differentiation and integration tactics of cross-functional teams.” J. Constr. Eng. Manage. 147 (6): 4021046. https://doi.org/10.1061/(ASCE)CO.1943-7862.0002060.
Zietsma, C., P. Groenewegen, D. M. Logue, and C. R. Hinings. 2017. “Field or fields? Building the scaffolding for cumulation of research on institutional fields.” Acad. Manage. Ann. 11 (1): 391–450. https://doi.org/10.5465/annals.2014.0052.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 148 • Issue 9 • September 2022
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Aug 4, 2021
Accepted: Mar 7, 2022
Published online: Jun 22, 2022
Published in print: Sep 1, 2022
Discussion open until: Nov 22, 2022
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.
Cited by
- Ning Sun, Yan Ning, Yadi Li, Balancing Project Management Success and Operation Success in Public Projects: A Comparative Study of Intra- and Interorganizational Boundary Perspectives, Journal of Management in Engineering, 10.1061/JMENEA.MEENG-5723, 40, 3, (2024).