Prof. Erik Mooi (University of Melbourne)

Date: Monday, May 6, 2024
Time: 3:30 pm - 5:00 pm
Location: Ludwigstr. 28 RG, Room 329
Title: OPENING UP THE “BLACK BOX” OF B2B PROJECTS: CREATING BENEFITS OUT OF COST OVERRUNS
Abstract: Many marketing decisions are made and implemented within the context of short-term collaborations or projects. For instance, projects are commonly used in new product development, advertising, construction, and event management. Past research has enhanced our understanding of projects’ unique characteristics and performance drivers but has left certain key questions unanswered. In particular, we know relatively little about projects’ internal functioning or their dynamics, more broadly. We develop a conceptual framework which specifies 1) the determinants of project change, namely a project’s task, size, and duration, and 2) how changes lead to cost overruns. Further, we link cost overruns with customer-level outcomes, and show that cost overruns under certain conditions actually produce customer benefits. We also show that some of the conditions that drive project change in the first place also serve as on-going buffers which help convert changes into specific customer benefits. We test our framework empirically in the context of 431 B2B construction projects, completed between 2010 and 2022, using generalized structural equation modeling. We develop implications of our findings for marketing theory and practice.