Characteristics of international projects
Characteristics of international projects
Project business refers to the process of developing, marketing and implementing technical-economic solutions to the buyer’s needs (Owusu , 5). There are various definitions of the concept of project, and the project marketing literature understands projects as being sold between organisations, whereas the project management literature views projects as taking place also within an organisation (Skaates et al. ). This study adheres to the former conception, which, in fact, has developed into a sub-field of the discipline of marketing (Skaates et al. ). Following the definition of Cova et al. (, ), a project is a “complex transaction covering a package of products, services and work, specifically designed to create capital assets that produce benefits for a buyer over an extended period of time”. The creation of human assets, that is, knowledge and skills, is also an important complementary goal in most projects (Welch et al. ).
In the globalised world, projects are increasingly implemented in international environments, where gaps in knowledge, culture and technology between the project marketer and purchaser are often wide. In fact, about half In the globalised world, projects are increasingly implemented in international environments, where gaps in knowledge, culture and technology between the project marketer and purchaser are often wide. In fact, about half
As regards the modes in which projects are delivered, Luostarinen and Welch ( ) divide project operations into partial projects, turnkey projects and turnkey-plus projects. Partial projects provide partial systems or solutions; turnkey projects include a complete unit delivered to the buyer; and turnkey- plus projects provide, in addition to the complete unit, supplementary services such as training. The fact that a certain technology is novel and/or complex in
a certain society and commonplace in another creates the basis for international purchasing of projects as well as for determining the project mode. Based on this, Ahmed ( , 5) states that the novelty and complexity of technology affect whether the buyer can rely on its own resources and take care of the project locally, whether it buys hardware only, whether it buys know-how only, or whether it chooses to buy an integrated project that includes both the hardware and know-how. For instance, for a developing country with modest technical capabilities and weak technical infrastructure, the preferred solution is often to buy an integrated project.
It must also be noted that a project is a process, the phases of which have been defined in several ways in the theoretical literature. In general, the first stage of project marketing involves market scanning, approaching and networking, that is, gaining information about project opportunities and connecting with prospective buyers. The following phase consists of bidding, tender preparation, It must also be noted that a project is a process, the phases of which have been defined in several ways in the theoretical literature. In general, the first stage of project marketing involves market scanning, approaching and networking, that is, gaining information about project opportunities and connecting with prospective buyers. The following phase consists of bidding, tender preparation,
Firms are not necessarily involved in all stages of a project; they may be responsible for delivering only a part of the project. Particularly in the case of large integrated turnkey and turnkey-plus projects, a very diverse range of firms may be involved in implementing a single successful project (Welch 5, ). The following section continues with a focus on the preconditions for success in project marketing.