LUẬN văn THẠC sĩ (KINH tế) approaches to risk management in research and development an analysis of public private partnerships in ireland

funded is contingent on ongoing and substantial co-investment from the Industry partners, hence, these centres are all collaborative in nature.. The success of these centres may be defin

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“Approachesto

RiskManagementinResearchandDevelopment:AnAnalysiso f P ublic/PrivatePartnershipsinIreland”

Dissertationsubmittedinpart

fulfilmentoftherequirementsfortheDegreeofMastersinBusinessAdministration(Project Management)atDublinBusinessSchool

JamesHayes August2016

NameofInstitution:DublinBusinessSchool

ProgrammeofStudy:MastersInBusinessAdministration(Project Management)

YearofSubmission:2016Nameo

fAuthor:JamesHayesI D Numbe

rofAuthor:10314984Supervisor:

PaulTaffe

Wordcount:20,078

1.0Declaration 5

2.0Acknowledgments……… 6

3.0Abstract……… 6

4.0Introduction……… 7

4.1Background……….… 8

4.2Riskmanagement 9

4.3ResearchObjectives 14

4.4PrimaryResearchQuestion 14

4.4.1Sub-question1 14

4.4.2Sub-question2 14

4.5Recipients 14

4.6SuitabilityoftheResearcher 14

5.0Literature review 16

5.1Introduction 16

5.2Theme1:R&DRiskManagement inIndustry………… 16

5.3Theme2:R&DRiskManagement inAcademia……… 19

5.4Theme3:CSFsinIndustryAcademicCollaborations 21

5.5Theme4:ImpactofCultureonRiskManagement 27

5.6LiteratureConclusion 28

6.0ResearchMethodology 28

6.1Introduction 28

6.2ResearchDesign 28

6.2.1ResearchPhilosophy 28

6.2.2ResearchApproach 28

6.2.3ResearchStrategy 30

6.2.4Sampling-SelectingRespondents 31

6.3DataCollectionInstruments 32

6.4DataAnalysisProcedures 34

6.5ResearchEthics 35

7.0Results 36

7.1Introduction 37

7.2ProjectCommercialRisk 38

7.3ProjectandRiskManagement 37

7.4RiskPertainingtoAvailabilityofResources 38

7.5RiskspertainingtoSuitabilityofResources 39

7.6RiskPertainingtoStakeholder Alignment 41

7.7RiskspertainingtoResearchSupports 42

7.8RiskspertainingCriticaltoSuccessFactors(CFS) 43

8.0Introduction 45

8.1Discussion 45

8.2ProjectandRiskManagement 46

8.3RisktoResearch resourcesandResearchsupports 48

8.4Culture 50

8.5CriticaltoSuccessFactors 51

8.6Stakeholder Alignment 52

8.7RiskstotheSuitabilityandAvailabilityofResearchers 52

9.0Introduction 52

9.1Conclusions 53

9.2HypothesisandFutureResearch 55

9.3LimitationsofResearch 56

10.0Introduction 57

10.1LearningStyleandLearningReflections 57

11.0Bibliography 62

AppendixA:TranscribedInterviewsandopencoding 69

AppendixB:Axialcoding 124

AppendixC:ThesisPlan 125

AppendixD:ListofGovernmentFunded ResearchInstitutes 126

ListofFigures Figure1IrishFundingAgencies(Ferguson,2016) 7

Figure2:GeographicalLocationofEnterpriseIrelandfundedTechnologyGateways 9

Figure3PMBOKProjectRiskManagementFrameworks 11

Figure4:PMBOKRiskManagementMethodology 12

Figure5:InstituteofShockPhysicsOrganizationstructureandStakeholderMap 13

Figure6:A frameworkcombiningriskandinnovationmanagement 18

Figure7:C u l t u r a l impactonprojectriskprojectimpact 26

Figure8:TheResearchOnion 28

Figure9:SamplingTechniques 31

Figure10:FlowchartforSelectingaProbabilitySamplingMethodology 31

Figure11:DifferentTypesofInterview 32 Figure12:ComparisonofApproachestoGroundedTheory 33 Figure13:Kolb’sexperientialLearningcycle 57

Thisprojectissolelytheworkoft h e authorandisproducedandsubmittedinpartialfulfilmentoft h e F inalYearDissertationProjectrequirementoft h e MastersinBusinessAdministration(ProjectMana gement).Ideclarethatnoportionoftheworkreferredtointhedissertationhasbeensubmittedinsupp ortofa n applicationf o r anotherdegreeorqualificationofthisoranyotheruniversityorotherinstituteo flearning.Further,thisresearchprojectexpressestheviewsoftheauthorsolelyanddonotnecessaril yrepresenttheviewsofresearchparticipantsinisolation.T h e authoraloneisresponsibleforanyomi ssionso r errors

JamesHayesAugust

2016

IwouldsincerelyliketoexpressmygratitudetoDublinBusinessSchoolforprovidingcoursemoduleso fsufficientdetailandqualityt o providem e witht h e skillsandcompetenciesrequiredt o undertake andcompletethisMBAthesis.I wouldalsoliket o thankallt h e academicstafff o r theircontributiont

o thiscourseandt h e engagingnatureoft h e subjectmatter theypresented

Iwouldliket o thankLindaMurphyfort h e administrationassistanceprovidedduringt h e academicy ear

IwouldsincerelyliketothankmySupervisorPaulTaffewhonotonlyofferedguidanceandassistanc eduringthisthesisbutwhomoreimportantlyinstilledinmeapassionforprojectmanagementthatIhop eIwillretainthroughoutmycareer

Finally,I wouldl i k e t o thankm y twowonderfulchildren,LaurynandLucyandm y WifeCarmelwho havebeenthefoundationuponwhichthisdegreewasbuildandwithoutwhosesupportIwouldneverh avefinished

JamesHayesAugust

2016

TheincreasingnumberofGovernmentfundedresearchcentresinIrelandisbeingestablishedwithth estrategicobjectiveofenablingcollaborativeaccessforIndustrytoskillscompetenciesandequipme ntwithinacademia.T h e drivingf o r c e f o r thisstrategyist h e developmentofnewproductsandse rviceswhichareultimatelyexpectedtoincreaseeconomicgrowthandsustainabilityint h e Irishecon omythroughincreasedemployedandexchequerrevenue.Nevertheless,adistinctculturaldifferenc eexistsbetweenthetwoentitiesandanelementofmistrustexistsbetweenboththeacademicandind ustrialcommunities.Yet,thesuccessoftheseIndustry/

Academiccollaborations(IACs)couldhaveprofoundimplicationsforthefutureoft h e Irisheconomy anditsreputationf o r highlevelresearch

ThisresearchwillinvestigatetherisksassociatedwithIACsanddeterminetheriskmitigation strategiesappliedb y t h e consortiainvestigatedt o increaset h e probabilityofprojectsuccessata locallevelandt h e successofIACsa t a globallevel.A significanta m o u n t oftaxpayersmoneyh asbeeninvestedinpublicprivateR&Dpartnershipsandthisresearchwillaimtoensurethat,notonlyist hismoneyusedeffectively,butthatitgeneratest h e returnstotheeconomyasexpectedbytheIrishG overnmentanditsassociatedresearchfundinginstitutions.Thisresearchwillalsosuggestfurtherstra tegiesforincreasingcollaborationsinIACsa n d providesuitablefurthera r e a s ofresearchtoensur ethatthisnationalstrategyforinnovativeproductdevelopmentisnotonlysuccessfulatanIrishlevel butalsohasglobalimplicationsforindustryleadacademicresearchandt h e benefitsforsociety that thatbythis research modelcanprovide

4.1 Introduction

4.1Background

Figure 1IrishFundingAgencies(Ferguson, 2016)

funded is contingent on ongoing and substantial co-investment from the Industry partners, hence, these centres are all collaborative in nature The success of these centres may be defined in terms of the value of the research they provide to Industry and the ability of Industry to translate this research into tangible benefits for the economy in terms of new product development (NPD), increased employment and enhanced exchequer revenue Numerous international economic studies have highlighted the importance and value of public investment in scientific research A recent economic analysis commissioned by the

TheIrishGovernmentthroughSciencefoundationIreland(SFI),EnterpriseIreland(EI)andt h e Indu strialDevelopmentAgency,Ireland(IDA)haveinvestedapproximately€500millionovert h e previou s5 yearso n 4 2 Industryacademiccollaborative(IAC)researchcentreslocatedthroughout Ireland

TheseResearchProvidingOrganisations(RPOs)a r e categorizeda s TechnologyGatew ays,locatedinInstitutesofTechnology(IoTs).TechnologyCentreslocatedinIoTsandUniversitiesan

dS F I centrespredominantlylocatedinUniversities.Whilet h e remitofeachtypeofcentrevariesinter msofthenatureandtypeofresearchtheyundertakeandt h e developmentalhorizonstheyaddresst heyallhaveonedefiningfeature,continuedstate

BritishTreasuryconcludedthatforevery£1investedbyGovernmentinbasicresearch,theprivateret urnwas37pperyear(Ferguson,2016).Therefore,NationalGovernmentsacrosst h e worldhaveen couragedandsupportedthesecollaborativeventuresasthismodelenablesIndustryaccesstotheski lls,expertise,competenciesandinfrastructureavailableinacademia.Thismodelisparticularlyimpor tantf o r smallandm e d i u m enterprises(SMEs)wheredevelopmentofinternalR&Dcapabilitiesisty picallybeyondtheirfinancialcapacity.Furthermore,t h e establishmentofa successfulresearchinfr astructurecan,andisbeing,usedt o attractforeigndirectinvestmenta s evidencedb y t h e c o -fundingofTechnologyCentresbyt h e IDA.However,thelongtermsuccessandcontinuedfundingof thesecollaborativeventureswilldependonthesuccessoftheprojectsandthealignmentofgoals,obje ctivesandexpectationsamongstthestakeholders

Figure 2: Geographical Location of Enterprise Ireland funded Technology Gateways

(enterprise-ireland.com, 2016)

4.2 Risk Management

Project management is now almost universally accepted as a necessary or requisite frameworkf o r t h esuccessfuldevelopmentofnewprocesses, products,servicesanda s a mech anismt o successfullyimplementingchangewithina n organisation.Th e PMBOKlists1 0 knowled gea r e a s whicha r e requiredt o successfullyexecutea project(Snyder,2013).O n e oftheseisRisk Managementwhichcanbeappliedto1oralloftheprocessgroupsofInitiation,Planning,Executing ,Monitoring/

ControllingandClosure.TheProjectManagementInstitutedefinesprojectriska s “anuncertaineve nto r conditionthat,ifitoccurs,hasa positiveo r negativee f f e c t o n a project’sobjectives”(Project ManagementInstitute,2013).T h e AssociationforProjectManagement(APM)usesa similardefiniti on,definingriskas

“anuncertaineventorsetofcircumstancesthat,shoulditoccur,willhaveaneffectontheachievement oftheproject’sobjectives”(apm.org.uk,2016).Theprocessesofprojectriskmanagementasoutlin edinISO31000(ISO,2009),aninternationalstandardforriskmanagement,arerepresentativeofth ecommonprojectmanagementprocessfoundinthesemethodologies:

 Communicateandconsultwithstakeholdersthroughouttheproject

 Establishthecontextforprojectriskmanagement e.g.policies, roles

 Identifyriskseventsandtheircauses

 Analyserisks–i.e.consequenceandlikelihoodofeachriskevent

 Evaluaterisks-prioritisationofriskeventsformanagement

 Treat risks–i.e.implementationofstrategiestomanageriskevents

 Monitorandrevieweffectivenessoftheprojectriskmanagementprocess

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However,arguablythemostextensiveandwellexecutedriskmanagementmethodologieshavebe endevelopedbytheProjectManagementInstitute(PMI)asdescribedinthePMBOK.T h e PMBOKi

s a n extremelyextensivem e t h o d o l o g y foridentifying,analysing,ranking,mitigating,quantif ying,andcostingrisksthroughouttheentireprojectlifecycle.Itisperhapsoneofthemosttimeandlabo urintensiveprocessesassociatedwithprojectmanagementduet o itsstrongcorrelationt o projects uccessintermsofscopecostandscheduleadherence.A f u l l explanationoft h e PMBOKriskmetho dologiesisoutsidet h e scopeofthisresearchthesis;howeverFigure3demonstratesitscomplexity,w hileFigure4demonstratesitsintegrationinrelationtoallprocessgroupsandknowledgeareasofproj ectmanagement

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Figure3PMBOKProjectRiskManagementFrameworkincludingInputsTools&Techniquesa ndOutputs(Aguidetotheprojectmanagementbodyofknowledge,2013p.312)

Figure4:PMBOKRiskManagementMethodologyandi t s Integrationi n t o andRelevanceto allProjectManagementProcessandknowledgegroups( A guidetotheproject management

bodyofknowledge, 2013p.320

Furthert o t h e PMBOKmethodology,abodyofevidenceisavailableint h e publishedliteraturede monstratingapositivecorrelationbetweenRiskmanagementandprojectsuccess( d e Bakker,Boo nstra,& W o r t m a n n , 2011),whilef u r t h e r studieshaveshowna positiverelationshipbetweenp

r o j e c t riskmanagementandt h e successofresearchanddevelopment(R&D)p r o j e c t s , (Mu,Peng,& MacLachlan,2009;Salomo,W e i s e , & Gemünden,2007).However,whileRiskMan agementproceduresandp r o t o c o l s arewelldefinedforIndustry(seeSection5.2) thereislittlepu blishedliteratureonriskmitigationin

main research questions question is proposed in the following section.

ispoorlydefinedinthissector( s e e Section5.3).Thisraisest h e questiona s tohowRiskManagem entisaddressedincollaborationsbetweenthetwoentities.Furthermorethestakeholdermapiscomp

lex(seeFigure5foranexample)andincludesinteraliatheIndustryPartners,FundingAgencies,theh

ostUniversity,theResearchCentre,ThePrincipalInvestigatorsandtheTechnical

Transferofficesallofwhichmayhavedifferentdefinitionsofsuccess;hence,theymayalsohaveadiff erentunderstandingofriskfurtherincreasingthecomplexityofriskmanagementinthisenvironment Furthermore,thisislikelytocreatetensionsbetweent he stakeholderspotentiallycompromisingthe futuresuccessoftheresearchcentres.Asaresultthisresearchaimstodeterminewhatriskmitigation strategiesaredeployedinIACs;hencethe

Figure5:InstituteofShockPhysicsOrganizationstructureandStakeholderMap.( Philbin, 2011pg107).

3.0 Due to the lack of published literature in the area of IACs this research will be

exploratory and Inductive; as a result no hypothesis can be formed Nevertheless the outputs form this thesis may form the foundation for further quantitative and deductive research in this nascent field of enquiry This could lead to an established, recognised and accepted paradigm for risk management in IACs

4.4 Primary Research Question

4.3ResearchObjectives

Theprimaryresearchobjectiveofthisthesisisdeterminewhatriskmanagementstrategiesa r e dep loyedinIACsandwhy.AsexplainedinSection3.2.3thisresearchisInductiveandqualitative;hence,n

o discretehypothesisc a n b e developedpriort o t h e researchbeingconducted, Nevertheless,t h e answerst o thesequestionsandt h e resultsandconclusionsfromthisresearchco uldultimatelyleadtoaframeworkbywhichIndustryfundedresearchcentresinIrelandandgloballyc anidentifybestpracticeandthebarrierstoimplementationofriskmanagementpractices.Thiscouldb eexpectedtoleadtotherealisationofbenefitsf o r allstakeholders,inparticulart h e efficientandef fectiveu s e o f taxpayer’smoneyinmaximisingresearchbenefitsforsocietyatlarge.However,as willbeexplainedinS e c t i o n

“WhatRiskAnalysisTechniquesareDeployedinIndustryFundedAcademicRese

archCentres”?

AsdiscussedinSection5 2thereisa wealtho f riskmanagementtechniquesavailablet o researcher sinIndustry.Theselectionanddeploymentofthesemethodologiesdependonanumberofdifferentf

a c t o r s includinginteraliat h e typeo f research,stageofdevelopmentandorganizationalculturean

dwhatrisksa r e relevantt o t h e natureoft h e project.T h e elucidationofthesefactorswillbeimpor

tanttounderstandingwhatriskanalysistechniqueshavebeenselected.Therearealso2sub-questionsrelatedtothemainquestionthatwillbeneedtobeaddressedinordertofullyunderstandth enatureofRiskManagementinthesejointventures.Theseare:

4.4.1 Sub-question1:

“WhyWeretheRiskManagement TechniquesSelectedandHowaretheyImplementedandMonitored?”

Thisquestionisimportantinunderstandinghowt h e riskmanagementtechniqueswereselected.W eretheyimposedbyindustryasaprerequisitetofunding?Weretheyresisted

In order to manage risk it is first necessary to define risk which is not possible without first understanding what constitutes project success Due to the complex stakeholder map there may be various and perhaps conflicted definitions of project success Therefore, this question will attempt to elucidate factors relevant to the success of IACs in Ireland and their relation to Risk Management.

byacademiaa s beingbarrierst o creativitya n d innovation?

Didthiscausetensionsandconflictswiththepotentialtoimpactongoingrelationshipsbetweenthep artners?Whowasresponsibleforidentifyingrisk?

Isriskmanagementtheresponsibilityofthehostinstitutiono r theremitoftheIndustrypartner?

Thesearetopicsthatarenotcoveredintheliteratureyetcouldbeconsideredfundamentaltoproject success

4.4.2 Sub-question2

“WhataretheCritical

toSuccessFactorsofIndustryFundedResearchCentresandDoTheyDi fferAcrosstheVariousStakeholders?”

4.5 RecipientsforResearch

DublinBusinessS c h o o l willb e t h e principalrecipientforthisdissertationentitled“Approachest

o RiskManagementinResearchandDevelopment:AnAnalysiso f Public/

PrivatePartnershipsinIreland”Thisdissertationissubmittedtosatisfythefinalmoduleoft h e Mast ersBusinessAdministration(ProjectManagement)courseatDublinBusinessSchool

4.6 SuitabilityoftheResearcher

ThetopicofProjectManagementandRiskManagementinparticularisofextremeinterestt o thisrese archerhavingworkedinbotht h e publicandprivates e c t o r s int h e fieldofresearchanddevelop ment.PreviousacademicachievementsincludeaBAinNaturalSciencestogetherwitha n M.Sc.and Ph.D.fromTrinityCollegeDublinalosint h e naturalsciences.Iam,asofJune2016,AProjectManage mentProfessional(PMP)asaccreditedb y t h e ProjectManagementInstitute(PMI).I therefore,bel ieveI a m suitablyqualifiedt o conduct thisresearch