How the administrative and market forces influence organization evolution - A case study on megaproject management

Abstract

Since the megaprojects- invested by the government, regulated by market, monitored by the public- play an increasingly important role in Chinese construction field, the top-down design of management organization is gaining more attention. Indeed, the role of the government in the construction process is direct and powerful. But its side effect is that government administration may cause some deviant behaviors. However, entirely conforming to the market rules might result in lower efficiency and vested interests damage. Therefore, a systematic analysis of coordination between administration and market forces is desperately needed. In this paper, an empirical case-study of a megaproject, which is still under construction in a provincial capital city, will be conducted. As the owner is a government-sponsored enterprise, managers face the problem that the organization should adjust dynamically to balance different kinds of forces. The process of organization evolution will be the focal point. And another emphasis will be the multi-factorial influences that the local state and market forces have exerted. © Springer-Verlag Berlin Heidelberg 2014.