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ABSTRACT ■ INTRODUCTION
M
A mega-event is an open socioeconomic system character-
ega-events—such as the Olympic Games, a world exposition,
ized by massive budget demands and multiple types of and the World Cup football competition—exert intensely strong
subprojects and their complex interrelationships. Although and deep influences on urban revitalization, economic vibrancy,
a mega-event is an opportunity for a country to show historical heritage, national reputation, and environmental
its international reputation, management capacity, and
quality of the host city as catalysts of change, and they draw very competitive
societal strength, it demands a long preparation time; an
enormous amount of investment; and massive resource
bids among global cities and countries (Chalkley & Essex, 1999; Burbank,
mobilization, with far-reaching effects on both the economic Andranovich, & Heying, 2002; Varrel & Kennedy, 2011; Deng, Poon, & Chan,
and social development of a country. Mega-event projects 2016; Chen, Qu, & Spaans, 2013). Mega-events are fundamentally complex
(MEPs) face remarkable challenges in terms of overrun and are comprised of a variety of strategic and political features, high
costs, delayed schedules, and political issues, indicating
uncertainties and risks, public awareness and participation, large investments
that the research on such mega-events is still insufficient
and that there is a lack of effective theories to support the
and long-term construction projects, as well as a risk of “megaproject
management and governance of MEPs. Existing studies syndrome,” in which projects are estimated with over-optimistic benefits and
have also ignored the dynamic evolution and adaptation insufficient budgets (Kennedy, Robbins, Scott, Sutherland, Denis, Andrade,
of governance in a changing environment, particularly in & Bon, 2011; Locatelli & Mancini, 2010; Mills & Rosentraub, 2013; Müller,
relation to the success of MEPs.To fill this research gap, this
2015a). Hence, there are huge challenges in the project governance, strategic
study aims to examine the dynamic governance of MEPs
on the basis of a new theory—evolutionary governance
planning, and leadership of mega-events (Bramwell, 1997; Varrel & Kennedy,
theory (EGT)—which combines institutional economics, 2011; Flyvbjerg, 2014).
systems theory, and project governance. The study was The traditional theory of project governance aims to achieve organi-
conducted in three main steps: (1) studying the case of the zational goals or company strategies based on stakeholder relationship
evolutionary governance of the World Expo 2010 in China
management and a governance framework of essential project-oriented or
during its life cycle stage, including planning, construction,
operation, and post-event development; (2) discussing the
organizational factors, such as value systems, responsibilities, rules, pro-
impact of the hierarchical and cross-functional governance cesses, and policies (Bekker & Steyn, 2007; Bekker, 2015; Müller & Lecoeuvre,
structure of the Expo; and (3) summarizing the theories 2014; Ahola, Ruuska, Artto, & Kujala, 2014). Mega-event projects, however,
and best practices of dynamic governance mechanisms for reach far beyond the traditional scope to a higher level and wider range of
MEPs. The result of the study can deepen understanding of
the governance domain, from which the internal and external environments,
the multi-level governance of mega-events during the life
cycle process and can also support the evolution of gover-
governance structure, and other factors are radically evolutionary and co-
nance transition over the different stages. evolved. Hence, the traditional theory of project governance, which focuses
on the static state of one organization, presents a big gap or tension when
KEYWORDS: evolutionary governance theory; Expo; interpreting the practice for mega-event projects (MEPs).
case study; mega-events; megaprojects; program The study of MEPs must absorb emerging theories, such as Evolutionary
management; project management Governance Theory (EGT), along with practical experiences to enrich and
expand the governance of MEPs. This study aims to propose a framework of
Project Management Journal, Vol. 49, No. 1, 57–78 EGT for MEPs, as well as the inherent factors, including the contextualization,
© 2018 by the Project Management Institute objectives, governance structure, characteristics; and co-evolvement of con-
Published online at www.pmi.org/PMJ figurations, evolutionary paths, and governing technologies. The framework
February/March 2018 ■ Project Management Journal 57
Evolutionary Governance for Mega-Event Projects (MEPs)
PAPERS
proposition is based on the literature on Spain, have been considered the most United States, the host cities experi-
MEPs, literature on project governance compelling example of combining a enced a net economic loss rather than
and EGT, and the case of the World Expo mega-event with urban megaprojects: the predicted gain (Baade & Matheson,
2010 China. Rather than describing the the redevelopment of a derelict port- 2004; Mills & R osentraub, 2013). In
details of project management instru- cum-industrial area to host a sports addition, there may exist “mega-event
ments, this article emphasizes the adap- infrastructure and boost hospital- syndromes,” including the overprom-
tation process of project organization ity capacity (Varrel & Kennedy, 2011). ising of benefits, underestimating of
to achieve the expected performance Hence, this article concludes that such costs, event takeovers, public risk-
and success when MEPs face different megaprojects relate to mega-events as taking, rules of exception, elite capture,
contexts and dynamic changes in both mega-event projects (MEPs). event fixing, and the adverse conse-
internal and external environments. Both mega-events and megaprojects quences following an event ( Müller,
The contribution of the article includes are recognized as long-term, impact- 2015a). An example of mega-event
the enrichment of the theoretical con- ful strategies rather than conven- syndrome manifested as a lack of city
text of EGT and the provision of a refer- tional events or projects. As Varrel and heritage protection and planning is
ence value for MEP project governance. Kennedy (2011) indicated, two major the Athens Olympic Games, which left
factors motivate cities to host mega- a legacy of underused sports facili-
Mega-Events Project and events. First, the events are platforms for ties and environmental destruction
Evolutionary Governance the promotion of national unity and a (Gold & Gold, 2008; Deng, Poon, &
Mega-Events and Megaprojects coherent articulation of a national iden- Chan, 2016). Another prominent issue
Although having been discussed in sev- tity, as displayed in South Africa during for mega-event and megaprojects is
eral studies, mega-events (or hallmark the Football World Cup. Second, host- exceeding budget. Since 1960, without
events) are still recognized as “we know ing a mega-event rests on the promise exception, the Olympic Games have
one when we see one” without a uni- of an economic windfall coupled with gone over budget, on the average, by
form definition (Müller, 2015a). Müller a substantial urban makeover. There- 179% (Flyvbjerg & Stewart, 2012). Addi-
(2015b) defined mega-events from four fore, mega-events may create and leave tionally, these kinds of mega-events
aspects, saying that mega-events are behind “hard” (tangible) and “soft” or megaprojects commonly displace
ambulatory occasions of a fixed dura- (intangible) heritages. Hard tangible people and force evictions due to urban
tion that (1) attract a large number of heritages include infrastructures, build- redevelopment. For example, the 2008
visitors, (2) have large mediated reach, ings, and landmark architecture, such as Beijing Olympics and World Expo
(3) come with large costs and (4) have the Eiffel Tower from the 1889 World’s 2010 China, respectively, led to the
large impacts on the built environment Fair. Soft intangible heritages include relocation of 1.5 million residents and
and the population. To meet the needs things such as attitude changes, public 18,000 families, with large impacts on
for facility and space, mega-events participation, rallying of volunteers, and the well-being, social lives, and cultural
always require construction of build- unique learning experiences (Varrel & traditions of local residents; indeed,
ings, infrastructures, or urban renewal Kennedy, 2011; Minnaert, 2012; Boukas, the relocations were questioned and
spaces, considered megaprojects. Simi- Ziakas, & Boustras, 2013; Deng, Poon, protested by the public (COHRE, 2007).
larly, “megaproject” is also considered & Chan, 2016). Meanwhile, the invest- There exists, therefore, the phenom-
a “loose” term without a clear defini- ment in those megaprojects, if done enon of “MEP syndrome” (Flyvbjerg,
tion. Hu, Chan, and Le (2014) claimed efficiently, can also largely influence 2014; Müller, 2015a). The true reason
two different perspectives to define local economic development (Flyvb- behind this syndrome can be explained
construction megaprojects. The first jerg, 2014). Therefore, a mega-event can in four aspects. The first aspect is due
perspective is determined by the invest- bring long-term social, environmental, to the complexity of MEPs. The impact
ment amount and is primarily adopted and spatial impacts for the host location of MEPs on a host city brings extraor-
by governments and industries, with (Kang & Perdue, 1994; Lee, Mjelde, & dinary complexity that is unlike typi-
varying standards among different Kwon., 2015; Chen, Qu, & Spaans, 2013; cal, common projects, or organizations
countries, governments, and industries. Chalkley & Essex, 1999). in the socio-economic, socio-cultural,
The second perspective is based on the Mega-events and megaprojects, physical, and political fields (Malfas,
perspective of complexity and is mainly however, are also highly controversial. Theodoraki, & Houlihan, 2004; Locatelli
adopted by academics, who consider Studies have challenged that mega- & Mancini, 2014). For example, He,
the construction of megaprojects as events do not generate the expected Luo, Hu, and Chan (2015) measured
those that intrinsically exhibit highly significant impacts to the economy of the complexity of the World Expo 2010
complex characteristics. For example, host cities and countries. For exam- China construction project and found
the 1992 Olympic Games in Barcelona, ple, after the 1994 World Cup in the it was far higher than the average level
features of hierarchies, including ambi- & Duineveld, 2014). Luhmann (1995) elements, reflect a co-evolution in a spe-
guity, redundancy, and loose coupling. divided social systems into three cat- cific environment. Governance needs to
Overall, there is a lack of academic egories: interactions, organizations, and be actively and continuously reproduced
studies on megaproject governance in function systems. These understanding to exist. Changes of particular elements
the context of complexity (Biesenthal and theories have become an important always depend on their interaction with
& Wilden, 2014) and little attention has basis for EGT. Foucault, among the post- other elements and on their embed-
been given to the theoretical argument structuralists, is the most important for ding in structures that are the results
on MEP governance. the construction of EGT, especially for of same evolutionary process (Beunen,
some Foucauldian concepts, like dis- Van Assche, & Duineveld, 2015).
Evolutionary Governance Theory course. Both complex adaptive system Van Assche, Beunen, and Duineveld
(EGT) for Mega-Event Project and EGT theories generated very early (2014) proposed an EGT model includ-
Governance but applied in governance studies more ing three parts, described as follows:
The systems of economy, society, poli- recently, and the institutional econom-
tics, and biology can be regarded as a ics that appeared after 2000, enable us to 1. The first part is the configurations
complex adaptive system with strong present a picture of evolving governance. of actors, institutions, and power/
evolution and dependence character- Vob (1998) described evolutionary gov- knowledge. These configurations
istics, including nonlinear dynamics, ernance as “a mode of governance, which also co-evolve and can be under-
threshold effects, cascades, and limited is reflected in strategies and institutions stood as the meta-configuration
predictability, which greatly challenge for collective action that can be charac- marking a certain governance evo-
the governance capability of all levels terized by the principles of adaptiveness, lution and a governance path.
in an organization (Duit & Galaz, 2008). integration and anticipation.” Recent 2. The next part is dependencies and
Duit and Galaz (2008) proposed that the literature defined EGT thus: “EGT is a path creation. Each path is marked by
key to managing the complexity of gover- novel perspective on the way societ- dependencies, including path depen-
nance is adaptive capacity in multilevel ies, markets and governance evolve. dence, interdependence, and goal
governance systems with four kinds of EGT integrates concepts and insights dependence (Shtaltovna, Van A ssche,
governance types, which include robust, from various theoretical sources into & Hornidge, 2012; Van A ssche, Beunen,
flexible, rigid, and fragile governance. a new coherent framework” (Beunen, Jacobs, & Teampau, 2011). In terms of
Similarly, Weyer, Adelt, and Hoffmann Van Assche, & Duineveld, 2015). “Evolu- governance evolution, the interrela-
(2015) summarized several new ideas tionary in EGT means co-evolutionary, tions between actors, between actors
in the field of governance, including with elements changing each other, with and institutions, between discourses
polycentric governance, interactive gov- the whole and the elements affecting and physical realities, or between
ernance, hierarchical governance, meta- each other. Evolution creates an open- different function systems (such as
governance, and smart governance, and ness for change, a specific capacity of politics and economics) (Beunen &
proposed a multi-level model of gover- observation, but also a set of rigidities Van Assche, 2013), can all be con-
nance of modern infrastructure systems. in adaptation. Structures and elements ceptualized and understood as inter-
Thus far, the governance of complex of governance are the result of gover- dependencies. Interdependency also
systems has drawn researchers’ atten- nance evolution.” (Beunen, Van Assche, relates to the way in which different
tion, but most of the related studies & Duineveld, 2015) governance paths are linked—to other
are still fragmented and lack a mature The above EGT statement coincided paths at the same level, to other scales
theory system, application guidance, with two hypotheses proposed by Vob or levels, to physical and social envi-
or empirical validation. Therefore, the (1998). First, any attempt to intervene in ronments—which is always imper-
emerging framework of Evolutionary governance should start with a thorough fectly understood and controlled by
Governance Theory (EGT) can poten- understanding of the context. Second, governance (Beunen, Van Assche, &
tially solve this challenge by show- governance is conceptualized as a highly Duineveld, 2015).
ing “how to entirely and continuously dynamic context and radically evolu- 3. The third part is governance paths,
restructure governance to facilitate new tionary; hence, all elements of gover- objects, and subjects. Subjects are
understandings of broader changes in nance are contingent and are subject to social identities as defined in gover-
society, and new understandings of the evolution. The elements of governance nance, including the identity of the
spaces for intervention” (Beunen, Van include actors, institutions, knowl- actors present, whereas objects refer
Assche, & Duineveld, 2015). edge, objects, subjects, organizations, to the other elements of the concep-
EGT begins with social systems the- and so on. The structure, components, tual worlds narrated in governance
ory, post-structuralism, and new insti- and functioning of each individual ele- (Duineveld & Van Assche, 2011;
tutional economics (Van Assche, Beunen, ment, as well as the relationship among Duineveld, Van Assche, & Beunen,
early decision making, through the plan- mainly through face-to-face interviews kilometers, including 1.88 square kilo-
ning, construction, operation, and post- and supplemented by telephone con- meters in Pudong and 1.4 square kilome-
development stages. The interviewees versations and emails. The details of the ters in Puxi. The entire Expo park hosted
were intensively involved with the proj- interviewees are shown in Table 1. 2.3 million square meters of newly
ect decisions, organizational planning, built and renovated buildings, includ-
and policy-making processes, and their The Case of World Expo ing almost every type of construction
jobs covered a wide range of areas, such 2010 China project—from permanent and tempo-
as program management, zone develop- Case Background, Performance, rary pavilions, to tunnels, piers, bridges,
ment, and project management of Expo and Heritage parks, and municipalities—all reflecting
landmark buildings such as the China Open from 1 May 2010 to 31 October a theme of “Better City, Better Life.”
pavilion. All interviewees had a deep 2010, the World Expo 2010 China was Before the Expo opening on 1 May 2010,
understanding of the project governance located at the center of Shanghai and the entire construction and commis-
and organizational evolution of the along the two banks of the Huangpu sioning were finished two months earlier
Expo. The interviews were conducted River, covering an area of 3.28 square than the planned schedule (Hu, 2011),
reached 73 million, far more than the number in the 2005 emergency, transportation, and by World Expo Bureau, with the core functions and tasks to
Japanese Aichi Expo (46 million). volunteer organization, exhibitors, and command and coordinate all operations, security, logistics,
visitor services. and services within the park
—Officially formed “Guidelines for Expo facility security
operations”
Post- 2010.11– “According to overall strategic planning considering How to transfer and continue the —The Shanghai municipal government approved the
development Shanghai city and the layout of the Huangpu River heritage of Expo, how to achieve establishment of the Expo Development Company.
development, through the construction, operation during the sustainable development, how to —Established the “World Expo 2010 China Site Post-
Expo and post-development after the event, the Expo park become another “drive engine” for Development Leading Group”
area will become another city landmark in Shanghai, with Shanghai in future development, and
the function of modern civilization, international cultural how to become a new landmark in
exchanges, and business services center, to become the Shanghai.
model of redeveloping mega urban centers.” On March
2011, the after-Expo planning was completed and went to
announcement and public hearing.
Table 2: Backgrounds, challenges, and organizational strategies during the life cycle stages of the World Expo 2010 China.
ing these stages can be analyzed in six in Figure 1; generally, it applied a multi- tasks. All of the above forms and strate-
aspects according to the PESTLE (Politi- layer governance structure and a verti- gies were practiced in the Expo gover-
cal, Economic, Sociological, Technologi- cally integrated organization to managing nance. However, the complexity of the
cal, Legal, and Environmental) model the entire event. The governance struc- Expo constantly changed and largely
(Burt, Wright, Bradfield, Cairns, & Van ture gradually changed from a two-tier surpassed expectations; accordingly,
Der Heijden, 2006). The analysis showed government-orientated structure (both therefore, the governance structure
that the greater the government and the central government and the Shanghai and strategy needed to be dynamically
financial support, the smaller the pres- government) during the bidding stages, to adjusted to the changes from both inter-
sure to achieve the project targets. From a three-tier structure during the prepara- nal and external contexts.
the political aspect, although supported tion stages, and then to a two-tier struc- Figure 2 illustrates the evolution
by the government during all stages, the ture during the Expo post-development and changes of the departments in the
political support actually declined with stages, in order to effectively deal with the World Expo Bureau from its inception
time, gradually transmitting from central complexity of the project and dynamics until the end. Along with the increase in
governance-led, to local government-led, of project environment with high adapt- tasks, the number of departments also
to enterprise-led. From an economic per- ability (Chi, Ruuska, Levitt, Ahola, & Artto, increased accordingly. Sudden changes
spective, compared to the strong govern- 2011; Duit & Galaz, 2008; Weyer, Adelt, &, in number occurred in three particular
ment financial support received during the Hoffmann, 2015; Ruuska, Ahola, Artto, stages, mainly in the Expo inception
early stages of bidding, preparation, and Locatelli, & Mancini, 2011). period (stage 1), the preparation period
operation, the Expo post- development that demanded large-size construction
lacked direct administration funding and • The Central Government (stage 2), and the preparation periods
mostly depended on market-oriented From the aspect of governance func- during the Expo’s opening ceremony
enterprises and operation mechanisms. tion, the central government focused (stage 3).
Therefore, the post-development com- mainly on overall leadership, decision
pany faced high pressure on the corporate making on major issues (such as law- • Quasi-Government
financing capacity and “had to primarily making, top-level appointments) and Quasi-governmental agencies, such as
depend on land sales to fund new project the coordination related to national the Expo Construction Headquarters,
development” (Interviewee 10). From the and international scopes. The Shanghai usually have a close relationship with
technological aspect, during the prepara- government was primarily concerned the state-owned enterprises, and can
tion stage, there was enormous pressure with decision making on the median- apply an integrated team model that
to finish the construction of exhibition level issues and specific deployments, can effectively improve program man-
pavilions and infrastructures in a short leadership, and coordination at the agement capacity (Chi, Ruuska, Levitt,
period with high quality; during the municipal level; quasi-governmental Ahola, & Artto, 2011; Hu, Chan, & Le,
operation stage, the greatest challenges temporary agencies, such as the “World 2014). According to interviewee 2 and
lie in security, emergency response, and Expo Bureau” and the “Expo Construc- interviewee 3, “we sent two or three mem-
management. From a legal perspec- tion Headquarters,” were in charge of bers to each project, let them be the spiri-
tive, the Expo post-development lacked the preparation, organization, opera- tual leader in that project, and then we
strong government-supported policies tion, and coordination for mega local recruited professional engineering and
compared to the bidding, preparation, events. Wherein the quasi-governmen- management teams to form as one project
and operation stages. From an environ- tal temporary agency is the common team. We consciously preferred to tender
mental perspective, the adjustment was organizational model in China to imple- state-owned large enterprises with good
much more radical during the stages of ment mega-events and megaprojects, management skills and capabilities in the
preparation and post-development of such as the 2008 Beijing Olympic Games bidding process. Given that other qualifi-
the Expo. Among these aspects, stron- and the 2012 Guangzhou Asian Games, cations are similar, we tilted our selection
ger support from political and economic in which similar institutions were also to large or medium sized state-owned
aspects meant more resources (such as established. The construction head- enterprises with considerable manage-
goods, organizations, and subsidies) were quarters (“Zhihuibu” in Chinese) was ment experience” (Hu, 2011). Another
obtained and mobilized to realize the typical of quasi-governmental tempo- interviewee recalled the original of the
project target. rary agencies commonly used by gov- Expo Construction Headquarters as fol-
ernment in MEPs with high progress lows, “since the project schedule was very
The Structure, Composition, and pressure and complex coordination. tight during the early stage, the World
Evolution of Governance Configuration The involved enterprises were respon- Expo Bureau and government leaders
The governance framework evolution of sible for the implementation of specific were already aware that the sole entity
the World Expo 2010 China is summarized operations, activities, and functional (Expo Land Company) was too weak
Naonal
decision-making
level (Naonal Bid commiee
Bid commiee World
World Expo
Expo 2010
2010 China
China Organizing
Organizing Commiee
Commiee
and Internaonal
scope)
Governments
Municipal
Level 1
Leading
Leading group
group World
WorldExpo
Expo2010
2010
government China
decision-making Chinasite
site
World Expo2010 China
World Expo2010 China Execuve
Execuve Commiee
Commiee Follow-up
Follow-up
level development
Shanghai city Bid
Bid working
working office
office developmentleading
leading
group
group
Scope
Organizaon
Level 2
implementaon
scope) Expo
Expo construcon
construcon headquarters
headquarters Expo
Expo operaon
operaon headquarters
headquarters
Office
Office Other
Other Big
Big Facilies
Facilies Operaon
Operaon
(ten
(ten investors
investors municipals
municipals and
and commander
commander Expo
Expo development
development groupgroup
programs/
programs/ (five
(five (six
(six environmental
environmental center
center (Expo
(Expo site
site follow-up
follow-up
Large Porolio,
projects
projects programs/
programs/ programs/
programs/ safeguards
safeguards development
development leading
leading
state-owned program/
including
including projects
projects projects
projects group)
group)
enterprises funcon level
permanent
permanent including
including including
including üInvestment
üInvestment company
company
or temporary (sub-project/
Level 3
pavilions,
pavilions, Wenguang
Wenguang tunnels,
tunnels, with
with 11
11 plates,
plates, including
including
project sub-funcon
parks
parksand
and group,
group, subways,
subways, hotels, commercials,
hotels, commercials,
organizaon scope)
so
soon)
on) self-built
self-built electricity)
electricity) UBPA, and so
UBPA, and so on on
Evolutionary Governance for Mega-Event Projects (MEPs)
pavilions)
pavilions)
Figure 1: The governance framework of World Expo 2010 China during the life cycle stages.
Stage 1 Stage 2 Stage 3 Revoca
on of
Expo Bureau
(2003.10-2004.9) (2006.1-2007.6) (2009.3-2010.1)
Gain of Set-up Registra
on Construc
on Set-up of Expo Set-up of Expo
host of Expo report start-up of construc
on Opening development
right Bureau approved Expo site headquarters of Expo group
12 10 7 9 12 4 1 4 6 8 11 3 4 6 10 1 11 12 3 4 5 7 9 1011 1 34 5 3 7
2003 2004 2005 2006 2007 2008 2009 2010 2011
7 1 1 1 5 1 1 6 2 2 1 1 1 2 7 1 3 3 Total
1 3 2 1 cumula
ve
Number number of
1 1 2 1 1 1 1 1
of sectors sectors
increased 2 1
53
50
47
46
38
36
35
33 34
29
27
Number of 1st level sectors increased
Number of 2nd level sectors increased
17 18
Number of sectors renamed 16
Number of sectors canceled 11
8 9 10
7
Figure 2: The evolutionary changes of the World Expo 2010 China Bureau during different periods.
to carry out the task of the Expo site’s the transition process from the con- regulating system also changed accord-
construction management. The World struction phase to Expo post-develop- ingly. Hence, there was a strong and
Expo Bureau had to also be involved ment, “several staff members from the dynamic interaction between manage-
in the coordination and management existing construction team were pro- ment entities and management systems.
of construction projects, studied experi- moted to higher positions in the post-
ences of mature construction modes from development team” (Interviewee 5). Dependence, Evolutionary Path,
existing major projects in Shanghai, and In the design of the management and Governance Techniques
established the ‘Expo Construction Head- system, the balance of powers and res Before the World Expo, China already
quarters’ to organize and coordinate all ponsibilities for project leaders were had experience in hosting large-scale
available resources that could be mobi- considered. For example, during the international events, such as the 2001
lized from various entities.” (Hu, 2011) construction stage, “strengthening the APEC Conference in Shanghai, the Kun-
project-oriented structure is one typi- ming World Horticultural Exposition
• Roles and Responsibilities cal organizational pattern formed in in 1999, and the 2008 Beijing Olym-
For the appointment of important per- practice, so that the project team had pic Games. The learning mechanism
sonnel, the government first considered full authority to implement the project. from the prior events enabled China to
the position and level of authority in Because, if a project team does not have follow established governance models
order to facilitate the organization and any command ability, project coordina- for subsequent mega-events. Once one
coordination. For example, the “World tion can be very difficult. Therefore, we certain model was adopted, the forma-
Expo 2010 China Organizing Commit- decentralized a certain level of power to tion of path dependence also occurred.
tee” and the “World Expo 2010 China the project team, such as right of approval, Such path dependence existed in the
Executive Committee” both consisted of decisions, command, fund allocation and governance structure and compo-
highly ranked officers from the national design changes.” (Hu, 2011) sitions evolving during the stages of
and Shanghai governments. Second, the bid, preparation, operation, and post-
appointment also considered profes- • Transitional Formalities development. The path dependence
sional knowledge and experience. For During the transitional process of gov- included strong support by the gov-
example, the executive deputy com- ernance, formal regulations, institu- ernment, continuation of the multi-
mander for the Expo Construction tions, and policies provided important layered governance model and system,
Headquarters was previously one of the support and guaranteed the stability retention of top management teams
senior officers of the Shanghai Hous- and evolution of the multi-layered Expo in different stages, and so on. At the
ing and Urban and Rural Construction governance. In China, centralization same time, the governance configura-
Management Commission. He also had and an elitist governance model are tion, such as the appointment of top
senior leadership experience in both institutional features; therefore, the management teams, the establishment
large-scale state-owned construction styles of leaders largely decided and of “project-oriented state-owned enter-
enterprises and had held professional influenced the formation and evolu- prises,” and the relations between gov-
project manager positions in several tion of governance mechanisms, reflect- ernment and private entities, was also
mega construction projects in Shang- ing the changes of the development affected by various kinds of external
hai. Third, the requirements of leader- process and political environment. For factors, such as China’s institutional
ship (i.e., their power and knowledge) example, during the construction stage, systems, the strategic influence of the
were also changed in various stages Headquarters published the “World Expo, doctrines and regulations, and
when the project contexts, tasks, and Expo 2010 China Construction Program current engineering markets. Central-
goals changed. During this process, key Outline,” which included 43 regulations ized governance and an elite manage-
personnel had to support the existing and procedures as the supreme guide to ment model also imposed “a personal
situation with slight adjustments when regulate construction management and management style” on the management
necessary. For example, the director relevant stakeholders’ behaviors (Inter- systems and culture and led to the cre-
and committee members of the World viewee 3; Hu, 2011). In accordance with ation of a team culture. “The leadership
Expo 2010 China Organizing Committee this outline, individual projects devel- and style of individual Expo officers did
and World Expo 2010 China Executive oped specific procedures and work have differences, but for the senior lead-
Committee remained stable through instructions. It is worth noting that due ership officers, they paid more empha-
the bidding, preparation, and operation to the differences in project manage- sis on results than management styles”
stages. The leaders and work groups of ment teams and project characteristics, (Interviewee 1). Intensive dynamic
bid preparation had a smooth transition project operational procedures and interactions and interdependences
to the operational stage, and later to the guidelines were different. When the existed among actors, institutions, gov-
stage of Expo post-development. During local governance structure adjusted, the ernance structures, and project culture.
9.00%
%
100.00%
8.00% Total
7.00%
80.00%
6.00%
5.00% 60.00%
4.00%
40.00%
3.00%
2.00%
20.00%
1.00%
0.00% 0.00%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4
~2007 2008 2009 2010
Note: The figure aggregates actual investment from year 2007 (including the years before 2007) to 2010, and more than 90% of the projects were
completed during the period 2008.1–2010.4. The “percentage (%)” refers to the ratio of investment for an individual month, whereas the “Total” means
accumulated percentage.
informal control (Li, Lu, Kwak, Le, & members, re-integrating a new be thoroughly understood before ana-
He, 2011; Hu, 2011). Five specific gover- team culture for the Expo.” How- lyzing the governance (Beunen, Van
nance techniques used in the Expo are ever, there were some lessons Assche, & Duineveld, 2015). As for a
described as follows: learned during the Expo process, temporary project, no project is an iso-
such as “the unbalanced focus on lated island. The project analysis must
1. Key decisions and policies were the back-end stage, ignoring the link to its historical and organizational
issued by the central government front-end stage, resulted in seri- context to understand elements such as
to reflect the importance and ous consequences for Expo con- uncertainty, complexity, rate of change,
authority of the project. struction. So, I hope we will learn allocation of authority, the availabil-
2. Thematic conferences were used from it and avoid such lessons in ity of resources, institutional aspects,
for coordination and decision future projects.” (Hu, 2011). and the external or macro environment
making at the government level. (Engwall, 2003; Ruuska, Ahola, Artto,
For example, the World Expo The evolutionary analysis of gover- Locatelli, & Manici, 2011). In terms of
Organizing Committee held ten nance elements in the above case can governance, all elements of governance
conferences before the opening be summarized in Table 3. Governance are contingent (Beunen, Van Assche, &
of the Expo. contexts, goals, configurations, and tech- Duineveld, 2015), so it is necessary to
3. Institutional systems were an niques have been drastically changed deal with different issues at different
important guarantee for the during the life cycles of MEPs. Among stages of the project life cycle (Miller
governance of World Expo 2010 four stages, the preparation and opera- & Hobbs, 2005). Unlike small and
China. These systems were also tion stages are the most complicated medium-sized projects, MEPs, such as
continuously forming, evolving, and their associated configurations and the World Expo 2010 China—especially
and updating during the entire techniques are also diversified. With the during the preparation stage—are
Expo. For example, the “Regis- decrease of the external pressure and planned under national or urban stra-
tration Report” and more than the complexity of the contexts, the gov- tegic systems as a manifestation of
150 types of systems and proce- ernment gradually withdraws its control strong and distinct political, economic,
dures ensured the efficiency and and the means of governance tends to and social symbols. MEPs often entail
standardization of the success- be simpler. At the bidding stage, the tar- numerous and complex stakeholders
ful construction and operation get is under high pressure, so the project and are influenced by multiple factors,
of EXPO 2010 (Interviewee 3; receives a high level of government sup- including national and urban policies,
Hu, 2011). “Some systems also port, whereas the means of governance legal systems, institutions, and culture.
needed to break the existing in this stage is relatively simple since As suggested by the result of a PESTLE
framework, such as the human the stage goal is straightforward. Thus, analysis of the World Expo 2010 China
resource system, so the employees in general, the governance elements of case, each project contextual variable
were quickly promoted in Expo” MEPs and the relationships between was observed to change, slightly or
(Interviewee 1). them reflect the dynamically evolution- fundamentally, over the course of the
4. Third-party audits also played a ary process—from simple to complex entire project. Meanwhile, the external
vital role in the improvement of and then to simple, but the governance political system has a significant impact
transparency so as to avoid any configurations and techniques must be on the top-level governance and the
corruption in the Expo. flexibly adapted to contexts and goals. long-term strategic planning of an MEP.
5. A healthy and active project cul- One example is that the government
ture also ensured the success of Discussion election of Five-Year Plans on Urban
the Expo. Hu (2011) said “There In this section, we expand the dis- Development significantly influenced
are 300 full-time employees in the cussion of EGT in the Expo case in the post-event development.
Expo Construction Headquarters, three dimensions: the evolution of MEP A target is not only a task that a
but only three of them officially contexts and characteristics, the evolu- project needs to complete, it also con-
belong to the World Expo Bureau. tion of governance configuration, and stitutes the context of the project. For
All of the other people are tem- the evolution paths of MEP governance MEPs, targets are always dependent,
porarily sourced from different and technology evaluative, and more diverse than typi-
companies and agencies. So as a cal, normal sized projects. The targets
new department itself, it has no The Evolution of MEP Contexts and of MEPs include project time, invest-
culture. We have to create the cul- Characteristics ment, quality, and safety, as well as rel-
ture based on fragmented pieces The context and environment in evant social impacts, public satisfaction,
brought in by individual staff which the governance exists have to and environmental sustainability. Goal
of Actors
PESTLE
of Actors
Means
Responsibilities
Power, Roles, and
Scale
Composition
Dualistic
Pressure
Structure
Interdependence
Diversities
Transformation
Complexity of
Political Support
Stage
Bidding Government Two-tier Officers Administrative
↓
Preparation Government 1 Three-tier Officers 1 Administrative
Quasi-Government Professionals ↓ 1 Market
1 State-owned
Enterprises
Operation Government 1 Three-tier Officers 1 Administrative
Quasi-Government Professionals ↓ 1 Market
Post- Government 1 Two-tier Quasi-Officers 1 Market
development State-owned Professionals
Enterprises
dependency happens when the visions, governance structure may change into projects were promised more power
narratives, ideologies, or discourses— an embedded structure and become and faster promotion to achieve the
formally institutionalized by policies, more complex. Even holding a multi- project goals. Knowledge and power
plans, or laws—affect the co-evolution layer structure constant, the core orga- not only serve and highlight actors, but
of actors and institutions, whereas shift- nization may also constantly change, they also create them (Beunen, Van
ing targets of governance lead to new such as in the Expo case in which the Assche, & Duineveld, 2015). During the
institutions and discursive shifts of the World Expo Bureau conducted organi- post-development stage of the Expo,
positions of the actors (Beunen, Van Ass- zational adjustments 19 times in order however, due to the lack of govern-
che, & Duineveld, 2015). The changes of to meet the needs of project gover- ment support, the owners’ resource
prioritized targets often become one of nance and management. mobilization powers were weakened,
the fundamental reasons for the evolu- Actors, institutions, power, and and the relationship between the own-
tion of governance. For example, the knowledge are important factors that ers and these companies returned to a
project schedule target during the prep- constitute governance configuration typical state of conflict and competi-
aration stages was prioritized in order to and are constantly co-evolving. Accord- tion. According to EGT, the interplay
ensure on-time completion of the infra- ing to EGT (Beunen, Van Assche, & among power, knowledge, actors, and
structure. This prioritized target also Duineveld, 2015), actors and institu- institutions is a meta configuration,
became the biggest concern and source tions depend on each other for their which serves as a fundamental keystone
of pressure for the project, resulting in survival and continuous transforma- to help deepen our understanding of
the most complex governance structure. tion. Formal and informal actions play evolutionary governance (Beunen, Van
However, once entering the post-devel- a role in the evolution of governance. Assche, & Duineveld, 2015).
opment stage, the project completion Once actors are in place and functional,
target was no longer the main focus of they guide the formation and trans- The Evolution Path of MEP Governance
the government, thus support from the formation of specialized institutions, and Technology
government was drastically reduced. whereas the existence of institutions Three different sets of dependencies can
influences the formation and transfor- be distinguished: path dependencies,
The Evolution of Governance mation of actors. Due to the temporary interdependencies, and goal dependen-
Configuration nature of projects, the complexity of cies. In other words, the path taken,
As for MEPs, governance is a multi-level organizations, and challenge of targets, the previous forms of governance, its
phenomenon that facilitates the inter- actors in the Expo case at different lev- elements, its structures, and its orga-
actions between organizational actors els of authority applied various levels nization, have a wide range of effects.
within and across organizational levels of systems and policies to regulate the Regarding governance evolution, inter-
(Biesenthal & Wilden, 2014), and facili- behavior of the project participants, and dependencies refer to the relationships
tates different functions such as coor- even broke the rules or the scope of between actors, between actors and
dination, regulation, and operational the existing system to form proprie- institutions, between discourses and
control (Weyer, Adelt, & Hoffmann, tary institutions or policies. In a certain physical realities, or between differ-
2015). According to this case analysis, context, a system will also be quickly ent functional systems, such as politics
a multi-level structure is influenced by formed to mobilize market resources and economics (Beunen & Van Assche,
the political system and project com- and meet extreme high-level pressure 2013). Together, the different sets of
plexity. In the World Expo 2010 China, a targets. The concurrent appointment of dependencies create rigidities in gov-
mixed governance structure of vertical senior government officers is good for ernance paths and influence the evolu-
integration and an elite management the formation of special systems. Mean- tion path of governance (Van Assche,
system was adopted, supported by a while, the participating units or people 2014; Beunen, Van Assche, & Duineveld,
multi-layer structure, which included with the appropriate government back- 2015). Based on the observation of the
government and quasi-government- ground and professional expertise are Expo case political system, we know
owned companies. A similar result was often appointed to high-level authority that the experience of similar projects
also observed in other case studies roles or positions. In the case of the and early-stage governance mecha-
(Chi, Ruuska, Levitt, Ahola, & Artto, Expo, large state-owned enterprises had nisms design often affect the trajectory
2011). However, at different stages of more project opportunities than other of later changes, such as organizational
the project, the multi-layer structure types of companies, and their positions structure, personnel, and systems and
changes. The boundaries between were even higher than the contractual procedures. Meanwhile, the continuity
levels will blur, and more subordi- relationship and the owner-oriented and stability of core management per-
nate governance departments may be integrated management team. Certain sonnel and top management teams at
derived under one upper level. So, the project managers in charge of iconic different stages help to form a dynamic
been figured out from the study, this is Environment and Planning A, 45(6), on Housing Rights & Evictions (COHRE),
just the beginning of conducting fur- 1285–1301. Geneva, Switzerland
ther research on megaproject case stud- Beunen, R., Van Assche, K., & CPGPRC. (2006). The Central People’s
ies, theoretical studies, and empirical Duineveld, M. (2015). Evolutionary Government of the People’s Republic of
studies, providing a variety of research governance theory. Berlin, Germany: China (CPGPRC). Registration report for
opportunities for future studies. Springer. the World Expo 2010 China Shanghai,
Biesenthal, C., & Wilden, R. (2014). 2006.
Acknowledgments
Multi-level project governance: Trends Davies, A., Dodgson, M., & Gann, D.
This research is partially supported
and opportunities. International Journal (2016). Dynamic capabilities in complex
by the National Science Foundation of
of Project Management, 32(8), 1291–1308. projects: The case of London Heathrow
China(GrantNumbers:71471136,71390523,
Boukas, N., Ziakas, V., & Boustras, G. Terminal 5. Project Management Journal,
71501142) and Shanghai Pujiang Pro-
(2013). Olympic legacy and cultural 47(2), 26–46.
gram (Grant Number: 17PJC101,
16PJ1432400). tourism: Exploring the facets of Athens’ Deng, Y., Poon, S. W., & Chan, E. H. W.
Olympic heritage. International Journal (2016). Planning mega-event built
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role ambiguity and development in rural Design and methods (5th ed.). Los Ministry of Education. He is on the editorial board of
Khorezm, Uzbekistan. Internationales Angeles, CA: SAGE. the Journal of Management in Engineering (ASCE) and
Asien Forum. International Quarterly Yu, L., Wang, C., & Seo, J. (2012). Mega serves as a frequent reviewer for over 30 international
for Asian Studies. Arnold Bergsträsser event and destination brand: 2010 research journals. Dr. Lu holds a PhD in Construction
Institut. 43(3/4), 179 Shanghai Expo. International Journal of Management (2012) and a BE in Civil Engineering
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governance theory: An introduction. Dr. Liang Ma is a Lecturer in the School of
Heidelberg, Germany: Springer. Professor Yongkui Li graduated with a bachelor’s Management at Shanghai University. He worked as
Van Assche, K., Beunen, R., Jacobs, J., degree from Harbin Institute of Technology in 2000 a supervisor at World Expo 2010 China Coordination
& Teampau, P. (2011). Crossing trails and in 2007 obtained his PhD degree from Tongji Bureau from 2007 to 2010, was a visiting scholar
in the marshes: Rigidity and flexibility University in China. He was a visiting scholar at at Stanford University, Palo Alto, California,
in the governance of the Danube Delta. Virginia Tech from 2015 to 2016 and is currently USA, from 2010 to 2012. Dr. Ma holds a PhD in
Journal of Environmental Planning and a professor in the Department of Construction Construction Management (2014) and a BE in Civil
Management, 54(8), 997–1018. Management and Real Estate at Tongji University Engineering (2006) both from Tongji University,
School of Economics and Management. He is an Shanghai. His primary research interests include
Varrel, A., & Kennedy, L. (2011). Mega-
Associate Director of the Research Institute of large complex project management, organizational
events and megaprojects. Policy Brief,
Complex Engineering and Management and founder behavior, public–private partnership and building
No. 3. Retrieved from http://www
of Megaprojects Case Study and Data Center information modeling. He can be contacted at
.chance2sustain.eu/30.0.html.
in China (http://www.mpcsc.org/) and is also a tongjimaliang@163.com.
Voß, J. P. (1998). Governance of
member of the Chartered Institute of Building, Royal
transformation in electricity systems:
Institution of Chartered Surveyors, and International Dr. Young Hoon Kwak is a faculty member in the
Problems, context conditions, and the
Project Management Association (level B). His Department of Decision Sciences at The George
potential of evolutionary governance for
research focuses on megaproject management, Washington University School of Business (GWSB) in
shaping sustainable transformation in
complex project management, organizational Washington, DC, USA. He currently holds a visiting
Germany and the Netherlands. Retrieved
behavior and networks, building information professor position at the Faculty of Economics and
from https://pdfs.semanticscholar.org/
modeling, and intelligent construction and facility Business Administration at Ghent University, Ghent,
16f7/1443bc3e0ce258a20172ac3d35dc43
management. He is a member of the editorial boards Belgium.
0d6df6.pdf.
of Project Management Research and Practice Dr. Kwak is Editor-in-Chief of the Journal of
Wang, H., Xiaokaiti, M., Zhou, Y., and Frontiers of Engineering Management, and a Management in Engineering (ASCE) and serves
Yang, Y., Liu, Y., & Zhao, R. (2012). guest editor of ASCE Journal of Management in as a specialty editor for the Case Studies section
Mega-events and city branding: A Engineering. He has provided consulting services of the Journal of Construction Engineering and
case study of Shanghai World Expo for dozens of megaprojects in China. He can be Management (ASCE). He is on the editorial board for
2010. Journal of US-China Public contacted at lyk@tongji.edu.cn. IEEE Transactions on Engineering Management (IEEE),
Administration, 9(11), 1283–1293. International Journal of Project Management (Elsevier),
Weyer, J., Adelt, F., & Hoffmann, S. Dr. Yujie Lu (corresponding author) is an Assistant International Journal of Managing Projects in Business
(2015). Governance of complex systems: Professor in the Department of Building, School of (Emerald), and Journal of Construction Engineering
A multi-level model. Soziologisches Design and Environment at the National University and Project Management (KICEM). He has consulted
Arbeitspapier Nr. 42/2015, Dortmund: of Singapore. His primary research interests include and lectured worldwide with various organizations and
Wirtschafts- und Sozialwissenschaftliche complex project management and megaproject presented and published over one hundred articles
Fakultät, Technische Universität management, sustainability in infrastructure, and in journals, books, book chapters, magazines, and
Dortmund construction projects. conference proceedings. Please visit http://blogs.gwu
Wharton School of the University of Dr. Lu has leaded and participated in over 10 .edu/kwak/publications/ for full publication lists.
Pennsylvania (2010). Expo 2010’s legacy: research projects sponsored by Singapore, the United Dr. Kwak’s primary research interests include
What did Shanghai gain? Retrieved from States, and Chinese funding agencies; published more project, program, and portfolio management;
http://knowledge.wharton.upenn.edu/ than 80 academic journal articles, reports, conference management of technology; and engineering,
article/expo-2010s-legacy-what-did- proceedings and newspaper reports; and has won over construction, and infrastructure management. He can
shanghai-gain/. 12 research awards including the National Science be contacted at kwak@gwu.edu.
Appendix 2: Key organizations and their roles in the World Expo 2010 China.
Name of Organization Roles and Responsibilities
World Expo 2010 China Bid Committee The main role is to lead the Expo bid affairs, coordinate the key issues toward World Expo 2010
China between CPC Central Committee, relevant units of State Council, and Shanghai city.
World Expo 2010 China Bid Leading Group The main role is to lead the Chinese coordination and facilitation work of World Expo 2010
application.
World Expo 2010 China Bid Working Office The main role is to coordinate and facilitate the detail work of World Expo 2010 application as the
daily office of World Expo 2010 China Bid Leading Group.
World Expo 2010 China Organizing Committee The main role is to coordinate the formulation and implementation of relevant laws, regulations
and policies, facilitate exhibitors participant affairs of regional and central authorities, promote
the implementation of the Chinese government to invite governments and relevant international
organizations to participate; make resolutions and decisions on major issues during the
preparation and operation stages of World Expo 2010 China, determine the general representative
of Expo.
World Expo 2010 China Executive Committee The main role is to implement the relevant resolutions and decisions of the organizing committee
and report to the organizing committee about the situation on a regular basis, to reflect the
problems in the preparation process, to guide and coordinate the work of the relevant agencies of
Shanghai city, and to undertake tasks assigned by the Organizing Committee.
World Expo 2010 China Coordination Bureau The main role is to implement the daily work for World Expo 2010 China Executive Committee
(abbreviated as World Expo Bureau in this article) on policy-making and coordination, to implement the daily organization and management of
the preparation of World Expo 2010 China, to organize and coordinate activities related to
international cooperation and communication of the World Expo 2010 China, and to manage the
operation work of World Expo 2010 China.
World Expo 2010 China Construction The main role is to coordinate the departments of Shanghai city and to support and facilitate the
Headquarters (abbreviated as Expo Construction implementation of World Expo 2010 China construction projects.
Headquarters in this article)
World Expo 2010 China Construction The main role is to implement the unified organization work of World Expo 2010 China
Headquarters Office (abbreviated as Expo construction work, as well as the unified administration work of World Expo 2010 China
Construction Headquarters Office in this article) construction project management.
Expo Land Company The main role is to raise investment of land development funds except for the government side
and to relocate the existing residents and enterprises within the Expo park.
Expo Development Company The main role is to perform the construction and management of the post-development of Expo
park.
World Expo 2010 China Site Post-development The main role is to lead the coordination and facilitation work of the post-development of Expo.
Leading Group