Pergamon 0956-5221 (95)00020-8 Scand. J. Mgmt, Vol. 11, No. 4, pp. 377-394. 1995 Copyright © 1995 Elsevier Science Ltd Printed in Great Britain. All rights reserved 0956 5221/95 $9.50 + 0.00 DESIGN AND IMPLEMENTATION IN MAJOR INVESTMENTS A PROJECT NETWORK APPROACH BO HELLGREN University of Linkgping, Sweden and Warwick Business School, U.K. TORBJORN STJERNBERG Stockholm School of Economics, Sweden and Agder College, Norway (First received April 1994; accepted in revised form April 1995) Abstract -- Many investments in modern society take place in project networks. This article proposes a project network approach for describing the design and implementation processes in major investments. The design process of major projects is "fuzzy", takes a long time, and is hard to capture. The implementation process, on the other hand, takes place in "semi-hierarchical" networks, and is easier to plan and control. The actor that controls the transformation of the political design process into the implementation process has a unique strategic position in the dynamically changing network. This means linking processes that are characterized by separate logic and network structures. Data from processes of design and implementation of three shopping malls illustrate the theoretical framework. Keywords; Projects, networks, major investments, processes. NETWORKS AND PROJECTS Studies of collaborative arrangements are usually of long-term inter-organizational solutions, such as mergers and acquisitions, joint ventures, equity partnership, collaborative research pacts, etc. (e.g., Harrigan, 1986; Powell, 1987; Borys and Jemison, 1989). Furthermore, it is long-term arrangements that are relevant when relationships in industrial markets are studied from a "market as network" perspective (e.g., Johansson and Mattsson, 1987; H~igg and Johansson, 1988). But there are few theories and models for understanding, describing and prescribing the activities of inter-organizational networks from a project perspective -- from a short-term perspective. This is notable because so much investment in modern society takes place in proiect networks. These kinds of networks play an important role in the "creative destruction" that is necessary in order to make resources available for development (Schumpeter, 1950). But the driving force in this case is not the individual entrepreneur (Schumpeter, 1935; Mintzberg, 1973: Peterson, 1981; Stevenson and Gumpert, 1985; Gartner, 1985). Rather, the major force behind the transformation of an economy -- according to a project perspective -- consists of proiect networks that are created and recreated for different purposes. The entrepreneurs are individuals and organizations working in different forms of liaisons with other individuals and organizations. These liaisons are the focus of this article. The purpose is to elaborate a conceptual framework useful for understanding and analyzing inter-organizational relations in designing and implementing major investments. We raise two sets of questions related to major investments. 377